SAMPLE RETAINER AGREEMENT LETTER
This letter outlines the understanding between you (“Client”) and Adirondack Asset Management, LLC (“AAM”) for the services AAM will provide to you. If you have any questions about the content or purpose of this letter we should discuss them before you sign this letter.
We are engaged to provide financial planning, investment, and personal income tax advice to you for a fee of $_______ each quarter beginning __________, adjusted annually thereafter based on time expended in the prior year and time estimated for the prospective year until the agreement is terminated by either party. The scope of service contemplated under this agreement, although not all are currently applicable to you, will include:
- Reporting your portfolio performance and compare to your personal investment policy benchmark returns quarterly.
- Reporting your portfolio asset class allocation and compare to your personal investment policy allocation quarterly.
- Reporting your individual security holdings performance and compare them to your personal investment policy investment securities criteria quarterly.
- Recommending changes in your individual security holdings when required by your personal investment policy. We manage investments on a non-discretionary basis only and will not execute trades to implement our recommendations without your prior approval.
- Monitoring progress against personal financial plan and report quarterly.
- Tri-annual review meeting on personal financial plan progress.
- Advising optimal age to begin Social Security.
- Advising optimal option to select for defined benefit pension plan benefits.
- Reviewing for potential termination or conversions of unneeded whole life policies to annuities.
- Advising on mortgage refinance opportunities (not on search and application).
- Initial consulting on all lifetime financial matters (not subsequent planning or implementation if needed).
- Initiating request for your annual free credit report from each of the three credit agencies.
Income and estate tax advice:
- Maintaining most tax efficient allocation of investments among account vehicles.
- Maintaining security cost data for gift and income tax purposes.
- Alerting to tax loss harvesting opportunities.
- Advising and initiating optimal annual IRA contributions.
- Advising optimal retirement plan contribution amount.
- Alerting and advising on will updates as a result of life change or new legislation.
- Annual calculation of IRA required minimum distribution.
- Alerting and advising as to Roth conversion opportunity.
- Advising optimal charitable contribution choice (not design and implementation).
- Preparation of your personal income tax return beginning with 2007 tax year.
The scope of service does not include:
- Financial Plan Preparation
- Comprehensive Estate Planning
- Life insurance purchase analysis
- Mortgage refinancing search and applications
- Employer benefit plan set-up
However we will be available on an ongoing basis to assist you in these matters. The nature, extent and fees of these services will be established at that time.
Very truly yours,
Adirondack Asset Management, LLC
ACCEPTED I have read, understand and accept this agreement and following terms and conditions: