Item 5 Fees and Compensation
Financial Planning and Consulting Services
Prior to engaging our firm to provide financial planning services, you will be required to enter into a
separate written agreement with us that sets forth the terms and conditions of the engagement and
describes the scope of the services to be provided, and the fees to be paid. We charge an average
hourly fee of $200 for financial planning services. 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.
The fees incurred for financial planning and/or consulting related services are calculated and billed on
a monthly basis upon completion of the contracted services. Depending on the scope and complexity
of the services requested, we may ask for a retainer. We will not require prepayment of a fee more
than six months in advance and in excess of $1,200.
You may terminate the financial planning agreement by providing written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
paid advisory fees that we have not yet earned, you will receive a prorated refund of those fees.
We may waive or offset the financial planning/consulting fees should you choose to implement the plan
through our portfolio management services described below. We reserve the right to determine
whether the financial planning and/or consulting fees will be waived or offset by the fees earned in the
implementation process. The scope and complexity of the services that were provided will determine
the waiver or offset of the fee.
Portfolio Management Services
The annual fee for portfolio management services is billed quarterly in advance based on the market
value of the assets under our management on the last day of the preceding quarter. Alternatively our
annual investment management fee may be billed and payable quarterly in arrears based on the value
of your account on the last business day of the preceding quarter. On an annualized basis, our fees for
portfolio management services typically range from 1.00% to 0.50% based on the assets held in your
account.
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. Lower fees for comparable services may be
available from other sources.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
You have a choice for our payment methods. You can select from one of the following options:
(1) send you an invoice for the payment of our advisory fee, or
(2) we will deduct our fee directly from your account through the qualified custodian holding your funds
and securities.
The form of payment for option (1) typically is via check. If option (2) is selected we will deduct our
advisory fee only when you have given our firm written authorization permitting the fees to be paid
directly from your account. Further, the qualified custodian will deliver an account statement to you at
least quarterly. These account statements will show all disbursements from your account. You should
review all statements for accuracy. If you receive an invoice from our firm, we encourage you to
reconcile our invoices with the statement(s) you receive from the qualified custodian. If you find any
inconsistent information between our invoice and the statement(s) you receive from the qualified
custodian please call our main office number located on the cover page of this brochure.
You may terminate the portfolio management agreement upon 30-days' written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the quarter
for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a
prorated refund of those fees.
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. 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 will 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.
IRA Rollover Considerations
As part of our investment advisory services to you, we may recommend that you withdraw the assets
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