Fees and Compensation
Description
BALDRIGE ASSET MANAGEMENT LLC bases its fees on a percentage of assets under
management, hourly charges, or fixed fees.
Some retainer agreements may be priced based on the complexity of work,
especially when asset management is not the most significant part of the
relationship.
Financial plans are priced according to the degree of complexity associated with the
client’s situation. Fees are negotiable.
Management Fee Billing
Investment management fees are billed quarterly, in advance, meaning that we
invoice you before the three-month billing period has begun. Fees are usually
deducted from designated client account(s) to facilitate fee collection fourteen days
after billing. The client must consent in advance to direct debiting of their
investment account.
The annual Advisory Service Agreement fee is based on a percentage of the
investable assets and is based on the total amount of assets under management
according to the following schedule:
Minimum account: $1,000,000
Fees are ½ of 1% or 0.50% annually; next $5,000,000 to $9,999,999 fees are .35%
$10,000,000 and above, fees are 0.25%
Current client relationships may exist where the fees are higher or lower than the
fee schedule above. BALDRIGE ASSET MANAGEMENT LLC, in its sole discretion, may
waive its minimum and/or charge a lesser investment advisory fee based upon
certain criteria (e.g., historical relationship, type of assets, anticipated future earning
capacity, anticipated future additional assets, dollar amounts of assets to be
managed, related accounts, account composition, negotiations with clients, etc.).
Hourly Planning Engagements
BALDRIGE ASSET MANAGEMENT LLC provides hourly planning services for clients
who need advice on a limited scope of work. The hourly invoiced rate for those
services is $300-$500 depending on complexity.
Fees for financial plans are billed 50% of estimated costs in advance, with the
balance due upon delivery of the financial plan.
Baldrige Asset Management LLC
Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual
funds, stocks, and exchange-traded funds. These are fees levied directly by the
custodians and are subject to change. The transaction fees are reflected on the
monthly account statements issued by custodians.
Expense Ratios
Mutual funds and exchange-traded funds generally charge a management fee for
their services as investment managers. The management fee is called an expense
ratio. For example, an expense ratio of 0.10 means that the mutual fund company
charges 0.1% for their services. These fees are in addition to the fees paid by you to
BALDRIGE ASSET MANAGEMENT LLC.
Performance figures quoted by mutual fund companies and exchange-traded funds
in various publications are after their fees have been deducted.
Past Due Accounts and Termination of Agreement
BALDRIGE ASSET MANAGEMENT LLC reserves the right to stop work on any account
that is more than 30 days overdue. In addition, BALDRIGE ASSET MANAGEMENT LLC
reserves the right to terminate any financial planning engagement where a client
has willfully concealed or has refused to provide pertinent information about
financial situations when necessary and appropriate, in BALDRIGE ASSET
MANAGEMENT LLC’s judgment, to providing proper financial advice. Any unused
portion of fees collected in advance will be refunded within 30 days.