Item 5: Fees & Compensation
Compensation for Our Advisory Services
Asset Management:
The maximum annual fee charged for this service will not exceed 1.30%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro-
rata basis monthly in advance based on the value of the account(s) on the last day of the previous
month. Fees are negotiable and will be deducted from client account(s). Adjustments will be made
for deposits and withdrawals exceeding $10,000 during the month. Our firm bills on cash or cash
equivalents unless indicated otherwise in writing. In rare cases, our firm will agree to directly invoice.
As part of this process, Clients understand the following:
a) The client’s independent custodian sends statements at least quarterly showing the market
values for each security included in the Assets and all account disbursements, including the
amount of the advisory fees paid to our firm;
b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
firm will send an invoice directly to the custodian; and
c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
information provided in our statement with those from the qualified custodian will be
included.
ADV Part 2A – Firm Brochure Page 6 Austin Private Wealth, LLC
For the sub-advisory services rendered to our clients, our firm compensates third party investment
advisory firms or individual advisors a percentage of the overall investment advisory fee charged by
our firm. The advisory fee paid for this service shall not exceed 1.20%. A portion of the total advisory
fee not to exceed our stated maximum will be paid to our firm. Therefore, clients should be aware
that this means the client’s total maximum annual advisory fee for this service may be 2.50%.
However, the third party money managers we recommend will not directly charge you a higher fee
than they would have charged without us introducing you to them. Further, the third party money
managers establish and maintain their own separate billing processes over which we have no control.
Therefore, the total fee the client will ultimately pay for this service as well as how the third party
money manager will bill the client will be outlined in the executed agreement between the client and
the third party money manager as well as their separate disclosure documents.
Financial Planning & Consulting:
Our firm charges on a flat fee basis for financial planning and consulting services. The total estimated
fee, as well as the ultimate fee charged, is based on the scope and complexity of our engagement with
the client. Flat fees will not exceed $100,000. The fee-paying arrangements will be determined on a
case-by-case basis and will be detailed in the signed consulting agreement. Our firm will not require
a retainer exceeding $1,200 when services cannot be rendered within 6 months.
Retirement Plan Consulting:
Our Retirement Plan Consulting services are billed based on the percentage of Plan assets under
management or a flat quarterly fee. The fee is based on the scope and complexity of our engagement
with the client. Fees based on a percentage of managed Plan assets will not exceed 1.00%. The fee-
paying arrangements will be determined on a case-by-case basis and will be detailed in the signed
consulting agreement. The quarterly flat fee will not exceed $25,000.
Other Types of Fees & Expenses
Non-Wrap Clients will incur transaction fees for trades executed by their chosen custodian, via
individual transaction charges.
These transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Charles Schwab & Co., Inc. does not charge transaction fees for U.S. listed equities and
exchange traded funds. Clients may also pay holdings charges imposed by the chosen custodian for
certain investments, charges imposed directly by a mutual fund, index fund, or exchange traded fund,
which shall be disclosed in the fund’s prospectus (e.g., fund management fees, distribution fees,
surrender charges, variable annuity fees, IRA and qualified retirement plan fees, mark-ups and mark-
downs, spreads paid to market makers, fees for trades executed away from custodian, wire transfer
fees and other fees and taxes on brokerage accounts and securities transactions). Clients may pay
fees relating to certain annuities, term insurance, whole life insurance, variable universal life
insurance, universal life insurance, and long term care insurance that are offered through DPL
Financial Partners, LLC. Our firm does not receive a portion of these fees.
Our firm may also recommend the use of alternative investment funds, which charge additional
management fees and performance-based fees. The specific fees to be assessed shall be detailed in
the applicable fund’s disclosure documents that are provided to Clients.
ADV Part 2A – Firm Brochure Page 7 Austin Private Wealth, LLC
Wrap clients will not incur transaction costs for trades by their chosen custodian. More information
about this can be found in our separate Wrap Fee Program Brochure.
Our firm or third party managers may also recommend the use of alternative investment funds, which
charge additional management fees and performance-based fees. The specific fees to be assessed
shall be detailed in the applicable fund’s disclosure documents that are provided to Clients.
Termination & Refunds
Either party may terminate the advisory agreement signed with our firm for Asset Management
services in writing at any time. Upon notice of termination our firm will process a pro-rata refund of
the unearned portion of the advisory fees charged in advance.
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