Annually Retained Investment Management & Financial Planning - PersonalCFO
AFA’s financial planning fees are based on net worth because we have found that planning becomes more complex and time consuming as net worth increases. The following table serves as a guideline to help you determine your fees based on your net worth. The final quotation of fees will occur after our initial meeting. Upon engagement, planning fees are payable in full monthly or quarterly in advance through direct bank draft.
The Annually Retained Investment Management and Financial Planning - PersonalCFO engagement is an on-going relationship with regular communication and meetings which occur either monthly or quarterly during the year. We work with you to articulate your goals and needs and complete a thorough review of all the areas of your financial life. You will benefit from constant monitoring of your financial goals, cash flow, debts, investments, retirement accounts and long-term financial planning. We will be your advisor and financial accountability partner during the process to assure that you are focused on taking steps to achieving your goals. The execution of financial recommendations is done by the client with our support and direction.
Below is the pricing for Annually Retained Investment Management and Financial Planning- Personal CFO for the year. Assets include all assets, primary residence equity; taxable assets, retirement accounts, vested stock options, real estate equity, privately owned businesses, annuities, defined benefit pension plans (calculated at Net Present Value using 3% inflation rate over IRS life expectancy), other.
Modified Net Worth
(Assets - Primary Home Equity) -Debts (Excluding Primary Home Debt)
Financial Planning Monthly Fee
Fees remain flat for the year and are recalculated the first week in December for the following year. Strike through indicates that this level of net worth is sold out at this time. The minimum fee for the annually retained service is $10,200. There is a waiting list for those who have net worth less than $1,250,000. Please send me an email if you would like to be put on the waiting list.
For net worth over $4.0M add $2,500 in fees for each additional $500K in net worth. Example: For $7M of net worth the fee is calculated $33,000+($2,500*6)= $48,000 annually. Fees for Net Worth’s over $15M can be negotiated. The areas of financial planning that are typically addressed in the Annually Retained Investment Management and Financial Planning- Personal CFO engagement includes:
- Cash Flow Analysis
- Retirement Planning
- Income Planning in Retirement
- Tax Planning
- Investment Management
- Education Funding
- Insurance Needs / Risk Management
- Compensation and Benefits Package Review
- Company Stock Option / Restricted Stock Reviews
- Estate Planning
- Gifting & Multigenerational Issues
- Portfolio Monitoring, Rebalancing & Investment Optimization
The fees will be billed at the beginning of the service period each month or quarter. We can set up an automatic bank draft for payment either monthly or quarterly. These services are offered on a fee-only basis.
Besides the AFA advisory fee (discussed above), there are other fees to keep in mind. Clients are responsible for all fees incurred in executing and maintaining the recommended portfolios. Below are two fees that clients are responsible for portfolio expenses and custodian expenses. These expenses vary with the custodian, e.g. Scottrade, Schwab, Fidelity, ETrade.
There are no upfront or deferred sales charges. The expense ratios of the portfolios we construct typically range from 0.24% – 0.60% depending on the stock-to-bond ratio. This is how the fund companies are paid to operate the fund. Refer to the individual funds ETF of Mutual Fund) prospectus to understand all fees including fund trading fees.
Trades generally range from $8 to $75 depending on if they are stock or mutual fund trades.
You may incur fees in addition to the ones paid to Aust Financial Advisory. For instance, your other advisors such as your CPA and/or Attorney will charge their own fees for their advice and consultation services.