Access Financial Resources Inc

Item 5 Fees and Compensation
Description
AFR bases its fees on a percentage of assets under management, hourly charges, commissions (e.g.,
annuities and insurance), and/or retainer (i.e., ongoing fixed fees). Some fees may be priced based on
the complexity of work, especially when asset management is not the most significant part of the
relationship. Financial plans are priced on an hourly basis, and the time spent is according to the
degree of complexity associated with the client’s situation. AFR considers cash to be an asset class,
and it will be included in fee calculations. At times, it is possible that fees will exceed the yield, if any,
that is generated by such cash. Fees are negotiable.

Hourly Fee Billing for Financial Planning Services
For financial planning services, the fee ranges from $95 to $300 per hour depending on the investment
adviser representative and is generally negotiable. There may be an initial start-up fee, not to exceed
$500.00, for setting up a client’s file. This is to defer the cost of incidentals such as multiple meetings,
completing all necessary financial documentation, help with any necessary government forms, and any
mandatory administrative needs that may arise.

Fees for financial plans are not billed in advance, but are usually billed monthly, in arrears, throughout
the financial planning process, with the balance due upon delivery of the financial plan. Any follow-up
consulting work regarding a client’s implementation of a financial plan is billed separately at the hourly
rate agreed to in the client agreement, monthly, in arrears.
Asset Based Percentage Fee Billing for Investment Advisory Services
Fees for advisory services are typically based on the value of assets under management, including
cash balances, and will vary depending on account size as follows: Net Market Value
of Client Account       Annual Percent Quarterly Percent
$0 - $100,000                 2.0%                    .50%
$100,001 - $200,000           1.5%                    .375%
$200,001 - $500,000           1.0%                    .25%
$500,001 – and up             0.75%                   .188%
Negotiable                    TBD %                    TBD %
Asset based fees for investment advisory services are billed quarterly, in arrears. Payment in full is
expected upon invoice presentation. Fees are usually deducted from a designated client account to

facilitate billing, which is the default option in the client investment advisory agreement.
Retainer Fee Billing for Financial Planning Services and/or Investment Advisory Services
Under certain limited circumstances, AFR may provide financial planning and/or investment advisory
services on a retainer fee basis. Retainer fees (i.e., ongoing fixed fees) are billed in arrears on a
monthly, quarterly, semi-annual, or annual basis, as elected in the client agreement.

Additional Fee Billing Disclosure
AFR, in its sole discretion, may waive its fees and/or charge a higher/lesser fee, from what is listed on
the fee billing schedule, based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amounts of assets to be
managed, related accounts, account composition, negotiations with clients, financial planning
complexity, etc.). Also, for other asset holdings under management by AFR such as real estate, notes
and mortgages, annuities, etc., the fair market value of such holdings are included in assets under
management for the purposes of calculation of asset-based fees. Also, third-party administrators for
retirement plans charge additional fees for outside holdings. So, please review the values of each
outside holding for accuracy.

We do not bill an advisory fee on margin balances and generally advise our clients against maintaining
significant margin balances.

Expense Ratios and Brokerage Fees
Fund companies generally charge fund shareholders management fees to cover the fund’s annual
operating expenses. Total annual fund operating expenses are reflected in a fund’s prospectus as an
expense ratio. An expense ratio of, for example, 0.5% means that the fund company charges an
annual fee of 0.5% of average net assets. These fees are in addition to the fees paid by you to AFR.
Performance figures quoted by mutual fund companies in various publications are after their fees have
been deducted. Discount brokerages may charge a transaction fee for the purchase of some funds.
Moreover, stocks and bonds may be purchased or sold through a brokerage account when
appropriate. The brokerage firm charges a fee for stock and bond trades; however, AFR does not
receive any compensation from fund companies or brokerage firms.

Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual funds and exchange-
traded funds. These transaction charges are usually small and incidental to the purchase or sale of a
security for one-time purchases but can be significant for ongoing transactions. A fund's share class
and transaction fee status, etc. must be taken into account to determine the best avenue to select for
investment. The loads for Class A shares are waived by Fidelity Investments; however, each Class A
share has a 12b-1 fee (that Fidelity keeps), which causes the expense ratio to be higher than another
share class for the same fund. However, the same fund in a different share class may have a
transaction fee associated with it (e.g., $20) for each purchase, but a lower expense ratio. For ongoing
transactions, it may, under certain circumstances, be less expensive to purchase a Class A share
(waived load), and subsequently convert to a different share class with a lower expense ratio once a
certain value in Class A shares is reached. To that end, the purchase of mutual fund class shares with
a higher expense ratio, like a Class A share, may be utilized to avoid having the client incur a
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Item 7 Types of Clients
AFR generally provides investment advice to individuals, banks or thrift institutions, investment
companies, pension and profit sharing plans, trusts, estates, or charitable organizations, corporations
or business entities. Client relationships vary in scope and length of service.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your Account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.

We may also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet the stated minimum.