How We Get Paid
How do we at Tony Walker Financial get paid for our services?
At Tony Walker Financial, we are paid as follows: We receive fees for what is referred to as “Assets Under Management”, or AUM. AUM is based on the assets we place with Charles Schwab, which is essentially a brokerage platform. On the other hand, we earn commissions on the sale of insurance products from insurance companies, products that may include Annuities, life insurance, long-term care insurance, final expense policies, and/or Medicare Supplements.
The following is our current fee schedule based on AUM (Tiered):
This annual fee applies to all funds we place with our current custodian, Charles Schwab and are prorated for the initial quarter, and paid quarterly in arrears based upon the average daily balance of each individual account. Fees are calculated for each account on an incremental basis for each asset tier as follows:
Account Value Range
$ 50 - 49,999.99
Per YearAnnual Fee Percentage
% 1.25
Per YearAccount Value Range
$ 50,000 - 499,999.99
Per YearAnnual Fee Percentage
% 0.80
Per YearAccount Value Range
$ 500,000 - 999.999.99
Per YearAnnual Fee Percentage
% 0.60
Per YearAccount Value Range
$ 1,000,000+
Per YearAnnual Fee Percentage
% 0.40
Per YearSample Calculations:
Example 1: Account Value $250,000
- First $49,999.99 at 1.25%:
$49,999.99 × 1.25% = $625.00 - Next $200,000.01 at 0.80%:
$200,000.01 × 0.80% = $1,600.00
Total Annual Fee: $625.00 + $1,600.00 = $2,225.00
Example 2: Account Value $750,000
- First $49,999.99 at 1.25%:
$49,999.99 × 1.25% = $625.00 - Next $450,000.00 at 0.80%:
$450,000.00 × 0.80% = $3,600.00 - Remaining $250,000.01 at 0.60%:
$250,000.01 × 0.60% = $1,500.00
Total Annual Fee: $625.00 + $3,600.00 + $1,500.00 = $5,725.00
Example 3: Account Value $2,000,000
- First $49,999.99 at 1.25%:
$49,999.99 × 1.25% = $625.00 - Next $450,000.00 at 0.80%:
$450,000.00 × 0.80% = $3,600.00 - Next $500,000.00 at 0.60%:
$500,000.00 × 0.60% = $3,000.00 - Remaining $1,000,000.01 at 0.40%:
$1,000,000.01 × 0.40% = $4,000.00
Total Annual Fee: $625.00 + $3,600.00 + $3,000.00 + $4,000.00 = $11,225.00
