Kaizen Wealth Management refers clients to third-party money managers, acting as a liaison between the client and the money manager. Kaizen also offers financial planning and consulting services for an hourly fee. The firm's managing member is affiliated with an entity that sells insurance products. Kaizen does not manage client assets or act as a custodian.
Fee Structure
Kaizen Wealth Management refers clients to third-party money managers (TPMs) such as Gradient Investments, LLC. The fees for these services are based on a percentage of the assets managed by the TPM. Kaizen shares in the asset management fee charged by the TPM. The client's fee will be disclosed in the Investment Advisory Agreement and is negotiable.
Here's how the annual fee is split between Gradient Investments (GI) and Kaizen Wealth Management (KWM) for different portfolio types:
- Strategic & Tactical, Allocation & Defined Outcome Portfolios: GI receives 0.70%, and KWM receives 1.00%, totaling 1.70%.
- Preservation Portfolios: GI receives 0.40%, and KWM receives 0.60%, totaling 1.00%.
- Private Wealth Portfolios: GI receives 0.50%, and KWM receives 1.00%, totaling 1.50%.
- Client Directed Accounts: Flat fee of $300, with GI receiving $300 and KWM receiving $0.
These fees do not include brokerage fees that may be assessed by the custodial broker-dealer. A $15 quarterly service fee is charged per account or investment strategy for performance and other reporting. Fees are assessed quarterly in arrears based on the amount of assets managed as of the end of the previous quarter.