Item 5 Fees and Compensation
A.
INVESTMENT ADVISORY SERVICES
Burt Wealth’s annual investment advisory fee is based upon a percentage (%) of the market
value placed under Burt Wealth’s management as follows:
Market Value of Portfolio Annual Fee % Quarterly Fee %
First $500,000 1.50%* 0.375%*
Next $250,000 0.80% 0.200%
Next $ 1,250,000 0.70% 0.175%
Next $4,000,000 0.60% 0.150%
Next $4,000,000 0.50% 0.125%
Over $10,000,000 0.40% 0.100%
*Subject to $3,750.00 minimum annual fee. In the event that the client is subject to an annual
minimum fee, the client could pay a higher percentage fee than referenced above. Burt
Wealth, in its sole discretion, may charge a lesser investment management fee or reduce
its annual minimum fee based upon certain criteria (i.e. i.e. anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related
accounts, account composition, complexity of the engagement, anticipated services to be
rendered, grandfathered fee schedules, employees and family members, courtesy accounts,
competition, negotiations with client, etc..). Please Note: As result of the above, similarly
situated clients could pay different fees. In addition, similar advisory services may be
available from other investment advisers for similar or lower fees.
Burt Wealth considers cash to be an asset class and a portion of a client’s account may be
allocated among various cash and/or cash equivalent positions for liquidity management,
defensive, or other purposes. Therefore, cash and cash equivalents will be included as
part of the market value of client’s account when calculating our management fee. When
assets are invested in cash and/or cash equivalents, the advisory fee could exceed the
current yield on such cash positions.
ANY QUESTIONS: Burt Wealth’s Chief Compliance Officer, Frederick J. Cornelius,
III, remains available to address any questions that a client or prospective client may have
regarding advisory fees
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
Burt Wealth may provide financial planning and/or consulting services (including
investment and non-investment related matters, including retirement planning, estate
planning, insurance planning, etc.) on a stand-alone fee basis. Burt Wealth’s planning and
consulting fees are negotiable, but generally range from $2,000 to $10,000 on a fixed fee
basis as quoted in advance and payable half in advance and half on presentation. Burt
Wealth shall consider level, scope and complexity of the service(s) required, as well as, the
professional(s) rendering the service(s) when determining the fixed fee.
B. Clients may elect to have Burt Wealth’s advisory fees deducted from their custodial
account. Both Burt Wealth’s Investment Advisory Agreement and the custodial/clearing
agreement may authorize the custodian to debit the account for the amount of Burt
Wealth’s investment advisory fee and to directly remit that management fee to Burt Wealth
in compliance with regulatory procedures. In the limited event that Burt Wealth bills the
client directly, payment is due upon receipt of Burt Wealth’s invoice. Burt Wealth deducts
fees or bill clients quarterly in advance, based upon the market value of the assets on the
last business day of the previous quarter. In the event that the fee is determined quarterly
in advance, based upon the market value of such assets on the last day of the previous
quarter, prorated adjustments will not be made to the advisory fee for deposits and
withdrawals made during the quarter.
C. As discussed below, unless the client directs otherwise or an individual client’s
circumstances require, Burt Wealth shall generally recommend that Charles Schwab and
Co., Inc., member SIPC (“Schwab”) serve as the broker-dealer/custodian for client
investment management assets. Broker-dealers such as Schwab charge brokerage
commissions and/or transaction fees for effecting certain securities transactions. In
addition, brokerage commissions and transaction fees, mutual funds and ETF’s carry
additional fees and expenses (including third party management fees) in addition to Burt
Wealth’s advisory fees.
D. Burt Wealth’s annual investment advisory fee shall be prorated and paid quarterly, in
advance, based upon the market value of the assets on the last business day of the previous
quarter.
The Investment Management Agreement between Burt Wealth and the client will
continue in effect until terminated by either party by written notice in accordance with the
terms of the Investment Management Agreement.
Burt Wealth shall refund any unearned pre-paid advisory fees upon termination of a
contract. Burt Wealth determines the amount of the refund for unearned fees by prorating
the pre-paid quarterly fee by the portion of the quarter that services were terminated.
E. Neither Burt Wealth, nor its representatives accept compensation from the sale of securities
or other investment products.