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Wealth Management Service
This service includes:
· Development of a Comprehensive Financial Plan.
· Ongoing support to the Client for the Comprehensive Financial Plan including:
a) Implementation and maintenance of the Investment Plan.
b) Coordination with the Client’s insurance professionals, tax advisors, and attorneys to facilitate the achievement of the Client’s insurance, tax, and estate planning objectives.
· Reports of investment account balances, holdings, performance, portfolio income, and realized gains & losses.
a) Reporting frequency is quarterly for the first 4 full calendar quarters of the engagement and then semiannually after that. For example: a new Client as of 3/1 would receive quarterly reports as of 6/30, 9/30, 12/31, and 3/31, and semiannual reports (6/30 and 12/31) thereafter.
b) Client has option to maintain quarterly reports after the first full year for a higher fee (see below).
The components of the Comprehensive Financial Plan are (as applicable to the Client):
1. Statement and review of current financial position.
2. Cash flow and debt management plan.
3. Investment Plan:
a) Establish quantified financial goals (retirement, education, etc.)
b) Develop an Investment Policy Statement detailing the Client’s investment philosophy, risk tolerance, and target asset allocation.
c) Provide specific investment recommendations for all accounts.
4. Risk management review:
a) Life insurance.
b) Health and disability insurance.
c) Property and casualty insurance.
d) Excess liability insurance.
e) Long-term care insurance.
5. Income tax review.
6. Estate plan review.
7. Notes:
a) The Advisor cannot offer accounting or specific tax advice. The income tax review is intended to identify planning opportunities in conjunction with the Comprehensive Financial Plan. Any suggestions made should be discussed with a tax advisor prior to implementation.
b) The Advisor is not an attorney and cannot offer legal advice or prepare legal documents. The estate plan review is intended to help identify gaps and/or planning opportunities only. Any suggestions made should be discussed with an attorney prior to implementation
c) The Comprehensive Financial Plan may be delivered in various formats (email, spreadsheet, PDF, hard copy, etc) and in separate components (e.g. Investment Plan, life insurance review, tax review, etc). Wealth Management Clients will not receive a consolidated printed copy of the Comprehensive Financial Plan unless they specifically request it.
The Wealth Management Service fee consists of two parts:
1. A flat financial planning fee of $5000 per year, billed quarterly in advance, for the first 4 full calendar quarters (prorated for any partial quarters prior to the first full calendar quarter). After the first 4 full calendar quarters the fee is reduced to $3500 per year, billed quarterly in advance, unless the client elects to maintain a quarterly reporting frequency in which case the $5000 per year financial planning fee is maintained.
2. A variable investment management fee of 0.25% of the Investment Portfolio per year, billed quarterly in advance. The initial Investment Portfolio value is calculated as of the month end immediately prior to the Client’s signing date of the agreement, and then recalculated each December 31st thereafter.
· For example: The first year annual Wealth Management Service fee for a Client with a $750,000 Investment Portfolio would be $6875 ($5000 + 0.25% of $750,000). The second year annual Wealth Management Service fee (assuming the same $750,000 Investment Portfolio) would be $5375 ($3500 + 0.25% of $750,000).
· The Investment Portfolio includes: savings / checking accounts, money market accounts, savings bonds, certificates of deposit, individual securities, mutual funds, annuities, insurance cash values, vested value of stock options and restricted stock, Individual Retirement Accounts (IRA’s), and defined contribution retirement plans.
· The minimum term of agreement for the Wealth Management Service is four full calendar quarters.
Investment Advisory Service
This service includes:
· Development of an Investment Plan.
· Ongoing support to the Client for the implementation and maintenance of the Investment Plan.
· Reports of investment account balances, holdings, performance, portfolio income, and realized gains & losses.
a) Reporting frequency is quarterly for the first 4 full calendar quarters of the engagement and then semiannually after that. For example: a new Client as of 3/1 would receive quarterly reports as of 6/30, 9/30, 12/31, and 3/31, and semiannual reports (6/30 and 12/31) thereafter.
b) Client has option to maintain quarterly reports after the first full year for a higher fee (see below).
The components of the Investment Plan are:
1. Establish quantified financial goals (retirement, education, etc.)
2. Develop an Investment Policy Statement detailing the Client’s investment philosophy, risk tolerance, and target asset allocation.
3. Provide specific investment recommendations for all accounts.
The Investment Advisory Service fee consists of two parts:
1. A flat financial planning fee of $3500 per year, billed quarterly in advance, for the first 4 full calendar quarters (prorated for any partial quarters prior to the first full calendar quarter). After the first 4 full calendar quarters the fee is reduced to $2500 per year, billed quarterly in advance, unless the client elects to maintain a quarterly reporting frequency in which case the $3500 per year financial planning fee is maintained.
2. A variable investment management fee of 0.25% of the Investment Portfolio per year, billed quarterly in advance. The initial Investment Portfolio value is calculated as of the month end immediately prior to the Client’s signing date of the agreement, and then recalculated each December 31st thereafter.
· For example: The first year annual Investment Advisory Service fee for a Client with a $750,000 Investment Portfolio would be $5375 ($3500 + 0.25% of $750,000). The second year annual Investment Advisory Service fee (assuming the same $750,000 Investment Portfolio) would be $3875 ($2500 + 0.25% of $750,000).
· The Investment Portfolio includes: savings / checking accounts, money market accounts, savings bonds, certificates of deposit, individual securities, mutual funds, annuities, insurance cash values, vested value of stock options and restricted stock, Individual Retirement Accounts (IRA’s), and defined contribution retirement plans.
· The minimum term of agreement for the Investment Advisory Service is four full calendar quarters.
Financial Consulting Service
This is an hourly / project service providing:
· Advice on specific financial issues and/or,
· Coaching or validation in addressing a particular financial topic.
Fee:
$4000 Comprehensive Financial Plan.
$2500 Investment Plan.
$240/hour or negotiated project fee.
The Financial Consulting Service does not include ongoing monitoring of the Client’s personal circumstances, financial objectives, or plan implementation (including investment accounts the Advisor may have access to) to make sure the recommendations given at the time of the engagement remain appropriate for the Client. Clients seeking ongoing monitoring of their personal circumstances, financial objectives, and plan implementation should consider the Wealth Management Service or the Investment Advisory Service.
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