Core Wealth Advisors LLC

Item 5 – Fees and Compensation

All fees will be payable quarterly in arrears for accounts held with our current
custodian, Charles Schwab. For accounts not held with our custodian, the quarterly fee
will be assessed on the ending balance for the quarter. Client may terminate this
agreement by giving written notice to CORE Wealth Advisors, which shall become
effective five (5) business days after actual receipt by CORE Wealth Advisors.
The current separate account fee schedule is generally 1.00% annually of assets under
management. See page 9 for the detailed fee schedule. Client will compensate CORE
Wealth Advisors for its services under this Agreement based on a percentage of the
average daily balance of the assets in the account for each calendar quarter according
to the fee schedule on Schedule A of the Client Agreement for accounts held with our
current custodian. The method used by CORE Wealth Advisors is the actual average
daily balance method, which is calculated by adding the ending daily balance for each
calendar day of the quarter and dividing by 90 days each quarter. Fees will be
withdrawn from the client’s account in arrears. Client may be given the option to have
their advisory fees invoiced.
Fees will be separately stated on the client’s statement received from the custodian in
the month in which they are charged. There will be a simultaneous mailing of the fee
invoice to the custodian and the client. The client invoice will reflect the formula used
to calculate the fees, the time period covered by the fee, and the amount of assets
under management on which the fee was based. All fees will be withdrawn from the
client’s account in arrears on a calendar quarterly basis unless they select the option to
have their advisory fees invoiced.
In connection with CORE Wealth Advisors advisory fee, the custodian may impose
commissions on the purchase and/or liquidation of securities which would include fixed
income, exchange traded products, equities, and mutual funds. CORE Wealth Advisors
will generally allocate brokerage to those firms providing the best service at the lowest
price, but may, from time to time, pay a brokerage commission in excess of that which
another broker might have charged for the same transaction in recognition of the value
of brokerage and/or research services generally provided to CORE Wealth Advisors. In
addition, the Client is subject to the internal expenses of the above-mentioned
securities. CORE Wealth Advisors does not receive compensation in connection with
the purchase or sale of securities, including asset-based sales charges, commissions,
markups or service fees from the sale of mutual funds.
As licensed insurance agents, it is anticipated that insurance planning opportunities
will develop through the natural course of the financial planning process and insurance
products may be recommended from time to time. The products recommended may be
sold in exchange for a commission. Insurance products sold to a Client in which a
commission was received will not be assessed an advisory or financial planning fee. If
an insurance product is selected for a Client, CORE Wealth Advisors will disclose that a
commission will be charged rather than an advisory or financial planning service fee.
This may present a conflict of interest, in which, the commission derived from the
insurance product could be greater than the fee received from CORE Wealth Advisors

advisory and financial planning services. To ensure that the Client’s needs are met with
the most appropriate financial solution, we will offer insurance products when they are
a more suitable option as an alternative or in conjunction with our advisory and financial
planning services. Currently, it is anticipated that less than 1% of CORE Wealth
Advisors revenue is derived from the sale of commission-based insurance products.
Clients have the option to purchase the recommended insurance product from other
brokers or agents that are not affiliated with CORE Wealth Advisors.
CORE Wealth Advisors Fee Schedule at the effective date is as follows (subject to
revision as provided in the Client Agreement)**:

CORE Accumulation Advisory Fee*
on account assets up to $1,000,000…………….…….1.00% annual (0.25% per quarter)
on account assets from $1,000,001 to $1,500,000... 0.95% annual (0.2375% per quarter)
on account assets from $1,500,001 to $2,000,000… 0.85% annual (0.2125% per quarter)
on account assets from $2,000,001 to $2,500,000… 0.80% annual (0.20% per quarter)
on account assets from $2,500,001 to $3,000,000… 0.75% annual (0.1875% per quarter)
on account assets from $3,000,001 to $5,000,000… 0.65% annual (0.1625% per quarter)
on account assets over $5,000,001…………………… Negotiable
*For purposes of clarity, it is not a tiered fee schedule and thus by way of example, if a
client has $1.6 million under management, the annual advisory fee will be 0.85%.
**Minimum Annual Advisory Fee: $500.00

CORE Preservation Advisory Fee*
on account assets up to $1,000,000……………….0.375% annual (0.09375% per quarter)
on account assets from $1,000,001 to $3,000,000…0.25% annual (0.0625% per quarter)
on account assets over $3,000,001………………..Negotiable
*For purposes of clarity, it is not a tiered fee schedule and thus by way of example, if a
client has $1.5 million under management, the annual advisory fee will be 0.25%.
**Minimum Annual Advisory Fee: $500.00

CORE Wealth Advisors also provides non-discretionary Financial Planning for its
clients. Such services consist of a consultation during which pertinent information
about a client’s financial circumstances and objectives are discussed. This information
is reviewed and analyzed producing a financial plan. The fee charged for this service
will be an hourly rate of $300.00. A $300.00 retainer may be payable upon signing the
agreement. This fee constitutes a credit balance against which hourly fees will be
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Item 7 – Types of Clients

CORE Wealth Advisors generally provides investment advice to individuals, pension
plans, profit sharing plans, trust, estates, charitable organizations, and corporations or
business entities other than those listed above.
Currently, CORE Wealth Advisors does not have a minimum account size or any
requirements to maintain an account.