Advisory fees
Clear fees for an ongoing planning relationship.
Our advisory fee is a marginal annual rate charged on your billable assets under management. Each rate below applies only to the portion of assets within that tier — never to your whole balance.
| Billable assets | Annual rate |
|---|---|
| First $500,000 | 1.15% |
| Next $2.5 million | 0.80% |
| Next $5 million | 0.50% |
| Above $8 million | 0.15% |
Each rate applies only within its own tier. For example, assets in the "Next $2.5 million" tier are charged at 0.80% — only the first $500,000 is charged at 1.15%. Fees are payable quarterly in arrears, based on the average daily balance of billable assets in your account(s) over the billing period. We may aggregate accounts in the same household when determining the applicable fee.
Illustrative example
What this looks like in dollars
Illustrative only — for $1,000,000 in billable assets:
- First $500,000 at 1.15% = $5,750
- Next $500,000 at 0.80% = $4,000
Total: $9,750 per year, a blended rate of about 0.975%.
This example assumes a constant balance for the full year and excludes fund and product expenses, model or strategy fees, custodian or transaction costs, and any other costs. Your actual fee will vary with your billable assets and their tier.
Annuities
Annuities, commissions, and conflicts of interest.
If an annuity has a role in your plan, its contract value is not counted as billable assets under this advisory fee. Insurance and annuity commissions are separate from and do not reduce or offset our advisory fee.
Doug Aumont may receive commissions on insurance and annuity products through Annuity Strategy Center. That is a conflict of interest: commissions give him an incentive to recommend commission-paying products, and products that pay higher compensation. You are never required to buy an insurance or annuity product, and you are free to work with another insurance professional. Applicable advisory fees, other costs, and commissions are disclosed before engagement or implementation, as applicable.
An asset-based fee also creates an incentive for us to recommend keeping or adding assets under our management, for example when you are deciding whether to pay down debt or fund a large purchase. We explain these tradeoffs when they apply.
What's included
One fee, one relationship.
- Income and spending planningWhere your paycheck comes from each month, and what you can reasonably spend.
- Portfolio management and rebalancingAllocation, risk, implementation, rebalancing, and routine trades within the strategy we agree on.
- Tax planning and asset coordinationWe model financial alternatives, including tax-efficient account and investment placement and withdrawal timing, and prepare questions for your independent tax professional. We do not give tax advice, prepare tax returns, or determine the tax treatment of transactions.
- Planning for care and familyCoordinate insurance, care needs, beneficiaries, and legacy planning with the appropriate professionals.
- Written plan, big decisions, and updatesA written retirement plan, help with major money decisions, regular meetings, and plan updates.
Other costs and terms
What else to know
In addition to our advisory fee, you may pay fund and product expenses, third-party model or strategy fees of up to 0.50% (50 basis points) per year depending on the strategy, and custodian or transaction costs. Specific terms are reviewed with you before you engage us. Our Form ADV disclosure documents contain complete information about fees and conflicts of interest.
Fee questions
Is there an asset minimum?
The firm maintains a minimum account size of $250,000, which may be waived or reduced at the firm’s discretion.
How does the fee apply as my assets grow?
Each rate applies only to the dollars within that tier — not to your whole balance. As billable assets move into a higher tier, only the amount within that tier is charged at the new, lower rate.
Are annuities included in the fee?
No. Annuity contract values are excluded from billable assets. Insurance and annuity commissions are separate from and do not reduce or offset advisory fees. Applicable advisory fees, other costs, and commissions are disclosed before engagement or implementation, as applicable.
Does Doug receive commissions on insurance or annuities?
Yes. Doug Aumont may receive commissions on insurance and annuity products through Annuity Strategy Center. These commissions are separate from and do not reduce or offset advisory fees. Commissions give him an incentive to recommend commission-paying products, and products that pay higher compensation. You are never required to buy an insurance or annuity product, and you may buy one through another insurance professional. Applicable advisory fees, other costs, and commissions are disclosed before engagement or implementation, as applicable.
How and when is the fee billed?
Fees are payable quarterly in arrears and calculated using the average daily balance of billable assets in your account(s) over the billing period, including unsettled trades. The average daily balance is determined by adding the end-of-day balance of billable assets for each day in the billing period and dividing by the number of days in that period. All annuity contract values are excluded from billable assets.
How is the quarterly fee calculated?
We apply the applicable annualized rates to the portions of the quarter's average daily billable balance within each tier, add the resulting amounts, and divide the total by four. For example, an average daily billable balance of $1,000,000 produces an annualized fee of $9,750 — $5,750 on the first $500,000 plus $4,000 on the next $500,000 — so the fee for a full quarter would be $2,437.50. For the initial partial quarter, the fee is prorated based on the number of days services were provided during the quarter.
Are my household's accounts combined for the fee?
For purposes of determining the applicable fee, we may aggregate accounts belonging to the same household.
Are there other costs?
Yes, several kinds of cost may apply in addition to our advisory fee: fund and product expenses, third-party model or strategy fees of up to 0.50% (50 basis points) per year depending on the strategy, and custodian or transaction costs. We review the costs that apply to you before you engage us.
Want to see how the fee applies to your situation?
Schedule a complimentary 30-minute introductory call. We will walk through the fee before you decide whether to work with us.
Or reach out to Doug directly by sending him an email at doug@financialthinkingpartner.com.