“. . . this was such a good experience I wish I would have done it sooner . . . I can't wait to share it with someone else.”
When I meet with prospective new clients, not only are they interviewing me, but I am interviewing them. If I feel as if what they are looking for does not match up with what I do best—I will refer them to someone else. There needs to be a mutual feeling of value in our relationship, so that the time spent together is worthwhile for everyone.
Fees for Service:
As an Investment Adviser Representative of Commonwealth, I am paid in three ways:
- I am paid a flat fee for financial planning services for one-year; then, I work on an ongoing basis at a reduced fee (typically 50 to 75 percent of the first-year fee) to continue bringing value as financial situations change. Over the past decade, these fees have ranged from $3,000 to $20,000, depending upon the time and complexity of the individual situation.
- I am paid a management fee for investing clients' assets. Clients are not charged commissions. Our investment platform allows us to utilize “load” mutual funds (with the load waived), so in effect all mutual funds can be treated the same from a fee standpoint. Our relationship with our broker/dealer Commonwealth Financial Network® allows us to utilize almost any mutual fund, exchange traded fund (ETF), individual bond, and so forth, available.
Our fee schedule for daily monitoring, monthly determination of ETF rotation, quarterly meetings, and annual reviews and balancing is as follows:
| $500,000-$999,999 |
1.25% |
| $1,000,000-$2,999,999 |
1.00% |
| $3,000,000-$4,999,999 |
0.80% |
| $5,000,000-$7,499,999 |
0.65% |
| $7,500,000-$9,999,999 |
0.55% |
| $10,000,000+ |
0.50% |
For multiple family accounts, fees are determined in aggregate. In addition, fees are reduced (from the above) by Academy Wealth Management (crediting back to you any 12b-1 fees that are charged by mutual funds within your portfolio). This is noted on your quarterly investment summary statement.
- If you utilize me to assist in the implementation of your plan, I will locate companies, on your behalf, that have financial products (such as insurance, REITs, or annuities) to complete your strategy. We do not have an incentive to use any particular company. We compare and contrast various companies, provide you with an executive summary, and save you time in the process. We would earn a commission or fee for that service, just like anyone else; however, we feel we know your situation best.
I have not included this above; however,we are compensated another way—through your active goodwill. There is no money that changes hands here; however, I consider this the most meaningful source of compensation. Once you can say, “I can't believe what an exceptional job you've done,” then I will ask for your help in identifying and introducing me to other people who may benefit from our work.
All of our clients come through referrals because we believe that our time is better spent meeting with you and managing your accounts than marketing for new business. Your ongoing goodwill allows us to do this. |
