Item 5. Fees & Compensation
Wealth Management Services
Wealth Management fees are based on a percentage of Assets Under Management (“AUM”). The fee is
charged as follows:
Assets Under Management (AUM) Annual Fee (billed quarterly)
First $2,000,000 1.00%
Next $8,000,000 0.50%
Over $10,000,000 Custom Fee Arrangement
We reserve the right to negotiate fees based on factors including, but not limited to, asset size, complexity,
and scope of services. Our minimum annual fee is $7,500 ($1,875 billed quarterly). If the calculated fee is less
than $1,875 for the quarter, you will be charged the minimum fee of $1,875.
The Wealth Management fee is charged quarterly in advance by household and is calculated based on the
assets in the account at the close of the last business day of each quarter.
The Wealth Management fee is calculated by applying the applicable rate to each tier of assets. For example,
a household with $3,000,000 under management would be charged 1.00% on the first $2,000,000 and 0.50%
on the remaining $1,000,000, resulting in a rate of 0.83%. The quarterly fee would be one-fourth of the annual
amount.
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Our Wealth Management fee schedule assesses a blended rate based on the total household assets the client
has under our management at quarter-end. This means that changes in value that cause an account to go
slightly above or slightly below a tier will result in an increase or decrease in fees. If asset values decline or
increase during the following quarter, we make no adjustment in fee rate until the next quarter-end.
Withdrawals and additions are subject to intra-quarter fee rebates or charges, and those rebates or charges
will be assessed based on the value determined at the prior quarter-end, rather than the intra-quarter value.
For example, if a client has $1,000,000 in account value on June 30 and deposits an additional $1,500,000 on
August 1, an advisory fee adjustment will be assessed at the applicable tiered annual rate on the $1,500,000
deposit for the period August 1 through September 30. The October 1 calculation will be based on the total
household value on September 30 and the corresponding blended rate.
Wiser Wealth uses Orion’s Portfolio Management software (Orion) to calculate Wealth Management fees each
quarter and to process charges and credits for intra-quarter deposits and withdrawals. If any additions are
made to the account during the quarter, a charge will appear on the client’s quarterly bill based on the days
the funds were in the account and calculated in the manner described above. This charge will be added to the
quarterly fee billing for the next quarter. If any withdrawals are made to the account during the quarter, the
quarterly fee will be prorated by Orion and calculated in the manner described above, and a credit will appear
on the client’s quarterly bill based on the days the funds were in the account. This credit will be applied to the
quarterly fee billing for the next quarter.
The fee calculation method uses a 90-day quarter. Orion prorates fees on deposits and withdrawals during a
billing quarter by calculating the number of days the funds were in the account out of 365 days per calendar
year. The breakdown on fees by account and proration are detailed on the client’s quarterly custodial
statement. We encourage clients to review this statement for accuracy.
Fees are deducted from client accounts at the custodian. Clients authorize us to deduct fees from their
custodial accounts as part of their Wealth Management Agreement, as well as during the account opening
process with the custodian. Clients can request to pay fees by check, and this request may be accepted at the
firm’s discretion.
If a client terminates an account mid-quarter, Wealth Management fees will be prorated for the portion of the
quarter for which we provided services. A refund amount will be calculated by Orion based on the date we
receive a client’s request to terminate services and a check will be promptly sent to the client for any unearned
management fees.
Other Fees
Clients may incur other fees and expenses in addition to our Wealth Management fees. These are
assessed by third parties and Wiser Wealth does not receive any portion of them. Such charges may
include, but are not limited to custodial fees, brokerage commissions, transaction fees, and SEC fees.
In addition, exchange traded funds, mutual funds, index funds and variable annuities impose
management fees and other expenses that are detailed in the prospectus for the security or the annuity
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contract. These charges are expressed as an internal expense ratio, are included in the pricing of the
security, and reduce return over time.
Financial Planning Only Services
The fee for financial planning services without investment management is $6,750 for individuals and $8,750
for clients with more complex situations, such as business ownership, multiple entities, advanced tax planning,
and/or estate planning needs. Fifty percent (50%) of the estimated fee is due upon execution of the financial
planning agreement. The remaining balance is due when the financial plan is delivered. This is outlined in more
detail in the client’s financial planning agreement. All financial plans will be delivered within six (6) months of
executing the agreement and once all client information has been received. At no time do we require
prepayment of more than $1200 in Financial Planning fees per client, six or more months in advance. Financial
plans can be updated at the client’s request, at a rate of $475 per hour.
Estate Planning Review:
During financial planning, if we decide that a client could benefit from estate planning or other legal
...