Item 5 Fees and Compensations
Joule Financial derives revenue through our advisory services by charging a non-negotiable 1%
annual management fee billed quarterly in advance. The pro-rated amount for a client’s initial
quarter under management is calculated in arrears at the end of the client’s first partial quarter
under management and added to the first full-quarter’s advance fee.
Example: A client transferring in during February will be billed on
April 1 for a pro-rated partial quarter for February through March
and a full advance quarter for April through June.
To calculate the quarter-end balance on which the fee is derived we use data provided by the
custodian through its website or data download portals and/or the ending balance published on the
custodial statements produced by the client’s custodian. The fees billed each quarter are deducted
directly from the client’s account at the custodian, unless other arrangements have been made by
the client. Should a client receive advisory services for less than a full quarter, the fee will be pro-
rated accordingly and refunded to the client via check mailed to the address on record.
Joule Financial also offers clients with accounts held at TIAA-CREF the option of having their
eligible “CREF” portion of the account managed by Joule Financial. The fee for this service is
0.50% (half of one-percent) annually which is billed quarterly, in arrears, based on the ending
balance, of only the managed amount of assets, listed on custodian’s quarterly end statement and
is non-negotiable.
Joule Financial manages select accounts at Nationwide for clients with an existing relationship
with our firm. Accounts at Nationwide are billed at our standard 1% annual fee, non-negotiable,
calculated and distributed quarterly, in arrears, by Nationwide based on the quarter ending balance.
Joule Financial manages select accounts at Fidelity. Accounts at Fidelity are billed at our standard
1% annual fee, non-negotiable, calculated and distributed quarterly, in arrears, based on the quarter
ending balance.
Joule Financial is the advisor of record on 401(k) plans administered by Vanguard (via Ascensus)
and Professional Capital Services (“PCS”). The advisory fee assessed by Joule Financial on these
accounts is 0.40% annually (or a minimum of $179 per employee per year). The fee is billed to
participants or the employer as laid out in the individual plan documents, calculated by the
administrator, and distributed quarterly by the plan administrator.
For certain small businesses who utilize a SIMPLE (Savings Incentive Match Plan for Employee)
IRA plan through Joule Financial, the Adviser will charge only the employer a fee for
administration of the plan and investment management for all employees who elect to utilize the
Adviser to manage their account. The set-up fee for the SIMPLE IRA will be $599 and the
recurring monthly fee will be $179 billed directly to the business.
Joule Financial provides basic financial planning services at no charge to clients and prospective
clients with the goal to discover the client’s current investment allocation, required rate of return
for retirement, and risk temperament. Comprehensive planning which may examine areas such as
investments, insurance, taxes, estate planning, social security, and risk management is offered for
a fee based on 0.30% of the clients’ net worth as listed in their planning document, with a $1,495
minimum fee. Fee will be updated yearly, disclosed to the client, and invoiced for each annual plan
review.
All advisory fees paid to Joule Financial for investment advisory services are separate and distinct
from fees and expenses charged by funds (i.e. mutual funds, ETFs) to their shareholders. Also,
clients may incur additional expenses by the custodian, not for the benefit of Joule Financial,
including commissions for trades and fees for special services such as wires and overnight checks.
Detailed information on the custodian specific fees can be found at the individual custodians’
website.
While fees are generally non-negotiable, Joule Financial reserves the right to and may at times
offer a discount on fees for certain clients including: family of employees, clients who transfer in
certain legacy investment positions, and others. Discounts are at the Adviser’s discretion and will
be agreed upon on a case by case basis. No discounts are given in return for goods and services
offered by clients or their related entities.