Initial charges are agreed prior to proceeding. An hourly rate of $200 plus GST, is charged for these services, and a fixed price for modelling and planning work is often agreed in advance.
For most clients we prepare modelling of expected future outcomes, particularly in retirement, and document this. We also prepare a Statement of Advice (Investment), which documents a client’s circumstances, guides our investment process and decision-making and outlines responsibilities for services throughout.
Included in this we seek to –
- Gain a clear understanding of a client’s needs and circumstances
- Complete risk profiling
- Prepare modelling of expected future outcomes from investment decisions, and ensure any necessary changes are recommended in order to achieve high levels of confidence in those outcomes
- Provide guidance/assistance in re-allocating/redeeming assets where necessary
- Prepare a Statement of Advice (Investment)
- Agree recommended courses of action and implement agreed portfolio/s
- Ensure appropriate taxation rates are selected and maintained for investments.
- Ongoing monitoring and service fees for investments
Financial Prosperity Limited charges an on-going fee to cover the cost of the following services:
- Overview of portfolio managers to ensure investments continue to behave as expected, display appropriate risk/return characteristics and are taxation and fee efficient
- Making recommendations as to change of those managers as may be necessary
- Checking into changing needs and circumstances of clients and making modification to investments where required
- Communicating investment research and education
- Regular strategic reviews
- Providing clients with regular quarterly (or other mutually agreed time-frame) on investment performance
- Providing annual taxation statements related to the investments for clients
- Assisting clients establish regular and/or one-off additions to portfolios and withdrawals, as necessary.
The annual fees are calculated monthly, in arrears, incrementally on the following basis:
|Investment Amount||Fees (+ GST)|
|Up to $500,000||1.20%|
|$500,001 – $1,000,000||1.00%|
|$1,000,001 – $2,000,000||0.80%|
|$2,000,001 – $5,000,000||0.60%|
An example of these fees, on an investment of $500,000, is as follows:
$500,000 x 1.20% = $6000
Plus GST $900
Payable monthly $575
These fees are deducted automatically from investment portfolios, monthly in arrears. There are no direct invoices in relation to these services that a client needs to pay.
Where additions and/or withdrawals are made to a portfolio during a month, adjustments to fees are made the following month.