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Item 5. Fees and Compensation

 

At Tamar Securities, LLC, we are required to describe our brokerage, custodian, fund expenses, and our fees charged, so each of you will know how much you are charged and by whom for our advisory services provided to you. Our fees are generally not negotiable.

A. Description of how we are compensated for our advisory services provided to you.

1. Wrap Account Portfolio Management:

Our fee schedules for our Wrap Fee Programs are separately described in the respective Wrap Fee Program Brochure.

All Equity and Balanced (Equities and Bonds) non-discretionary managed portfolios will operate on a dual platform allowing clients to select from the following two options:
(i) $350/hour retainer fee plus all transactional costs per Schwab Institutional pricing schedules, or
(ii) discretionary fee base break points as it is applied to the Fixed Income Portfolio, Total Asset Fund, Total Asset Market, Market Value Securities, Total Asset Value and Independent Money Managers ( as disclosed in the appropriate agreements).

All Fixed Income Portfolios (FIP®) which are transactional and generally non-discretionary will be marked up or down 0.5% to 3% based on maturity, size and the execution price obtained (as disclosed in the appropriate agreements).

2. Non-Wrap Account Portfolio Management:

The fee schedules for our Non-Wrap Account Portfolio Management are as follows:

a. Fixed Income Portfolios (FIP®):

All Fixed Income Portfolios (FIP) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
0.75%
Next $500,000
0.65%
Over $1,000,000
0.55%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

b. Independent Relative- and Value-Oriented Global Equity Portfolios:

(1) Total Asset Fund (“TAF®”):

All Equity discretionary money managed programs which includes Total Asset Fund(TAF®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
2.25%
Next $500,000
1.75%
Over $1,000,000
1.25%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

(2) Total Asset Market (“TAM®”):

All Equity discretionary money managed programs which includes Total Asset Market (TAM®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
2.25%
Next $500,000
1.75%
Over $1,000,000
1.25%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

(3) Market Value Securities (“MVS®”):

All Equity discretionary money managed programs which includes Market Value Securities (MVS®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
2.25%
Next $500,000
1.75%
Over $1,000,000
1.25%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

(4) Total Asset Value (“TAV sm”)(a) Aggressive and (ma) Moderately Aggressive:

All Equity discretionary money managed programs which includes Total Asset Value Securities (TAV sm) subcategories; TAV (a) Aggressive and TAV (ma) Moderately Aggressive, will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
2.25%
Next $500,000
1.75%
Over $1,000,000
1.25%

TAV (a) Aggressive (FIP®):

All Equity discretionary money managed programs which includes TAV (a) Aggressive (FIP®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
1.80%
Next $500,000
1.42%
Over $1,000,000
1.04%

TAV (ma) Moderately Aggressive (FIP®):

All Equity discretionary money managed programs which includes TAV (ma) Moderately Aggressive (FIP®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
1.65%
Next $500,000
1.31%
Over $1,000,000
0.97%

TAV (FIP®):

All Equity discretionary money managed programs which includes TAV (FIP®) will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
1.20%
Next $500,000
0.98%
Over $1,000,000
0.76%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

3. Independent Money Managers:

Independent Money Managers will adhere to the following pricing schedule:

  Assets Under Management
 Annual Net Fee Assessed
First $500,000
2.25%
Next $500,000
1.75%
Over $1,000,000
1.25%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

4. Financial Planning and Financial Consulting Services:

Our firm offers financial planning services on an hourly basis for $350 per hour, which may be negotiable depending on the nature and complexity of each client’s circumstances. An estimate for total hours will be determined at the start of the advisory relationship. The hourly fees are determined after considering many factors.

5. Alternative Investments:

Our fees for our Alternative Investments Service is disclose in Item 6 of this Firm Brochure.

6. Corporate Cash Program:

All Corporate Cash Programs will adhere to the following pricing schedule:  

  Assets Under Management
 Annual Advisory Fee*
First $50 million
0.060 %
Next $50 million
0.055%
Next $100 million
0.050%
Next $100 million
0.045%
Next $200 million
0.040%%

*Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

Exceptions may be made to the published fee schedules under certain circumstances pursuant to a negotiated agreement with the client. No increase in the fee schedules shall be effective without prior written notification to the client.

7. Professional Alliance Network: (SOLICITORS)

Our pricing schedule for our Professional Alliance Network service, when appropriate, will adhere to the following criteria:

(i) extensive due diligence process for identifying the best industry pricing for any estate planning, long-term care, retirement, life insurance and/or mortgage product;
(ii) disclosing all pricing bids obtained from the industry for any estate planning, long-term care, retirement, life insurance and/or mortgage product, and;
(iii) splitting with the professional the net fees and/or commissions generated on a 50:50 percent arrangement.

B. Description of whether we deduct fees from clients’ assets or bill clients for fees incurred.

1. Wrap Account Portfolio Management:

A description of how we charge for our Wrap Account Portfolio Management service can be found in the respective Wrap Fee Program Brochure.

2. Non-Wrap Account Portfolio Management:

Our firm’s fees for our Non-Wrap Account Portfolio Management service are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter. Fees will generally be automatically deducted from your managed account. In rare cases, we will agree to directly bill clients. As part of this process, you understand and acknowledge the following:

a) Your independent custodian sends statements at least quarterly to you showing all disbursements for your account, including the amount of the advisory fees paid to us;
b) You provide authorization permitting us to be directly paid by these terms;
c) If we send a copy of our invoice to you, we send a copy of our invoice to the independent custodian at the same time we send the invoice to you;
d) If we send a copy of our invoice to you, our invoice includes a legend that urges the client to compare information provided in their statements with those from the qualified custodian in account opening notices and subsequent statements sent to the client for whom the adviser opens custodial accounts with the qualified custodian.

3. Independent Money Managers:

These fees will be separately charged by the relevant parties (including our firm) and may be borne by the client. Independent Money Managers establish and maintain their own separate billing processes which we have no control over. In general, they will directly bill you and describe how this works in their separate written disclosure documents. In addition, our firm will negotiate best pricing for our clients based on the aggregated assets under any particular program.

4. Financial Planning and Financial Consulting Services:

One half of the total estimated hourly fees are due and payable at the time the client’s agreement is executed, the remainder of the fees are due upon presentation of a plan or the rendering of consulting services. Financial plans will be presented to the clients within 6 months of the contract date, provided that all information needed to prepare the financial plan has been promptly provided by the clients.

As stated previously, the hourly rate is $350 per hour. In the event that a client should cancel the financial planning agreement under which any plan is being created, the client shall be billed for actual hours logged on the planning project times the agreed upon hourly rate. Any surplus in our firm’s possession as the result of collecting a deposit at the time of signing the financial planning agreement will be returned to the client within 5 business days of cancellation.

In all cases, we will not require a retainer exceeding $1,200 when services cannot be rendered within 6 (six) months.

5. Alternative Investments:

A description of how we charge for our Alternative Investments service can be found in Item 6 of this Firm Brochure.

6. Corporate Cash Program:

Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.  Fees will generally be automatically deducted from your managed account.  In rare cases, we will agree to directly bill clients. As part of this process, you understand and acknowledge the following:

a.) Your independent custodian sends statements at least quarterly to you showing all disbursements for your account, including the amount of the advisory fees paid to us;
b.) You provide authorization permitting us to be directly paid by these terms;
c.) If we send a copy of our invoice to you, we send a copy of our invoice to the independent custodian at the same time we send the invoice to you;
d.) If we send a copy of our invoice to you, our invoice includes a legend that urges the client to compare information provided in their statements with those from the qualified custodian in account opening notices and subsequent statements sent to the client for whom the adviser opens custodial accounts with the qualified custodian.

7. Professional Alliance Network:

The senior professionals from the Professional Alliance Network establish and maintain their own separate billing processes which we have no control over. In general, they will directly bill you and describe how this works in their separate written disclosure documents.

C. Description of any other types of fees or expenses clients may pay in connection with our advisory services, such as custodian fees or mutual fund expenses.

Non-Wrap fee Clients will incur transaction charges for trades executed in their accounts. These transaction fees are separate from our fees and will be disclosed by the firm that the trades are executed through. Also, clients will pay the following separately incurred expenses, which we do not receive any part of: charges imposed directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses).

Wrap fee clients will receive our Form ADV, Part 2A, Appendix 1 (the “Wrap Fee Program Brochure”). Wrap fee clients will not incur transaction costs for trades. More information about this is disclosed in our separate Wrap Fee Program Brochure.

D. We must disclose if client’s advisory fees are due quarterly in advance. Explain how a client may obtain a refund of a pre-paid fee if the advisory contract is terminated before the end of the billing period. Explain how you will determine the amount of the refund.

We charge our advisory fees quarterly in advance. In the event that you wish to terminate our services, we will refund the unearned portion of our advisory fee to you. You need to contact us in writing and state that you wish to terminate our services. Upon receipt of your letter of termination, we will proceed to close out your account and process a pro-rata refund of unearned advisory fees.

E. Commissionable securities sales.

In order to sell securities for a commission, our supervised persons are registered representatives of Purshe Kaplan Sterling Investments, Inc. (“PKS”), a registered broker-dealer and Member FINRA/SIPC. PKS clears through National Financial Services (NFS). Our supervised persons may accept compensation for the sale of securities or other investment products, including distribution or service (“trail”) fees from the sale of mutual funds. You should be aware that the practice of accepting commissions for the sale of securities:

1) Presents a conflict of interest and gives our firm and/or our supervised persons an incentive to recommend investment products based on the compensation received, rather than on your needs. We generally address commissionable sales conflicts that arise:

a) when explaining to clients that commissionable securities sales create an incentive to recommend products based on the compensation we and/or our supervised persons may earn and may not necessarily be in the best interests of the client;
b) When recommending commissionable mutual funds, explaining that “no-load” funds are available through our firm if the client wishes to become an investment advisory client.

2) In no way prohibits you from purchasing investment products recommended by us through other brokers or agents which are not affiliated with us.

3) Does not exceed more than 50% of our revenue.

4) Does not reduce your advisory fees to offset the commissions our supervised persons receive.