Affiance Financial LLC

Fees and Compensation – Item 5
In this Item 5, we provide general information about how we charge for the services offered. The form,
timing and amount of our compensation are determined by the type and amount of services we provide.
We enter into written agreements with our clients prior to performing any services. Our basic fee system
is explained below.

Fees for Investment Management Services
Affiance Financial charges an asset-based fee for investment management services. Our fees are payable
in advance on a quarterly basis and based upon the market value of the assets on the last day of the
previous quarter. The first period’s fees will be calculated on a pro rata basis, based on the number of
days remaining in the service period. If the agreement is terminated prior to the end of a service period,
our fee will be prorated through the date of termination and any remaining balance will be refunded to
the client within 30 business days. Please note that Affiance Financial considers cash to be an asset
class, and that it is included in fee calculations. Accordingly, unless otherwise agreed in writing, all cash
and cash equivalent positions (e.g., money market funds, etc.) are included as part of assets under
management for purposes of calculating the advisory fee. It should also be noted that at times (such as
now), the fee on cash will exceed the money market yield. Additionally, at any specific point in time,
depending upon perceived or anticipated market conditions/events (there being no guarantee that such
anticipated market conditions/events will occur), the firm may maintain cash and/or cash equivalent
positions for defensive, liquidity, or other purposes. While assets are maintained in cash or cash
equivalents, such amounts could miss market advances.

We allow Associated Persons to negotiate the exact investment management fees within the range
disclosed below. As a result, the Associated Person may charge more or less for the same service than
another Associated Person of our firm. Further, the annual investment management fee with Affiance
Financial may be higher or lower than that charged by another investment advisory firm, offering
similar services. Our fees are based upon the following blended fee schedule:
         Assets Under Management                  Annual Fee Percentage
         $0 - $500,000                            1.50%
         $ 500,001 - $1,000,000                   1.25%
         $1,000,001 - $2,500,000                  1.10%
         $2,500,001 - $5,000,000                  1.00%
         Accounts over $5,000,000                 0.85%
With respect to assets held in 529 plans we charge a management fee of up to 0.50 percent.

As a normal extension of financial advice, we may provide recommendations related to the rollover of
an employer sponsored retirement plan. A plan participant leaving employment has several options.
Each choice offers advantages and disadvantages, depending on desired investment options and
services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and the
investor's unique financial needs. The complexity of these choices may lead an investor to seek
assistance from Affiance Financial.

                                                                                        Form ADV Part 2A

When we recommend an investor roll over plan assets into an IRA, we will earn an asset-based fee as a
result. However, we will not earn an asset-based fee if assets are retained in the plan. Thus, we have an
economic incentive to encourage an investor to roll plan assets into an IRA. In most cases, the investor’s
fees and expenses will increase as a result of the above-described fees being applied to assets rolled over
to an IRA managed by us.

We are fiduciaries under the Investment Advisers Act of 1940 and when we provide investment advice
to you regarding your retirement plan account or individual retirement account, we are also 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. We have to act in your
best interest and not put our interest ahead of yours. At the same time, the way we make money creates
some conflicts with your interests.

Form CRS
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. We have to act in your best interest and not put our interests ahead of yours. At the same time,
the way we make money creates some conflicts with your interests.

Periods of Portfolio Inactivity
The firm has a fiduciary duty to provide services consistent with the client’s best interest. As part of its
investment advisory services, the firm will review client portfolios on an ongoing basis to determine if
any changes are necessary based upon various factors, including but not limited to investment
performance, fund manager tenure, style drift, account additions/withdrawals, the client’s financial
circumstances, and changes in the client’s investment objectives. Based upon these and other factors,
there may be extended periods of time when the firm determines that changes to a client’s portfolio are
neither necessary nor prudent. Notwithstanding, unless otherwise agreed in writing, the firm’s annual
investment advisory fee will continue to apply during these periods, and there can be no assurance that
investment decisions made by the firm will be profitable or equal any specific performance level(s).

Payment of Fees
Affiance Financial will either invoice the client directly for management fees or payment will be made
by the qualified custodian. We will only receive payment from the custodian if the client supplies
...

Types of Clients – Item 7
Affiance Financial offers advisory services to individuals, pension and profit sharing plans, charitable
organizations, corporations or other businesses.

Our Retirement Plan Services are available to clients that are sponsors or other fiduciaries to plans,
including 401(k), 457(b), 403(b) and 401(a) plans. Plans include participant-directed defined contribution
plans and defined benefit plans. Plans may or may not be subject to ERISA.

Account Minimums
Affiance Financial generally recommends an aggregate relationship minimum of $250,000 to commence
investment management services. However, Affiance Financial, in its sole discretion, may charge a lesser
advisory fee and/or reduce or waive its aggregate relationship minimum based upon certain criteria (i.e.
anticipated future earning capacity, type of management services to be rendered, anticipated future
additional assets, dollar amount of assets to be managed, related accounts, account composition,
negotiations with client, etc.). Please Note: As result of the above, similarly situated clients could pay
different fees. In addition, similar advisory services may be available from other investment advisers for
similar or lower fees. ANY QUESTIONS: Affiance Financial’s Chief Compliance Officer, Eric Unger,
remains available to address any questions that a client may have regarding its advisory fee schedule.

We do not require a minimum asset amount for Retirement Plan Consulting Services.

Methods of Analysis, Investment Strategies and Risk of Loss - Item 8