Armour Wealth Advisors LLC

Item 5. Fees & Compensation
We are required to describe all forms of compensation we receive, as well as other costs clients
will incur, so that you will know how much you are charged for advisory services we provide, and
by whom clients are charged.

Financial planning services are offered to all of our clients as part of our overall advisory services;
we do not charge a separate or additional fee for financial planning services.

       How We are Compensated for our Advisory Services

We charge a percentage of assets under management (“AUM”) on a tiered fee schedule. This
means we charge different rates on different asset levels. For fee calculation purposes all of the
client’s accounts under management at our firm are identified as part of client’s household are
included to determine the fee schedule. Such accounts are identified on an addendum to our
client advisory agreement.

Our annual fee is billed quarterly in advance according to the following fee schedule:

       AUM                     Annual Fee
       First $3 million        1.14%
       Next $2 million         0.75%
       Over $5 million         0.50%

The client does not pay additional fees for typical transactions through our custodian, Charles
Schwab, as those fees are borne by Armour.

Our wrap/bundled fee takes into consideration the transaction fees we pay to Schwab. As
discussed in more detail below, this fee arrangement is not appropriate for all accounts,
especially when trading volume is very low. We offer only the wrap/bundled fee option, which
means that separation of the costs is not an option in working with us. See Item 12 of this
brochure for more information about the Schwab platform and the services they provide to
Armour and our clients.

Fees for our advisory services are negotiable, but the transaction fees we pay to Schwab are not
negotiable. If fees clients pay to us are reduced through negotiation below the annual rate
detailed above, Schwab will continue to receive the agreed-on transaction charges and Armour
Wealth Advisors’ net income would decline. Similarly, if we obtain better pricing from Schwab
but don’t decrease advisory fees, that increases our net income. We have a financial incentive to
negotiate our fees for service, as well as rates paid to vendors, in a manner designed to increase
our profitability. We mitigate the conflict by disclosing it and by stating that other advisers offer
different billing approaches that may result in lower overall costs.

The practice of bundling our advisory fees with Schwab’s transaction costs may cost clients more
or less than purchasing our investment advice and Schwab’s brokerage services separately. The
relative cost of the bundled fee to clients is influenced by various factors, including the cost of

our investment advice and Schwab’s brokerage services if purchased separately, the types of
investments held in the account, and the frequency and size of trades we make for the account.
For example, if the number of transactions in an account is low enough, the bundled fee paid
may exceed the stand-alone investment advisory fee and separate brokerage commissions that
the client would otherwise have paid. In addition, because we are charged only for certain
transactions, with certain mutual funds the most expensive trades, we have a financial incentive
to minimize trading or to trade in those securities that result in the lowest cost to us. At the same
time, our portfolios are constructed with mutual funds and ETFs and we therefore have a
significant philosophical and operational commitment in continuing to use those securities. We
believe that helps mitigate the conflict, in addition to our disclosures and our obligation to act in
accordance with our fiduciary duty, and not based on the compensation we receive. In general,
a bundled/wrap arrangement based on trades benefits clients who have higher trade volumes
and/or trade in securities that are generally more costly to execute. It is likely more expensive
for clients who don’t trade much or whose portfolios contain securities with zero or lost-cost
commissions.

Armour Wealth Advisors does not offer advisory services on a stand-alone, unbundled basis.

We do not recommend alternative investments. In the event a client brings in an existing, illiquid
position, we neither manage that asset, nor charge a fee on that asset. This will be documented
on your advisory agreement with us.

      How We Charge Clients

Fees are deducted quarterly, in advance, directly from client accounts at the beginning of each
calendar quarter. The fee is equal to the previous quarter-end market values of all managed
assets in the client’s account(s) at the close of trading on the last business day of the prior
calendar quarter, multiplied by one-fourth of the annual fee. The initial fee for new accounts will
be based on the opening account value and will be adjusted on a pro rata basis to cover the
period from the date the account is opened through the end of the calendar quarter.

Advisory fees are deducted directly from the client’s account, agreed to in our investment
advisory agreement and your custodial account opening paperwork.

Investment management services will continue until either party terminates the investment
advisory by written notice. If a client provides us with verbal notice of termination, we will
capture that in writing to provide to the client. We will not provide advisory services under our
client Agreement as of the earlier of the effective date of the client’s notice of termination to us
or when our access is revoked by the custodian as a result of the client’s actions. If the Agreement
terminates on any date other than the last day of a calendar quarter, the fee previously paid with
respect to that calendar quarter will be prorated based on the number of days the account was
open during the billing period and Advisor will promptly refund to client any portion relating to
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Item 7. Types of Clients & Account Requirements
We provide advisory services to individuals, trusts, estates, and other business entities. There is
no account size minimum. As discussed in our responses to Item 4 and Item 12, as a practical
matter, clients are required to open their accounts with Schwab to permit bundled fee billing.