Item 5 Fees and Compensation
A. Fees Charged
All investment management clients will be required to execute an investment advisory contract
that will describe the type of management services to be provided and the fees, among other items.
Clients are advised that they may pay fees that are higher or lower than fees they may pay another
advisor for the same services. Clients are under no obligation at any time to engage or to continue
to engage, Kolinsky for investment services.
Financial Planning
In circumstances when financial planning is done on a stand-alone basis, the fees charged are based
on the fee agreed upon by the adviser and client. Typically, Kolinsky will charge a fixed fee for
services of up to $10,000 depending on the services to be provided as contracted for and negotiated
with client in advance. Clients may also contract to have financial planning advice provided based
on an hourly fee rather than based on the assets under management. The Advisors hourly fee will
be billed at a rate of $300 to $500 per hour, but may be negotiated in advance. The Advisors
hourly fees will be negotiated and agreed upon by the parties in advance. Hourly fee-based clients
are billed on a monthly basis upon completion of work performed.
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Asset Management
Generally, fees vary from 0.00% to 1.30% per annum of the market value of a client’s assets
managed by Kolinsky. Fees are negotiable, and the fee range stated is a guide. The fee chosen
within that range is determined in part by the nature of the account, including the size of the
account, complexity of asset structures, the nature of the ongoing work needed for that particular
client, the complexity of the portfolio, and other factors that would be dependent upon the specific
client.
Retirement Plan Consulting Services
For plan sponsors, fees for consulting on retirement plan options vary from 0.00% to 1.00% per
annum of the market value of the plan’s assets under the direction of Kolinsky or will be charged
a flat annual fee for service ranging from $3,000 to $50,000. These are the only fees, either direct
or indirect, that Kolinsky reasonably expects to receive from the plan. Fees are negotiable and
will be determined by the scope and nature of the services provided the size of the account, the
complexity of the plan document and other factors. Unless the plan sponsor elects to be invoiced
directly, asset-based fees will be calculated and deducted by the plan recordkeeper on either a
monthly or quarterly basis in arrears or in advance and distributed to Kolinsky.
For asset management clients with Retirement Plans, fees for choosing and monitoring plan
options will vary depending upon the available options in the plan, the client’s needs, and
frequency of desired monitoring. Retirement Plan Consulting fees are negotiable and are
dependent on the nature of the engagement in the sole discretion of Kolinsky.
American Funds
For client whose accounts are held directly at American Funds, fees will be debited directly from
each client’s account by the American Funds Service Company. The fee is paid quarterly, in
arrears. The fee shall be the calculated by multiplying the average daily net asset value of client
assets during the quarter by clients annual fee rate, then dividing by the number of days in the year
and multiplying that number by days in that quarter. There are no trading fees to buy or sell F-2
shares in these accounts. American Funds may impose account setup fees for certain account types.
See the American Funds application, prospectus or Statement of Additional Information for
details.
Retirement Account Rollovers
Depending on a client’s given circumstances, Kolinsky may recommend that a client rollover
retirement plan assets to an Individual Retirement Account (IRA) managed by us. As a result of
a rollover, Kolinsky may earn fees on those accounts. This presents a conflict of interest, as
Kolinsky has a financial incentive to recommend that a client roll over retirement assets into an
IRA we will manage. This conflict is disclosed to clients verbally and in this brochure. Clients
are also advised that they are under no obligation to implement the recommendation to roll over
retirement plan assets. Kolinsky attempts to mitigate this conflict by requiring that all investment
recommendations have a sound basis for the recommendation, and by requiring employees to
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acknowledge their fiduciary responsibility toward each client. When we provide investment advice
to you regarding your retirement plan account or individual retirement account, we are fiduciaries
within the meaning of Title I of the Employee Retirement Income Security Act and/or the Internal
Revenue Code, as applicable, which are laws governing retirement accounts. The way we make
money creates some conflicts with your interests, so we operate under a special rule that requires
us to act in your best interest and not put our interest ahead of yours. Under this special rule’s
provisions, we must: • Meet a professional standard of care when making investment
recommendations (give prudent advice); • Never put our financial interests ahead of yours when
making recommendations (give loyal advice); • Avoid misleading statements about conflicts of
interest, fees, and investments; • Follow policies and procedures designed to ensure that we give
advice that is in your best interest; • Charge no more than is reasonable for our services; and • Give
you basic information about conflicts of interest.
Additional Fees
For a limited portion of client accounts, we utilize the unified managed account program provided
by Adhesion to access third-party managers. The accounts in Adhesion’s unified managed account
program may pay an annual manager fee up to 0.50% depending on the manager(s) selected, in
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