Dorman Financial Management PA

Item 5 Fees and Compensation
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 may 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 which 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 mutual funds,
exchange traded funds, our firm, and others. For information on our brokerage practices, please refer
to the "Brokerage Practices" section of this Brochure.

Compensation for the Sale of Insurance Products
James Dorman, President of our firm, is also a licensed independent insurance agent. Mr. Dorman will
earn commission-based compensation for selling insurance products, including insurance products he
sells to you. Insurance commissions earned by Mr. Dorman are separate and in addition to our
advisory fees. This practice presents a conflict of interest because Mr. Dorman may have a financial
incentive to recommend insurance products to you. However, you are under no obligation,
contractually or otherwise, to purchase insurance products through Mr. Dorman or any person affiliated
with our firm.

Any material conflicts of interest between you and our firm, or our employees are disclosed in this
Disclosure Brochure. If at any time, additional material conflicts of interest develop, we will provide you
with written notification of the material conflicts of interest or an updated Disclosure Brochure.

IRA Rollover Considerations
As part of our investment advisory services to you, we may recommend that you withdraw the assets
from your employer's retirement plan and roll the assets over to an individual retirement account
("IRA") that we will manage on your behalf. If you elect to roll the assets to an IRA that is subject to our
management, we will charge you an asset based fee as set forth in the agreement you executed with
our firm. This practice presents a conflict of interest because persons providing investment advice on
our behalf have an incentive to recommend a rollover to you for the purpose of generating fee based
compensation rather than solely based on your needs. You are under no obligation, contractually or
otherwise, to complete the rollover. Moreover, if you do complete the rollover, you are under no
obligation to have the assets in an IRA managed by our firm.

Many employers permit former employees to keep their retirement assets in their company plan. Also,
current employees can sometimes move assets out of their company plan before they retire or change
jobs. In determining whether to complete the rollover to an IRA, and to the extent the following options
are available, you should consider the costs and benefits of:

    1.   Leaving the funds in your employer's (former employer's) plan.
    2.   Moving the funds to a new employer's retirement plan.
    3.   Cashing out and taking a taxable distribution from the plan.
    4.   Rolling the funds into an IRA rollover account.

Each of these options has advantages and disadvantages and before making a change we encourage
you to speak with your CPA and/or tax attorney.

If you are considering rolling over your retirement funds to an IRA for us to manage here are a few
points to consider before you do so:

    1. Determine whether the investment options in your employer's retirement plan address your
       needs or whether you might want to consider other types of investments.
           a. Employer retirement plans generally have a more limited investment menu than IRAs.
           b. Employer retirement plans may have unique investment options not available to the
              public such as employer securities, or previously closed funds.
    2. Your current plan may have lower fees than our fees.
           a. If you are interested in investing only in mutual funds, you should understand the cost
              structure of the share classes available in your employer's retirement plan and how the

               costs of those share classes compare with those available in an IRA.
            b. You should understand the various products and services you might take advantage of
               at an IRA provider and the potential costs of those products and services.
    3. Our strategy may have higher risk than the option(s) provided to you in your plan.
    4. Your current plan may also offer financial advice.
    5. If you keep your assets titled in a 401k or retirement account, you could potentially delay your
       required minimum distribution beyond age 73.
    6. Your 401k may offer more liability protection than a rollover IRA; each state may vary.
            a. Generally, federal law protects assets in qualified plans from creditors. Since 2005, IRA
               assets have been generally protected from creditors in bankruptcies. However, there
               can be some exceptions to the general rules so you should consult with an attorney if
               you are concerned about protecting your retirement plan assets from creditors.
    7. You may be able to take out a loan on your 401k, but not from an IRA.
    8. IRA assets can be accessed any time; however, distributions are subject to ordinary income tax
       and may also be subject to a 10% early distribution penalty unless they qualify for an exception
...

Item 7 Types of Clients
We offer investment advisory services to individuals, pension and profit sharing plans, trusts, estates,
charitable organizations, corporations, and other business entities.