Item 5 - Fees and Compensation
Our fee for portfolio management services is based on a percentage of your assets we manage and
is set forth in the following fee schedule:
Assets Under Management Annual Tiered Fee
Up to $1,000,000 1.50%
$1,000,001 -$3,000,000 1.25%
$3,000,001 -$5,000,000 1.10%
$5,000,001 -$10,000,000 1.00%
Over $10,000,000 0.90%
However, we, in our sole discretion, may modify this fee schedule and charge a lesser annual
investment advisory fee based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, negotiations with Client, etc.). The Client’s fee
will be as stated in the Investment Advisory Agreement.
Our annual portfolio management fee is billed and payable quarterly in advance based on the value
of your account on the last day of the previous quarter. If the portfolio management agreement is
executed at any time other than the first day of a calendar quarter, our fees will apply on a pro rata
basis, which means that the advisory fee is payable in proportion to the number of days in the
quarter for which you are a client. Our advisory fee is negotiable, depending on individual client
circumstances.
At our discretion, we may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, we may combine account values
for you and your minor children, joint accounts with your spouse, and other types of related accounts.
Combining account values may increase the asset total, which may result in your paying a reduced
advisory fee based on the available breakpoints in our fee schedule stated above.
We will send you an invoice for the payment of our advisory fee, or we will deduct our fee directly from
your account through the qualified custodian holding your funds and securities. We will deduct our
advisory fee only when you have given our firm written authorization permitting the fees to be paid
directly from your account. Further, the qualified custodian will deliver an account statement to you at
least quarterly. These account statements will show all disbursements from your account. You should
review all statements for accuracy. We will also receive a duplicate copy of your account statements.
You may terminate the portfolio management agreement upon 30-days’ written notice to our firm.
You will incur a pro rata charge for services rendered prior to the termination of the portfolio
management agreement, which means you will incur advisory fees only in proportion to the number
of days in the quarter for which you are a client. If you have pre-paid advisory fees that we have not
yet earned, you will receive a prorated refund of those fees.
Third-Party Adviser Fees
Advisory fees charged by TPAs are separate and apart from our advisory fees. Advisory fees that you
pay to the TPA are established and payable in accordance with the disclosure brochure provided by
each TPA to whom you are referred. These fees may or may not be negotiable. You should review
the recommended TPA’s disclosure brochure and take into consideration the TPA’s fees along with
our fees to determine the total amount of fees associated with this program.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund’s prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
Consilium Wealth Management, LLC
Form ADV Part 2A
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not share in
any portion of the brokerage fees/transaction charges imposed by the broker-dealer or custodian. To fully
understand the total cost you will incur, you should review all the fees charged by mutual funds, exchange
traded funds, our firm, and others. For information on our brokerage practices, please refer to the
“Brokerage Practices” section of this Brochure.