Fee Structure for Managed Assets
At Hoffman Wealth Advisors LLC, we believe in complete transparency as a fee-only RIA, charging straightforward percentages based on assets under management (AUM). With no hidden fees or commissions, our tiered fee structure is designed to align with your financial goals, ensuring you receive personalized advice and dedicated service as we prioritize your future.
1
.85% on your first 250k
For example: $100,000 AUM would be $850
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$100.000*0.85%=$850
Total = $850
2
.75% on your next 750k
For example: $350,000 AUM would be $2,875
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$250,000*0.85% = $2125
$100,000*0.75 = $750
Total = $2,875
3
.60% over 1 million
For example: 1,300,000 AUM would be $9,550
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$250,000 * 0.85 = $2125
$750,000 * .0.75% = $5,625
$300,000 * 0.60% = $1,800
Total = $9,550
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Fees include personalized financial planning, investment management, and quarterly reviews
Why AUM Only Model?
Incentives are foundational in human behavior. While we would like to believe individuals will always do the right thing, the reality is that people act in ways they are incentivized or disincentivized to do so. We believe that the AUM model for fee structure best aligns the incentives for both the clients and professionals. In this model, investment advisors desire long-lasting, high quality relationships. If service is not offered at an excellent level then the advisor loses the client. The AUM model also incentivizes the advisor to keep existing clients as long as possible. In other models, such as a one-time fee, the advisor typically does not provide ongoing care. Other models such as AUM + Sales creates incentives for the advisor to push products onto the client. These products may be suitable, but in many cases, they primarily are pushed for the benefit of the advisor.
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If you do not choose our firm, we suggest always looking in how the advisors are compensated. How they are compensated will greatly impact their recommendations.
How did we come up with our fee structure?
We wanted to charge a fee that we personally would be comfortable spending in our accounts. We believe everyone would benefit from an advisor, at the right price. The best advice in the world will not overcome substantially high fees. What we charge is large enough for our advisors to make a living, while being low enough for investors to enjoy the true returns of their portfolios.
How do you pay?
Fees are automatically deducted from the managed accounts on a quarterly basis. You do not have to do anything to pay the fees directly. [See contract for exact details]
Which Accounts are fees drawn from?
Only the accounts that are directly managed by Hoffman Wealth are subject to fees. If you have a 401k through your employer that is not being managed by us, then no fees will be deducted from that account. Advice can be given [and likely will] for those accounts.
Does Hoffman Wealth receive any compensation from insurance or investment companies?
No, the only way we get paid is through fees charged from clients as demonstrated at the top of this page. We will still recommend insurance products such as life insurance, home insurance, and other risk mitigating tools but this is solely for the clients benefit. You can trust our recommendations will always be in your best interest. We have nothing to sell to you except an exceptional advisory experience.