Accredited Investors Inc

Item 5 Fees and Compensation

Accredited is a fee only firm. We do not receive commissions, referral fees, or reimbursements
from our recommendations. Our advisory fee is based on a percentage of assets we actively

manage, using a tiered schedule:

                                     Up to $5,000,000 – 1%
                   $5,000,000 - $10,000,000 – 0.75% (plus fees from prior tiers)
                  $10,000,000 - $15,000,000 – 0.50% (plus fees from prior tiers)
                       Over $15,000,000 – 0.25% (plus fees from prior tiers)

We charge only against assets we manage. Certain assets such as cash reserves, some
individual securities, 529 education accounts, and others, are not billed. A list of clients’
unmanaged assets (as applicable) is found within the client’s portal.

Fees are calculated annually based on the client’s anniversary date. They are billed quarterly in

advance and adjusted for applicable asset flows. Accredited aggregates accounts of a client’s
spouse or partner and minor children for billing purposes, a practice referred to as

“householding.” Accredited also offers clients the option to aggregate account values of fee-
paying parents and adult children for billing purposes, referred to as “family billing.” Please

refer to the written advisory agreement for additional information.

Fees for the first month under management will be prorated. Typically, a client will authorize its
custodian to deduct Accredited’s fee directly from their account. Upon request, Accredited will

send an invoice directly to the client.

Our fee schedule is non-negotiable and subject to a $50,000 minimum annual fee. The
minimum fee can be modified at Accredited’s sole discretion. There are limited exceptions to

the minimum annual fee that are considered by Accredited, including but not limited to family
relationships, life phase, anticipated liquidity events and/or composition of wealth. We honor

any legacy fee arrangements already in place.

You may cancel the agreement at any time with written notice. Any pre-paid, unearned fees

will be refunded on a prorated basis.

Fees paid to Accredited for advisory services are separate from those charged by mutual funds

or ETFs, as outlined in each fund’s prospectus. These typically include management and other
fund expenses. Clients could invest directly in publicly-traded securities without our services

but would not receive our guidance in selecting investments suited to their financial goals.

When Accredited recommends a third-party manager, that manager’s fee is in addition to our
advisory fee. Clients should review all applicable fees- fund, manager, and Accredited- to
understand total costs and evaluate the value of our services.

Clients are also responsible for custodian and broker- dealer charges, including transaction

fees. Please refer to the "Brokerage Practices" section (Item 12) of this Form ADV for additional
information.

Item 7 Types of Clients

Accredited Investors Wealth Management provides advisory services to the following types of

clients:
   •   Individuals and families

   •   Trusts
   •   Foundations and endowments

   •   Charitable organizations
   •   Corporations or other businesses not listed above