Bautis Financial LLC

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervisory Services Fees

         Total Assets Under Management                  Annual Fee

                 $1 - $1,000,000                           1.00%
                Above $1,000,000                           0.80%

These fees are negotiable and the final fee schedule is attached as Exhibit II of the
Investment Advisory Contract. Fees are paid quarterly in arrears, and clients may
terminate their contracts with thirty days’ written notice. Because fees are charged in
arrears, no refund policy is necessary. Clients may terminate their accounts without
penalty within 5 business days of signing the advisory contract. Advisory fees are
withdrawn directly from the client’s accounts with client written authorization.

Financial Planning Fees

When BF first meets with a client BF tries to determine the complexity of the
engagement and how much time it is going to take based on the specific services that are
relevant, and that the client wishes to engage BF on. Below are the high level and
subservices provided by BF:

Investment Planning
- Review of a portfolio
- Help with allocating assets
- Withdrawal strategies if client is in that phase of life
- Advice with Equity compensation from client’s employer
- Review of alternative investments

Estate Planning
- Coordinating with client’s attorney on wills, power of attorneys, health care proxies, ...
- Helping client with project and understand the client’s estate taxes
- Advising client on options to reduce potential estate taxes
- Charitable giving planning

Retirement planning
- Setting retirement goals
- Analyzing whether client is on track to reach those goals
- Advising on Social Security and Medicare options
- Helping with Requirement minimum distributions

- Small Business retirement plans
- Analyzing whether a roth conversion makes sense
- Analyzing pensions and potential options with receiving pension benefits

Risk Management
- Reviewing client’s existing policies
- Analyzing client’s needs across Life Insurance, Long Term Care, Disability, Health
Insurance and providing advice on the client’s different options

Cash Flow and Budget
- Analyzing the client’s spending
- Help putting a budget together and tracking it
- Help plan for large expenses
- Analyzing whether client has a big enough emergency fund
- Analyzing a potential move with client’s residence
- Helping client analyze refinance or line of credit options.

Assistance to loved ones
- Gifting Strategies
- Putting a caregiving plan together
- How best to save for collect

Tax Planning
- Review of cost basis for client’s securities
- Opportunities to harvest tax losses
- Potential roth conversions
- Health Savings and FSA analysis

Other Factors
- Does the client want us to coordinate with their other advisors, attorneys, or
accountants
- How often does the client want to meet

Fixed annual fees for financial planning range from $1,200, $2,400, $6,000, or $10,000
depending on the complexity of the engagement. Certain clients may negotiate for a
different fee arrangement. .

B. Payment of Fees

Payment of Investment Supervisory Fees

Advisory fees are withdrawn directly from the client’s accounts with client written
authorization or may be invoiced and billed directly to the client; clients may select the
method in which they are billed. Fees are paid quarterly in arrears.

       Payment of Financial Planning Fees

       Financial Planning fees are paid via check in arrears upon completion. Because fees are
       charged in arrears, no refund is necessary.

       C. Clients Are Responsible For Third Party Fees

       Clients are responsible for the payment of all third party fees (i.e. custodian fees, mutual
       fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and
       expenses charged by BF.             Please see Item 12 of this brochure regarding
       broker/custodian.

       D. Prepayment of Fees
       BF collects its fees in arrears. It does not collect fees in advance.

       E. Outside Compensation For the Sale of Securities to Clients

       Neither BF nor its supervised persons accept any compensation for the sale of securities
       or other investment products, including asset-based sales charges or services fees from
       the sale of mutual funds.

Item 7: Types of Clients
BF generally provides investment advice and/or management supervisory services to the
following types of clients:

           ❖ Individuals
           ❖ High-Net-Worth Individuals
There is no account minimum.