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:
|Asset Tier Level||Rate|
For example, if a client has $800,000 under management with us, we would charge them 1.00% of $800,000, which comes to $8,000 in fees for the year.
If the same client’s assets under management increased to $1,200,000, we would charge them 1.00% on the first $1,000,000 (which comes to $10,000) and then 0.75% on the remaining $200,000 (which comes to $1,500), for a total fee of $11,500 for the year.
Similarly, if a client has $6,000,000 under management, we would charge them 1.00% on the first $1,000,000 (which comes to $10,000), 0.75% on the amount between $1,000,001 and $5,000,000 (which comes to $30,000), and then 0.50% on the remaining $1,000,000 (which comes to $5,000), for a total fee of $45,000 for the year.
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.
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.
Annual planning fees start at $3,000 for an individual ($4,000 for a couple). After looking at your specific needs and how complicated your situation is, we’ll determine how much your financial plan will cost.
Annual fees for investment management are charged on a percentage-tiered rate based on your assets under management and cover services such as portfolio design, continuous monitoring, rebalancing, and personalized guidance.