Social Thread

This document explains how we get paid for our work. You may choose to pay by fee as a percent of assets under management, hourly fee (with retainer), or commission. We prefer to work on a fee basis as a percentage of assets under management. In most cases you will only pay commissions to us if: a) you cannot meet the account minimums for our fee program ($25,000), or the investment that suits you is only available by commission. We will strive to be sure you understand how you are paying for our services[1].

FEE AS PERCENTAGE OF ASSETS

Typically portfolios are constructed with no-load or load-waived mutual funds, stocks, bonds, and/or ETFs
$25,000 – $3,000,000  = 1.0% per year[2]

$3,000,000+ = Negotiable

What this fee includes: basic financial planning, managing your investment portfolio and quarterly reviews[3].

What is NOT included: complex financial planning, special research projects, complex portfolio construction[4], and ticket charges which range from $0-99/trade depending on account type. Some other fees may apply and the variations are too numerous to list. Ask for details about your situation.

FEE PER HOUR

Complex portfolio construction, special projects, and complex financial planning time.
Usually on a sliding scale $20-$200/hour[5]

$40/hour for bookkeeping

COMMISSION

Mutual Funds, Insurance[6], Stock and Bond Trades, Unit Investment Trusts, Limited Partnerships
Trading costs and commissions vary widely, tickets range from $18 - 60 typically, but can be up to 5% of the transaction for some products such as closed end funds. These pages are an attempt to be transparent and disclose fees and expenses. Because it is complicated and each client’s situation is different you may or may not be subject to the fees described in the following pages. If you have questions ask, or read the prospectus or ADV part II.

Mutual Fund Fees & Expenses by Share Class[7]         
                 

Aside from the fees you pay us, you will also pay custodial fees to other parties administering your account.

[1] We reserve the right to change our fee structure at any time. Some of the fees outlined here are not charged by us, not paid to us, and are for the most part outside our control. You will be notified before you are charged a different fee by us. Hopefully mutual funds, clearing firms, and custodians will do the same, but we cannot speak for them.

[2] Some custodians pay a 12b-1 fee on certain fund holdings as well. This is usually not more that 0.25% annually. Pershing does, Schwab does not. Ask or see the ADV part II for details.

[3] It is the client’s responsibility to request quarterly review meetings. We will contact you periodically by phone, mail or email to provide updates or suggest we meet. If you don’t call back or respond to our mailings we will assume nothing has changed about your situation or objectives. When your life, the market, or the economy changes; it may be prudent to alter your investments. For these reasons it is important to be in periodic contact with us, especially if your account is not discretionary.

[4] Complex and special are ambiguous. As a rule of thumb we will dedicate up to 10 hours per year to each client household before we start asking for additional compensation.

[5] Clients who elect to receive hourly-only planning or advice may be asked to pay an annual retainer. You must implement your own trading, or hire another broker, to carry out our advice.

[6] We do not sell insurance. We can make some general suggestions as part of financial planning. An affiliated firm Hansen’s Advisory Services has a licensed insurance agent for life, health, disability, and long-term care insurance whom we can refer you to.

[7] The above percentages are estimates for typical load funds. If you wish to use no-load funds ask about a fee-based account. Source of estimated mutual fund cost data: ICI 2007 Fact Book http://www.icifactbook.org/fb_sec5.html ; ICI Fundamentals http://www.ici.org/pdf/fm-v13n1.pdf ; and Wang, Z. Jay, Nanda, Vikram K. and Zheng, Lu, “The ABCs of Mutual Funds: On the Introduction of Multiple Share Classes” (February 2005). EFA 2005 Moscow Meetings Paper Available at SSRN: http://ssrn.com/abstract=676246

[8] Some mutual funds have 12b-1 fees (aka. commission trails), which are part of the stated operating expense and are paid to the advisor on commission and Pershing advisory accounts.
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Mutual Funds are offered by prospectus, which include more information regarding fee, charges and expenses. Please obtain a prospectus from your financial advisor and read the prospectus carefully before you invest or send money.     

Securities and Investment Advisory Services offered through Registered Representatives of Cadaret, Grant and Co., Inc., a SEC registered investment advisor and broker dealer, member FINRA/SIPC. Social Thread, Hansen’s Advisory Services and Cadaret Grant and Co., Inc., are separate entities.