Item 5 – Fees and Compensation
Investment Management Services
Our fee for investment management services is based on the value of the client's account and is set forth in the
following fee schedules:
Non-Retirement Plan Fee Schedule:
Account Value Maximum Annual Fee
On first $1,000,000 1.00%
On next $4,000,000 0.75%
On assets over $5,000,000 0.50%
Employer Sponsored Retirement Plans:
Plan Value
Plans $5,000,000 and under 1.00%
Plans $5,000,000 and over 0.75%
There are existing accounts of Element Wealth who may be under an investment advisory agreement
with a different fee schedule. We reserve the right to “Grandfather” (not increase or decrease) fees
applicable to such accounts.
All accounts are billed monthly in advance based on the value of your account on the last day of the
previous month. If the investment management agreement is executed at any time other than the first day
of a billing period, 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 period 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.
You may terminate the investment management agreement upon notice to our firm. You will incur a pro rata charge
for services rendered prior to the termination of the agreement, which means you will incur advisory fees only in
proportion to the number of days in billing period 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. Per our Investment Advisory Agreement
all refund requests must be made in writing.
Advisory Consulting Services
We generally charge an hourly fee of $400 for advisory consulting services and financial planning services. In some
circumstances, in lieu of an hourly fee, we may charge a fixed fee. Our fees are negotiable depending on the scope
and complexity of services to be rendered. Our consulting fee is payable upon completion of the agreed upon
consulting services.
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 may also incur transaction charges and/or 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 Item 12 - Brokerage Practices section of this brochure.
Compensation for the Sale of Securities or Other Investment Products
Some persons providing investment advice on behalf of our firm are licensed as independent insurance agents.
These persons may earn commission-based compensation for selling insurance products. Insurance
commissions earned by these persons are separate and in addition to our advisory fees. This practice presents a
potential conflict of interest because persons providing investment advice on behalf of our firm who are
insurance licensed have an incentive to recommend insurance products to you for the purpose of generating
commissions rather than solely based on your needs. You are under no obligation, contractually or otherwise, to
purchase insurance products through any person affiliated with our firm.