Item 5. Fees and Compensation
Stability Financial offers its services on a fee basis, which may include hourly and/or fixed fees, as well as
fees based upon assets under management or advisement. Additionally, certain of Stability Financial’s
Supervised Persons, in their individual capacities, may offer insurance products under a separate
commission arrangement.
Financial Planning and Consulting Fees
Stability Financial generally charges a negotiable hourly and/or fixed fee to provide clients with stand-
alone financial planning or consulting services. These fees are largely determined by the scope and
complexity of the agreed upon services and range from $250 to $25,000 on a fixed fee basis and $100 to
$300 on an hourly basis.
Stability Financial, LLC Disclosure Brochure
The specific terms and fee structure are negotiated in advance and set forth in the Agreement with
Stability Financial. Generally, Stability Financial requires one-half of the financial planning or consulting
fee payable upon execution of the Agreement and the balance due at the time the financial plan is
delivered or the underlying services are rendered to completion. In the event the Agreement is
terminated, the Firm will promptly repay any unearned portion of the fees and client will promptly pay any
unpaid but earned fees. Please note, because of the nature of Financial Planning, once engaged, there
may be no refund available. If the client engages Stability Financial for additional investment advisory
services, Stability Financial may offset all or a portion of its fees for those services based upon the
amount paid for the financial planning and/or consulting services.
Investment Management and Wealth Management Fees
Stability Financial provides investment management services for an annual fee based on the amount of
assets under the firm’s management. This fee varies between 100 and 200 basis points (1% – 2%),
depending upon the size of a client’s portfolio and the type of services rendered, as follows:
PORTFOLIO VALUE ANNUAL FEE
up to $5,000,000 2.00%
$5,000,001 – $10,000,000 1.00%
above $10,000,000 negotiable
This fee is prorated and charged monthly in advance, based upon the market value of the assets being
managed by Stability Financial on the last day of the previous billing period.
If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is not adjusted or prorated to reflect the change in portfolio value.
For the initial term of an engagement, the fee is calculated on a pro rata basis. In the event the
Agreement is terminated, the fee for the final billing period is prorated through the effective date of the
termination and the unearned portion is refunded to the client, as appropriate.
Performance Based Investment Management Fees
Alternatively, Stability Financial offers investment management services to qualified clients for a
performance-based fee in accordance with applicable laws, rules and regulations. Under this
arrangement, Stability Financial charges clients a fee based upon the performance of their accounts (the
“performance fee”) in addition to a fee based upon the market value of the assets being managed by
Stability Financial (the “base fee”).
The performance fee is equal to 20% of the net performance of a client’s portfolio, subject to a high water
mark by which the account exceeds an agreed upon benchmark. The performance fee is charged
quarterly in arrears and is based upon a client’s net gains during a calendar year period.
Stability Financial, LLC Disclosure Brochure
The base fee varies between 50 and 100 basis points (0.50% – 1.00%), based on the following fee
schedule:
PORTFOLIO VALUE ANNUAL FEE
up to $5,000,000 1.00%
above $5,000,000 0.50%
The base fee is prorated and charged monthly in advance, based upon the market value of the assets
being managed by Stability Financial on the last day of the previous billing period.
If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is not adjusted or prorated to reflect the change in portfolio value.
For the initial term of an engagement, the fee is calculated on a pro rata basis. In the event the
Agreement is terminated, the fee for the final billing period is prorated through the effective date of the
termination and the unearned portion is refunded to the client, as appropriate.
Fee Discretion
Stability Financial, in its sole discretion, may negotiate to charge a lesser fee based upon certain criteria,
such as anticipated future earning capacity, anticipated future additional assets, dollar amount of assets
to be managed, related accounts, account composition, pre-existing client relationship, account retention
and pro bono activities.
Additional Fees and Expenses
In addition to the advisory fees paid to Stability Financial, clients may also incur certain charges imposed
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