Item 5 – Fees and Compensation
Portfolio Management and Financial Planning Services: Fees and Compensation
Fees for Financial Wellness for Life® include financial planning and are based upon a
percentage of the assets under management.
FWL Fee Charges:
The annual fee for our portfolio management and financial planning services for our clients
with over $300,000 in their managed account(s) will be eligible for our Assets Under
Management Fee.
The fee schedule is:
$300,000-$499,000: 1.25%
$500,000-$999,000: 1%
$1MM-$3MM: .90%
$3MM-$5MM: .85%
$5MM-$10MM: .75%
Over $10MM: negotiable
The actual fees to be charged for managing your account will be specified in your client
agreement. The pro-rated first quarter’s management fee will be calculated on the Account’s initial
value as reported by its custodian. Thereafter, the periodic fee will be based upon the previous
quarter end account value as reported by your custodian. Fees are paid quarterly, in advance.
FPS Fee Charges:
B$D charges a flat fee between $3000 and $5000 for this service based on the complexity of the
client’s financial situation.
General Information Regarding Asset Management Fees:
The fee is negotiable based on the type of client, the complexity of the client's situation, the
relationship of the client with the investment adviser representative, and the total amount
of assets under management.
We believe that our annual fees are reasonable in relation to: (1) services provided and (2)
the fees charged by other investment advisers offering similar services/programs. However,
our FWL investment advisory fee may be higher than that charged by other investment
advisers offering similar services/programs. In addition to our compensation, you may also
incur charges imposed at the mutual fund level (e.g., advisory fees and other fund expenses).
The FWL investment advisory fees will be deducted from your account and paid directly to
our firm by the qualified custodian(s) of your account. You must provide Better Money
Decisions with written authorization to have fees deducted from the account and paid to
Better Money Decisions, LLC.
The custodian will send statements detailing account activity for the prior period including
a description of all disbursements for the account, which also includes the amount of the
firm’s fee deducted directly from the account. At the discretion of Better Money Decisions,
you may pay fees directly upon receipt of a billing statement. You should review your account
statements received from the qualified custodian(s) and verify that appropriate investment
advisory fees are being deducted. The qualified custodian(s) will not verify the accuracy of the
investment advisory fees deducted.
Prior to services being provided, the exact services and fees will be agreed upon and
disclosed in your client agreement. Annual fees will be divided and billed quarterly in
advance.
Brokerage commissions and/or transaction ticket fees charged by the qualified custodian
are billed directly to your account. Our fees are exclusive of brokerage commissions,
transaction fees, and other related costs and expenses that are incurred by the client. Clients
may incur certain charges imposed by custodians, custodial fees, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds also charge
internal management fees, which are disclosed in a fund’s prospectus. Such charges, fees and
commissions are exclusive of and in addition to our fee and Better Money Decisions does not
receive any portion of these commissions, fees, and costs from you or the qualified custodian.
In addition, you may incur certain charges imposed by third parties other than Better Money
Decisions in connection with investments made through your account including, but not
limited to, mutual fund sales loads, 12(b)-1 fees and surrender charges, variable annuity fees
and surrender charges, IRA and qualified retirement plan fees, and charges imposed by the
qualified custodian(s) of your account. Management fees charged by Better Money Decisions
are separate and distinct from the fees and expenses charged by investment company
securities that may be recommended to you. A description of these fees and expenses are
available in each investment company security’s prospectus.
Item 12 further describes the factors that Better Money Decisions considers in selecting or
recommending broker-dealers for your transactions and determining the reasonableness of
their compensation (e.g.,fees).
Fees charged by Better Money Decisions are established in a client’s written agreement with
Better Money Decisions. Clients may also elect to be billed directly for fees or to authorize
Better Money Decisions to directly debit fees from client accounts. FWL management fees
shall be prorated for each capital contribution and withdrawal made during the applicable
calendar quarter (except for de minimis contributions and withdrawals). Accounts initiated
or terminated during a calendar quarter will be charged a prorated fee. Upon termination of
any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid
fees will be due and payable.
A client may terminate the Investment Management Agreement for any reason at any time
and, within the first five (5) business days after signing the contract, without any cost or
penalty. Thereafter, the Agreement may be terminated at any time. Upon termination, fees
will be prorated for the number of days those services were rendered during the termination
quarter. All unearned fees will be refunded to the client.