HOW WE RECEIVE COMPENSATION:
Our services are provided on a fee-only schedule based on the total assets under management for investment management. The term, fee-only, is how clients pay for our advisory services.
As a fee-only firm, our advisors are required to follow a Fiduciary Standard in how we recommend investments for our clients. This means that we provide customized advice with the same goal as our clients: to help increase our client’s net worth and achieve their overall investment objectives. We do not receive any commission or kickback for choosing one investment vs. another.
Advisors who are full-commission brokers or “fee-based” receive some or all of their compensation with the sale of investment products and trading activity.
Because we are paid by the assets that we are managing, our incentive is to grow the account instead of generating new clients to sell products to. As fee-only advisors, we will work hard to maximize your portfolio performance because we receive more income as your account grows.
The benefits of fee-only investment management:
- No pressure to buy or sell investments
- Personal, ongoing relationship with your advisor
- No fear of racking up fees from asking questions
- Full transparency with no hidden fees
- You and your advisor have the same goal: the achievement of your objectives
Elderado Financial offers advisory services in the areas of personal and business planning and asset management. The specific manner in which fees are charged by EFI is established in a client’s written Agreement with Elderado Financial and the service option selected.
1) Asset Management Program: Clients who enter into an agreement with Elderado Financial for the Asset Management Program will be provided asset management and offered financial planning services. Clients who opt for this program will authorize the deduction of fees directly from their managed accounts, payable in arrears, based upon the asset value on the last day of the previous month as 1/12th of client’s annual fees.
Asset Management Program Fee Schedule*:
|$0 to $149,999||1.50%|
|$150,000 to $499,999||1.00%|
|$500,000 to $999,999||0.85%|
|$1,000,000 to $1,999,999||0.75%|
|$2,000,000 to $4,999,999||0.70%|
|$5,000,000 to $9,999,999||0.65%|
|$10,000,000 and Above||0.60%|
*Fees may be negotiated per advisor’s discretion
2) Financial Planning Agreement: For hourly planning services on a limited scope of work, clients are billed per hour and will receive an invoice after the completion of the financial planning services. Partial hours will be billed pro-rata in 15-minute increments. Services provided may include retirement planning, investment portfolio assessment and risk tolerance review and other general financial planning topics depending on the needs and concerns of the client. Elderado Financial advisors will provide investment advice on a non-discretionary basis.
TERMINATION OF AGREEMENT
Should the client or Elderado Financial wish to cancel either the Asset Management or Financial Planning Agreement, the agreement may be canceled at any time with written notice. If the client cancels the Agreement after EFI has begun the services requested, the client will be charged for the services completed. Should the client terminate the Agreement within five business days after signing, no charges or penalties will be assessed. For either service option, Clients are billed after services are rendered so refunds of prepaid services are not applicable.
For clients in the Asset Management Program, the client will be responsible for any fees or charges incurred by client from third parties as a result of maintaining managed accounts or for any securities transactions executed. Managed accounts terminated during a calendar month may be charged a prorated fee.
For more information on our services, please refer to our ADV Part 2A & 2B.
If you have questions about whether or not investment management fees are tax deductible, more information is provided Here.
To discuss our fee-only financial planning services and how we have always followed the Fiduciary standard, please Contact Us.