Hines Wealth Management-Fee & Commission Disclosure
At Hines Wealth Management we believe it is important that you understand exactly what you will pay for our services so there are no unexpected or unexplained costs. Additionally, we believe that you should be provided information about our fee structure prior to making any engagement decisions. We will guide you through the financial planning process so that, you as our client, develop an improved awareness of financial choices and how internal and external environments affect those choices. When clients and their families understand what they want to achieve, why they want to achieve it, and how and when it can be achieved, they often take more ownership of the their financial plan and become more committed to it. With that in mind, we will design a diversified investment and protection strategy built within our planning process.
Comprehensive Financial Plan
Our comprehensive service covers all major aspects of your financial plan in a detailed process. The fee will be determined by your needs and discussed in advance. Our minimum comprehensive first-year fee is $2,400 and is typically appropriate if you have a net worth of $2,000,000 or greater, or complex financial planning needs. This fee includes all meetings, phone calls, emails, and follow-up work. You will have online access to your plan, access to any vaulted documents, and your plan is updated in real time, so that you can see your progress whenever you want. We are available to review your plan and discuss any questions at any mutually convenient time. There are no extra charges for phone calls, emails, or meetings when you are a client. The $2,400 planning fee can be charged to a credit card or debited from a checking account and we do have payment plans available. After the first year, if you want to continue our planning relationship, there is a $75 per month cost.
Retirement Planning only services-Hines Wealth Management, LLC charges a flat fee of $1,600. This fee will be waived if an investment account is established with us of $500,000 of assets under management or greater.
Based on the financial plan that we build together, we may decide on an investment strategy that we manage for you. We manage these investments in house through our partner firm LPL Financial. These fees associated with these accounts deducted directly from the accounts that we manage. Investment Advisory Fees are annualized. Ancillary charges such as custodial fees, transfer costs, transaction fees, etc. are not included. Fees are charged on a tiered schedule, meaning a lower rate may be charged on assets above a designated breakpoint. We are always monitoring the market to make sure we are using the most cost-effective solutions.
Advisory Fee Schedule
Corporate Plan Advisory Fee Schedule
$10K - $499K
$0 - $5M
$500k - $2M
$5M - $10M
$2M - $5M
$10M - $15M
$5M - $10M
$15M - $30M
$10M - $20M
$30M - $50M
Insurance and Annuity Commissions
Based on the financial plan that we agree is the appropriate strategy, we may decide that life insurance and/or an annuity product would help fund the determined a goal. Life insurance may help fund an income replacement need, special needs trust, or fulfill a legacy wish. An annuity may help provide lifetime income or be an alternative to other investment options. We disclose commissions we earn on any product sales. There is no requirement or regulation that requires this disclosure, we simply disclose this because it is a fair business practice. Commissions vary depending on the product and company and are paid directly to us from the companies. For life insurance, commissions are paid in the first year and range from 50% to 90% of the premium. For example, if your plan recommends that you buy more life insurance and it costs $1000 per year, we will earn around $500 to $900. Our recommendations are not determined by the commission we would earn but are based solely on determining the right fit for you as our client. For annuities, our typical commissions range from 1.5% to 3% of the deposit and are a one-time payment. For example, if your plan recommends that you deposit $50,000 into an annuity, we will earn $750 to $1500. Again, these are paid to us directly from the insurance company and do not reduce your investment.
In some cases, we may engage a client engagement on an hourly basis. This may be for a “second opinion”, to review an existing plan, or to address a specific planning need that does not require a financial plan. We have expertise in identifying old life insurance policies, reviewing retirement plans (401ks, 403bs, etc.), consolidating old stock certificates, value and title/retitle/claim old savings bonds, analyze a real estate purchase, and a variety of other services under this arrangement. We accept these engagements on a case by case basis depending on our schedule at the time and whether we think can provide the outcome you are seeking. The cost is $200 per hour with a minimum of 4 hours.
If you have any additional questions about overall costs, fees, rates, commissions, and/or what you pay, please ask. We believe that any professional that you choose to work with should offer complete transparency. We value the opportunity of working with new clients and believe that the disclosure of our fee schedules is the “keys to a successful relationship” based on mutual respect and mutual responsibility.