Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your account. Our
annual portfolio management fee is billed and payable, quarterly in arrears, based on the balance at
end of billing period. The annual blended fee is set forth in the following schedule:
Annual Fee Schedule
Assets Under Management Annual Fee
Under $1,000,000 1.25%
$1,000,000 - $2,000,000 0.75%
Over $2,000,000 0.50%
For example, a client with $3 million aggregated account value would have an annual blended fee of
0.83% (1.25% on the 1st $1 million, 0.75% on the 2nd $1 million and 0.50% on the 3rd $1 million).
If the portfolio management agreement(s) are executed at any time other than the first day of a
calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable
in proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will send you an invoice for the payment of our advisory fee, or we will deduct our fee directly from
your account through the qualified custodian holding your funds and securities. We will deduct our
advisory fee only when you have given our firm written authorization permitting the fees to be paid
directly from your account. Further, the qualified custodian will deliver an account statement to you at
least quarterly. These account statements will show all disbursements from your account. You should
review all statements for accuracy.
We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian call our main office number located on the cover page of this
brochure.
You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the month for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.
Recommendation of Other Advisers
Advisory fees charged by TPM are separate and apart from our advisory fees. Assets managed by
TPMs will be included in calculating our advisory fee, which is based on the fee schedule set forth in
the Portfolio Management Services section in this brochure. Advisory fees that you pay to the TPM are
established and payable in accordance with the brochure provided by each TPM to whom you are
recommended. You should review the recommended TPM's brochure and consider the TPM's fees
along with our fees to determine the total fees and costs.
You may be required to sign an agreement directly with the recommended TPM(s). You may terminate
your advisory relationship with the TPM according to the terms of your agreement with the TPM. You
should review each TPMs brochure for specific information on how you may terminate your advisory
relationship with the TPM and how you may receive a refund, if applicable. You should contact the
TPM directly for questions regarding your advisory agreement with the TPM.
Separately Managed Accounts
Clients participating in the direct indexing separately managed account program through the TPM will
pay advisory fees that are established and payable in accordance with the TPM's brochure. Red Door
Wealth Management does not control or set the TPMs' fees and does not receive any portion of it
unless otherwise disclosed. Clients utilizing a TPM will be provided with their brochure, which will
include further details on the services, fees, and expenses.
You should review the TPM's brochure and consider the fees along with our fees to determine the total
costs associated with this program as well as specific information on how you may terminate your
advisory relationship with the TPM and how you may receive a refund, if applicable.
Financial Planning and Advisory Consulting Services
We offer financial planning and advisory consulting services on a fixed fee basis. Our fixed fees are
negotiable and range between $1,000 and $20,000 annually depending on the scope and complexity
of the services rendered. The first half of the estimated fee is due in advance of services rendered with
the remaining balance payable upon completion of the contracted services.
Our fees are negotiable depending upon the complexity and scope of the services rendered. We will
provide you with an estimate of the total time/cost at the start of the advisory relationship. In limited
circumstances, the cost/time could potentially exceed the initial estimate. In such cases, we will notify
you and request that you approve the additional fee. All terms of our engagement will be evidenced in
the agreement that you sign with our firm. Under no circumstances will we require prepayment of a fee
in excess of $1,200 for services not performed within six months of the advanced payment.
...