What you Pay

The “Potential Value Added” amounts are not guaranteed, may not be achieved, and are unlikely to be maximized in any given year.

Item values are derived from Vanguard’s Advisor Alpha framework, as presented in its 2025 study. These values represent a range of potential outcomes that may be achieved through the effective implementation of specific financial planning and investment management strategies. Clients should not expect to realize the full value of every strategy listed, as applicability and effectiveness vary based on individual circumstances. For example, Tax-Loss Harvesting is not applicable to tax-advantaged accounts (such as IRAs); therefore, clients with only tax-advantaged accounts would realize $0 in value for that strategy. Similarly, other strategies may be less relevant depending on a client’s financial situation, account types, or behavior.

The Vanguard study is based on the premise that many investors struggle to implement these strategies effectively on their own. However, some clients may be capable of executing some or all of these strategies independently. In such cases, Saratoga may not be able to add incremental value through those specific strategies.

It is also important to note that the value added by these strategies is not necessarily realized in any given year. Some benefits, particularly those related to behavioral coaching, may be episodic and most impactful during periods of market stress or volatility.

Vanguard estimates that advisors following wealth management best practices can add ‘about 3%, or greater’ in net value through the consistent application of these strategies. However, this figure is not guaranteed, and it is not tied to a specific time horizon or fee structure. Vanguard does not explicitly subtract advisory fees from this estimate, though it suggests that the value added may exceed the typical cost of advice when best practices are followed.