Carter Financial LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Financial Planning:

Our firm charges on an hourly or flat fee basis for financial planning services. The total estimated fee, as
well as the ultimate fee charged, is based on the scope and complexity of our engagement with the client.
The maximum hourly fee to be charged will not exceed $350. Flat fees range from $1,500 to $5,000. The
fee-paying arrangements will be determined on a case-by-case basis and will be detailed in the signed
planning agreement. Our firm will not require a retainer exceeding $1,200 when services cannot be
rendered within 6 months.

Asset Management:

The maximum annual fee charged for this service will not exceed 1.20%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the client and are negotiable. Annualized fees are billed
on a pro-rata basis monthly in arrears based on the value of the account(s) on the time-weighted daily
average of the month. However, due to certain product limitations, our firm assesses fees to certain fixed
and/or variable annuities quarterly in arrears based on the value of the relevant account on the last day
of the quarter. Additionally, it should be noted that we bill our advisory fees on cash and cash equivalents,
unless otherwise agreed to in writing. Fees will be deducted from client account(s). In rare cases, our firm
will agree to directly invoice. As part of this process, Clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market values
       for each security included in the Assets and all account disbursements, including the amount of
       the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our firm
       will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of information
       provided in our statement with those from the qualified custodian will be included.

ADV Part 2A – Firm Brochure                    Page 5                                   Carter Financial, LLC

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by their chosen custodian via individual transaction
charges. These transaction fees are separate from our firm’s advisory fees and will be disclosed by the
chosen custodian. Charles Schwab & Co. Inc. (“Schwab”) does not charge transaction fees for U.S. listed
equities and exchange traded funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments, charges
imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be disclosed in the
fund’s prospectus (i.e., fund management fees, initial or deferred sales charges, mutual fund sales loads,
12b-1 fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, and other
fund expenses), mark-ups and mark-downs, spreads paid to market makers, fees for trades executed away
from custodian, wire transfer fees and other fees and taxes on brokerage accounts and securities
transactions. Our firm does not receive a portion of these fees.

Termination & Refunds

Either party may terminate the advisory agreement signed with our firm for Asset Management services
in writing at any time. Upon notice of termination pro-rata advisory fees for services rendered to the point
of termination will be charged. If advisory fees cannot be deducted, our firm will send an invoice for due
advisory fees to the client.

Financial Planning clients may terminate their agreement at any time before the delivery of a financial
plan by providing written notice. For purposes of calculating refunds, all work performed by us up to the
point of termination shall be calculated at the hourly fee currently in effect. Clients will receive a pro-rata
refund of unearned fees based on the time and effort expended by our firm.

Commissionable Securities Sales

Our firm and representatives do not sell securities for a commission in advisory accounts.

Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Corporations, Limited Liability Companies and/or Other Business Types

Our requirements for opening and maintaining accounts or otherwise engaging us:
   • Our firm requires a minimum account balance of $500,000 for our Asset Management service. In
       certain cases, the minimum may be waived at the discretion of management.
   • Written financial plans are generally assessed a minimum fee of $1,500.

ADV Part 2A – Firm Brochure                     Page 6                                   Carter Financial, LLC