Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
The fee schedule (not including planning fees) for the Firm’s management of Client’s
portfolio investments on a stand-alone basis follows. This fee is negotiable and may include
planning fees and/or specific S4W named products. All accounts are aggregated within a
household, with the exception of a Client’s investment in the Fund, if any, as detailed under
“Private Fund Investments” in Item 5, to determine the fee.
Portion of Investment Portfolio* Annual Rate
Up to $4,000,000 1.0%
Next $4,000,001 to $6,000,000 0.75%
Next $6,000,001 to $10,000,000 0.60%
Next$10,000,001 or more 0.50%
*Annual Minimum fee is $1,500
The Firm’s investment management fees are billed quarterly in advance at the rate of one-
fourth of the annual fee shown above and are typically deducted from clients’ accounts.
Fees for a quarter are calculated based on the portfolio valuation as determined by the
account custodian on a daily basis during the prior quarter. If a client opens an account
during a quarter, fees will be calculated based on the original transfer amount and will be
assessed on a pro-rata basis when the assets are transferred into a Firm-managed account.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. Otherwise, Clients may terminate
advisory services with thirty (30) days written notice. In the case of a variable annuity, the
initial fee will be assessed when the annuity is funded.
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FINANCIAL PLANNING
Fees for financial planning may be included in the investment advisory fee as stated above
or may be charged in addition to investment management fees. If charged in addition to the
investment management fees, a mutually agreed-upon fixed fee is assessed. In this case,
the fee is determined after defining the scope of work required, the level of personnel to
complete the work and the expected time to complete the required work.
One-half of the plan fee is due upon execution of the Investment Advisory Agreement, with
the remainder due upon presentation of the completed plan material (maximum fee is
$10,000). Client may cancel within five (5) business days of signing Agreement with no
obligation and without penalty. If the Client cancels after five (5) business days, any
unearned fees will be refunded to the Client, or any unpaid earned fees will be due to S4W.
It is possible that Clients receiving the same service from the Firm will pay different fees.
Fees for the S4W named products listed under “Advisory Services” above may be included
in the financial planning or investment management fee or may be charged separately,
depending upon the complexity of the client’s situation. If a client opts for the use of the
S4W named products, the fixed fee for the combined products is due upon receipt of the
service (maximum fee is $10,000).
PRIVATE FUND INVESTMENTS
S4W Multifamily Housing Fund (S4W MFHF)
S4W MFHF bears all costs of its organization and operation, expenses incurred in the
purchase and sale of investments, and accounting and audit fees. For further details,
please see the governing documents for the Fund.
S4W receives a 1.75% investment management fee annually for the Fund. The fee is
calculated quarterly in advance and charged mid-quarter by deduction from each investor’s
capital account balance.
The value of the Client’s investment in the Fund is not included in the Investment Portfolio
total assets under management and is not charged the investment management fee
outlined in the Client’s client agreement.
Private Investments
Occasionally, the Firm provides advice, due diligence and/or ongoing monitoring of private
investments. Fees for these services are charged based on the initial capital investment.
Valuations may be adjusted downward based on the periodic project updates provided by
the offeror if there is substantive concern regarding the ability of the offeror to return the
initial capital. The value of the private investments is included in the billable AUM and fees
are calculated per the agreed schedule.
Client Payment of Fees
Investment management fees are billed quarterly in advance, meaning that we invoice you
at the beginning of the billing period. Fees are usually deducted from a designated Client
account to facilitate billing. The Client must consent in advance to direct debiting of the
Firm’s investment advisory fees from their investment account.
Fees for financial plans are billed 50% in advance with the balance due upon plan delivery.
S4W, in its sole discretion, may charge a different investment advisory fee based upon
certain criteria (e.g., historical relationship, type of assets, anticipated future earning
capacity, anticipated future assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with Clients, estate complexity, etc.).
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Additional Client Fees Charged
Custodians may charge transaction fees on purchases or sales of certain mutual funds,
equities, and exchange-traded funds (“ETFs”). These charges may include mutual fund
transaction fees, postage and handling and miscellaneous fees.
For more details on the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
S4W does not require any prepayment of fees of more than $1,200 per Client and six months
or more in advance.
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