The annual fee for investment advisory services is based on the total dollars for which investment advice is sought. Subsequent annual fees shall be based on the account’s market value at the start of the new fiscal year. The annual fee will be prorated for additions and/or withdrawals (other than planned periodic “living expense” withdrawals).
Investment advisory services (annual charge):
First $1,000,000 = 1%
Next $2,000,000 = .75%
Next $2,000,000 = .50%
Amounts after and above $5,000,000 = .35%
Setup charges (one-time fee): The setup charge is $2,000. It covers the initial analysis, allocation, and setting up of the account in Eclectic’s recordkeeping system. This charge is assessed at the beginning of our work together.
Individual Fixed Income Investments
For individual fixed income investments, such as individual bonds and certificates of deposits, which are planned to be held until maturity, the first year’s fee is as shown above. Subsequent years’ fees are 0.35% of the value of those types of investments. This does not apply to mutual funds since they do not have an expected maturity date. The balance of your investments are billed according to the previously shown fee table.
One-third of the annual investment advisory services fee is payable four months in advance. The setup charge is billed in the beginning and no fee is due upon signing of the agreement. Eclectic will bill you for the amount owed after delivery of the written financial plan.