Item 5 – Fees and Compensation
Investment Account with Financial Planning
The specific manner in which fees are assessed is established in our Asset Management Agreement with our client.
Cornerstone charges an annual fee for its services which is automatically deducted from client’s assets and based on the amount of
investable assets under management in accordance with the schedule below. Fees are billed quarterly and payable in advance for
the next three months of services. The fee is assessed March 31, June 30, September 30, and December 31. Cornerstone charges a
fee calculated as a percentage of account assets under management.
Investable $0-$500K $500K-$2M $2M-$5M $5M+
Assets
Annual Fee 1.25% 1% .75% .5%
Our fees may be negotiated in certain circumstances. Current client relationships may exist where the fees are higher or lower than
the fee schedule above.
Although the relationship between client and Cornerstone is ongoing, the length of service to the client is at the client’s discretion.
The client or Cornerstone may terminate a relationship by written notice to the other party. At termination, fees will be billed on a
pro rata basis for the portion of the quarter completed. The portfolio value at the completion of the prior full billing quarter is used
as the basis for the fee computation, adjusted for the number of days during the billing quarter prior to termination. The fee for
such partial calendar quarter will be pro-rated based on a 90-day quarter and promptly refunded to client.
Cornerstone will not charge any fee that is not disclosed in this section of our Brochure. Fees are exclusive of brokerage
commissions, transactions fees and other related costs and expenses. Such expenses will be assessed to the client. Clients may incur
certain charges imposed by custodians, brokers, and third-party managers or other third parties that Cornerstone does not control.
These charges can include such things as deferred sales charges, transfer taxes, wire transfer and electronic fund fees, brokerage
account fees, and other fees, charges or taxes. For further information related to our brokerage practices please refer Item 12.
Mutual Fund Fees
Mutual funds generally charge a management fee for their services as investment managers. The management fee is called an
expense ratio. For example, an expense ratio of 0.50 means that the mutual fund company charges 0.5% for their services. These
fees are in addition to the fees paid by our clients to Cornerstone.
Retirement Plan Account Fees
LPL Financial charges an annual account fee of $40 for all retirement accounts with assets under $250,000.
Fees for Financial Planning or Consulting Services
We charge on an hourly or flat fee basis for Financial Planning and Hourly Consulting services. Our hourly fees range from $150.00 to
$300.00. The hourly fee charged by Cornerstone is determined by the complexity of the issues presented and the expertise of the
individual(s) within Cornerstone assigned to the project. Flat fees vary greatly and could range from a minimum of $500 to a
maximum of $30,000. The total estimated fee, as well as the ultimate fee that we charge you, is determined by both the complexity
and time estimated to adequately prepare the plan and the scope of our engagement with you.
Our consulting fees may be charged in advance. Particularly complex Financial Plans may require prepayment of a portion of the
estimated fee for services. For lengthy engagements, interim payments may be requested. We will not collect more than $1,200 in
advance of the service provided, unless services are completed within six months of our receipt of the fees.
If we are engaged on an hourly basis and should we collect fees in excess of hours ultimately expended, or otherwise not complete
the project, we will return any unearned amounts collected.
The total fee or balance due will be billed directly to you and due to us within thirty (30) days of your financial plan being delivered
or consultation rendered to you.
Page 4 of 12 Revised January 2024
Other Fees We Receive
Cornerstone Advisors are registered representatives with LPL Financial (LPL), a full-service securities broker-dealer and investment
advisor. LPL is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investors Protection
Corporation (“SIPC”). In their role as registered representatives, they may accept compensation for the sale of securities or other
investment products, including distribution or service (“trail”) fees from the sale of mutual funds.
Dual registration as representatives of a broker-dealer and an investment advisor presents a conflict of interest and gives the
representative an incentive to recommend investment products based on the compensation received, rather than on the client’s
needs. As a matter of policy, Cornerstone does not earn commissions or trails on transactions or assets held in advisory accounts.
However, if a client establishes both an advisory account (advised by Cornerstone) and a brokerage account (through the
unaffiliated broker-dealer where the Cornerstone advisor also functions as broker and could receive transaction-based
compensation, as well as 12b-1 fees), the client and the advisor will establish the types of transactions that will be made in each
account.
Transactions in LPL advisory program accounts are generally affected through LPL as the executing broker-dealer. We receive
compensation as a result of a client’s participation in an LPL program. Depending on, among other things, the size of the account,
changes in its value over time, the ability to negotiate fees or commissions, and the number of transactions, the amount of this
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