We are solely compensated by advisory fees paid by our clients directly to our firm based on the value of assets we are managing. By charging a percentage of assets under management, our incentive to perform well is directly aligned with your investment objectives.
How are you compensated?
How do I pay you for your services?
At Capital Wealth Management we never deduct our fees from our client’s accounts. Every quarter we send our clients an invoice which allows them to write a check from a separate account earning little to no interest. This keeps more money in their account to grow for retirement.
Are my investments held with you?
No. We are registered investment advisors, not brokers. We do not hold your assets. Your assets can be held within your own brokerage account, or directly with a mutual funds custodial agent. Either way they are held in your name. As a result, any withdrawal or distribution of assets can only be sent to you.
How much are your management fees?
Capital Wealth Management charges a flat annual investment management fee of 0.5% of the market value of a client’s portfolio. Unlike other firms, our investment management fees are not based on a sliding scale, which penalizes investors with lower account values. Whether our clients have $500,000 in assets, $5,000,000, or anywhere in between, our annual management fee is 0.5%.
Are the fees I pay deductible on my tax return?
Yes. Section 212 of the Internal Revenue Code permits an itemized deduction for tax and/or investment advice in the miscellaneous section of Schedule A. However, we don’t give tax advice, and you should see your tax advisor for the details.
Do you invest my money in load funds?
No. Unlike investments that charge sales loads and upfront charges, we invest our client’s assets in no-load and index mutual funds. We never purchase funds that are sold with a sales charge or commission.