Fee Transparency

financial planning and investment fees

As fiduciaries operating a fee-only investment advisory firm, we focus on providing impartial and personalized advice. We value complete transparency in our pricing and fee structure, so we offer access to pricing and fees for financial planning and investment management.

financial planning and investment fees

Financial Planning Fees

Starting at

$ 750
per quarter
  • The fee for financial planning services will be determined and based on the complexity and scope of the required services, which will be determined following an initial consultation.
  • Financial Planning fees can be paid monthly, quarterly or semi annually

Investment Advisory Fees

Fee Schedule

Asset Tier Level Rate
First $0 - $500,000 1.25%
Next $500,001 - $1,750,000 1.00%
Next $1,750,001 - $5,000,000 0.75%
Amount Over $5,000,001 0.50%
  • Our fee schedule has three tiers based on total assets managed
  • Investment Advisory fees cover services such as portfolio design, continuous monitoring, rebalancing, and personalized guidance.

Our financial planning and investment fees

Our pricing model

At Able Wealth Management, we do not impose any fees based on trading activities or commissions related to managing your investment account. Instead, we utilize an annual investment management fee structure, payable quarterly and calculated according to your account’s average daily balance during the billing period. This balance takes into account any deposits or withdrawals made within that time frame.

To determine the average daily balance, we add up the daily balances for each day of the quarter and divide the sum by the total number of days in the quarter. This approach allows us to establish the market value of your account’s assets, upon which the advisory fee is based.

Our firm employs a percentage “blended” tier fee schedule, meaning that the fee charged on your assets varies depending on which tier your account balance falls into. As your account balance grows, the fee percentage decreases. The annual advisory fees are determined based on the combined value of all household assets.

As a wealth management firm, we use a percentage-tiered fee schedule to charge our clients based on the amount of assets under management. This means that the fees we charge are based on a percentage of the total assets that our clients have with us.

Our fee schedule has three tiers based on the amount of assets under management:

Client Assets Under ManagementAnnual Rate
First $0 – 500,0001.25%
Next $500,001 – $1,750,0001.00%
Next $1,750,001 – $5,000,0000.75%
Amount Over $5,000,0010.50%

For example, if a client has $800,000 under management with us, we would charge them 1.25% on the first $500,000 (which comes to $6,250) and then 1.00% on the remaining $300,000 (which comes to $3,000), for a total fee of $9,250 for the year.

If the same client’s assets under management increased to $1,200,000, we would charge them 1.25% on the first $500,000 (which comes to $6,250), and then 1.00% on the next $700,000 (which comes to $7,000), for a total fee of $13,250 for the year.

Similarly, if a client has $6,000,000 under management, we would charge them 1.25% on the first $500,000 (which comes to $6,250), 1.00% on the next $1,250,000 (which comes to $12,500), 0.75% on the next $3,250,000 (which comes to $24,375), and then 0.50% on the remaining $1,000,000 (which comes to $5,000), for a total fee of $48,125 for the year.

Yes, the fee percentage charged on investment accounts decreases as the account balance grows. This means that clients with higher balances will pay a lower percentage of their assets in fees compared to those with lower balances.

At the end of each quarter (March, June, September, and December), we deduct our fees directly from your investment account(s). You don’t need to take any action, and we will never charge any fees if there is no balance in your account.

Our fees are calculated based on the daily balance of the assets under our management. We use this daily balance to determine the market value of the assets on which the advisory fee is based, and the fee is assessed quarterly according to your fee schedule.

Yes, you have the option to pay your investment advisory fees directly instead of having them deducted from your account(s).
There are a few payment options available for financial planning fees. These include making a one-time payment for the entire service upfront, as well as making quarterly or semi-annual payments.Payment can be made by Check, Credit Card, or ACH Payment. Instructions on making your payment will be included with your invoice.Before beginning the financial planning engagment, your initial payment is required.

Our one-off hourly financial planning services start at $250/hour. If you want to learn more about hourly financial planning, contact us for more details.

Financial Planning Fees

Plan Type
Sources of Income (select all that apply)
Additional Considerations
Total Fee: $0
  • Fees can be paid monthly, quarterly or semi annually
  • Actual fee will be determined on complexity and scope after an initial consultation
Investment Advisory Fees

Fee Rate: %

Annual Fee: $

  • Fee charged on a percentage-tiered rate
  • Fee based on total assets managed
  • Fee covers services such as portfolio design, continuous monitoring, rebalancing, and personalized guidance

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Volatility Drag

Volatility drag, often unnoticed by many investors, plays a significant role in the performance of investment portfolios, especially in markets characterized by high volatility. Understanding volatility drag is crucial for making informed investment decisions and managing long-term investment performance.

Understanding Volatility Drag

Volatility drag refers to the negative effect of investment volatility on compound returns over time. It occurs because losses have a more significant impact on portfolio value than gains of the same magnitude. For example, if an investment loses 10% one year and gains 10% the next, the investment will not return to its starting value due to the mathematical asymmetry between gains and losses. This phenomenon underscores the importance of minimizing large fluctuations in investment value to protect long-term returns.

The Mathematics Behind Volatility Drag

The mathematical principle underlying volatility drag is relatively straightforward but profound in its implications for investors. The key concept is that percentage gains and losses are not symmetrical. A 50% loss requires a 100% gain to break even, not a 50% gain. This asymmetry means that volatility (up and down movements in price) can erode the compound growth rate of an investment, even if the arithmetic mean of the returns seems healthy.

Example of Volatility Drag

Consider an investment with the following annual returns: +20%, -15%, +10%, and -5%. While the arithmetic mean of these returns might suggest a modest positive performance, the compound annual growth rate (CAGR) would tell a different story, factoring in the volatility drag and showing a lower effective return than the arithmetic mean would suggest.

Implications for Investors

  • Risk Management: Understanding volatility drag emphasizes the importance of risk management strategies, such as diversification and the use of derivatives for hedging, to minimize significant downturns in portfolio value.
  • Investment Strategy: Investors might consider investment strategies that aim for steady, consistent returns over those with potentially higher but more volatile returns. Such strategies might include investing in low-volatility stocks, index funds, or using dollar-cost averaging to mitigate the impact of market fluctuations.
  • Psychological Aspects: Volatility drag also highlights the psychological challenge for investors who may overreact to short-term market movements. A long-term perspective is crucial for successful investing, as frequent trading in response to volatility can exacerbate the drag on returns.
  • Performance Evaluation: When assessing investment performance, considering both the arithmetic mean return and the compound annual growth rate (CAGR) can provide a more comprehensive view of an investment’s performance, factoring in the effect of volatility.

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