The AUA fee will be an annual contract with the clients, with the AUA calculated once a year during their annual plan update review meeting (12 months from the client’s original contract date).
There will be an initial relationship startup fixed fee of $1,000 to cover for the initial data gathering meeting(s) and the initiation of the financial planning process. This initiation fee may be waived or reduced at the discretion of the Advisor if the client participates in the Financial Coaching Services provided under a related company of the Advisor (Haas Trade, LLC). This fee reduction is based upon the time savings by the client information being provided prior to initiating the Financial Planning Consulting program.
The initial fee waiver is as follows:
- Completion of at least a 4 month 1-on-1 coaching program - Waive all $1,000
- Completion of at least a 4 month group coaching program - Waive $500
- Completion of the self-paced coaching online course - Waive $250
Traditional Financial Advisors typically charge a management fee in the form of Assets Under Management (AUM), which is made up of a percentage of the client’s assets. Fees of 1% to 2% are typical, and are pulled directly from the client's investing accounts. This fee may seem small but it can greatly reduce your long term financial gains.
Below is an illustrative example of how a seemingly small fee of 1% or 2% can greatly affect your long term investing returns. As you can see below it can be a difference of hundreds or even millions of dollars over the long term!
The above graphic was generated using this handy dandy return calculator to compare how different fee amounts could affect your long term returns: https://www.schwabmoneywise.com/investment-fees-calculator.
Please be aware that 10% returns were used because the S&P 500 has historically returned an average of 8% - 11% per year over the long term BUT past performance is not conducive of future performance and returns are NEVER guaranteed. We are in no way shape or form guaranteeing that you will see these types of returns.