Item 5 – Fees and Compensation
The specific manner in which fees are charged by CPS is established in a client’s written
agreement with CPS. However, the general fee structure is outlined below. CPS will
generally bill its fees in arrears, calculated on a daily average balance charged on a
quarterly basis.
Clients may also elect to be billed directly for fees or to authorize CPS to instruct the
custodian to pay fees from client accounts directly to CPS. Management fees shall be
prorated for each contribution and withdrawal made during the applicable calendar quarter
(with the exception of de minimis contributions and withdrawals). Accounts initiated or
terminated during a calendar quarter will be charged a prorated fee. Upon termination of
any account any earned, unpaid fees will be due and payable.
CPS’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses, which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment sponsors and other third parties
such as fees charged by managers, custodial fees, 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. Mutual funds and exchange-traded
funds also charge internal management fees, which are disclosed in a fund’s prospectus.
Such charges, fees, and commissions are exclusive of and in addition to CPS’s fee, and CPS
shall not receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that CPS considers in selecting or recommending
broker- dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).
Fees for Asset Allocation Services
CPS offers fee schedules based upon each clients’ unique requirements.
The annual fee for Asset Allocation Services may be charged as a percentage of assets
under management, generally, according to the following schedule:
Assets Under Management Annual Fee (%)
Up to $1 million 1.00%
$1,000,001 - $2 million 0.80%
$2,000,001 - $7 million 0.50%
Over $7 million 0.40%
Net Worth & Income
Where ongoing comprehensive financial planning services and investment advisory/asset
allocation services are required, CPS offers a Net Worth & Income fee schedule.
The Net Worth Fee to be charged annually to the client is:
Up to $2,500,000 0.50%
$2,500,001 to $10,000,000 0.25%
$10,000,001 and above 0.10%
The Income Fee is calculated on amount of funds invested annually.
Up to $500,000 1.00%
$500,001 - $2,000,000 0.75%
Over $2,000,001 0.50%
Fixed Fees
Depending on clients’ needs, the Firm may be willing to charge a fixed fee for financial
planning or investment advisory/asset allocation services. The fixed fee will be as contracted
for with Client in advance.
Financial Planning Fees
Fees for financial planning services may be invoiced hourly, flat fee or on a project by
project basis. In special circumstances, the client may choose an annual flat fee which
includes financial planning and wealth management. This “hybrid” fee will be agreed upon
in advance.
CPS crafts a highly personalized financial plan with well-defined goals following the
guidelines set up by the Certified Financial Planning Board of Standards.
Standard fees start at $3,500 USD for an individual, $6000 USD for a couple and up to
$20,000 USD for clients with complex planning needs. Expat educators may be given a
discounted rate starting at $2,500 USD individual, $4,500 USD couple. The complexity of
the client’s finances and their stated goals may result in higher fees. The higher fee
would be agreed upon in advance.
Hourly fees start at $150 USD per hour for expat educators up to $800 USD.
Clients are invoiced 50% upfront which is non-refundable, the remainder is due
upon the delivery of the financial plan or no later than six months.
Should a client decide to engage CPS to implement the wealth management part of the
financial plan, the annual fee charged may be a percentage of assets under management
as stated above, a flat annual fee or a hybrid fee.
Negotiability of Fees: In certain circumstances, all fees may be negotiable. We reserve
the right to adjust the fee schedule for accounts depending on the size and type of
account and the services required. In some cases, negotiation of fees may result in
different fees being charged for similar services and may be less than the stated fees. In
addition, certain family members and personal or professional acquaintances of CPS’s
affiliated persons (and affiliates) may receive advisory services at a discounted rate, which
is not available to advisory clients generally.
Termination: The Agreement may be terminated by either party at any time without
penalty upon written notice. Written notice may be provided in the form of an e-mail, or
direction to the custodian to terminate adviser’s authorization.
Termination will not, however, affect liabilities or obligations incurred or arising from
transactions initiated under the Agreement prior to termination. Upon termination, it is
Client’s responsibility to monitor the securities in the account, and Advisor will have no
further obligation to act or advise with respect to those assets. Client may terminate the
Agreement within five business days of its signing without penalty. If the Agreement is
terminated after five business days of its signing, any prepaid fees will be prorated, and
the unused portion will be returned to Client. In calculating a client’s reimbursement of
fees, we will prorate the reimbursement according to the number of days remaining in the
billing period.
Advisory Fees in General: Clients should note that similar advisory services may (or may
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