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Save for a Rainy Day
As fall sets in Seattle we know what’s coming, rain! Saving for a rainy day is an idiom whose origins are really unknown, but all
Fees
Zetlmaier Wealth Management LLC's Fee Philosophy
There’s an old saying in the industry that “a client who comes to you because of fees will leave you for fees.” I want clients to realize exceptional value relative to the industry with my fee model.
Investment Management Fees:
Investment Management: 1% on assets up to $250k, 0.50% on anything above $250k. Fees are capped at $10,000 per year per household. That means if you have over $1.75 Million in assets invested with us, you won’t pay anything more. Underlying fund expenses depend on the investments and are built into the return. ZWM portfolios typically have underlying expenses of roughly 0.15% which are not paid to us and are not reflected in the examples below.
Example 1: Husband and Wife each have Traditional IRA’s valued at $25k each. They also have a Roth IRA at $50k and a Joint Account valued at 100k for a total of $200k in assets. Their total annual fee is $2000 per year ($200k in total assets x 1%)
Example 2: A married couple have a $1million Joint Account and $200k in each IRA plus a $100k Roth IRA for a total of $1.5million. Their total annual fee is $8750 (1% x $250k plus 0.5% on $1.25million).
Example 3: A Widow has $5million in a taxable account and $1million in her IRA. In this case she would pay $10,000 because she his the annual maximum. Otherwise the fee would look like (1% x $250k plus 0.5% x $5.75Mil = $31,250)
Financial Planning Fees
There is no additional charge for Financial Planning if you have assets under management at ZWM.
If you want a 3rd party review of your current holdings, an unbiased financial plan, or you want to work with a financial services fiduciary in an hourly capacity, the charge is $300 per hour. A time estimate will be given and contract will be completed before any hourly fees are due
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Breakdown of Investment Management Fees
Our fee structure for investment management is clear and designed to be fair for all our clients. We charge 1% on assets up to $250,000 and 0.50% on any amount above that threshold. Significantly, we cap annual fees at $10,000 per household, ensuring that once your investments exceed $1.75 million, your fees do not increase further. This approach helps you retain more of your returns as your wealth grows, while still benefiting from our comprehensive management services. Additionally, the costs associated with the underlying funds in your portfolio are separate from our management fees, averaging about 0.15%. These expenses are inherent to the investments chosen and are integrated into the overall returns.
Illustrative Examples for Calculating Fees
To provide a clear understanding of how our fees work, consider these examples:
– Example 1: A couple with $200,000 in total assets, divided among Traditional IRAs and a joint account, would incur an annual fee of $2,000. This is calculated as 1% of their total assets.
– Example 2: Another couple with $1.5 million in assets spread across different accounts would pay $8,750 annually. This is derived from 1% on the first $250,000 and 0.50% on the remaining $1.25 million.
– Example 3: A widow with $6 million in assets, spread between taxable accounts and an IRA, would hit the annual fee cap, paying only $10,000 despite their total fees potentially amounting to $31,250 without the cap.
Explanation of Underlying Fund Costs
In managing your portfolio, we carefully select investment funds that align with your financial goals and risk tolerance. Each of these funds comes with its own set of costs, known as underlying fund expenses. These expenses are inherent to the operation and management of the funds themselves and are separate from the fees you pay us for managing your assets. On average, these underlying fund costs are approximately 0.15% and are integrated into the overall returns of your investments.
These costs cover a range of services provided by the fund managers, including but not limited to, research, trading, and administrative services. It is important to note that these expenses are not paid directly to Zetlmaier Wealth Management LLC. Instead, they are embedded within the fund’s performance and, as a result, affect the net returns you receive.
Understanding these expenses can provide you with a clearer picture of the total cost of your investment strategy. While they are a necessary component of any investment fund, we strive to choose funds that offer a balance between cost and performance. Our goal is to ensure that the funds we select not only meet your financial objectives but also offer competitive expenses to maximize your returns.
When evaluating your overall investment costs, it is crucial to consider both our management fees and these underlying fund expenses. By doing so, you gain a comprehensive understanding of what you are paying and the value you are receiving. Our focus remains on selecting high-quality, cost-effective funds that contribute positively to your investment portfolio’s performance.
Structure of Financial Planning Fees
At Zetlmaier Wealth Management LLC, we are committed to making financial planning accessible and straightforward for our clients. For clients who have assets under our management, we do not impose any additional fees for our financial planning services. This ensures that you receive comprehensive support without worrying about extra costs.
For those who seek a third-party review of their current holdings, an independent financial plan, or wish to work with us on an hourly basis, we offer these services at a rate of $300 per hour. Before any hourly services begin, we provide a detailed time estimate and complete a contract to ensure that all parties are clear on the scope and cost of the work involved. This approach guarantees transparency and helps avoid any unexpected fees.
Our financial planning services are designed to provide valuable insights and tailored strategies that align with your financial goals. Whether you’re looking for a second opinion or a detailed financial plan, our team is ready to offer expert advice and support. By focusing on clear communication and well-defined agreements, we aim to make the financial planning process as smooth and beneficial as possible for you.
Transparency & Trust In Our Fee Structure
Our fee structure at Zetlmaier Wealth Management LLC is crafted to ensure clarity, value, and fairness. By capping fees and providing comprehensive services without hidden charges, we focus on delivering top-tier financial management tailored to your needs. The fee cap of $10,000 per household is particularly beneficial for clients with substantial investments, ensuring that your costs remain predictable as your assets grow.
Our illustrative examples help demystify how fees are calculated across different asset levels, allowing you to see the straightforward nature of our fee structure. Additionally, our approach to underlying fund costs highlights our commitment to transparency. These costs are integrated into your investment returns, not added on top of our management fees.
For those needing financial planning services, we offer these at no extra cost if you have assets managed by us. If you require specific advice or a third-party review, our hourly rate ensures you receive expert guidance without unexpected expenses.
We believe in fostering a long-term relationship built on trust and mutual success. Our transparent fee structure is a testament to this commitment, ensuring you understand exactly what you are paying for and the value you are receiving. Partnering with us means having a dedicated team focused on maximizing your financial growth while keeping costs fair and transparent.
