Item 5: Fees & Compensation
Compensation for Our Advisory Services
Comprehensive Portfolio Management:
The maximum annual fee charged for this service will not exceed 1.50%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Our firm bills on cash unless indicated
otherwise in writing. Annualized fees are billed on a pro-rata basis monthly in advance based on the
value of the account(s) on the last day of the previous month. Fees are determined on a case-by-case
basis by negotiating directly with each client regarding the scope and complexity of the client’s
investment objectives. Fees are negotiable and will be deducted from client account(s). Please note
that lower fees for comparable services may be available from other sources. Our firm does not offer
direct invoicing. As part of this process, Clients understand the following:
a) Clients must provide our firm with written authorization permitting direct payment of
advisory fees from their account(s) maintained by a custodian who is independent of our
firm;
b) Our firm sends monthly statements to the client showing the fee amount, the value of the
assets upon which the fee is based, and the specific manner in which the fee is calculated as
well as disclosing that it is the client’s responsibility to verify the accuracy of fee calculation,
and that the custodian does not determine its accuracy;
c) Our firm sends a copy of our invoice to the custodian at the same time that we send a copy to
the client; and
d) The account custodian sends a statement to the client, at least quarterly, showing all account
disbursements, including advisory fees.
ADV Part 2A – Firm Brochure Page 6 235 Wealth Management, LLC dba Two Three Five
Financial Planning & Consulting:
Our firm charges on a flat fee basis for financial planning and consulting services. The total estimated
fee, as well as the ultimate fee charged, is based on the scope and complexity of our engagement with
the client. Flat fees will not exceed $5,000. Please note that lower fees for comparable services may
be available from other sources. The fee-paying arrangements will be determined on a case-by-case
basis and will be detailed in the signed consulting agreement. Our firm will not require a retainer
exceeding $500 when services cannot be rendered within 6 months. For purposes of calculating
refunds, all work performed by Two Three Five up to the point of termination shall be calculated at
an hourly rate of $300.
Retirement Plan Consulting:
Our Retirement Plan Consulting services are billed on a fee based on the percentage of Plan assets
under management. The total estimated fee, as well as the ultimate fee charged, is based on the scope
and complexity of our engagement with the client. Fees based on a percentage of managed Plan assets
will not exceed 1.00%. Fees are determined on a case-by-case basis by negotiating directly with the
plan sponsor regarding the scope and complexity of the retirement plan. Please note that lower fees
for comparable services may be available from other sources. The fee-paying arrangements will be
determined on a case-by-case basis and will be detailed in the signed consulting agreement.
Other Types of Fees & Expenses
Clients will incur transaction fees for trades executed by their chosen custodian, either based on a
percentage of the dollar amount of assets in the account(s) or via individual transaction charges.
These transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Charles Schwab & Co., Inc. (“Schwab”) does not charge transaction fees for U.S. listed
equities and exchange traded funds.
Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), distribution
fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, mark-ups and
mark-downs, spreads paid to market makers, fees for trades executed away from custodian, wire
transfer fees and other fees and taxes on brokerage accounts and securities transactions. Our firm
does not receive a portion of these fees.
Termination & Refunds
Either party may terminate the advisory agreement signed with our firm for our Comprehensive
Portfolio Management service in writing at any time. Upon notice of termination our firm will process
a pro-rata refund of the unearned portion of the advisory fees charged in advance.
Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in effect.
Clients will receive a pro-rata refund of unearned fees based on the time and effort expended by our
firm.
ADV Part 2A – Firm Brochure Page 7 235 Wealth Management, LLC dba Two Three Five
Either party to a Retirement Plan Consulting Agreement may terminate at any time by providing
written notice to the other party. Full refunds will only be made in cases where cancellation occurs
within 5 business days of signing an agreement. After 5 business days from initial signing, either
party must provide the other party 30 days written notice to terminate billing. Billing will terminate
30 days after receipt of termination notice. Clients will be charged on a pro-rata basis, which takes
into account work completed by our firm on behalf of the client. Clients will incur charges for bona
fide advisory services rendered up to the point of termination (determined as 30 days from receipt
...