Fees / How We're Paid
We believe fee transparency matters.
Before you decide to work with us, we want you to understand how we are compensated, what services those fees cover, and what other costs may apply through third parties. Our goal is to provide clear, upfront information so you can make an informed decision.
Advisory Fees
For ongoing investment management, Prosperity Planning & Advisory charges an annual advisory fee based on a percentage of the assets we manage for you.
Our standard advisory fee for ongoing investment management is 1.00% of assets under management per year.
This fee is generally:
- This fee is generally negotiable .
For example only, a 1.00% annual fee on a $100,000 account maintained at that value for a full year would equal $1,000.
Actual fees will vary based on account value during the billing period and any applicable proration. Additional details are described in your advisory agreement and our current Form ADV brochure.
Financial Planning and Consulting Fees
We also offer stand-alone financial planning and consulting services. These services are billed as an hourly fee of $150.00 per hour, as disclosed in writing and agreed to in advance. The specific fee, scope of services, billing method, whether any amount is paid in advance, and any applicable refund or proration terms will be stated in your agreement before services begin.
Depending on the engagement, these services may be billed as:
Any planning or consulting fee will be discussed with you before work begins, and the scope of services will be outlined in your agreement.
What Our Advisory Fees Cover
Our advisory fees are for the investment advisory and financial planning services we provide. Depending on your engagement, that may include:
- Investment strategy and portfolio guidance
- Ongoing monitoring and reviews
- Financial planning recommendations
- Retirement planning
- Cash flow and budgeting guidance
- Coordination with your tax and legal professionals when appropriate
Other Costs You May Pay
Our advisory fee does not include all costs associated with your accounts or investments.
Depending on the investments and custodian you use, you may also incur:
- Custodian or platform fees
- Mutual fund or ETF expense ratios
- Transaction charges, spreads, or other trading-related costs through your custodian or investment provider
- Other account-related fees charged by third parties
We do not control third-party fees, and they are separate from the fees charged by our firm. You should review all applicable fees and expenses associated with your accounts and investments.
Fee Deduction and Custody
If you authorize us in writing to deduct advisory fees directly from your account, the deduction will be made through your qualified custodian. You will receive account statements directly from the custodian reflecting the fee deduction. Under applicable regulatory definitions, our authority to deduct advisory fees is treated as limited custody solely for that purpose.
How We and Certain Representatives Are Compensated
- Prosperity Planning & Advisory, LLC is compensated for advisory services only through the advisory and planning fees described above. Prosperity Planning & Advisory, LLC does not receive commissions for advisory services.
- Some, but not all, of the firm’s representatives are separately licensed insurance agents through a separate, non-advisory business. If a client chooses to purchase an insurance product through that separate business, the representative may receive a commission from the insurance company. This creates a conflict of interest because the representative has a financial incentive to recommend insurance products.
- Reason: “fee-based” can imply “no commissions” to a reader, which gets dangerous once separate insurance commissions exist. Also, if some representatives actually are licensed and actually do outside insurance business, the disclosure should say that specifically instead of saying they “may” do so.
Insurance and Separate Compensation Disclosure
As part of our planning process, we may discuss insurance needs such as life insurance, disability insurance, or other protection strategies.
Prosperity Planning & Advisory, LLC does not sell insurance products and does not receive insurance commissions.
Certain representatives of the firm may be licensed insurance professionals and may offer certain insurance products through a separate, non-advisory business. If a client chooses to purchase an insurance product through that separate business, compensation may be paid by the insurance company in the form of commissions.
This creates a potential conflict of interest because compensation may be received in connection with the sale of insurance products.
To address that conflict:
- • Insurance-related activities are conducted outside of the advisory relationship
- • Clients are under no obligation to purchase any insurance product
- • Advisory recommendations are made independently of any insurance transaction
- • Clients are free to work with any insurance provider of their choosing
Our Commitment to Transparency
We believe clients deserve to understand how their adviser is paid.
Our fee structure is designed to support an ongoing advisory relationship focused on your long-term financial goals, while clearly disclosing material conflicts and compensation arrangements.
If you become a client, you will receive additional details in your advisory agreement and Form ADV brochure, including information about fees, billing, services, and important disclosures.
Important Disclosure
All investments and financial strategies involve risk, and no specific results are guaranteed. Registration as an investment adviser does not imply a certain level of skill or training.
Questions About Fees?
We welcome questions about how we are compensated, what services are included, and what costs may apply to your situation. We believe those conversations should be clear, direct, and easy to understand.
