Item 5: Fees & Compensation
Compensation for Our Advisory Services
Investment Management Services:
DWA charges a fee for providing Investment Management services. These services include
investment consulting, portfolio design, monitoring, trade execution, allocation, investment
supervision and other account management activities. The Investment Management, Portfolio
Monitoring & Consulting Services fees are calculated and payable quarterly in advance, based on the
portfolio value as of the last business day of the prior quarter as reported by the custodian. Fees are
assessed on all assets under management, including securities, cash and money market funds. When
accounts are first established, the initial fee will be prorated based on the days remaining before the
end of the calendar quarter and the fee will begin when funds arrive in the account. Initially, there
may be multiple days of funds arriving in the account and thus multiple pro- rations for each amount
and time period until the end of the calendar quarter.
All accounts managed by DWA for a single household may be aggregated to arrive at a lower overall
rate to be charged on each of the individual accounts managed for the household. This figure will be
reviewed annually for purposes of determining the overall rate to be charged. DWA reserves the right
to review the aggregate value more frequently and on a case-by-case basis as an incentive for clients
to bring more money under DWA management and thus reach a breakpoint. The table below
illustrates the various maximum rates that would apply and breakpoints where fees are reduced.
Fees are negotiable and may be lower than the standard schedule depending upon services provided
by Advisor. Clients will be subject to the fee schedule disclosed in their signed Investment
Management Advisory Agreement. Services are offered through the Investment Management
Advisory Agreement.
Investment Management, Portfolio Monitoring & Consulting Services Fees Standard Fee Schedule:
Portfolio Assets Valued At Annualized Fee
First $250,000 2.00%
Next $250,000 (up to $500,000) 1.75%
Next $250,000 (up to $750,000) 1.50%
Next $250,000 (up to $1 million) 1.25%
Next $2 million (up to $3 million) 1.00%
Amounts above $3 million 0.75%
Fees will be deducted from client account(s). 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;
ADV Part 2A – Firm Brochure Page 6 Dynamic Wealth Advisors
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.
Retirement Plan Consulting:
Retirement Plan consulting fees are negotiable depending upon the services offered by Advisor. Fees
are payable as described in the Advisory Agreement. Our Retirement Plan Consulting services are
billed on an hourly or flat fee basis or a fee based on the percentage of Plan assets under management.
The total estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of
our engagement with the client. The maximum hourly fee to be charged will not exceed $250. Our flat
fees range from $750 to $10,000. 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.
Other Types of Fees & Expenses
The custodian may charge custodial fees, redemption fees, retirement plan fees and other
administrative fees. Additionally, the custodian may charge ticket charges/commissions for trade
executions. These amounts vary by custodian. Our recommended custodian, Charles Schwab & Co.,
Inc. (“Schwab”), does not charge transaction fees for U.S. listed equities and exchange traded funds.
DWA does not share in these fees and has sought to minimize them by using multiple custodians. For
certain types of investment strategies, the platform of one custodian may result in lower expenses
than another and thus provide a cost savings to the client. The custodian will provide statements at
least on a quarterly basis that show account value and activity including any custodial fees and any
advisory fees charged.
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 and other fund expenses), 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. Our firm
does not receive a portion of these fees.
Termination & Refunds
With written notice either the client or DWA may terminate these contracts at any time. The client
would then receive a full pro-rata refund of unearned fees. Upon termination, we will have no further
obligation, nor responsibility to act or to manage the corresponding account(s), and you will be
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