Item 5 Fees and Compensation
Clients receiving Financial Planning Services bundled with Investment Advice and Estate Planning as
described under the Wealth Advisory Agreement are charged the following fees:
1. 1.00% per annum of the total value of accounts of the client invested in individual stocks and
bonds, mutual funds and/or Exchange Traded Funds up to a fair market value of $2,000,000.
2. 0.75% per annum of the total value of accounts of the client invested in individual stocks and
bonds, mutual funds and/or ETFs in excess of $2,000,000, but not exceeding $10,000,000.
3. 0.50% per annum of the total value of accounts of client invested in individual stocks and bonds,
mutual funds and/or Exchange Traded Funds in excess of $10,000,000.
Subject to an annual minimum of:
• $4,800 ($400/month) for a couple or family
• $3,000 ($250/month) for an individual
Since the fee schedule above is tiered based on a client’s managed assets, clients will be charged a lower
management fee for a higher amount of managed assets. To calculate the asset level breakpoints,
Wealthspire will combine the asset amounts in all a client’s related accounts. This is commonly referred to
as “householding” accounts. For householding purposes, Wealthspire will include accounts of the client,
and anyone related to the client and living at the same address, such as spouse and children.
Consequently, the annual fee rate is calculated based upon the breakpoint achieved (if any) based on the
combined assets of household accounts and applied to each such account.
Clients authorize their custodian, via the Wealthspire Wealth Advisory Agreement to debit Wealthspire’s
fees directly from the accounts to which they relate and pay to Wealthspire. Depending upon the
relationship, multiple portfolios with a common interest will be treated as one for billing purposes.
Wealthspire has sole discretion to negotiate fees. A variance in fees may be appropriate in cases in which
a client requests special account structures or has atypical objectives. Wealthspire has in the past and
reserves the right to change, reduce, or waive our fees any time in the future in our discretion and to
increase or decrease the minimum account size that we accept. Wealthspire does have clients that are
charged fees that are different than the fees outlined above. Mostly, these are clients that on boarded with
us at a time when we had a different fee schedule. Clients should be aware that lower fees for comparable
services may be available from other sources and firms.
Our Wealth Management fees are billed monthly in arrears based on the total account value (including
cash and cash equivalents and margin balance) at the end of each month and are prorated based on the
additions and withdrawals from an account. Should a client begin receiving Wealth Management services
during a month, Wealthspire’s fee will be prorated based on the number of days left in the month.
The total account value used for billing calculations comes from Orion, which contains all information on
the client’s managed assets. The values of securities held in managed accounts are reconciled with the
custodian values daily and any discrepancies are promptly corrected.
In the event that Wealthspire’s services are terminated mid-month, the number of days the client’s assets
were managed during the month until termination is used to determine the percentage of the Wealth
Management fee earned (based on the total number of days in the month). If a client’s custodian is no
longer authorized to pay Wealthspire from client’s assets, then Wealthspire will send an invoice directly to
the client, unless waived at the discretion of Wealthspire. Payment in full is expected upon receipt of
invoice presentation.
A client’s managed assets can either be in a cash or a margin account. A margin account allows a client to
withdraw cash or make additional securities purchases. Importantly, clients should be aware that the use
of margin creates a conflict of interest between us and our clients since our fees are based on the full value
of the assets under management including any assets purchased using margin. In order to mitigate that
conflict, we work with our clients to pay-off the margin balance as quickly and efficiently as possible.
Buying securities on margin also subjects client to additional costs and risks that should be carefully
considered before opening a margin account. Please refer to Item 8 below for further information.
Other Fees
The fees charged by Wealthspire do not include charges imposed by third parties such as custodian fees
and mutual fund fees and expenses (including Exchange Traded Funds (ETFs)). Client assets are subject
to additional expenses and fees (as applicable), such as transaction costs, retirement plan administration
fees, deferred sales charges on mutual funds initially deposited in the account, 12b-1 fees, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions.
Clients with assets managed by TPAs that are recommended/utilized by Wealthspire will be charged
advisory fees by each TPA, which are separate and additional to the advisory fees charged by Wealthspire.
The TPAs’ fee schedules and billing practices are described in their respective Disclosure Brochure, which
should be read carefully. Wealthspire does not receive any portion of the fees charged by TPAs.
Client assets invested in mutual funds and/or ETFs will be subject to certain fees and expenses imposed
directly by mutual funds and ETFs to their shareholders, which are described in each fund’s prospectus.
These fees will generally include a management fee, other fund expenses, and a distribution fee and are
incorporated into the pricing of the mutual fund and are generally referred to as a fund’s “expense ratio”.
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