Author Topic: Any issues with new fees?  (Read 14331 times)

Natalie-OBX

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Any issues with new fees?
« on: July 30, 2015, 01:53:35 PM »
Hello All,

I received my first quarterly fee statement with the new fee structure and it was almost $27 for just under $30,000 invested.  I was previously told by a rep from NSR that only new money invested through them would incur the fee.  I reached out to them on Monday, and they responded immediately that they were looking into it.  I haven't heard anything since.

Anyone else having any issues with billing?

--Natalie

Natalie-OBX

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Re: Any issues with new fees?
« Reply #1 on: July 30, 2015, 04:39:36 PM »
This has been resolved.  I was previously given incorrect information about only future investments incurring fees.

The $27 bill was correct.

--Natalie

lascott

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Re: Any issues with new fees?
« Reply #2 on: July 30, 2015, 05:03:58 PM »
Interesting. I believe that BlueVestment and LendingRobot only charge on investments that they made and not on YOUR previous investments. 

NSR Invest FAQ: https://www.nsrinvest.com/faq


LendingRobot FAQ


BlueVestment FAQ


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« Last Edit: August 25, 2015, 05:22:13 PM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

BritishJim

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Re: Any issues with new fees?
« Reply #3 on: July 31, 2015, 07:59:39 PM »
When I first checked the “Management Fees” page, it reflected my actual note & cash balance, not the balance of notes NSR purchased on my behalf.  I sent an e-mail to them about that and was corrected the next day.  Now it reflects what notes NSR bought on my behalf.

If I understand this correctly, the fee shown is over a 3 month period so if your total fee is $27 then you’re actually paying $9 a month. To me, that seems quite reasonable as I would assume to be charged a fee for a service and not expect it for free.  Paying for this service helps insure they will be staying around.  I’ve also looked at the other third party providers and the fee NSR charges is in line with the others.

I will admit, I was really enjoying not paying for this service and tried my best to be invisible but I knew that one day they would catch up with me.


lascott

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Re: Any issues with new fees?
« Reply #4 on: July 31, 2015, 08:10:01 PM »
When I first checked the “Management Fees” page, it reflected my actual note & cash balance, not the balance of notes NSR purchased on my behalf.  I sent an e-mail to them about that and was corrected the next day.  Now it reflects what notes NSR bought on my behalf.

If I understand this correctly, the fee shown is over a 3 month period so if your total fee is $27 then you’re actually paying $9 a month. To me, that seems quite reasonable as I would assume to be charged a fee for a service and not expect it for free.  Paying for this service helps insure they will be staying around.  I’ve also looked at the other third party providers and the fee NSR charges is in line with the others.

I will admit, I was really enjoying not paying for this service and tried my best to be invisible but I knew that one day they would catch up with me.

You make good points.

The fee breakdown for each major service is different.

BlueVestment the more you invest then the cheaper the fees are:
0.00% for $0-$1000 EACH MONTH, then
0.45% for $1000-$5000, then
0.30%, for $5000-$20000, then
0.20% for $20000+

LendingRobot:
0.00% for $0-$5000**, then
0.45% for $5000+**
** if you use a referral link then you get $10000 instead of $5000 and the persons link you use gets an extra $5000

NSR Invest:
a) Fully Managed accounts
1/4 per quarter
0.45% Conservative Strategy (5% target net return);
0.60% Balanced Strategy (7% target net return);
0.90% Assertive Strategy (9% target net return)

b) Self directed accounts (comparable to LR and BV):
0.00% for $0-$20000, then
0.45% for $20000+
« Last Edit: August 28, 2015, 09:48:00 AM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Natalie-OBX

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Re: Any issues with new fees?
« Reply #5 on: August 21, 2015, 02:18:59 PM »
I have no issues paying a reasonable fee for what I consider to be a valuable service.

I don't agree with paying a fee based on my account value, which is how NSR is charging.  My balance is just under $30,000, and I think they are responsible for investing a good portion of that for me (around 25k).  I checked, and they are only charging me based on the loans they invested in for me.

The kicker is that their service was supposed to be free during that time.  Actually that's not true.  Since they are now charging me for the entire account value (invested by them) since I began investing with them, their service was never really free at all.  Also, by continuing to charge me based the the account value, they are charging me for the same loans multiple times.  I am sure they are decent people that perhaps didn't entirely consider the effects of their billing methods.  I don't anticipate staying with them long term; however, I have not yet looked at what my other options are.

I think it's more fair to pay based on the investments that they made for me that month.  I also use BlueVestment, and they charge this way.

--Natalie

Emmanuel

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Re: Any issues with new fees?
« Reply #6 on: August 21, 2015, 05:41:16 PM »
Correct, LendingRobot only charges for the investments we manage (plus available cash).

The first $5,000 ($10,000 if you've been invited) are also managed for free.

The reason we decided to go that way is that we have many users who want to 'try it' while they already invested quite a bit of money on their own already.
We're confident over time, they'll rely 100% on LendingRobot to manage their investments, anyhow  :)

AnilG

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Re: Any issues with new fees?
« Reply #7 on: August 21, 2015, 06:19:21 PM »
Fees of most sites are based on total Account/Portfolio values managed by the sites. I believe Interest Radar and my site PeerCube are the only ones charging Flat Fee (independent of portfolio/account value). Paying 0.45% of portfolio value every year as fees adds up very quickly as accounts get larger.
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Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

Fred93

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Re: Any issues with new fees?
« Reply #8 on: August 22, 2015, 12:20:00 AM »
LendingRobot only charges for the investments we manage (plus available cash).

What is the logic behind charging for available cash, which (by definition) you have not invested for the client?

lascott

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Re: Any issues with new fees?
« Reply #9 on: August 22, 2015, 08:14:14 AM »
LendingRobot only charges for the investments we manage (plus available cash).

What is the logic behind charging for available cash, which (by definition) you have not invested for the client?
I inquired about that in the past.  Only seemed to be a moderate issue if you are newly investing with a large amount. You can just avoid some fees initially. You can just manually set your reserve cash limit. ie. have $10,000 in cash and set the limit to $9,000 until you invest $800 or whatever.
Here is the answer I received.
Quote
We are operating as a registered investment adviser (RIA). SEC regulations for RIAs specify that
a. RIA can only charge based on assets under management (not transactions)
b. Fee structure should be such that the RIA should have no incentive to execute more transactions

Initially we didn't want to charge on idle cash at all, only on remaining loan principal; the legal advice we received was that we have to, otherwise the SEC would deem that we're incentivized to execute more transactions to increase our fees - therefore our fee should also cover the idle cash.
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Emmanuel

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Re: Any issues with new fees?
« Reply #10 on: August 22, 2015, 04:22:55 PM »
LendingRobot only charges for the investments we manage (plus available cash).

What is the logic behind charging for available cash, which (by definition) you have not invested for the client?

For regulatory reason, as an Investment Advisor we have to be dis-interested if we submit orders for you or not. If we were to charge only on managed principal, we would have an incentive to deploy as much as your cash as possible, as fast as possible. The fact that we charge management fees on your cash the same way than managed principal allows us to remain 'neutral'.

That being said, it's true cash shall be kept as very low levels, anyhow. Plus our clients can specify a 'minimum cash balance' to leave untouched on their account, that we do not take into account.

sumtuck

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Re: Any issues with new fees?
« Reply #11 on: August 25, 2015, 01:09:19 PM »
We recently simplified our billing procedures to enhance the client experience.  During the conversion, a few of our legacy users were impacted and we are working closely with those users to ensure they have a seamless experience moving forward. 

The current management fees structure is a common question so I appreciate the opportunity to clarify our billing policy. NSR Invest bills quarterly on the average daily value of the capital we manage (which includes notes invested in by NSR Platform and idle cash). We are passionate about making p2p accessible to all, so for self directed users, we waive fees for users with under $20,000 deployed. 

Please feel free to call me any time should you have additional questions or concerns. 

Best,

Summer
NSR Invest
720-259-0455
Summer Tucker
NSR Invest
www.nsrinvest.com

sumtuck

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Re: Any issues with new fees?
« Reply #12 on: August 25, 2015, 03:24:11 PM »
"NSR Invest: 1/4 per quarter
0.45% Conservative Strategy (5% target net return);
0.60% Balanced Strategy (7% target net return);
0.90% Assertive Strategy (9% target net return)"

The pricing listed above is actually for our Fully Managed accounts, which is not a service offered by Blue Vestment or Lending Robot.  Our self directed accounts, which is more comparable to LR and BV, are billed quarterly at 0.45% on the average daily value of the capital we manage (which includes notes invested in by NSR Platform and idle cash).

Summer Tucker
NSR Invest
www.nsrinvest.com

lascott

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Re: Any issues with new fees?
« Reply #13 on: August 25, 2015, 04:48:28 PM »
"NSR Invest: 1/4 per quarter
0.45% Conservative Strategy (5% target net return);
0.60% Balanced Strategy (7% target net return);
0.90% Assertive Strategy (9% target net return)"

The pricing listed above is actually for our Fully Managed accounts, which is not a service offered by Blue Vestment or Lending Robot.  Our self directed accounts, which is more comparable to LR and BV, are billed quarterly at 0.45% on the average daily value of the capital we manage (which includes notes invested in by NSR Platform and idle cash).
Thanks for the clarification. I updated my post so as not to mislead anyone which I certainly wasn't trying to do.
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y