For our Wealth Management clients, Sommers Financial charges an advisory fee ranging from 0.2% to 1.0% of your annual account balance, depending on your financial situation. This fee covers all the work we do for you, including answering financial questions and managing your portfolio. It does not include transaction fees levied by your custodial brokerage, but we always inform you of the added cost of those items.
We calculate your advisory fee each quarter, which gives us maximum incentive to increase your portfolio all year long. We prefer to deduct your advisory fee directly from your account so you can calculate the after-fee performance when reviewing account statements.
For our Investment Management clients, we charge 0.03% per month, or approximately 0.36% per year. This includes investing in one of our optimally designed model portfolios that fit your return objectives and tolerance for volatility.
While we initially considered basing our fees on performance, federal and state regulators surmise that if advisors based their fees on investment performance, they would be prone to take big risks to earn big rewards. Hence, regulators do not allow performance-based fees for non-accredited investors (just ask us), as they may not end up being in your best interest.
For those who prefer to manage their own investments but would like assistance preparing a long-term financial plan, we offer a dynamic, interactive suite of financial tools for free, which includes basic retirement planning, cash flow tracking, a secure document vault, investment analysis, and an estate planning checklist. For a monthly retainer fee, we offer upgraded financial planning interaction with one or more of our financial planners. This allows for unlimited money-related discussions via email, phone – or for the Premium service, in person. With the retainer fee, our interactive software upgrades include social security optimization, life insurance needs analysis, tax optimization, debt freedom analysis, and college planning.