Carnegie Wealth Management LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly either in advance or in arrears of each calendar quarter, pursuant to the
terms of each Client’s investment advisory agreement with Advisor. Following is Advisor’s standard fee schedule for
both custodied assets and held-away insurance-related assets:

                   Assets Under Management ($)*             Annual Rate (%)
                   Up to $1,500,000                              1.25%
                   Next $1,000,000                               1.10%
                   Next $2,500,000                               1.00%
                   Next $2,500,000                               0.90%
                   Next $2,500,000                               0.80%
                   Over $10,000,000                             Negotiable

         *Refers to Assets under Management in each individual Client account. For purposes of assessing
         breakpoints for a particular account, each account’s value will be viewed in isolation unless otherwise
         agreed by the Client and Carnegie Wealth.

Investment Advisory Fee Schedule for Client Held-Away Defined Contribution/Benefit Accounts

                       Assets Under Management                 Annual Rate (%)
                           All Assets in Account                     1.00%

Investment Advisory Fee Schedule for Client Held-Away Alternative Assets

                       Assets Under Management                 Annual Rate (%)
                           All Assets in Account                     3.00%

Investment advisory fees are assessed at the individual account level, payable in advance or arrears of each quarter,
based on the fair market value of portfolio assets under management in each Client account at the end of the
preceding quarter. Where a Client has more than one advisory account with Carnegie Wealth, each Client account
may be subject to a different fee rate, which will be calculated separately for each account based on the value of
assets in that individual account unless otherwise agreed by the Client and Carnegie Wealth. The investment
advisory fee in the first calendar quarter of service is prorated from the inception date of the account to the end of the
first quarter.

Fees are negotiable at the sole discretion of the Advisor. When determining whether and to what extent to
negotiate fees for a particular Client or prospective Client, the Advisor will consider several factors, including the
Client’s aggregate assets under management with Advisor.
                                            Carnegie Wealth Management, LLC
                                       850 Cassatt Road, Suite 225 | Berwyn, PA 19312
                                         Phone: (610) 640-4300 | Fax: (484) 875-9912

All securities held in accounts managed by Carnegie Wealth will be independently valued by the designated
Custodian or delegate. Carnegie Wealth will not have the authority or responsibility to value portfolio securities. For
certain 401(k) plan clients, pursuant to the terms of a consulting agreement, fees are paid quarterly in arrears
based on the value of the plan's assets on the last day of the prior quarter.

The Advisor’s fee is exclusive of, and in addition to, brokerage fees, transaction fees, and other related costs and
expenses, which may be incurred by the Client, for investment advisory services. However, the Advisor shall not
receive any portion of these commissions, fees, and costs, related to investment advisory services.

Financial Planning Services
Carnegie Wealth offers financial planning services either on an hourly basis or a fixed engagement fee. Hourly
engagements range up to $500 per hour. Fixed fee engagement is based on the total number of hours to complete
based off the hourly rate. Fees may be negotiable based on the nature and complexity of the services to be
provided and the overall relationship with the Advisor. An estimate for total hours and total costs will be provided to
the Client prior to engaging for these services.
Use of Independent Managers
For Clients referred by the Advisor to an Independent Manager, the Client’s fee may be separately billed or
deducted from the Client’s account[s] by the Independent Manager. The Client, prior to entering into an
agreement with unaffiliated investment manager[s] or investment platform[s], will be provided with the
Independent Manager's Form ADV 2A (or a brochure that makes the appropriate disclosures) disclosing their
fee. At no point will the Client’s fees exceed 3.00% of assets under management.

B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor’s delegate(s), including but not limited to Envestnet, and
deducted from each applicable Client account at the Custodian, upon receiving written authorization by the Client.
The Advisor’s delegate shall send an invoice to the Custodian indicating the amount of the fees to be deducted from
each account at the beginning of the respective quarter. The Advisor does have the ability to request changes to the
client’s fee due to fee miscalculation or fee rate error by a delegate but has no ability to make changes to the client’s
fee once correctly calculated by a delegate and the Custodian will not accept fee correction directions directly from
the Advisor, nor does the Advisor have the ability to change the client’s fee directly through the applicable Custodial
Platform. The amount due is calculated by applying the annual fee rate for a particular account, to the assets
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Item 7 – Types of Clients
Carnegie Wealth offers investment advisory services to individuals, high net worth individuals, trusts, estates,
businesses and retirement plans in Commonwealth of Pennsylvania and other states. The number of each type
of Client is available on Carnegie Wealth’s Form ADV Part 1A. These numbers may change over time and are
updated at least annually by the Advisor. Carnegie Wealth generally does not impose a minimum asset size for
establishing a relationship.