Financial Action Inc

ITEM 5 - FEES AND COMPENSATION
In addition to the information provided in Item 4 – Advisory Business, this section details our Firm’s services and
each service’s fees and compensation arrangement. The Client and FAi’s Investment Advisory Agreement will
outline and agree upon the exact costs and other terms related to the Client’s Accounts.

FINANCIAL ACTION, INC.
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INVESTMENT MANAGEMENT FEE

Our Firm offers investment management services for an annual fee based on the amount of assets under
management. Our maximum annual fee is 1.20% based on the tiered fee schedule below and we have a
minimum account size of $50,000. We retain the right to waive the minimum account size at our discretion.
                                                     Tiered Fee Structure

                       Assets Under Management                               Fee
                                 $0 - $500,000                               1.20%

                             $500,001 - $1,000,000                           1.00%

                            $1,000,001 – $5,000,000                          0.80%

                              $5,000,001 and over                            0.65%

Our annual fee is reasonable in relation to (1) the services provided and (2) the fees charged by other investment
advisers offering similar services/programs.
Our annual fee is prorated and charged quarterly in arrears based on the average daily balance of the account.
Cash and cash equivalents, including money market funds, are subject to your advisory fee. Clients should
understand that the advisory fees charged on these balances may exceed the returns provided by cash, cash
equivalents, or money market funds, especially in low-interest rate environments.
Our Firm retains complete discretion to negotiate fees and may waive or impose different fees on any Client.
The investment advisory fees will be deducted from your account and paid directly to our Firm by the qualified
Custodian(s) of your account. The Client will authorize your account's qualified Custodian(s) to deduct fees from
the account and pay such fees directly to our Firm. All account assets, transactions, and advisory fees will be
shown on the monthly or quarterly statements provided by the Custodian. You should review your account
statements received from the qualified Custodian(s) and verify that appropriate investment advisory fees are
being deducted. The qualified Custodian(s) will not verify the accuracy of the investment advisory fees deducted.
We may aggregate related Client accounts to calculate the advisory fee applicable to the Client. The investment
management agreement will outline the fee charged to a Client and any breakpoints based on the level of assets
managed. The fees are subject to change with prior written notice to the Client.
Our annual investment advisory fee may be higher than that of other investment advisers that offer similar
services and programs. In addition to our compensation, you may incur charges imposed at the mutual fund
level (e.g., advisory fees and other fund expenses).

LEGACY MANAGEMENT FEE

Managed legacy positions are included within our Firm’s standard investment management fee and are outlined
in the executed investment management agreement.

RETIREMENT PLAN FIDUCIARY AND NON-FIDUCIARY FEE

For Retirement Plan Advisory Services compensation, we charge an advisory fee as negotiated with the Plan
Sponsor and as disclosed in the Employer-Sponsored Retirement Plans Consulting Agreement (“Plan Sponsor
Agreement”).
Typically, the billing period for these fees is paid quarterly. This fee is negotiable, but the terms and the advisory
fee are agreed upon in advance and acknowledged by the Plan Sponsor Agreement or Plan Provider’s account
agreement. Fee billing methods vary depending on the Plan Provider.

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Our Firm or the Plan Sponsor may terminate the Agreement upon 30 days written notice to the other party. The
Plan Sponsor is responsible for paying for the services rendered until the termination of the Agreement.

FINANCIAL PLANNING FEE

Our Firm provides financial planning services under a fixed or hourly fee arrangement. This arrangement charges
a mutually agreed-upon fee for financial planning services, not to exceed $3,000 per plan or $175 per hour with
50% of the fee due at engagement and the remaining 50% due upon the delivery of the plan.
Fees charged for our financial planning services are negotiable based upon the type of Client, the services
requested, the investment adviser representative providing advice, the scope and complexity of the Client's
situation, the composition of the Client's account, other advisory services provided, and the relationship of the
Client and the investment adviser representative.
The amount of the fee for your engagement is specified in your financial planning agreement with us. At our
sole discretion, the Client may be required to pay the fee at the time the agreement is executed with our Firm;
however, our Firm does not require or solicit prepayment of more than $1,200 in fees per Client, six months or
more in advance. The fee is considered earned upon delivery of the financial plan, and any unpaid amount is
immediately due.
The Client may pay the fees owed for the financial planning services by submitting payment directly via Square
or Check. If the Client elects to pay by automatic deduction from an existing investment account, they will
provide written authorization to our Firm for such a charge.
If the Client terminates the financial planning services after entering into an agreement with our Firm, the Client
will be invoiced and responsible for immediate payment of any hourly financial planning services performed by
us before receiving notice of termination. For financial planning services, our Firm performs under a fixed fee
...

ITEM 7 - TYPES OF CLIENTS
Our Firm provides investment management and financial planning to individuals, high-net-worth individuals,
families, trusts, retirement plans, and corporations.
Our firm requires a minimum account value of $50,000 for advisory services. Clients have the option to aggregate
all household accounts to meet this minimum. Exceptions to the minimum account requirement may be granted
based on the Client's relationship with their representative.
For fee calculation purposes, unless instructed otherwise, we will automatically aggregate related client
accounts, a practice commonly known as "householding" portfolios. Householding may result in lower fees than
if each account were billed separately, as the combined value is used to determine the account size and the
corresponding annualized fee.
Our approach to householding considers the overall family dynamic and relationship. Additionally, if applicable,
and as noted in Appendix B of the Investment Management Agreement, legacy positions may be excluded from
the fee calculation.
Clients must execute a written agreement with our Firm specifying the advisory services to establish a Client
arrangement with us.