Item 5 – Fees and Compensation
Fee Schedule
Fees for our Comprehensive Wealth Management advisory service are discussed below:
Account Size Maximum Annual Percentage of Assets Charge
All account sizes 0.60%
Fees are outlined in the advisory agreement to be signed by the Client. Our firm’s fees are billed on a pro-
rata annualized basis monthly in advance based on the value of your accounts under management on the
last day of the previous month. Lower fees for comparable services may be available from other sources.
Some clients may be on a different fee schedule than above.
Example Fee Calculation:
Balance on December 31: $100,000.00
Pro-Rata Monthly Fee Rate: 0.05%
Monthly Fee billed on First Business Day of January: $50.00
The minimum monthly fee for flat-fee billing arrangements is $1,000 per household.
Payment of Fees
Fees are automatically deducted from the Client’s managed account. A Client’s written authorization is
required, which is granted through our advisory agreement and other documentation. SWM charges
advisory fees monthly, in advance, based on the total account balance on the last business day of the
previous month for Comprehensive Wealth Management.
Other Fees
Our Preferred Custodian, Charles Schwab Institutional, does not charge commissions for stock or
Exchange Traded Fund transactions. Clients will pay the following separately incurred expenses, which we
do not receive any part of: charges imposed directly by a mutual fund, index fund, or exchange traded fund
which shall be disclosed in the fund’s prospectus (i.e., fund management fees & operating expenses). As
part of our fiduciary obligation to Clients, we strive to keep these expenses as low as possible and fully
disclose them to the Client. SWM does not receive any portion of commissions, transaction fees, or 12b-1
fees. SWM does not receive revenue through any revenue sharing agreements. SWM predominantly
recommends commission-free ETF’s and other commission-free options except in rare circumstances. The
client is responsible for additional custodian processing, termination, postage, wire fees and overnight mail
fees in urgent and unplanned circumstances. For example, if Client needed $5,000 out of a brokerage
account by tomorrow, SWM would help coordinate the wire transfer to meet the goal but would not be
responsible for wire fees.
Account Termination
Either party may terminate at any time by providing written notice to the other party. In the event that you
wish to terminate our Comprehensive Wealth Management service, we will refund the most recently billed
fee to you.
Example Fee Calculation:
Account Balance on December 31: $100,000.00
Pro-Rata Monthly Fee Rate: 0.05%
Monthly Fee billed on First Business Day of January: $50.00
If the Client in the above example notified SWM of their wish to terminate services on January 28th, SWM
would refund the entire $50 for the month of January, cease management, cease all further fees, and assist
the Client in any outgoing transfer. To be eligible for the refund, clients must contact SWM and state their
wish to terminate services prior to SWM receiving an external asset transfer request or terminate services
within 5 days of executing the advisory agreement.
External Compensation
Investment Advisor Representatives of SWM receive external compensation for the sale of insurance
products as licensed insurance agents. This represents a conflict of interest because it gives an incentive to
recommend products based on the commission received. As insurance agents, they do not charge advisory
fees for the services offered. This conflict is mitigated by disclosures, procedures, and SWM’s fiduciary
obligation to place the best interests of the Client first. Clients are not required to purchase any products or
services. Clients have the option to purchase insurance products or even advisory services through any
agent or advisor of their choosing.