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We offer a unique fee structure for our Personal Wealth Management Service. We have built our fee-structure to most accurately reflect the services that we provide for you.
Our annual fee has two parts:
The first part is a fixed annual base fee covers personal financial planning services in a similar manner as hourly fees or a retainer fee, since personal financial planning services are a function of family and stage of life circumstances and not the size of your investment portfolio. Furthermore, the fixed annual base fee covers the fixed costs of investment management which are basically similar regardless of portfolio size.
For example, regardless of the size of your investment portfolio, we prepare and maintain an Investment Policy Statement and provide monthly, quarterly and annual reports. Our “cost” to provide these is basically the same whether you have a $2,000,000 or a $4,000,000 portfolio.
The second part of our Personal Wealth Management fee is a percentage of the market
value of your investment portfolio under our management. This is structured on a sliding
scale to reflect the economy of scale of managing larger portfolios. Very importantly, due
to the fixed annual base fee the percentage of market value fee is lower than industry
averages. Our unique Base Fee and Market Value Fee structure makes our fees especially
attractive on portfolios over $1,000,000 in value. The minimum annual fee for Personal Wealth
Management is $7,200 a year so it is designed for clients with investable portfolio market
values of $750,000 or more.
For “young accumulators”, which we define as clients from age 35 to 55 who are saving a substantial percentage of their income, we may waive the minimum annual fee with the expectation that the portfolio will reach the $750,000 target in a reasonable time.
Initial Financial Planning and Portfolio Design Fee
We charge a separate one-time Initial Financial Planning and Portfolio Design fee. This is a flat fee customized depending on your situation and typically does not exceed what the equivalent of what the monthly fee would have been for the time period involved. For our Personal Wealth Management Clients, we typically spend one to three months on the initial work. This Initial Financial Planning and Portfolio Design work includes data and account gathering, account transfers, a portfolio proposal and implementation. We do not start charging our Personal Wealth Management fee, which is charged monthly in arrears as 1/12th of the annual fee, until the Initial Financial Planning and Portfolio Design work is completed.
Our Financial Planning Consultation is offered on a custom-designed fee based on complexity and value-added. The fee is typically a flat fee or hourly rate. The minimum fee is $2,400 and as much as we would like to charge $10,000 for some of our plans, the fee typically runs from $2,400 to $5,000.
Our service models and fee structure probably have you very excited now. Please contact us for an analysis of your situation and specific fee schedule information.
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