mABC Investment Advisors charges a fixed fee for broad-based financial planning services which generally ranges between $1,000 and $3,000 and is negotiable depending upon the complexity and scope of the plan, the Client's financial situation, and the Client's objectives. Modular and Consultative financial planning will be offered on an hourly basis at a negotiable rate of $150 per hour. An estimate of the total cost will be determined at the start of the advisory relationship. In some circumstances the cost/time could potentially exceed the initial estimate. In such cases, the Firm will notify the Client and may request that the Client approve the additional fee. A deposit of up to 50%, but no more than $500, of the total estimated fee will be due in advance. The remainder will be due upon completion of the services rendered if the financial planning services are completed within six months of receipt of the deposit. Should completion extend beyond six months, the Client will be billed at the end of each quarter for services rendered. Under no circumstance will the Firm require prepayment of a fee more than six months in advance and in excess of $500.
In its discretion, mABCIA may waive or offset a portion of the financial planning fee should the Client choose to implement the plan through mABCIA's asset management services. The Firm reserves the right to determine whether the financial planning and/or consulting fees will be waived or offset by a portion of advisory fees earned in the implementation process. The scope and complexity of the financial planning services that were provided will determine the amount of the waiver or offset of the fee.
mABCIA or the Client may terminate the management agreement within five days of the date of acceptance without penalty to the Client. After the five-day period, either party, upon 10 days written notice to the other, may terminate the financial planning agreement. The Client is responsible to pay planning fees, which due and payable at termination, in excess of the deposit received for bona fide planning services actually rendered prior to such termination. Deposits received in excess of fees for bona fide planning services are refundable.
Asset Management Services Fees
The annual fee for asset management services is billed quarterly in arrears based on the asset value on the last day of the calendar quarter. Fees will be assessed pro rata in the event the portfolio management agreement is executed at any time other than the first day of a calendar quarter or funds are deposited or withdrawn from the account during the quarter. On an annualized basis, the Firm's fees for portfolio management services, subject to negotiation, are based on the following scaled fee schedule:
Assets Under Management Annualized Fee
Under $500,000 1.0% $500,000 to $749,999 0.9% $750,000 to $1,499,999 0.8% $1,500,000 to $2,999,999 0.7% $3,000,000 to $4,999,999 0.6% $5,000,000 and above 0.5%
For example, for an account that has a value of $650,000 at the end of a quarter, the quarterly fee will be calculated as follows: ($500,000 x 1.0% + $150,000 x 0.9%) x 0.25 or $6,350 x 0.25 or $1587.50
At its discretion, mABCIA may allow accounts of members of the same household to be aggregated for purposes of determining the advisory fee. For example, the Firm may allow such aggregation where the Firm services accounts on behalf of minor children of current Clients, individual and joint accounts for a spouse, and other types of related accounts. This consolidation practice is designed to allow Clients the benefit of an increased asset total, which could potentially cause the accounts to be assessed a reduced advisory fee based on the discounts available in mABCIA's previously stated scaled fee schedule
Payment of management fees will be made by the custodian holding the Clients' funds and securities provided that the following requirements are met:
* The Client provides written authorization permitting the fees to be paid directly from the Client's account held by the custodian. The Firm does not have access to Client funds for payment of fees without Client consent in writing.
* The Firm sends the Client an invoice showing the amount of the fee, the value of the Client's assets on which the fee is based, and the specific manner in which the fee was calculated. The advisor sends the custodian an invoice showing the amount of the fee to be deducted from the account.
* The custodian agrees to send the Client a statement, at least quarterly, indicating all amounts disbursed from the account including the amount of the advisory fee paid directly to the Firm.
mABCIA or the Client may terminate the management agreement within five days of the date of acceptance without penalty to the Client. After the five-day period, either party, upon 30 days written notice to the other, may terminate the management agreement. The Client may incur a charge for bona fide advisory services actually rendered prior to such termination. The management fee will be pro-rated for the quarter in which the cancellation notice was given and any unpaid fees will be due and payable at termination.
General Information on Advisory Services and Fees
mABCIA does not represent, warrant, or imply that the services or methods of analysis employed by the Firm can or will predict future results, successfully identify market tops or bottoms, or insulate Clients from losses due to market corrections or declines.
Advice offered by mABCIA may involve investment in mutual funds. Clients are hereby advised that all fees paid to mABCIA for investment advisory services are separate and distinct from the fees and expenses charged by mutual funds (described in each fund's prospectus) to their shareholders. These fees will generally include a management fee and other fund expenses. Further, there may be transaction charges involved with purchasing or selling of securities. mABCIA does not share in any portion of the brokerage fees/transaction charges imposed by the custodian holding the Client funds or securities. The Client should review all fees charged by mutual funds, mABCIA, and others to fully understand the total amount of fees to be paid by the Client. mABC Investment Advisors reserves the right to advise Clients on any other type of investment that it deems appropriate based on the Client’s stated goals and objectives. mABC Investment Advisors may also provide advice on any type of investment held in a Client’s portfolio at the inception of the advisory relationship or any investment on which the Client requests advice.
mABC Investment Advisors, LLC is a registered investment adviser in the state of Texas and may be registered in other states. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation will not be made without registration or exemption.