Fees
An annual fee, paid monthly for convenience.
| Net Worth |
Annual Planning Fee
|
Paid Monthly |
|---|---|---|
|
< $500,000
|
$2,400
|
$200
|
|
$500,000 - $1 million
|
$3,600
|
$300
|
|
$1 million - $1.5 million
|
$4,800
|
$400
|
|
$1.5 million - $2 million
|
$6,000
|
$500
|
|
> $2 million
|
$7,200
|
$600
|
Net worth is calculated at the beginning of the relationship and revisited annually.
Why Net Worth?
- Align our incentives – create a plan that maximizes your household net worth (instead of assets under management (AUM) or commissions generated by your advisor)
- Focus on the Big Picture – focus on your total pie, not just the slice (investment account) managed by your advisor
- Mitigate conflicts of interest – prioritize building an optimal plan (including debt payoff, asset location, and tax-minimization strategies), not building AUM for your advisor
How to Calculate Net Worth
- Net Worth = Assets - Liabilities
- Assets = Bank balances, retirement accounts, education savings, other investment accounts, real estate (lower of purchase price or appraisal value)
- Liabilities (Debts) = Mortgage, student loans, auto loans, credit card debts, other debts
- *Not included in asset calculation: personal use vehicles, personal property, collectibles not held for investment, and private business valuation