ITEM 5 – FEES AND COMPENSATION
A. Advisory Fees and Compensation
LGWM applies an asset-based fee structure, with fees typically ranging from 0.25% to 1.50% of a
client’s assets under management. Fees may be structured as tiered or flat, depending on portfolio
size, complexity, and service needs.
Fee Schedules:
Tiered Fee Structure: Fees are applied progressively by asset level, meaning different portions of a
client’s portfolio may be charged at different rates.
Flat Fee Structure: Some clients, based on specific arrangements, may be charged a fixed
percentage fee across all assets under management (AUM).
LGWM provides flexibility in fee arrangements, taking into account individual
circumstances:
Legacy Clients: Certain legacy clients from acquired firms may have grandfathered fee schedules,
resulting in variations across client accounts.
Self-Directed Assets: LGWM may charge a separate fee for unmanaged, self-directed assets that we
advise on or include in consolidated performance reporting.
Project-Based & Hourly Fees: For financial planning, investment consulting, or other advisory
services, LGWM may charge a fixed fee, an hourly rate, or a project-based fee based on the scope
and complexity of the engagement.
Fee Discounts & Adjustments:
To promote fairness and transparency, LGWM:
• Offers reduced fees for charitable organizations, employee family members, and close
personal relationships.
• May waive fees on proprietary accounts belonging to LGWM employees and their family
members.
B. Payment of Fees
Billing Structure
LGWM typically bills clients quarterly in advance, based on the total assets under management
(AUM) at the beginning of the billing period. Fees may also be adjusted for:
• Mid-period account deposits or withdrawals.
• Clients engage in financial planning or project-based advisory services.
Payment Methods
Clients may pay fees through:
Litman Gregory Wealth Management, LLC
Form ADV Part 2A
April 11, 2025
1. Direct deduction from custodial accounts, facilitated by LGWM.
2. Invoice billing, allowing clients to remit payments directly.
Clients receive an invoice detailing:
• The total fee charged.
• The net asset value used for fee calculation.
While our standard fee schedule applies to most clients, fees may be negotiable based on account
size, investment complexity, and other factors.
C. Other Fees and Expenses
In addition to LGWM’s advisory fees, clients may incur additional costs for custodial, brokerage,
fund, and third-party management services.
1. Custodian, Brokerage, and Transaction Costs
Core Strategies
• Clients are responsible for custodial fees, commissions and transaction-related costs, which
are charged separately by custodians and brokerage firms.
• LGWM does not control or receive compensation from these costs.
• For details on brokerage selection and trading practices, please refer to Item 12 (Brokerage
Practices).
LCFG Strategy
• Clients are responsible for custodial fees and transaction-related costs, which are charged
separately by custodians and brokerage firms.
• LCFG clients custodied at Fidelity Investments do not incur commission fees.
• LGWM does not control or receive compensation from these costs.
• For details on brokerage selection and trading practices, please refer to Item 12 (Brokerage
Practices).
2. Mutual Funds, ETFs, and Pooled Investment Vehicles
Clients investing in mutual funds, ETFs, or other pooled investment vehicles will bear separate fund
expenses, including:
• Management fees paid to the fund’s investment adviser.
• Administrative costs related to fund operations.
• Distribution and service fees (if applicable).
• These costs are deducted directly from the fund’s assets and are in addition to LGWM’s
advisory fees.
Litman Gregory Wealth Management, LLC
Form ADV Part 2A
April 11, 2025
3. Independent Managers - Separately Managed Accounts (SMAs)
LGWM may recommend Independent Managers SMAs to oversee a portion of a client’s portfolio.
These managers charge separate fees (in addition to LGWM fees), which may include:
• Asset-Based Fees – Charged as a percentage of assets managed.
• Platform Fees – If accessed via an external investment platform.
• Administrative & Custodial Costs – Including transaction-based fees.
Independent Managers bill clients directly (monthly or quarterly, in advance or in arrears), depending
on their billing policies. LGWM does not receive any portion of these additional fees. Clients receive
full disclosure of these fees prior to hiring an Independent Manager.
4. Affiliated Funds & Conflict Mitigation
LGWM may invest client assets in funds managed by affiliated investment advisers, such as those
sponsored by iM Square SAS, LGWM’s parent company (“Affiliated Funds”). Please refer to Item 10.C.
– Material Relationship with Industry Participant Related Persons for Affiliated Funds and Conflict
Mitigation disclosure.
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