Item 5: Fees and Compensation
General Fee Information
Fees paid to us are exclusive of all custodial and transaction costs paid to your custodian, brokers or
other third party consultants. Please see Item 12 – Brokerage Practices for additional information.
Fees paid to us are also separate and distinct from the fees and expenses charged by mutual funds,
ETFs (exchange traded funds) or other investment pools to their shareholders (generally including a
management fee and fund expenses, as described in each fund’s prospectus or offering materials).
You should review all fees charged by funds, brokers, BAC and others to fully understand the total
amount of fees paid by you for investment and financial-related services.
Financial Planning Service Fees
For stand-alone financial planning services, we assess fees on an hourly basis. The hourly rate is
$250. The minimum fee for a comprehensive plan is $4,500. The minimum fee for an analysis of
one specific area (such as retirement planning, stock option analysis, etc.) is $1,000. The estimated
total fee, based upon the complexity of your individual circumstances, is agreed upon in advance.
We may require a portion of the estimated total to be paid at the time of engagement, with the
balance due upon presentation of the plan to you. In the event that the engagement is terminated
prior to completion, you will be assessed a fee based on the number of hours spent prior to receipt
of the notice of termination.
Clients who retain us for portfolio management services are not charged a separate fee for financial
planning.
Portfolio Management Fees
Fees for our services are billed quarterly in advance based on the market value of your portfolio at
the end of the prior quarter. Unless other arrangements are made, fees are debited from your
account. Our stated fee schedule for assets under management is as follows:
Equities & Balanced Fixed Income Only
First $1.0 Million 1.20% 0.90%
Next $2.0 Million 0.85% 0.50%
Next $2.0 Million 0.75% 0.50%
Next $5.0 Million 0.65% 0.35%
Over $10.0 Million 0.35% 0.25%
Minimum annual fee: $12,000
For Non-Profit Charitable Accounts a 10% discount is applied to the entire fee.
In certain instances, other discounts may apply or assets may be excluded from fees as negotiated
by you and the firm. At our discretion, accounts may be combined for fee purposes. We reserve the
right to negotiate management fees based on the complexity of the situation. For accounts with a
margin balance, you are assessed the management fee based on the gross value of the assets in your
account. In other words, the account value on which the fee is calculated is not reduced by the
margin balance.
If management begins after the start of a quarter, fees will be prorated accordingly. There is no
termination date in our investment advisory agreement. Either party may terminate the agreement at
any time. If you decide to terminate the agreement, any unearned fee is refunded. Terminations by
either party must be in writing.
Other Services
For various consulting or similar services, when a separate fee is assessed it will be negotiated and
agreed upon based on the scope of the service requested.