Item 5. Fees and Compensation
FourThought offers services on a fee basis, which includes fixed fees, as well as fees based upon assets
under management.
Wealth Management Fees
FourThought offers investment management services for an annual fee based on the amount of assets under
the Firm’s management. This management fee varies in accordance with the following fee blended
schedule:
Managed Assets (Generally, all assets managed by the Firm excluding Laddered Bonds):
PORTFOLIO VALUE BASE FEE
First $500,000 1.50%
Next $500,000 1.00%
Next $1,000,000 0.75%
Next $8,000,000 0.50%
Above $10,000,000 0.25%
Laddered Bonds:
PORTFOLIO VALUE BASE FEE
First $250,000 0.25%
Next $750,000 0.20%
Above $1,000,000 0.15%
The annual fee is prorated and charged quarterly, in advance, based upon the market value of the assets
being managed by FourThought on the last day of the previous quarter. For the initial period of an
engagement, the fee is calculated on a pro rata basis. In the event the advisory agreement is terminated, the
fee for the final billing period is prorated through the effective date of the termination and the outstanding
or unearned portion of the fee is charged or refunded to the client, as appropriate.
Additionally, for asset management services the Firm provides with respect to certain client holdings (e.g.,
held-away assets, accommodation accounts, alternative investments, etc.), FourThought may negotiate a
fee rate that differs from the range set forth above. Clients are advised that a conflict of interest exists for
the Firm to recommend that clients engage FourThought for additional services for compensation, including
rolling over retirement accounts or moving other assets to the Firm’s management. Clients retain absolute
discretion over all decisions regarding engaging the Firm and are under no obligation to act upon any of the
recommendations.
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Disclosure Brochure
March 30, 2022 FourThought Financial, LLC
Financial Planning and Consulting Fees
As described above, the Firm’s financial planning and consulting services are typically provided through
an asset-based fee for comprehensive wealth management. In certain circumstances, however, FourThought
charges a fixed fee for providing financial planning and consulting services under a stand- alone
engagement. These fees are negotiable but range from $2,000 to $75,000 depending upon the scope and
complexity of the services and the professional rendering the financial planning and/or the consulting
services. If the client engages the Firm for additional investment advisory services, FourThought may offset
all or a portion of its fees for those services based upon the amount paid for the financial planning and/or
consulting services.
The terms and conditions of the financial planning and/or consulting engagement are set forth in the
Advisory Agreement and FourThought requires one-half of the fee (estimated hourly or fixed) payable upon
execution of the Advisory Agreement. The outstanding balance is due upon delivery of the financial plan
or completion of the agreed upon services. The Firm does not, however, take receipt of $1,200 or more in
prepaid fees in excess of six months in advance of services rendered.
Retirement Plan Consulting Fees
Retirement Plan Consulting Fees can be assessed either as a percentage of assets or fixed fee, as mutually
agreed. Fees paid as a percentage of assets are based on the fair market value of the included assets on the
last trading day of the month of the previous calendar quarter as reported by the plan custodian and will be
paid in arrears. Fees paid as an annual fixed fee shall be paid quarterly in advance. Fees may be paid by the
client directly or paid out of the plan assets in accordance with the client’s instructions. Retirement Plan
Consulting Fees vary based on the scope of the services to be rendered as well as the amount of assets being
advised on. Fees paid as a percentage of assets are based on the following fee schedule:
PLAN ASSETS BASE FEE
Up to $10,000,000 0.25% – 0.50%
$10,000,000 to $100,000,000 0.10% – 0.25%
$100,000,000 to $250,000,000 0.04% – 0.10%
Above $250,000,000 Negotiable
Fee Discretion
FourThought may, in its sole discretion, negotiate to charge a lesser fee on all or a portion of the assets,
based upon certain criteria, such as anticipated future earning capacity, anticipated future additional assets,
dollar amount of assets to be managed, related accounts, account composition, pre-existing/legacy client
relationship, account retention, and client hardship. and pro bono activities.
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Disclosure Brochure
March 30, 2022 FourThought Financial, LLC
Additional Fees and Expenses
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