Investment Management Services
Our fees will be discussed with you and disclosed to you in writing prior to commencement of our working relationship. Fees charged by custodians, mutual fund companies, exchange traded fund companies are separate from our fee.
It is recommended that clients have a written financial plan as a guide for the management of their investment account(s). However, a written financial plan is not required to initiate investment management services through our firm.
Our advisory fee is based on the market value of the assets under management and is calculated as follows:
Account Value Annual Advisory Fee:
Advisory fee is billed on a quarterly basis, paid in advance. Account value (excluding cash in the account) based on the account value on the last business day of the prior month.
Assets Under Management Annual Fee
$15,000 - $1,000,000 1.0%
$1,000,001 - $4,000,000 0.50%
$4,000,001 - and above 0.30%
The advisory fee is a blended fee and is calculated by assessing the percentage rates using the predefined levels of assets as shown in the above chart and applying the fee to the account value as of the last day of the previous quarter resulting in a combined weighted fee. Cash in the account is excluded from the calculation. For example, an account valued at $2,000,000 would pay an effective fee of 0.75% with the annual fee of
$15,000. The quarterly fee is determined by the following calculation: ($1,000,000 x 1.00%) + ($1,000,000 x 0.50%) ÷ 4 = $3,750. No increase in the annual fee shall be effective without agreement from the client by signing a new agreement or amendment to their current advisory agreement. Advisory fees for investment management are directly debited from client accounts, with client’s signed consent. Accounts initiated or terminated during a calendar quarter will be charged a pro-rated fee based on the amount of time remaining in the billing period. An account may be terminated with written notice at least 15 calendar days in advance. Upon termination of the account, any unearned fee will be refunded to the client. Fees are negotiable. Lower fees for comparable services may be obtained from other sources.
Financial Planning (Project Based)
Clients may choose to limit the scope of financial planning to one or more areas of their financial life and may not desire comprehensive financial planning. Financial planning services are separate from investment account management services. Each service is billed separately. Financial planning clients are not required to also have investment account management with our firm. Financial Planning will generally be offered on a fixed fee basis. The fixed fee will be agreed upon before the start of any work. The fixed fee can range between $500.00 and $10,000.00 based on complexity and needs of the client. Also, the approximate length of time for the project based financial planning with be estimated at initiation of the engagement. The fee is negotiable. If a fixed fee program is chosen, half of the fee is due at the beginning of process and the remainder is due at completion of work, however, our firm will not bill an amount above $500.00, more than 6 months in advance. Fees for this service may be paid by electronic funds transfer or check. Upon termination, the half of the fee that is due up front will be non-refundable, along with work already performed, and no further fees will be charged.
Financial Planning fee is an hourly rate of $250.00 per hour. The fee may be negotiable in certain cases and is due at the completion of the engagement. In the event of early termination by client, any fees for the hours already worked will be due. Fees for this service may be paid by electronic funds transfer or check. At the beginning of the engagement, an estimate of the number of hours needed to complete the service will be provided to the client and notated on the financial planning agreement. A deposit of one-half the estimated total fee, not to exceed a deposit of $500.00, will be requested, prior to commencement of the work.
Comprehensive Financial Planning
This service involves working one-on-one with a planner over an extended period of time. By paying a monthly retainer, clients get continuous access to a planner who will work with them to design their plan.
The planner will monitor the plan, recommend any changes and ensure the plan is up to date. Upon desiring a comprehensive plan, a client will be taken through establishing their goals and values around money. They will be required to provide information to help complete the following areas of analysis: net worth, cash flow, insurance, credit scores/reports, employee benefit, retirement planning, insurance, investments, college planning and estate planning. Once the client’s information is reviewed, their plan will be built and analyzed, and then the findings, analysis and potential changes to their current situation will be reviewed with the client. Clients subscribing to this service will receive a written (paper) or an electronic report, providing the client with a detailed financial plan designed to achieve his or her stated financial goals and objectives. If a follow up meeting is required, we will meet at the client's convenience. The plan and the client’s financial situation and goals will be monitored throughout the year and follow-up phone calls and emails will be made to the client to confirm that any agreed upon action steps have been carried out. On an annual basis there will be a full review of this plan to ensure its accuracy and ongoing appropriateness. Any needed updates will be implemented at that time.
Comprehensive financial planning involves working with other professionals such as CPA’s, tax attorneys and estate and trust attorneys. Comprehensive Financial Planning consists of a retainer fee of $500.00 and an ongoing fee that is paid monthly, in advance, at the rate of $99.00-$600.00 per month. The fee may be negotiable in certain cases. Comprehensive financial planning is billed separately from investment account management. Financial planning clients are not required to also have investment account management with our firm. If client elects to have both investment management services and comprehensive financial planning services, client shall not be billed twice for any “overlap” in the efforts and tasks needed to provide both services. Fees for this service may be paid by electronic funds transfer or check. This service may be terminated with 15-day notice.
Asset management with comprehensive financial planning
Assets under management Annual fee as a percentage
$15,000 - $1,000,000 0.70%
$1,000,001 - $4,000,000 0.40%
$4,000,001 - and above 0.25%