Item 5: Fees and Compensation
Fees For Portfolio Management
The annual fee for our individual portfolio management service is charged as a percentage of
assets under management with AMR according to the following blended schedules:
Discretionary Accounts – Starting under $500,000
Assets Under Management Annual Fee
$0 to $499,999 1.25%
$500,000 to $1,999,999 1.00%
$2,000,000 to $4,999,999 0.65%
$5,000,000 and over 0.50%
Therefore, if a client's portfolio management account starts with under $500,000 but is ultimately
valued at $6,000,000, the annual fee would be calculated as follows: ($499,999.99 x 1.25%) +
($1,500,000 x 1.00%) + ($3,000,000 x 0.65%) + ($1,000,000.01 x 0.50%).
Discretionary Accounts – Starting with $500,000 & over &/or Fixed-Income Portfolios
Assets Under Management Annual Fee
$0 to $1,999,999 1.00%
$2,000,000 to $4,999,999 0.65%
$5,000,000 and over 0.50%
Therefore, if a client’s portfolio management account is valued at $6,000,000, the annual fee
would be calculated as follows: ($2,000,000 x 1.00%) + ($3,000,000 x 0.65%) + ($1,000,000 x
0.50%).
Non-Discretionary Accounts
Assets Under Management Annual Fee
$0 to $499,999 1.50%
$500,000 to $1,999,999 1.25%
$2,000,000 to $4,999,999 0.65%
$5,000,000 and over 0.50%
Our annual fee is assessed quarterly, in arrears. This means that clients are charged one-quarter
of the annual fee at the end of each three-month period. The management fee is typically based
upon the average daily value (market value or fair market value in the absence of market value)
of the client's account throughout the preceding quarter. However, as we are unable to obtain
the average daily balance for assets managed within a variable insurance product, the
management fee for such assets is based on their value on the last day of the applicable quarter.
Clients will authorize AMR to have their fee directly debited from their account.
A minimum of $250,000 of assets under management and minimum quarterly fees of $500 for
AMR Bond & Other Fixed Income Portfolios and $625 for Equity & Asset Allocation Portfolios are
required for this service. A starting minimum account size for new stand-alone Non-Discretionary
accounts is $1 million. The minimum fee for stand-alone Non-Discretionary accounts, unless in
conjunction with other Discretionary accounts will be $2,812.50 per quarter. These minimum
account size and minimum fees may be negotiable under certain circumstances. We may group
certain related client accounts for the purposes of achieving this minimum account size and
minimum fee. AMR will ensure that the fee charged will never exceed 3.00% of the client's assets
under management.
At the time we implement the strategy, an AMR Bond Portfolio is a portfolio with at least 90% of
its value comprised of fixed income securities or fixed-income-related securities, such as
individual bonds, bond mutual funds and ETFs, and/or cash equivalents.
Fees For Financial Planning
Fees for our Financial Planning services will generally be charged as follows:
• On an hourly basis, ranging from $200 to $400 per hour; our hourly fee will be determined
based on the nature of the services being provided, the complexity of each client’s
circumstances, and the experience and skill level of the employee(s) of AMR providing the
service.
All fees are agreed upon prior to entering into a contract with the client. We may request a
retainer upon completion of our initial fact-finding session with the client. The balance is due
upon completion of the service.
As an additional service, a client may choose to have us review and update the financial plan
annually or more frequently to adjust it for changes in the client’s financial situation or
investment objectives. The fee for this service will typically be 50% of the fee charged for the
initial preparation of the financial plan.
We reserve the discretion to reduce or waive a client’s Financial Planning fee if the client chooses
to engage us for our Portfolio Management services.
A minimum fee of $2,000 is required for this service. This minimum fee may be negotiable under
certain circumstances.
Fees For Financial Consulting
Fees for our Financial Consulting services will be billed at a rate of $200 to $400 per hour. Our
hourly fee will be determined based on the nature of the services being provided, the complexity
of each client’s circumstances, and the experience and skill level of the employee(s) of AMR
providing the service.
We may request a retainer upon completion of our initial fact-finding session with the client. The
balance is due upon completion of the service.
We reserve the discretion to reduce or waive a client’s Financial Consulting fee if the client
chooses to engage us for our Portfolio Management services.
A minimum fee of $2,000 is required for this service. This minimum fee may be negotiable under
certain circumstances.
Something More Mentoring Subscription-Based Financial Planning
For our subscription-based Financial Planning services, clients will be invoiced a monthly fixed
fee in arrears, for a 12 to 18 month period; at which point, most appropriate services will be
reviewed and evaluated with clients. The fee for subscription-based financial planning services
provides you with access to an advisor for advice on a number of topics, such as, cash flows,
insurance, taxes, retirement needs, investments, estate planning, etc. A full projection, based on
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