Fees

Western Level’s discretionary investment advisory fees are based on the following schedule:

Importantly, Western Level’s investment advisory fee schedule is based on a single tier calculation, not a graduated tier schedule.  That is, a $1,750,000 account falls into the 0.70% fee bracket.  To illustrate, the total annual fee is a calculated from a single tier as follows:

$1,750,000 x 0.70% = $12,250 total annual fee for WLA

Most advisors charge a graduated tier system as demonstrated in the following example (for the same $1,750,000) :

The first $1,000,000 x 0.95% = $9,500

The next $500,000 x 0.75% = $3,750

The next $250,000 x 0.75% = $1,750

Total annual fee = $15,000 (Equals 0.857% in total basis points)

Question:

How much less is a single tier versus a graduated calculation in this example?  

Answer: 

For the above analysis, a single tier is 0.157% less (0.70% minus 0.857%). 

($15,000 – $12,250) / $12,250 = 22% lower fee

Conclusion: It is important to analyze both the listed fees per tier and the calculation methodology.    

Additional remarks regarding WLAs fees:

For discretionary clients, there is no additional fee for financial planning services.  For financial planning services and consulting services, the starting point for services provided is $250 per hour.  A single project or recurring annual fee structure can be negotiated based on an estimated time spent basis.

A complete review of the firm’s fees is provided in the firm’s form ADV Part 2A.  Western Level Advisors reserves the right to negotiate a lower fee schedule than is published in the ADV.