An Annual Retainer agreement is typically entered into with investment management clients whose portfolios do not require constant monitoring after the initial investment recommendations have been implemented. Generally a client’;s portfolio will be charged a Percentage of Assets Managed in the first year or two of our relationship then progress into an Annual Retainer situation. The decision to use of the Annual Retainer charge in lieu of the Percentage of Assets Managed fee is made on a case-by-case basis.
The Annual Retainer agreement can also be entered into with certain financial planning clients as well as investment management clients. For example, clients with significant allotments of stock options that vest over a number of years would be ideal candidates for this arrangement. Such a client is aware that they will need advice every year for X years in deciding whether or not to exercise their options, what the tax implications would be, where to invest the proceeds, or even how to estimate the alternative minimum taxes on a proposed transaction.