Wealthcare's fees are a fraction of the industry average. Investment management and financial planning fees are monthly and are based upon asset size and income. Specifically, investment management fees are 0.03% of assets discounted by liabilities and financial planning fees are 0.05% of income. Combined, there is a minimum fee of $150, there is no long-term commitment, and all fees are negotiable.
For example, the investment management fee for a client with $800,000 in retirement accounts and personal savings and with a $400,000 home mortgage is $120. The financial planning fee for a client earning $80,000 per year is $40.
Why separate fees for investment management and financial planning? Under the Internal Revenue Code, tax payers may deduct fees for investment management generally, but may only deduct fees for financial planning under limited circumstances. If we were to charge a single fee that covers all services, we may put you at risk of making ineligible deductions or, even worse, engaging in prohibited transactions when the fee is withdrawn directly from a tax-deferred account. Rather than engage in shades of gray with the IRS, we separate the fees.
Of note, Wealthcare does not sell products and is fee-only rather than fee-based. We believe there are inherent conflicts of interest when a fee-based advisor is paid to sell a particular product to a client. The client must always consider whether a fee-based advisor is recommending a product that is best for the fee-based advisor or best for the client.
Existing clients may use Wealthcare's payments webpage, which allows clients to manage their payments via credit card.