Effective Assets Inc

Item 5: Fees and Compensation
Please note, unless a client has received the firm’s disclosure brochure at least 48 hours prior to signing the
investment advisory contract, the investment advisory contract may be terminated by the client within five (5)
business days of signing the contract without incurring any advisory fees and without penalty. How we are paid
depends on the type of advisory service we are performing. Please review the fee and compensation
information below.

Investment Advisory Services and Third-Party Investment Management
Our standard advisory fee is based on the market value of the assets under management and is calculated as
follows:
               Account Value              Annual Advisory Fee               Annual Advisory Fee
                                            Individual Bonds                 Stocks and Funds
               First $500,000                     0.75%                            1.25%
               Next $500,000                      0.75%                            1.10%
              Next $2,000,000                     0.75%                            1.00%
              Next $2,000,000                     0.75%                            0.90%
              Next $5,000,000                     0.75%                            0.75%
             Next $10,000,000                     0.65%                            0.65%
          $20,000,000 and Above                Negotiable                        Negotiable

The annual fees include advisory fees paid to any sub-advisers and are negotiable and are paid in arrears on a
quarterly basis based on the average daily balance. The advisory fee is a blended fee and is calculated by
assessing the percentage rates using the predefined levels of assets as shown in the above chart, resulting in a
combined weighted fee. For example, a stock and fund account valued at $2,000,000 would pay an effective fee
of 1.09% with the annual fee of $21,750.00. The quarterly fee is determined by the following calculation:
(($500,000 x 1.25%) + ($500,000 x 1.10%) + ($1,000,000 x 1.00)) ÷ 4 = $5,437.50. No increase in the annual fee
shall be effective without agreement from the client by signing a new agreement or amendment to their current
advisory agreement.
Advisory fees are directly debited from client accounts, or the client may choose to pay by check. Accounts
initiated or terminated during a billing period will be charged a pro-rated fee based on the amount of time
remaining in the billing period. An account may be terminated with written notice at least 15 calendar days in
advance. Since fees are paid in arrears, no rebate will be needed upon termination of the account.
Orion Portfolio Solutions, LLC
We do have existing clients where we are co-advisors with Orion Portfolio Solutions, LLC where the client signs
and agreement both with us and Orion. We no longer offer their services to new accounts. For accounts in which
Orion Portfolio Solutions, LLC acts as the Outside Manager, the Total Client Fee consists of an Administration

Fee, a Strategist Fee, and an Advisory Fee, is based on the market value of the account, and is calculated as
follows:
                 Account Value                 Advisory     Orion Portfolio    Strategist      Total
                                                  Fee        Solutions Fee        Fee       Client Fee
                 $0 - $50,000.00                  0.85%             0.45%             .10%         1.40%
            $50,000.01 - $100,000.00              0.85%             0.30%             .10%         1.25%
           $100,000.01 - $500,000.00              0.85%             0.20%             .10%         1.15%
          $500,000.01 - $1,000,000.00             0.85%             0.15%             .10%         1.10%
         $1,000,000.01 - $5,000,000.00            0.85%             0.10%             .10%         1.05%
               Over $5,000,000.00                 0.85%             0.08%             .10%         1.03%

This fee will be deducted from your account monthly in arrears and is based on the average daily balance for
the previous month. If your account was not open for the entire month, then the fee will be pro-rated.

Please note, the above fee schedule includes Effective Assets advisory fee. No increase in the annual fee shall
be effective without agreement from the client by signing a new agreement or amendment to their current
advisory agreement.

An account may be terminated with written notice. Since fees are paid in arrears, not in advance, no refund will
be needed upon termination of the account.

Alternative Investments including Direct Participation Programs (DPPs) & Private
Equity Funds

Our standard advisory fee is based on the market value of the assets invested in the fund and is 1.00% per year.
The annual fees are negotiable, are paid in arrears monthly from the distributions of the fund(s) by the fund
administrator, and remitted to Effective Assets, Inc. Alternatively, the client may pay Effective Assets, Inc.
directly.

Financial Planning Fixed Fee
Financial Planning will generally be offered on a fixed fee basis. The fixed fee will be agreed upon before the
start of any work. The fixed fee can range between $1,500 and $3,000 depending on complexity and client
needs. The fee is negotiable and payable by check. If a fixed fee program is chosen, half of the fee is due at the
beginning of the process and the remainder is due at completion of work, however, Effective Assets will not bill
an amount above $500.00 more than 6 months in advance. In the event of early termination, the client will be
billed for the hours worked at a rate of $200 per hour. If the initial deposit is greater than the amount billed,
then the client will be refunded the difference. If the initial deposit is less, then the client will be billed the
difference.

Financial Planning Hourly Fee
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Item 7: Types of Clients
We provide financial planning and portfolio management services to individuals, high net-worth individuals,
trusts, pensions and profit-sharing plans, charitable organizations, corporations, or other businesses. Our
minimum client household account size requirement is $1,000,000.