Asset Management Fee Structure at Five Pine Wealth Management
At Five Pine Wealth Management, we operate on a fee-based model to ensure transparency and alignment of interests with our clients. We charge a flat annual asset management fee that decreases as the account size grows. Our standard management fee is 1.10%, and it adjusts as per the following fee schedule:
- On the amount between 0 -- $249,999: 1.10%
- On the amount between $250,000 -- $499,999: 1.00%
- On the amount between $500,000 -- $999,999: 0.90%
- On the amount between $1,000,000 -- $1,999,999: 0.70%
- $2,000,000 and above: 0.50%
By choosing Five Pine Wealth Management, you can be assured of a transparent fee structure that prioritizes your financial growth and success.
Hypothetical Example Illustrating Our Fee-based Model
Let's consider a hypothetical scenario involving Mr. and Mrs. Jones, who bring $100,000 to invest with Five Pine Wealth Management. As fee-based advisors, we charge a flat 1.10% asset management fee annually based on the account value. This fee is billed monthly to the client's account.
For a $100,000 account, the 1.10% fee amounts to $1100 annually.
The monthly fee would be approximately $92 ($1100/12 months).
The fee is automatically deducted from the investments, simplifying the process for our clients.
Benefits of Our Fee-Based Model
We employ the fee-based model to align our interests with our clients, ensuring mutual success. For instance, if we grow Mr. and Mrs. Jones' account from $100,000 to $150,000, both parties benefit. As the account grows, so does our compensation.
At $150,000, our compensation would be $1500 annually or $125 monthly.
This model incentivizes us to select the best-performing funds while keeping investment costs minimal, as our success is tied to our clients' success.
