We implemented a new assets under management fee schedule effective February 13, 2023 (the “2023 AUM Fee Schedule”), which applies to all clients who established a relationship with us on or after February 13, 2023. Our previous assets under management fee schedule (the “Retired AUM Fee Schedule”) will continue to apply to clients who established a relationship with us before February 13, 2023. At this time, we do not intend to adjust our legacy clients’ AUM Fees to match the 2023 AUM Fee Schedule. That means that some legacy clients will be subject to higher AUM fees. Clients remain free to negotiate lower fees; however, agreeing to a lower AUM fee is in our sole discretion. The information in this section applies to all of our clients. Additional details about our fees are disclosed in Item 5 of our ADV Part 2A, which you have received a copy. And, of course, you are always welcome and encouraged to ask us about the fees you are paying for our services.
Our fee structure differs based on the services we are providing you. Our clients are charged asset-based fees based on the total value of your assets under management contracted with us. This advisory fee is up to 1.25% of that value under the 2023 Fee Schedule, and up to 1.5% of that value under the Retired Fee Schedule. The fees are tiered as outlined in our ADV Part 2A, Item 5 Fees and Compensation. Clients under the 2023 Fee Schedule are subject to a $1,500 annual minimum, which may, at our discretion, be waived or met by “householding” accounts. Clients under the Retired Fee Schedule will also incur an administrative fee of up to .50% of that value. Our administrative fee is subject to an annual minimum of $35.00. Due to this minimum administrative fee, accounts valued under $7,000 are not cost effective to maintain with the firm.
Clients who hire us to strictly provide financial planning services typically pay from $500-$2,000, depending on complexity.
The EWM fees indicated are not the only fees that you pay. Certain products or services we choose for your accounts charge fees that are separate from, and in addition to, EWM’s fees. Some examples are separately managed account providers, mutual funds or options. We use these products and services from time to time, and others, in the management of your account. It is important to discuss the total cost of investing your assets with your Private Wealth Advisor.
Asset based fees and administrative fees (if applicable) are billed quarterly in advance by directly debiting from your managed accounts. Those who engage us for Financial Planning services only pay by check to ‘Executive Wealth Management’.
The more assets there are in your accounts, the more you will pay in fees. We may, therefore, have an incentive to encourage you to increase assets in your accounts managed with us. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Ask Your Private Wealth Advisor:
- If I give you $10,000 to invest, how much will go to fees and costs and how much will be invested for me?