The Investment Advisor’s Act of 1940 restricts the use of these terms to those individuals or firms whose principal business consists of acting as investment advisors and who are registered with the Securities and Exchange Commission. A key component of this legislation is that investment counsels have a fiduciary responsibility to their clients – this means that we have a legal duty to represent the best interests of our clients.
An individual held to a fiduciary standard is held to the highest standard of care, is expected to operate without conflict of interest, and must put client interests before his or her own. Both RIA and Certified Financial Planners are held to the fiduciary standard.
A Wealth Management firm does not limit its engagement with clients to simply investment advice. Proper guidance and coordination into areas such as retirement, insurance, taxes, and estate planning is equally important.
Client assets are held at a third party custodian, such as Fidelity. This provides clients a layer of protection for your assets, and serves as no detriment to Highwater Wealth Management.
Highwater Wealth Management, LLC, is granted a limited power of attorney, but we never take control or possession of your assets. We are allowed only to manage the investment holdings (within IPS guidelines), to distribute funds to your checking account only (on a regular schedule or by request) and to deduct our quarterly fees.
Our investment management fees are exclusively based upon assets directly under our management. We do not accept commissions, 12b1 fees, or any outside revenue sharing. The current fee schedule, with breakpoints, is as follows:
Up to $500,000 1.25%
$500,000 to $2,500,000 1.00%
$2,500,000 to $5,000,000 .85%
$5,000,000 to $10,000,000 .75%
$10,000,000 to $20,000,000 .50%
Over $20,000,000 Negotiable
Wealth Management / Personal CFO Fees are dependent upon the scope of the engagement, but begin at $2000.
Fees may be tax-deductible if clients itemize their taxes, which can effectively reduce the cost of our services. Please consult your tax adviser to determine if this rule applies to your situation.
The asset custodian (for example: Fidelity) will send monthly statements. Clients will also receive a calendar quarterly statement from Highwater Wealth Management.