Simpler
Solutions, by Design ®
Simpler
Solutions, by Design ®
mABC Investment Advisors charges a fixed fee for broad-based Financial Planning Services which generally ranges between $1,000 and $3,000 and is negotiable depending upon the complexity and scope of the plan, the Client's financial situation, and the Client's objectives. Modular and Consultative financial planning will be offered on an hourly basis at a negotiable rate of $150 per hour. An estimate of the total cost will be determined at the start of the advisory relationship. In some circumstances the cost/time could potentially exceed the initial estimate. In such cases, the mABC Investment Advisors will notify the Client and may request that the Client approve the additional fee. A deposit of up to 50%, but no more that $500, of the total estimated fee will be due in advance. The remainder will be due upon completion of the services rendered if the financial planning services are completed within six months of receipt of the deposit. Should completion extend beyond six months, the Client will be billed at the end of each quarter for services rendered. Under no circumstance will the Firm require prepayment of a fee more than six months in advance and in excess of $500.
In its discretion, mABC Investment Advisors may waive or offset a portion of the financial planning fee should the Client choose to implement the plan through mABC Investment Advisors' asset management services. The Firm reserves the right to determine whether the financial planning and/or consulting fees will be waived or offset by a portion of advisory fees earned in the implementation process. The scope and complexity of the financial planning services that were provided will determine the amount of the waiver or offset of the fee.
The annual fee for Asset Management Services is billed quarterly in arrears based on the asset value on the last day of the calendar quarter. Fees will be assessed pro rata in the event the portfolio management agreement is executed at any time other than the first day of a calendar quarter or funds are deposited or withdrawn from the account during the quarter. On an annualized basis, the Firm's fees for portfolio management services, subject to negotiation, are based on the following scaled fee schedule:
Assets Under Management Annualized Fee
Under $500,000 1.0%
$500,000 to $749,999 0.9%
$750,000 to $1,499,999 0.8%
$1,500,000 to $2,999,999 0.7%
$3,000,000 to $4,999,999 0.6%
$5,000,000 and above 0.5%
For example, for an account that has a value of $650,000 at the end of a quarter, the quarterly fee will be calculated as follows:
$500,000 x 1.0% + $150,000 x 0.9% x (number of days in the quarter / number of days in the year)
or $6,350 x
number of days in the quarter / number of days in the year)or $1583.15, assuming a 91 day quarter
At its discretion, mABC Investment Advisors may allow accounts of members of the same household to be aggregated for purposes of determining the advisory fee. For example, the Firm may allow such aggregation where the Firm services accounts on behalf of minor children of current Clients, individual and joint accounts for a spouse, and other types of related accounts. This consolidation practice is designed to allow Clients the benefit of an increased asset total, which could potentially cause the accounts to be assessed a reduced advisory fee based on the discounts available in mABC Investment Advisors' previously stated scaled fee schedule.
Payment of management fees will be made by the custodian holding the Clients' funds and securities provided that the following requirements are met:
The Client provides written authorization permitting the fees to be paid directly from the Client's account held by the custodian. The Firm does not have access to Client funds for payment of fees without Client consent in writing.
The Firm sends the Client an invoice showing the amount of the fee, the value of the Client's assets on which the fee is based, and the specific manner in which the fee was calculated. The advisor sends the custodian an invoice showing the amount of the fee to be deducted from the account.
The custodian agrees to send the Client a statement, at least quarterly, indicating all amounts disbursed from the account including the amount of the advisory fee paid directly to the Firm.