Fees & Compensation
We will work with you to create a goals-based financial plan and update it annually or whenever a major assumption changes. We’ll share your plan through an online financial organizer, so you can change assumptions whenever the mood strikes you. You can contact us whenever you have a question related to your personal finances and we will respond with our best advice. No extra charge. It’s all included in your monthly fee.
Comprehensive Financial Planning
Comprehensive Financial Planning consists of an ongoing fee that is paid monthly, in arrears, at the rate of $250-$500 per month. The fee may be negotiable in certain cases. Fees for this service may be paid by electronic funds transfer or check. This service may be terminated with 30 days’ notice. Since fees are paid in arrears, no refund will be needed upon termination of the account. If fees are debited directly from client accounts, this fee deduction will be conducted by the third-party asset manager, currently Betterment. This service may be terminated with 30 days’ notice. Since fees are paid in arrears, no refund will be needed upon termination of the account.
The standard advisory fee is based on the market value of the account and is calculated as follows:
Account Value Annual Advisory Fee
($0 - $1,000,000) - 1.00%
($1,000,001 - $2,000,000) - 0.85%
(Above $2,000,000) - 0.65%
The annual fees are negotiable, prorated and paid in arrears on a quarterly basis. The advisory fee is a blended fee and is calculated by assessing the percentage rates using the predefined levels of assets as shown in the above chart and applying the fee to the account value as of the last day of the previous quarter, resulting in a combined weighted fee. For example, an account valued at $2,500,000 would pay an effective fee of 0.87% with the annual fee of $21,750.00. The monthly fee is determined by the following calculation: (($1,000,000 x 1.00%) + ($1,000,000 x 0.85%) + ($500,000 x 0.65)) ÷ 12 = $1,812.50.
When an Outside Manager is used, the Outside Manager will debit the Client’s account for both the Outside Manager’s fee, and BFP’s advisory fee, and will remit BFP’s fee to BFP. Please note, the above fee schedule does not include the Outside Manager’s fee. No increase in the annual fee shall be effective without agreement from the Client by signing a new agreement or amendment to their current advisory agreement.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee based on the amount of time remaining in the billing period. An account may be terminated with written notice at least 30 calendar days in advance. Since fees are paid in arrears, no refund will be needed upon termination of the account.
Project-Based Financial Planning Fixed Fee
Project-Based Financial Planning is offered on a fixed fee basis. The fixed fee will be agreed upon before the start of any work. The fixed fee can range between $500 and $5,000, depending on complexity and the needs of the client. The fee is negotiable. If a fixed fee program is chosen, half of the fee is due at the beginning of the process and the remainder is due at completion of work, however, BFP will not bill an amount above $500 more than 6 months in advance. Fees for this service may be paid by electronic funds transfer or check. In the event of early termination any prepaid but unearned fees will be refunded to the Client and any completed deliverables of the project will be provided to the Client and no further fees will be charged.
Financial Planning Hourly Fee
Hourly Financial Planning engagements are offered at an hourly rate of $250 per hour. The fee may be negotiable in certain cases and is due at the completion of the engagement. In the event of early termination by the Client, any fees for the hours already worked will be due. Fees for this service may be paid by electronic funds transfer or check.
Other Types of Fees and Expenses
Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses which may be incurred by the Client. Clients may incur certain charges imposed by custodians, brokers, and other third parties such as custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer, and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual fund and exchange-traded funds also charge internal management fees, which are disclosed in a fund's prospectus. Such charges, fees, and commissions are exclusive of and in addition to our fee, and we shall not receive any portion of these commissions, fees, and costs.