What fees will I pay?
We provide investment advisory services for a fee based on a percentage of assets under management. We are compensated solely by our clients and do not receive compensation or commissions from any other parties. We believe this method of compensation minimizes the conflicts-of-interest that are prevalent in the investment management industry. Our fee is provided in your Investment Advisory Agreement based upon a tiered schedule from 0.75% to 1.25%. The fee is calculated quarterly, in arrears, and will be equal to the respective percentage per annum based on the market value of your account(s) on the last trading day of the previous quarter.
The more assets you have in the advisory account, including cash, the more you will pay us. We therefore have an incentive to increase the assets in your account in order to increase our fees. You pay our fee quarterly regardless of whether we buy or sell securities within that quarter. For any portion of your assets invested in investment companies (i.e., mutual funds and ETFs), you may be required to pay a proportionate share of the mutual funds’ fees and charges, which are disclosed in each fund’s prospectus. Mutual fund fees may include, but are not limited to, a management fee; upfront sales charges; 12b-1 fees to cover the mutual fund’s promotion, distribution, and marketing expenses and sometimes commissions; and other fund expenses. We do not receive any portion of these fees.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Conversation Starter: We encourage you to ask us any questions you may have regarding our fees or how cost from third parties such as custodians or mutual funds affect your account. For example, start a conversation by asking, “Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?”
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means:
Example 1: Your account value goes up, and while the management fee percentage may stay the same, the total compensation you pay us goes up proportionately.
Example 2: Your account value goes down, but you still must pay a management fee proportional to your assets under management.
Conversation Starter: If you have any questions regarding conflicts of interests, please feel free to ask us. You can begin a conversation by asking, “How might your conflicts of interest affect me, and how will you address them?”
How do your financial professionals make money?
RIM is a fee-only registered investment advisor, which means our only form of compensation is from investment management fees paid directly from our clients. We do not earn any commissions or any other payments from anyone else.
Financial Professionals at RIM receive standard compensation that may consist of a combination of salary, profit-sharing, and optional bonuses based on workrelated performance and/or firmwide revenue targets.
RIM does not pay commissions to any employee. Firmwide revenue and profit may have an impact on the compensation of Financial Professionals at RIM. Other than the indirect effect on firmwide revenue and profit, no compensation is directly tied to the any of the following factors: the amount of client assets serviced by a financial professional; the time and complexity required to meet a client’s needs; product sales commissions; or revenue the firm earns from the financial professional’s advisory services or recommendations.
More detailed information, including fee schedules, conflicts of interests, and other disclosures are available in our ADV Part 2A Firm Brochure, which can be found at: https://adviserinfo.sec.gov/firm/summary/167545.