Item 5. Fees and Compensation
Kaplan Wealth Management offers its services on a fee basis, which include hourly and/or fixed fees, as
well as fees based upon assets under management or advisement. Additionally, certain of Kaplan
Wealth Management’s Supervised Persons, in their individual capacities, offer securities brokerage
services and insurance products under a separate commission arrangement. Please be advised that
under such arrangement Supervised Persons have an incentive to recommend investment products
based on compensation received, rather than on a client’s needs.
Financial Planning Fees
Kaplan Wealth Management charges either a negotiable hourly and/or fixed fee to provide clients with
stand-alone financial planning services. These fees are largely determined by the scope and complexity
of the agreed upon services and range from $150 to $250 on an hourly basis and up to $2,000 on a fixed
fee basis.
The specific terms and fee structure are negotiated in advance and set forth in the Agreement with
Kaplan Wealth Management. Generally, Kaplan Wealth Management requires one-half of the financial
planning fee payable upon execution of the Agreement and the balance due at the time the financial plan
is delivered or the underlying services are rendered to completion. If the client engages Kaplan Wealth
Management for additional investment advisory services, Kaplan Wealth Management may offset all or a
portion of its fees for those services based upon the amount paid for the financial planning and/or
consulting services. In the event the Agreement is terminated, the fee for the final billing period is
prorated through the effective date of the termination and the unearned portion is refunded to the client,
as appropriate.
Wealth Management Fees
Kaplan Wealth Management provides its comprehensive wealth management services for an annual fee
based upon the amount of the assets under its management.
For assets managed in the Program, the annual fee varies based on the following fee schedule:
PORTFOLIO VALUE ANNUAL FEE
Up to $750,000 1.25%
$750,001 - $2,000,000 0.75%
$2,000,001 - $5,000,000 0.50%
Above $5,000,000 Negotiable
The annual fee is prorated and charged quarterly, in advance, based upon the market value of the assets
being managed by Kaplan Wealth Management on the last day of the previous billing quarter. For assets
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Kaplan Wealth Management, Inc. Disclosure Brochure
managed though the Program, the Program’s fee is inclusive of all financial planning expenses,
brokerage commissions, transaction fees, and other related costs, as explained in depth in the Wrap
Brochure. In the event the Agreement is terminated, the fee for the final billing period is prorated as
described in the Wrap Brochure. Refunds for fees paid in advance will be returned within fourteen days to
the client by a deposit back into the client’s account.
For assets managed outside of the Program in GWP Portfolios, the annual fee is 0.50%. The annual fee
is prorated and charged quarterly, in advance, based upon the market value of the assets being managed
by Kaplan Wealth Management on the last day of the previous billing quarter. Clients outside of the
Program in GWP Portfolios will also incur charges imposed by third parties, as set forth below.
Fee Discretion
Kaplan Wealth Management, in its sole discretion, may negotiate to charge a lesser fee based upon
certain criteria, such as anticipated future earning capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, pre-existing client relationship,
account retention and pro bono activities.
Additional Fees and Expenses
In general, in addition to the advisory fees paid to Kaplan Wealth Management, clients outside of the
Program may also incur certain charges imposed by other third parties, such as broker-dealers,
custodians, trust companies, banks and other financial institutions (collectively “Financial Institutions”).
These additional charges may include securities brokerage commissions, transaction fees, custodial fees,
fees charged by the Independent Managers, charges imposed directly by a mutual fund or ETF in a
client’s account, as disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
fees and other fees and taxes on brokerage accounts and securities transactions. The Firm’s brokerage
practices are described at length in Item 12, below.
With regard to assets managed outside of the Program in GWP Portfolios specifically, LPL charges a
program fee of 0.35%. In the future, an additional strategist fee may apply. However, LPL Research
currently serves as the sole portfolio strategist and does not charge a fee for its services. FutureAdvisor
is compensated directly by LPL for its services, including the Algorithm and related software, through an
annual sub-advisory fee (tiered based on assets under management by FutureAdvisor, at a rate ranging
from 0.10% to 0.17%). As each asset tier is reached, LPL’s share of the compensation shall increase
and clients will not benefit from such asset tiers.
Fee Debit
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