Item 5. Fees and Compensation
LWM offers services on a fee only basis, which may include fixed and/or hourly fees, as well as fees based
upon assets under management or advisement.
Financial Planning and Consulting Fees
LWM generally charges a fixed, retainer, and/or hourly fee for providing financial planning, family office
and consulting services under a stand-alone engagement. These fees are negotiable, but generally range
from $250 to $350 on an hourly basis, or a flat fee or retainer fee based on the scope of work depending
upon the scope and complexity of the services and the professional rendering the family offices services
and/or the consulting services.
Financial Planning Services
Basic Plan-Net Worth, Cash Flow $3,000
Additional Add-on Planning Services Education Goals $1,000
Insurance Planning $1,000
Retirement Planning $1,000
Investment Planning $1,000
Long Term Care Plan $1,000
Estate Planning with Referral $1,000
Service
Portfolio Analysis $2,000
Investment Policy Statement $2,000
Business Planning $5,000
If the client engages the Firm for additional investment advisory services, LWM may offset all or a portion
of its fees for those services based upon the amount paid for the financial planning, family office and/or
consulting services.
The terms and conditions of the financial planning, family office and/or consulting engagement are set forth
in the Investment Management Agreement and LWM generally requires one-half of the fee (estimated
hourly or fixed, retainer) payable upon execution of the Investment Management Agreement/Consulting
Agreement. The outstanding balance is generally 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 advisory
fees in excess of six months in advance of services rendered.
Investment Management Fees
LWM offers investment management services for an annual fee based on the amount of assets under the
Firm’s advisement. This management fee generally varies between 30 and 100 basis points (0.30% –
1.00%), in accordance with the following fee schedule:
Up to $5,000,000 1%
Next 5,000,000 0.75%
Next 15,000,000 0.50%
Next 25,000,000 0.40%
Next $50,000,000 0.30%
Above $50,000,000 Negotiable
There is a minimum annual fee of $10,000 on all accounts and accounts above $1 million include
Financial Planning Services.
The annual fee is charged from the date the Investment Management Agreement is signed and charged
quarterly, in advance, based upon the market value of the assets being advised/managed by LWM on the
last day of the previous billing period.
If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is adjusted to reflect the interim change in portfolio value. For the initial
period of an engagement, the fee is calculated on a pro rata basis. In the event the Investment Management
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.), LWM may
negotiate a fee rate that differs from the range set forth above.
Fee Discretion
LWM may, in its sole discretion, negotiate to charge a lesser fee 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 pro bono activities.
Additional Fees and Expenses
In addition to the advisory fees paid to LWM, clients may also incur certain charges imposed by other third
parties, such as broker-dealers, custodians, trust companies, banks and other financial institutions
(collectively “Financial Institutions”). These additional charges may include securities brokerage
commissions, transaction fees, custodial fees, fees charged by the Independent Managers, charges imposed
directly by a mutual fund or ETF in a client’s account, as disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
The Firm’s brokerage practices are described at length in Item 12, below.
Minimum Account Fee
As a condition for starting and maintaining an investment management relationship, LWM generally
imposes a minimum quarterly fee of $2,500. This minimum fee may cause clients with smaller portfolios
to incur an effective fee rate that is higher than the Firm’s stated fee schedule. LWM may, in its sole
discretion, elect to waive its minimum fee based upon certain criteria, including anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts,
account composition, pre-existing client, account retention, and pro bono activities.
Direct Fee Debit
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