Dickmeyer Boyce Financial Management, Inc. bases its fees on a percentage of assets under management, hourly charges, fixed fees, and retainers.
The specific manner in which fees are charged by DBFM is established in a client’s written agreement. DBFM will generally bill its fees on a quarterly basis. Clients may pay the fee directly or may have the fee removed from their account by the custodian. The fees are billed in arrears. This means that while the fee is calculated using the exact dollar amount invested at the beginning of the quarter, the fee is actually withdrawn and billed to the client’s respective account at the end of each quarter. Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon termination of any account, any unpaid fees will be due.
Wealth Management Fees
DBFM charges a fee for the Wealth Management service that is based upon the assets that are under management at the beginning of each quarter. The fee is calculated using the following schedule:
Clients and Corporations:
- First $500,000 – 1.00% per year.
- Amounts above $500,000 -- $5,000 plus 0.80% per year on amounts above $500,000.
- Amounts above $1,000,000 -- $9,000 plus 0.60% per year on amounts above $1,000,000.
- Amounts above $2,000,000 -- $15,000 plus 0.40% per year on amounts above $2,000,000.
- Accounts above $5,000,000 have negotiable fees.
The minimum fee is $5,000 per year. The minimum portfolio size is $500,000.
Wealth Management Fees for ERISA Plans are based upon the following schedule:
First $1,000,000 – 0.50% per year.
Amounts above $1,000,000 but less than $2,000,000 - $5,000 plus 0.40% per year on amounts over $1,000,000.
Amounts above $2,000,000 but less than $3,000,000 - $9,000 plus 0.30% per year on amounts over $2,000,000.
Accounts above $3,000,000 - $12,000 plus 0.25% on amounts greater than $3M.
The minimum portfolio size for ERISA plans is $500,000.
Charitable accounts and non-profit accounts are managed at 0.40% per year. The minimum account size is $200,000 or the above ERISA fee schedule is used.
Comprehensive Financial Planning Fees
Initial financial planning fees for the comprehensive financial planning agreement are calculated on a formula basis and adjusted for complexity of individual situations. Initial fees are determined by an engagement letter and are based on a variety of factors, including but not limited to historical relationship, total assets, type of assets, anticipated future additional assets, complexity of financial planning needs, or negotiation with clients. A detailed fee schedule showing calculations is provided with the initial invoice. Fees may be withdrawn directly from the client’s account or paid directly by the client.
Dickmeyer Boyce Financial Management, Inc. also offers a Wealth Management Service that is separate from the Comprehensive Financial Planning service and we recognize the additional value we can add to a client’s financial situation by combining both services. In order to encourage our Wealth Management clients to pursue the advantages of a Comprehensive Financial Plan, we offer the financial plan at a discount if you use both services. We do this by assessing a flat charge of $4,000 per year to each of our Wealth Management clients who also wish to have financial plans completed. We then reduce the combined Wealth Management and Financial Planning fee by the amount of fees collected for the Wealth Management service.
Personal Financial Overview (PFO)
The fee for this service $1,000. The fee is waived for clients with assets under management of $300,000 or more. Annual reviews and plan updates can be completed on an hourly basis and will be billed at the disclosed hourly rate.
Unless otherwise stated in an engagement letter, all engagements are billed and due within 30 days of completion of the specified work.
Since DBFM does not take custody of client’s assets, a custodian is used (i.e. Charles Schwab/Fidelity Investments). The custodian charges transaction fees, or otherwise is paid part of the mutual fund’s published management fee to serve as custodian. Any transaction fee that the client pays represents an additional layer of management fees.
Custodians may charge transaction fees on purchases or sales of certain mutual funds, stocks, bonds, and exchange traded funds. These transaction charges are usually relatively small and are incidental to the purchase or sale of a security. In some cases, custodians also charge monthly, quarterly or annual custody fees. Fees for custody are disclosed to clients when this type of arrangement is recommended and it is priced into the security.
Mutual funds and exchange traded funds generally charge a management fee for their service as investment managers. The management fee is included in the expense ratio. The fee is calculated into the price of the fund; not charged separately. Mutual fund fees also include transaction charges for the purchase or sale of securities within the fund and may charge other fees as disclosed in the fund prospectus. These fees are in addition to the fees paid by the client to Dickmeyer Boyce Financial Management, Inc. However, as stated above, they are calculated into the price of the security.