Item 5: Fees and Compensation
A. Fees Charged
1. Financial Planning
Financial planning fees can be either hourly or on a fixed fee basis. Our hourly charge is
$600.00 per hour for senior professionals and $125 per hour for junior professionals.
Lower cost staff members will be utilized when appropriate. Fixed fee arrangements
range from $1,000.00 to $56,000.00. Fees are negotiable, and will depend on the
anticipated complexity of your plan.
2. Investment Management
All investment management clients will be required to execute an Investment
Management Agreement that will describe the type of management services to be
provided and the fees, among other items.
Generally, fees vary from 0.00% to 1.50% per annum of the market value of a client’s
assets managed by Beacon Wealth Management. The fee range stated is a guide. Fees
may be higher or lower than this range, based on the nature of the account. Factors
affecting fee percentages include the size of the account, complexity of asset structures,
and other factors.
3. Pooled Investment Vehicles
Fees charged to pooled investment vehicles are as described in the vehicle’s respective
private placement memorandum. The fund’s general partner, in conjunction with Beacon,
may modify or waive the fee arrangement for a given limited partner. Please see the
fund’s private placement memorandum for specific details.
B. Fee Payment
Fees for financial planning will be billed to each client or deducted directly from each client’s
account. Fees for asset management will be deducted directly from each client’s account. The
management fee is paid quarterly, in advance, and the value used for the fee calculation is the
last market day of the previous month. This means that if your annual fee is 1.00%, then each
quarter we will multiply the value of your account by 1.00% then divided by 4 to calculate our fee.
The value used to calculate Beacon Wealth Management’s fee will include any allocation to cash
or cash-like instruments, such as money market funds or accounts, of the client’s investable
assets. Investable cash means cash that is in client account as an asset allocation. Cash that is
not in investable cash is cash that has been identified by the client as designated for a specific
purpose. The value used may also include “legacy” investments, which Beacon considers during
the asset management process, but were not initially purchased by Beacon, but rather by client or
another adviser on client’s behalf. Once the calculation is made, we will instruct your account
custodian to deduct the fee from your account and remit it to Beacon Wealth Management.
C. Other Fees
All fees paid to Beacon Wealth Management for advisory services are separate from the fees and
expenses charged to shareholders of mutual fund shares (in the case of mutual funds), ETFs
(which may include custody fees, transaction fees, commissions and expenses), or by a third
party investment adviser managing the portfolios (in the case of money managers). You will be
responsible for fees including transaction fees for the purchase or sale of a mutual fund or
Exchange Traded Fund, or commissions for the purchase or sale of a stock. Expenses of a
fund will not be included in management fees, as they are deducted from the value of the shares
by the mutual fund manager. For complete discussion of expenses related to each mutual fund,
you should read a copy of the prospectus issued by that fund. Beacon Wealth Management can
provide or direct you to a copy of the prospectus for any fund that we recommend to you, and you
are encouraged to read the prospectus for any mutual fund or ETF thoroughly, as well as the
Form ADV for any money manager. A prospectus for any new fund you invest in for the first
time is automatically sent to your by the custodian for your account.
Beacon Wealth Management may utilize the services of other managers when Beacon deems
appropriate for a client. Managers are chosen based on investment performance, operations,
and offerings to determine if the manager would be a fit for Beacon clients. This process
continues on an ongoing basis, throughout the time the client works with the third party manager.
It is important to note that these managers will charge a separate and additional fee for their
services. Beacon will consider these fees in its decision to recommend the use of a third party
manager. The use of a third party manager does not change the relationship between Beacon
and the client, in that Beacon will still manage the overall client portfolio, adding, subtracting and
modifying the allocation to different strategies and managers. Fees for third party managers are
separate from, and in addition to, Beacon’s fee.
Please make sure to read Item 10 of this informational brochure.
D. Pro-rata Fees
If you become a client during a quarter, you will pay a management fee for the number of days
left in that quarter. If you terminate our relationship during a quarter, you will be charged a
management fee for the remainder of the quarter. Once your notice of termination is received,
we will charge the fee through the date of transfer of your assets). Beacon Wealth Management
will cease to perform services, including processing trades and distributions, upon termination.
Assets not transferred from terminated accounts within thirty (30) days of termination may be “de-
linked”, meaning they will no longer be visible to Beacon Wealth Management and will become a
retail account with the custodian.
Clients who invest in a pooled invested vehicle managed by Beacon will incur transaction charges
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