CWM, LLC - Investment Advisory Services And Relationship Summary.pdf

Services Offered:
- Asset Management: CWM, LLC manages and trades client portfolios, aiming to achieve investment goals with continuous monitoring and annual portfolio discussions. Fees are charged as a percentage of assets under management (up to 2.50% annually) on a quarterly basis. Services can be provided through wrap fee or non-wrap fee programs.
- Financial Planning: Involves creating written financial plans covering mutually agreed topics, with hourly fees up to $500 or fixed fees ranging from $500 to $25,000+.

Key Points:
- Fiduciary Duty: CWM, LLC has a fiduciary duty to act in clients' best interests, recommending securities aligned with their needs.
- Account Minimums: Asset management accounts require minimum investments ranging from $5,000 to $250,000.
- Fees and Costs:
- Asset management fees negotiable based on various factors.
- Wrap fee programs cover advisory services and transaction costs; non-wrap programs charge separate transaction costs.
- Management fees may also be charged by underlying funds.
- Financial planning services billed hourly or under fixed arrangements, with a $1200 advance retainer limit for hourly fees.

Conflicts of Interest:
- CWM, LLC's affiliated trust company (Carson Private Trust) and separate roles of IARs as securities registered representatives, insurance agents, etc., create potential conflicts.
- Increased revenue from recommended services or products may benefit CWM, LLC or its representatives.

Compensation Structure:
- IAR compensation based on client assets accumulated for CWM, LLC, creating a conflict of interest.
- Advisory fees not asset-based (e.g., financial planning fees) shared between the firm and representatives at predetermined percentages.
- Additional income for IARs from product sales, real estate, or professional services provides further potential conflicts.