Option 1:
Flat Fee Wealth Management
Flat Annual Fee Calculated by the Following Formula:
0.25% of Net Worth (exclusive of personal residence value in excess of $750k and any equity in closely held businesses)
+
1% of your “True Income” as defined by AGI + any Tax-exempt Interest + Deductible Retirement Plan or IRA Contributions
The minimum monthly fee is $250/month.
Option 2:
Asset Management Only
| Portfolio market value, as of last day of quarter | Annual Investment Advisory Fee rate |
| $0 – $1,000,000 | Up to 1.00% |
| $1,000,001 – $2,000,000 | Up to 0.75% |
| Above $2,000,000 | Up to 0.50% |
Example: Joe Client
- Investment Assets- (after-tax accounts and 401(k) of $1,000,000 ($1 million used in calculation)
- Personal Residence worth $2 million but $1 million mortgage ($750k used in calculation)
- Bank Accounts – $200k ($200k used in calculation)
- Rental Property- Property Value $500k but $250k mortgage ($250k used in calucaiton)
- Small Business worth $800k (excluded in Calculation)
- Total Net Worth used in Calculation: $2.2 million
- AGI: $300k
- Tax-Exempt Interest: $11k
- Deductible Retirement Contirbutions: $19k
- “True” Income used in Calculation: $330k
- Net Worth ($2.2 million) x .25% = $5,500
- “True” Income ($330k) x 1% = $3,300
- Total Annualized Fee= $8,800
- Paid either Monthly = $733.33 or Quarterly = $2,200