Item 5 Fees and Compensation
For Financial Planning Services we charge an hourly fee of $300 for financial planning services, which
is negotiable depending on the scope and complexity of the plan, your situation, and your financial
objectives. An estimate of the total time/cost will be determined at the start of the advisory relationship.
In limited circumstances, the cost/time could potentially exceed the initial estimate. In such cases, we
will notify you and request that you approve the additional fee.
We may, in our discretion, require that you pay a portion of the fee in advance with the remaining
portion due upon the completion of the services rendered. In such case, the specific portion will be
negotiated and based on the anticipated amount of time required to prepare the financial plan. In all
other cases, fees are due upon completion of services. We do not require prepayment of a fee more
than six months in advance and in excess of $500.
Our fee for portfolio management services is based on a percentage of your assets we manage and
also depends on the character of those assets as either (1) Directly Managed by us (where we have
the ability to initiate transactions directly with the custodian on either a discretionary or non-
discretionary basis) or (2) Not Directly Managed by us (where we can only advise you as to what
transactions to place but where you must initiate those transactions with the custodian yourself). Some
examples of accounts that are not directly managed by us are 401(k) accounts, 403(b) accounts, and
certain variable annuity sub-accounts.
Our fee for portfolio management services is set forth in the following fee schedule:
Assets Under Management Annual Fee For Accounts Annual Fee For Accounts
Directly Managed By Us Not Directly Managed By Us *
$ 0 - $ 249,999 1.40% 0.70 - 1.40%
$ 250,000 - $ 499,999 1.20% 0.60 -1.20%
$ 500,000 - $ 999,999 1.10% 0.55 - 1.10%
$1,000,000 - $3,499,999 1.00% 0.50 - 1.00%
$3,500,000 - $4,999,999 0.90% 0.50 - 0.90%
$5,000,000 and Above Negotiable Negotiable
*Depending upon the mix of directly held assets and those not directly held by us, we may, in our
discretion, charge a higher (or lower) rate for those assets not directly held with us. Final rates will be
determined by the adviser, and approved by the client, after review of the composition of a client's total
portfolio. By way of clarification, assets that are directly managed by us are generally not aggregated
with assets that are not managed directly by us for purposes of meeting the breakpoints listed above.
Although we may use margin on occasion, the fees we charge are based on the net asset value of
your account and we do not include the margin or credit line in that valuation.
Our annual portfolio management fee is billed and payable quarterly in advance based on the value of
your account on the last day of the previous quarter. Where deposits to client(s)' account(s) exceeding
$100,000 are made prior to end of a quarter, we may, in our sole discretion, charge a pro rated fee on
the additional funds, based on the fee schedule above, for the remaining days in the quarter that we
will manage those funds. In such cases, we would send you an interim quarterly billing statement.
Where withdrawls from client(s)' account(s) exceeding $100,000 are made prior to end of a quarter, we
will refund the unearned portion of the quarterly advisory fee calculated on the withdrawn
funds and the remaining days in the quarter.
If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of
those fees.
In the event that the client has accounts that are not directly managed by us in addition to accounts
that we directly manage, the total quarterly fee for all accounts may be deducted from the account(s),
designated by the client, that we directly manage. In the alternative, we can bill the client directly for
our fees on accounts that we do not directly manage.
If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. We will recommend "no-load" funds. The fees that you pay
to our firm for investment advisory services are separate and distinct from the fees and expenses
charged by mutual funds or exchange traded funds (described in each fund's prospectus) to their
shareholders. These fees will generally include a management fee and other fund expenses. You may
also incur transaction charges and/or brokerage fees when purchasing or selling securities. These
charges and fees are typically imposed by the broker-dealer or custodian through whom your account
transactions are executed. We do not share in any portion of the brokerage fees/transaction charges
imposed by the broker-dealer or custodian. To fully understand the total cost you will incur, you should
review all the fees charged by mutual funds, exchange traded funds, our firm, and others. For
information on our brokerage practices, please refer to the Brokerage Practices section of this
brochure.