Intrinsic Wealth Counsel, Inc. (IWC) and its predecessors have been providing
personal financial planning and investment advisory wealth management services
since 1984. The partners of the firm are: Cornelius (a.ka., Neal) Van Zutphen, Jr.,
Cornelius (a.k.a, Casey) Van Zutphen, III and Daniela U. Jones.
Aspirations
Intrinsic Wealth Counsel, Inc. speaks to what we aspire. We co-create financial life
plans around your Intrinsic motivations and manage your life savings based on the
Intrinsic value of investments. When it comes to financial life planning, Wealth is
far more than money. We believe that intrinsic motivations are far more powerful a
force for life goal achievement than extrinsic motivations. We also believe there are
few, if any, who enjoy being “managed”— however, most of us recognize the need
and benefits of seeking Counsel from a trusted advisor or friend. We aspire to be
both.
We firmly believe that personal financial life planning is a gift you give yourself. It is
often one of the few times in the business of life where the purpose and focus is to
honor your own dreams, and by intent, create life plans to live the life you’ve
imagined. This gift enables you to enjoy the journey as well as the destination.
The world isn’t getting any simpler, and what you need and want is simplicity on the
other side of complexity. You want to live your life with ease in a world of dis-ease;
to build or secure your future on your terms, and find and/or create the space and
place that you and your loved ones call: happiness, peace of mind, love, and your
heart’s home.
At Intrinsic Wealth Counsel, we uphold and honor a fiduciary standard of care,
which means we strive to provide advice that is in your best interests and will help
you clarify and achieve your goals. We can neither predict nor guarantee human
behavior or the future. We cannot guarantee rates of return or how long you will
live. However, we do aspire to collaborate with you to get a return on life, and to
find workable solutions when problems arise.
We offer to provide comprehensive, integrated Financial Planning
and Portfolio Management.
Real Planning for Real Life™ means dealing with money and the human
experience. Serving clients over the last 30 plus years, we have found this means
integrating your money life with your real life, finding practical solutions when
challenges and opportunities arise, and giving your money meaning and purpose
that honors your life goals and values.
Comprehensive, Integrated Financial Planning Process
Each client situation is unique and thus each plan requires attention specific to your
needs, concerns, and goals. Likewise, as fiduciaries, it is our obligation to tell you
what you need to know in addition to what you want to know. The Certified
Financial Planner Board of Standards illustration below outlines the seven steps of
the financial planning process.
The initial financial planning process can take anywhere from two to four months
involving three to eight meetings. Meetings range from three hours (first meeting)
to one hour (plan presentation meeting). Meetings can be in-office, via video
conference or by phone.
The planning process can include, but is not limited to:
o Exploration of your perceived needs and concerns from a holistic point
of view
o Life goals discovery and incorporation into financial planning models
o Net Worth Statement and Statement of Liabilities
o Income and Expense Projections
o Income tax planning in coordination with your tax counsel
o Strategies for managing your current cashflow and spending habits
o Retirement and other Capital Needs analyses to meet projected
expenses
▪ Integration of specific spending goals throughout all years
▪ Capital needs scenario planning, worst case scenario planning
o Risk Management, Insurances Review
o Estate Planning documents review (no legal counsel provided)
o Estimated Estate Tax analysis in coordination with legal counsel (if
applicable)
o Estimated Emergency Funds needs analysis
o Estimated Education Funding analysis (if applicable)
o Important document back-up copies stored electronically
o Other specifically requested planning topics
The plan will consider the effects of inflation, income tax, cash reserves for
contingencies, and other relevant issues, and could be limited in scope based upon
your specific needs. We generally present reports in meetings with you, and with
your other advisors if requested. Also, we can present reports by mail and
coordinated conference calls if so desired. Furthermore, you may require an oral
report in lieu of, or in addition to, any written reports. Clients who choose to access
their plans through the planning portal have immediate access to plan updates
based on market conditions and confirmed pre and or post-retirement plans.
We can help you implement the financial planning recommendations. However, we
recognize we can’t actually force you to make the recommended changes. To give a
few examples, we can’t force you to contact an attorney to update your estate
plans, or make changes to your insurances, or refinance your mortgage, or save
and invest more capital.
Perfection and procrastination are the enemy of the good. What we do is help you
get stuff done!
Portfolio Management
For over 30 years, clients have relied on us to achieve their growth, income, and
liquidity needs and goals for themselves and future generations. We do so by
creating customized and diversified equity and income portfolios with access to
institutional class securities. Keeping costs low while tax-efficiently investing in
undervalued areas of the markets are paramount to better risk/reward outcomes
for your wealth. When it comes to investing, we at IWC eat our own cooking. In
other words, we hold the same securities in our own portfolios as we use in yours.
In that spirit, we end each of our quarterly letters to our clients with the following:
Our success is aligned with yours, and you have our absolute best efforts in fulfilling your
long-term planning and portfolio goals. On behalf of your financial life planning team at
IWC, thank you for allowing us to serve and be a part of your lives.
Assets Under Management (AUM)
As of December 31, 2023, our assets under management were approximately
$252,828,161. Approximately 100% of the assets under management are
considered discretionary. In addition, we also provide investment analysis and
recommendations for some clients with assets held in their retirement plans, 529
plans, and variable annuities.
Fees & Compensation
Our definition of a fair fee is one that is willingly paid and accepted with neither
party losing gratitude.
Portfolio Management
We offer to provide stand-alone Portfolio Management services for clients who
have $500,000 or more to manage. The minimum quarterly fee for portfolio only
services is $1,250 (annual $5,000). This fee may be satisfied by our tiered fee
structure detailed below.
Comprehensive, Integrated Financial Planning & Portfolio Management
The majority of Intrinsic Wealth Counsel clients work with us under a
comprehensive, integrated Financial Planning and Portfolio Management
Agreement. These services are designed to help each client align their investment
management and general wealth management strategies to their financial life
goals.
We offer to provide comprehensive, integrated Financial Planning and Portfolio
Management services for a minimum quarterly fee of $2,500 (annual $10,000). This
fee may be satisfied by our tiered fee structure detailed below and/or a quarterly
retainer paid directly by the client. For clients who pay the quarterly retainer fee,
this will be paid in addition to the fee paid based on the Tiered AUM Fee Schedule,
as described below, in order to meet the minimum quarterly fee requirement of
$2,500.
Kairos Planning Retreat
For clients seeking a unique, accelerated and retreat-like comprehensive life
planning experience, we offer a flat fee, distraction free, Intensive 3-day Financial
Life Planning Retreat. We call this our “Kairos Planning Retreat”. This focused
experience has proven to be powerful and life changing for those who dedicate
these precious moments in time for the preparation of the unfolding human
experience.
Over a full three consecutive days we provide the services of our entire team of
advisors and staff dedicated and focused to developing your comprehensive
financial plan and investment strategy.
The one-time fee for this service is $10,000-$15,000 based on complexity and
number of staff required. This fee is in addition to the fee schedule detailed below.
Tiered Fee Schedule
We bill for these ongoing services a fee based on a percentage of the Assets Under
Management (AUM). Our fee schedule is tiered, with reductions at the following
breakpoints:
• Assets below $1 million = 1.00%
• Assets between $1 million and below $3 million = 0.70%
• Assets between $3 million and below $5 million = 0.50%
• Assets over $5 million = Negotiable
All clients sign our Financial Planning and Investment Advisory Services Agreement,
which details the services to be provided by IWC and the
associated fees prior to
the beginning of any service(s). Generally, our fees are non-negotiable. However,
on rare occasion we reserve the right to negotiate fees. Lower fees for comparable
services may be available from other sources. The client will never be invoiced for
services six months or more in advance and ongoing annual fees will not exceed 2%
of assets under management.
We apply the fee schedule to assets under management at the end of each
calendar quarter. One-fourth (1/4) of the annual rate is payable at the end of that
quarter. We bill fees in arrears. Fees are generally deducted directly from the
account(s) managed after we send the billing statement to the client. Rarely, clients
choose to pay quarterly fees by separate check. Fees paid by check are due no later
than 15 days following receipt of billing. We assess pro-rated fees for accounts
starting before quarter end.
Grandfathering of Minimum Fee Requirements
Generally, pre-existing advisory clients are subject to our minimum advisory fees,
zero minimum fees, or hourly rates in effect at the time the client entered into the
advisory relationship. Therefore, our minimum fee requirements will differ among
clients.
Financial Planning Fee Schedule
There is no separate fee for financial planning services, however we reserve the
right to engage in hourly planning services for existing clients when the scope of
the planning services are outside the original agreement. In those cases, we will bill
under separate contract an hourly rate of $250 to $500 depending on complexity.
An initial retainer of $1,200 may be required when services are expected to be
rendered within 120 days of contract date. The client is responsible for those hours
billed prior to our receipt of any termination notice. Any fees paid in advance are
refundable in full within five (5) business days’ notice.
Broker dealers customarily charge commissions. Broker dealers may also charge
custodial fees. Mutual funds and exchange traded funds may also charge
investment management fees. Any such additional fees are charged to the client.
We do not receive any portion of or participate in these fees. Selected mutual funds will
be no-load funds or fee-waived funds. We emphasize the unrestricted rights of the
client to choose any broker dealer rather than one suggested by us. We do not
participate in directed brokerage relationships. Currently, Charles Schwab is the
only qualified custodian we work with.
It has been our experience over the last 30 plus years that our most successful
relationships are those where our skills and abilities match the client’s needs, and
where relationship bonds are created.
However, we are humans, and we recognize that sometimes fits aren’t all that
great. Our advisory agreement may be terminated by either party at any time.
Conflicts of Interests
We strive to provide advice that is in your best interest and minimize the potential
for conflicts of interest.
None of IWC’s registered investment advisors hold any licensure that would enable
us to “sell” any investment products or insurances for a commission. We have no
affiliates and do not share revenue. We do not receive 12b-1 fees, we do not receive
shareholder services fees or record keeping fees.
Our investment advisory representatives are paid a salary and their compensation
is not tied or incentivized based on assets under management or “bringing in new
business.”
We do not pay nor accept referral fees. Clients who may also have vendor or
business relationships with the firm do not receive favorable treatment because of
those relationships.
None of our executives or investment adviser representatives have outside
business activities representing a conflict of interest to IWC or its clients.
We do not participate in Wrap Fee programs.
We do, however, have conflicts of interest.
When conflicts arise, we will inform you of such conflicts so you can make an
informed decision. As an example, a client may ask us if it is better to take money
from the account we manage (conflict for us is this reduces our fees) and pay off
their home mortgage, auto loan, student loan, etc. Another example might be: a
client wishes to borrow monies from a home equity credit line and add these funds
to an account to be managed by IWC, thereby increasing the fees we receive. In any
of these situations, it is our fiduciary responsibility to inform you of these conflicts
so you can make the best-informed decision.
When it comes to IRAs, Retirement Plans, Qualified Funds, etc.
A client or prospective client leaving an employer typically has five options
regarding an existing retirement plan and may engage in a combination of these
options.
1. Leave the money in the former employer’s plan, if permitted
2. Roll over the assets to a new employer’s plan, if one is available and rollovers
are permitted,
3. Roll over the assets to an Individual Retirement Account (“IRA”), and self-
manage the account,
4. Retain a separate broker or adviser to manage the account, incurring
advisory fees which may or may not be more than fees incurred in the
existing employer sponsored plan (generally, employer sponsored
participant plan expense are lower), or
5. Cash out the account value (which could, depending on the client’s age, result
in adverse tax consequences)
If IWC recommends that a client roll over their retirement plan or consolidate
multiple IRAs into an account to be managed by IWC, such a recommendation
creates a conflict of interest if IWC will earn new (or increase its current)
compensation as a result of the rollover. If IWC provides a recommendation as to
whether a client should engage in a rollover or not (whether is from an employer’s
plan or an existing IRA), IWC is acting as a fiduciary within the meaning of Title I of
the Employee Retirement Income Security Act and/or the Internal Revenue Code, as
applicable, which are laws governing retirement accounts.
No client or prospective client is under any obligation to rollover retirement plan
assets to an account managed by Intrinsic Wealth Counsel.
Investment Advice for Retirement Plan Accounts or Individual Retirement
Accounts (IRA)
When we provide investment advice to you regarding your retirement plan account
or individual retirement account, we are fiduciaries within the meaning of Title I of
the Employee Retirement Income Security Act and/or the Internal Revenue Code, as
applicable, which are laws governing retirement accounts. The way we make money
creates some conflicts with your interests, so we operate under special rules that
requires us to act in your best interest and not put our interests ahead of yours.
Under these special rule’s provisions, we must:
• Meet a professional standard of care when making investment
recommendations (give prudent advice);
• Never put our financial interests ahead of yours when making
recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and
investments;
• Follow policies and procedures designed to ensure that we give advice that is
in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
It is always possible that the services we offer to provide may be available from
other providers for less. We believe Intrinsic Wealth Counsel, Inc. planning and
advisory fees are reasonable by industry standards. We are neither the least nor
the most expensive.
Variable Annuity Rescue
IWC is not in the business of promoting or selling Variable Annuities; however, as a
courtesy to clients who find themselves “stranded” with a Variable Annuity product
and seeking professional management and guidance IWC has expanded our
services to include a FEE ONLY variable annuity institutional services offered
through Nationwide Securities, LLC., member FINRA, SIPC and a Registered
Investment Advisor.
As noted earlier, IWC is not in the business of selling or recommending variable
annuities. As such, IWC does not perform an exhaustive study of all FEE ONLY
variable annuity purveyors and IWC does not guarantee that the Nationwide
Annuity services or product are superior or inferior to other variable annuities
available in the marketplace.
Our limited due diligence suggests the Nationwide Variable annuity products are
generally competitive. Clients are under no obligation to accept this offer to assist
by effecting a 1035 exchange into a Nationwide Annity product that allows IWC to
manage and bill the annuity product as part of the assets under management.
This Rescue Variable Annuity represents a conflict of interest and Nationwide
conducts a client due diligence to ensure full and fair disclosure. It is IWC’s desire to
ensure full and fair disclosure for conflicts of interests and that the use of this
solution is in the overall best interest of the client.
Performance-Based Fees and Side-by-Side
Management
We do not charge any performance-based fees for our asset management or
financial planning services. Therefore, we do not have any side-by-side
management issues to disclose.