Pricing and
Advisory Fees
Independent, Fiduciary, and
Comprehensive Financial Planning
In order to make the best recommendations possible for you to achieve your shorter- and longer-term goals, we will conduct an independent, fiduciary, comprehensive financial planning process with you. We do not charge for this financial planning process, but if you decide to place investment assets under our management, we will charge annualized advisory fees based on your total household assets under management (AUM). See below for details on Investment Advisory Fees.
If we recommend insurance products or annuities as part of your personalized, comprehensive financial plan and you choose to purchase any of these products, we would be be paid either a commission from the insurance company when the policy is sold, or an ongoing advisory fee based on the assets in your policy. See below for details on Commissions and Advisory Fees on Insurance Products and Annuities.
Investment
Advisory Fees
Transparent, tiered advisory fees – no hidden costs.
We believe in clarity and fairness. Our advisory fees are based on the total assets under management (AUM) for all of the accounts in your household. We charge an annualized investment advisory fee on these assets, per the following scale. The fees will be deducted from your account quarterly in advance, based on the end of month balance on the last day of the prior quarter.
| Household Assets | Annualized Fee | Quarterly Fee |
|---|---|---|
| 0 - 500,000 | 1.25% | 0.3125% |
| 500,001 - 750,000 | 1.20% | 0.3000% |
| 750,001 - 1,000,000 | 1.15% | 0.2875% |
| 1,000,001 - 1,500,000 | 1.00% | 0.2500% |
| 1,500,001 - 2,000,000 | 0.90% | 0.2250% |
| 2,000,001 - 2,500,000 | 0.80% | 0.2000% |
| 2,500,001 - 3,000,000 | 0.75% | 0.1875% |
| 3,000,001 - 4,000,000 | 0.70% | 0.1750% |
| 4,000,001 - 5,000,000 | 0.65% | 0.1625% |
| 5,000,001 - 10,000,000 | 0.60% | 0.1500% |
| 10,000,001 - 15,000,000 | 0.50% | 0.1250% |
| 15,000,001 - 20,000,000 | 0.40% | 0.1000% |
| 20,000,001 - and up | 0.30% | 0.0750% |
Family Discounts
We aggregate the portfolios of all of your first-degree family members (parents, siblings, children) when determining which tier of advisory fees you will be charged or your own assets under our management, while maintaining strict confidentiality regarding the assets of different family members.
Commissions and Advisory Fees
for Insurance Products and Annuities
We will recommend insurance products and annuities only if they are in your best interest and contribute materially to your personalized, comprehensive financial plan and achieving your financial goals. When we recommend and connect you to such products, we could be paid either through commissions or advisory fees, depending on the policy type.
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- Commissionable Products: Most types of insurance and annuities are sold as commissionable products, with the insurance company paying a commission directly to the insurance agent when the policy is sold. These commissions are set by the insurance companies and are included in the cost of your insurance. If we recommend such policies as part of your personalized, comprehensive financial plan and you decide to buy them, we will be paid a commission by the insurance company when the policy is sold.
- Fee-Based Products: Some types of insurance, typically those with a “variable” component that have assets invested in the financial markets, such as variable life insurance and variable annuities, can be sold as “fee-based” rather than commissionable products. Because the assets in these policies are exposed to market risk, your financial advisor helps you to choose the best investments to make within the policy, based on your risk tolerance, timeframe for holding the products, and other personal factors.
- With fee-based insurance products and annuities, the financial advisor is paid an ongoing fee for managing the assets in the policy, rather than a commission when the policy is first sold. These advisory fees are regulated by the insurance companies, and are deducted from your insurance or annuity accounts, similarly to how investment advisory fees are deducted from your investment accounts under our management. If we recommend fee-based insurance policies or annuities as part of your personalized, comprehensive financial plan and you decide to buy them, we will be paid ongoing advisory fees based on the amount of assets in your policy.
- Choice of Commissionable or Fee-Based Products: When we find that it is in your best interest and an integral part of your personalized, comprehensive financial plan to purchase an insurance product or annuity, we will research all of the options, whether for commissionable or fee-based products, and from a variety of possible providers, and identify the best and most cost-effective products to suit your needs.
Frequently Asked Questions
About Fees
Seva Wealth Management is a multi-custodian, Registered Investment Advisor. When you grant us discretionary authority to manage your investment assets, we do so without taking custody of these assets. We take responsibility for the investment and trading decisions in your accounts, which are held with one of our designated custodians, Charles Schwab or Altruist. Based on the comprehensive plan we develop for you and your particular investment needs, we will recommend placing your funds either at Schwab or Altruist.
We get paid in several ways:
Advisory Fees for Assets Under Management: We charge advisory fees on the assets we manage for you in the context of your personalized, comprehensive financial plan. These advisory fees are an annualized percentage of the total household assets you have under management with us. They start at 1.25% for assets under management (AUM) under $500K and are tiered down for larger accounts. For example, for $1 Million in AUM, the fee is 1%, and at $5 Million in AUM, the fee is 0.60%. See the detailed scale of investment advisory fees under Services and Pricing (link to pricing info/page).
Commissions or Advisory Fees on Insurance Products and Annuities. We may recommend insurance products and annuities if they are in your best interest and contribute materially to your personalized, comprehensive financial plan and achieving your financial goals. When we recommend and connect you to such products, we could be paid either through commissions or advisory fees, depending on the policy type.
For commissionable products, commissions are set by the insurance companies, included in the cost of your insurance, and paid directly by the insurance company. For fee-based products, which are mainly for variable life insurance products and variable annuities, we are paid an ongoing fee for managing the assets in the policy. These fees are regulated by the insurance companies, and are deducted from your insurance or annuity accounts, similarly to how investment advisory fees are deducted from your investment accounts.
Investment advisory fees are deducted each quarter from investment accounts managed by Seva Wealth Management. Advisory fees for fee-based life insurance and fee-based annuities are deducted periodically from your insurance and annuity accounts. You do not pay for commissions on insurance products and commission-based annuities, as these are paid directly by the insurance company.
Seva Wealth Management actively manages, but does not maintain custody of, your funds and securities. Custody is maintained at one of our two custodians, Charles Schwab and Altruist, depending on where your account was established.
In the event of a significant business disruption such as Dr. Lisa McCann’s death or incapacitation, she will cease to provide advisory services and cease to charge advisory fees, and you will be responsible for contacting Schwab (877) 687-4085 or Altruist (888) 510-4660 to make arrangements for the continuing management of your account(s).
For Schwab accounts, you may either move your accounts to a retail account that you manage yourself, or find a new firm and another advisor to work with, who may keep the funds at Schwab or help you to move them to another custodian. For Altruist accounts, and given that Altruist does not offer retail, self-managed accounts, you will need to find a new firm and advisor to work with, who may keep the accounts at Altruist or help you to move them to another custodian.