Firm Description
Cole Wealth Management, LLC (“CWM”) is a fee-based registered investment
advisory firm founded in 2005 and headquartered in Scottsdale, AZ. CWM
provides financial planning and investment supervisory services to individuals,
pension and profit-sharing plans, trusts, estates, charitable organizations and
business entities. We recognize that along with financial success comes
increased responsibilities and complexity. At CWM, we provide a holistic
approach to managing and advising all aspects of our clients’ financial picture.
By doing so, we can uncover the critical interdependencies among investments,
income and taxes, providing for retirement, expense management, insurance, as
well as business counseling and philanthropic decision-making. We recognize
that our clients’ unique financial needs and goals change over time, so we offer a
full range of financial planning and investment advisory services.
Advice is provided through consultation with the client and may include
determination of financial objectives, identification of financial issues, cash flow
management, investment management, tax planning, insurance review,
education funding, retirement planning and estate planning.
Investment advice is also an integral part of Financial Planning. Investment
advice is provided, with the client making the final decision on the asset
allocation of their portfolio. CWM does not act as a custodian of client assets.
The client always maintains asset control. CWM places trades for clients under a
limited power of attorney with carefully selected brokers or custodians.
A written evaluation of each client's initial situation may be provided to the client,
often in the form of a net worth statement. Annual reviews are also
communicated to provide reminders of the specific courses of action that need to
be taken. More frequent reviews occur but are not necessarily communicated to
the client unless immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the client on an as-needed basis. Conflicts of interest will be
disclosed to the client in the unlikely event they should occur.
The initial meeting is free of charge and is considered an exploratory interview to
determine the extent to which financial planning and investment management
may be beneficial to the client.
Principal Owners
The Cole Family Trust is the only stockholder in CWM. Trustees of the Cole
Family Trust are Martin T. Cole and Erica S. Cole.
Types of Advisory Services
CWM provides investment supervisory services, also known as asset
management services; furnishes investment advice through consultations and,
on more than an occasional basis, furnishes advice to clients on matters not
involving securities, such as financial planning matters, taxation issues,
insurance and trust services that often include estate planning.
CWM provides both discretionary and non-discretionary advisory services. As of
the date of this document, CWM manages approximately $145 million in assets
for approximately 285 clients. Approximately $145 million is managed on a
discretionary basis, and $0 million is managed on a non-discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in our client file.
Investment portfolios and advice recommendations are created to reflect the
stated goals and objectives. Clients may impose reasonable restrictions on
investing in certain securities or types of securities.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
The CWM Financial Planning Agreement provides for non-discretionary financial
planning. Similar services that are provided to our managed clients are
available, but the client must request them and will be billed in addition to the
fees associated with this program. The fee for a financial plan is predicated upon
the facts known at the start of the engagement. The fee range for this program is
$500 to $5,000 for Financial Planning which may include, but is not limited to: a
net worth statement; a cash flow statement; a review of investment accounts,
including reviewing asset allocation and providing repositioning
recommendations; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning review
and recommendations; and education planning with funding recommendations.
Detailed advice and specific recommendations are provided as part of a financial
plan. Implementation of the recommendations is at the discretion of the client.
CWM also provides hourly planning services for clients who need advice on a
limited scope of work. The hourly rate for limited scope engagements is $175 to
$250 per hour.
Since financial planning is a discovery process, situations occur wherein the
client is unaware of certain financial exposures or predicaments. In the event that
we discover the client’s situation is substantially different than what was
disclosed at the initial meeting, a revised fee will be provided for mutual
agreement. The client must approve the change of scope in advance of the
additional work being performed when a fee increase is necessary.
After delivery of a financial plan, future face-to-face meetings may be scheduled
as necessary. Follow-up implementation work is billed separately at the rate of
$250 to $500 per hour.
CWM generally does not accept clients without investment assets of at least
$100,000. However, this minimum is negotiable.
Asset Management Agreement
The CWM Asset Management Agreement may be executed when financial
planning is not provided as part of the relationship. Assets are invested on an
ongoing basis utilizing equities (stocks), bonds, no-load or low-load mutual funds
and exchange-traded funds, usually through discount brokers or a custodian.
Fund companies charge each fund shareholder an investment management fee
that is disclosed in the fund prospectus. Discount brokerages may charge a
transaction fee for the purchase of some funds. CWM does not share in
commissions from brokerage transactions.
Stocks and bonds may be purchased or sold through a brokerage account when
appropriate. The brokerage firm/custodian charges a fee for stock and bond
trades. CWM does not receive any compensation, in any form, from fund
companies.
Investments may also include warrants, corporate debt securities, commercial
paper, certificates of deposit, municipal securities, U. S. government securities,
options contracts, initial public offerings (IPOs) and foreign issues.
The annual Asset Management Agreement fee is based on a percentage of the
investable assets according to the following schedule:
• 0$ to $249,999 1.35%
• $250,000 - $499,999 1.20%
• $500,000 - $1,999,999 1.10%
• $2,000,000 - $4,999,999 1.00%
• $5,000,000 and up negotiable
There is no minimum annual fee and fees may also may be negotiable under
certain circumstances. Clients will be invoiced monthly in advance. Current
client relationships may exist where the fees are higher or lower than the fee
schedule above.
Although the Asset Management Agreement is an ongoing agreement, the length
of service to the client is at the client’s discretion. The client or the investment
manager may terminate an Agreement by written notice to the other party. At
termination, fees will be billed on a pro rata basis for the portion of the month
completed. The portfolio value at the completion of the prior full billing month is
used as the basis for the fee computation, adjusted for the number of days during
the billing quarter prior to termination.
Wealth Management Agreement
The CWM Wealth Management Agreement provides a package program to
include both Financial Planning and Asset Management services on an ongoing
basis. These services are based on the individual needs of the client. The
scope of work and fee for a Wealth Management Agreement is provided to the
client in writing prior to the start of the relationship. A Wealth Management
Agreement can include cash flow management; insurance review; investment
management (including performance reporting); education planning; retirement
planning and estate planning. Realistic and measurable goals are set and
objectives to reach those goals are defined. As goals and objectives change
over time, suggestions are made and implemented on an ongoing basis.
The annual Wealth Management Agreement fee is based on a percentage of the
investable assets according to the following schedule:
• 0$ to $249,999 1.50%
• $250,000 - $499,999 1.35%
• $500,000 - $1,999,999 1.20%
• $2,000,000 - $4,999,999 1.10%
• $5,000,000 and up negotiable
There is no minimum fee and fees may also be negotiable under certain
circumstances. Clients will be invoiced monthly in advance. Current client
relationships may exist where the fees are higher or lower than the fee schedule
above.
Although the Wealth Management Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client or the investment manager may terminate an
Agreement by written notice to the other party. At termination, fees will be billed
on a pro rata basis for the portion of the month completed. The portfolio value at
the completion of the prior full billing month is used as the basis for the fee
computation, adjusted for the number of days during the billing month prior to
termination.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by
notifying CWM in writing and paying the rate for the time spent on the advisory
engagement prior to notification of termination. If the client made an advance
payment, CWM would refund any unearned portion of the advance payment.
CWM may terminate any of the aforementioned agreements at any time by
notifying the client in writing. If the client made an advance payment, CWM would
refund any unearned portion of the advance payment.
CWM retains the right, however, to complete any transactions open as of the
date of termination. In the event of termination of a Management Agreement, the
Client shall be responsible for monitoring the securities in the Account, and CWM
shall have no further obligation to act or advise with respect to assets in the
Account. Upon termination, CWM shall be under no obligation to liquidate or
purchase any securities or other assets owned by Client, but where applicable
shall deliver the securities or other assets as directed by Client in writing.