Retirement Income Rescue

Over the past 30 years, technology has transformed affluent wealth management services. Yet affluent fee structures have
changed little, even in recent years as the pace of technological change has accelerated. As it does for virtually every industry
it touches, technology has lowered operational and administrative costs through added efficiencies while expanding choice
for investors.

Today, advisory fee choices in affluent wealth services have reached a tipping point with fixed fee options at lower competitive
thresholds in the marketplace. Flat Fee CIO’s fixed-dollar fee is not simply a capping of prospective client’s current level of fees
under their old percentage-based structure; it is a fixed dollar level that reflects the new operational efficiencies that technology
has delivered for professional investment management. Under our fixed fee arrangement, clients can consolidate more of their
investments under our fixed dollar fee in an effort to further reduce their average annual costs.

“Even the most experienced affluent investors may not be fully aware of the total ongoing costs of their advisory services,”
Rudolph says. “For the past 30 years, our industry has adhered to a compensation model that grows directly with the growth of
underlying assets. We believe the time has come for clients to embrace a fee model based on the complexity of their ongoing
needs so they can capture the significant savings afforded by a more predictable and transparent fixed-dollar approach.”
In fact, the traditional asset-based percentage advisor’s fee may be just the tip of the iceberg of an investors’ total annual
recurrent costs. Beneath the surface, there can be multiple layers of product and platform fees.

Under the traditional percentage fee, as account values grow larger over time, the dollar amount of the fees both above and
below the surface rise directly with any increase in the value of the account. This can take a larger and larger
bite out of clients’ net spendable income and dramatically impact financial outcomes. Our fee structure is a function of a client’s
financial complexity, not asset growth. It’s straightforward, transparent, and easier to understand.

For example, the traditional 1% annual advisor fee on a $2 million portfolio is $20,000 per year. If an investor receives a 4%
annual income stream ($80,000 per year) from that same portfolio, the annual advisor fee alone represents 25% of gross
spendable income. After federal and state taxes, the 1% annual advisor fee may approach 30% or more of net spendable income.
“When they view it from that perspective, clients begin to understand why fee considerations are as crucial as determining
portfolio risk and investment selection,” Rudolph says. “The potential savings with our fixed annual fee goes directly to our clients
bottom line and helps them retain more of their valuable retirement income.”