Ferguson-Johnson Wealth Management Inc

Item	5	–	Fees	and	Compensation
Ferguson-Johnson	Wealth	Management	is	a	fee	only	advisor.
Fees	are	based	on	the	services	in	which	the	client	and	Ferguson-Johnson	Wealth	Management	are	engaged.
The	investment	management	and	financial	planning	services	can	be	provided	separately	or	bundled	together.
The	bundled	investment	advisory	and	financial	planning	services	are	typically	only	available	to	clients	meeting	a
$500,000	minimum	of	assets	managed	by	the	firm.		If	both	parties	agree	to	a	bundled	engagement,	the	fees	for
all	services	rendered	are	based	on	a	percentage	of	the	dollar	value	of	the	assets	under	management.	Our	fees	for
continuous	and	regular	investment	advice	are	billed	quarterly	in	advance	at	an	annual	rate	of	1%	of	assets
under	management.		For	example,	an	account	valued	at	$500,000	at	the	beginning	of	a	quarter	would	be	billed
$1,250.	($500,000	x	0.01	=	$5,000	/	4	=	$1,250).	In	some	cases,	fees	may	be	negotiable.
The	annual	fee	for	investment	management	services	provided	are	based	upon	a	percentage	(%)	of	the	market
value	of	the	Assets	under	management	in	accordance	with	the	fee	schedule	in	the	Agreement	signed	by	the
Client.		Ferguson-Johnson	Wealth	Management	considers	cash	to	be	an	asset	class	and	part	of	Assets	under
management	and	subject	to	the	same	fee	calculation	as	the	Client’s	non-cash	investments.
For	clients	engaged	in	investment	management,	not	under	the	bundled	engagement,	the	fees	for	investment
management	services	rendered	are	the	same	as	listed	above.	Our	fees	for	continuous	and	regular	investment

advice	are	billed	quarterly	in	advance	at	a	maximum	annual	rate	of	1%	of	assets	under	management.	In	some
cases,	fees	may	be	negotiable.
For	clients	engaged	in	financial	planning	services,	not	under	the	bundled	engagement,	Ferguson-Johnson
Wealth	management	will	be	compensated	by	hourly	rate	of	$400	per	hour.	Ferguson-Johnson	Wealth
Management	will	discuss	the	assignment	in	advance	with	the	client	and	provide	an	estimate	of	hours
expected	of	a	typical	assignment	with	similar	elements.	A	client’s	actual	planning	time	may	vary	from	the
estimate;	however,	we	will	keep	you	informed	in	advance	if	we	think	we	will	exceed	the	original	estimate.			A
deposit	of	50%	of	the	estimated	fee	is	required	at	the	time	the	agreement	is	signed.		The	remaining	fee	is	due
upon	completion	of	the	financial	plan.
Existing	clients	may	have	a	different	fee	structure.		Certain	clients	may	negotiate	a	lesser	fee	based	on	certain
circumstances.	For	example,	at	its	discretion,	Ferguson-Johnson	Wealth	Management	may	allow	members	of
the	same	household	to	be	aggregated	for	purposes	of	determining	the	advisory	fee.		Typically,	this
aggregation	is	applicable	when	considering	the	accounts	of	spouses,	children,	and	other	family	members.
The	manner	in	which	fees	are	charged	by	Ferguson-Johnson	Wealth	Management	is	established	in	the	client’s
written	Investment	Management	Agreement	with	Ferguson	Johnson	Wealth	Management.		Ferguson-Johnson
Wealth	Management	will	bill	its	fees	in	advance,	on	a	quarterly	basis.	Fees	may	be	directly	debited	from	the
client’s	account(s)	or	paid	directly	from	the	client.
Bundled	and	management	fees	are	calculated	based	on	the	valuation	of	each	account	on	the	last	day	of	each
quarter.		Accounts	initiated	or	terminated	during	a	calendar	quarter	will	be	charged	a	prorated	fee	to	the	date
of	termination.		Upon	termination	of	any	account,	any	prepaid,	unearned	fees	will	be	promptly	refunded,	and
any	earned,	unpaid	fees	will	be	due	and	payable.
Fees	cannot	be	changed	without	consent	and	formal	agreement	by	both	the	client	and	Ferguson-Johnson
Wealth	Management.
Ferguson-Johnson	Wealth	Management’s	fees	are	exclusive	of	brokerage	commissions,	transaction	fees,	and
other	related	costs	and	expenses	which	shall	be	incurred	by	the	client.	Clients	may	incur	certain	charges
imposed	by	their	custodian,	Fidelity	(or	Ascensus	for	401(k)	accounts),	which	may	include	mutual	fund	trade
fees	and	wire	transfer	fees.	Some	funds	will,	in	addition,	charge	a	redemption	fee	to	discourage	short-term
traders.		The	redemption	fee	may	cover	a	period	from	the	day	of	purchase	to	a	month	or	even	a	year.		Such
charges,	fees,	and	commissions	are	disclosed	in	a	fund’s	prospectus.		These	fees	are	exclusive	of,	and	in
addition	to,	Ferguson	Johnson	Wealth	Management’s	fee.	Ferguson-Johnson	Wealth	Management	shall	not
receive	any	portion	of	these	commissions,	fees,	and	costs.
Item	12	further	describes	the	factors	that	Ferguson-Johnson	Wealth	Management	considers	in	selecting	or
recommending	broker-dealers	for	client	transactions	and	determining	the	reasonableness	of	their	compensation.

Item	7	–	Types	of	Clients
Ferguson-Johnson	Wealth	Management	provides	portfolio	management	and	investment	supervisory	services
to	individuals,	high	net	worth	individuals,	corporate	pension	and	profit-sharing	plans,	401(k)	Plan	Trustees,
401(k)	Plan	Participants	(portfolio	management	services	limited	to	self-directed	plans),	individual	retirement
accounts	(IRAs),	trusts,	estates,	charitable	institutions,	foundations,	and	nonprofit	organizations.	Financial
planning	services	are	provided	to	individual	clients,	high	net	worth	individuals,	and	corporate	plans	for	their
associated	accounts.
The	minimum	account	size	is	$500,000	for	the	bundled	investment	advisory	and	financial	planning	service.
Under	certain	circumstances,	this	minimum	requirement	may	be	waived.