Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your account and
is set forth in the following annual fee schedule:
Annual Fee Schedule In House Management Only
Assets Under Management Annual Fee
$250,000 to $500,000 1.00%
$500,001 to $2,000,000 0.75%
Over $2,000,000 Negotiable
Annual Fee Schedule TPMM (Third Party Money Manager)
Assets Under Management Annual Fee
$250,000 to $2,000,000 .50%
Over $2,000,000 Negotiable
Our annual portfolio management fee is billed and payable, quarterly in arrears, based on the balance
at the end of the billing period. If the portfolio management agreement is executed at any time other
than the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that the
advisory fee is payable in proportion to the number of days in the quarter for which you are a client.
Our advisory fee is negotiable, depending on individual client circumstances.
Advisory fees charged by TPMMs are separate and apart from our advisory fees. Assets managed by
TPMMs will be included in calculating our advisory fee, which is based on the fee schedule set forth
above. Advisory fees that you pay to the TPMM are established and payable in accordance with the
brochure provided by each TPMM to whom you are referred. These fees may or may not be
negotiable. You should review the recommended TPMM's brochure and take into consideration the
TPMM's fees along with our fees to determine the total amount of fees associated with this program.
You may be required to sign an agreement directly with the recommended TPMM(s). You may
terminate your advisory relationship with the TPMM according to the terms of your agreement with the
TPMM. You should review each TPMM's brochure for specific information on how you may terminate
your advisory relationship with the TPMM and how you may receive a refund, if applicable. You should
contact the TPMM directly for questions regarding your advisory agreement with the TPMM.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:
• You provide our firm with written authorization permitting the fees to be paid directly from your
account held by the qualified custodian;
• The qualified custodian agrees to send you a statement, at least quarterly, indicating all
amounts disbursed from your account including the amount of the advisory fee paid directly to
our firm.
You may terminate the portfolio management agreement upon 15 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client.
Fixed Fees: Some clients will contract to have investment advisory advice provided based on a fixed
fee arrangement. The fee will be charged quarterly in arrears and will be disclosed in the agreement
with our firm.
Financial Planning Services
We charge an hourly fee of $250 for financial planning services, which is negotiable depending on the
scope and complexity of the plan, your situation, and your financial objectives. An estimate of the total
time/cost will be determined at the start of the advisory relationship. In limited circumstances, the
cost/time could potentially exceed the initial estimate. In such cases, we will notify you and request
that you approve the additional fee.
Dempsey Investment Management does not charge in advance. Our financial planning fees are
negotiable and payable on completion of the contracted services. You may terminate the financial
planning agreement upon 15 days written notice to our firm. If you have pre-paid financial planning
fees that we have not yet earned, you will receive a prorated refund of those fees. If financial planning
fees are payable in arrears, you will be responsible for a prorated fee based on services performed
prior to termination of the financial planning agreement.
Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed
by the broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees charged by
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