Financial Alternatives Inc

Item 5 | Fees and Compensation

   A. Compensation for Advisory Services. The client can determine to engage the Registrant
      to provide discretionary investment advisory services on a fee-only basis.

       INVESTMENT ADVISORY SERVICES
       If a client determines to engage the Registrant to provide discretionary investment
       advisory services on a fee-only basis, a fixed fee, a fee that is based upon a percentage
       of the market value of assets under management (“AUM”), or a combination of these.
       Fees based solely on AUM typically range from 1.00% to 0.50% on a flat or tiered rate
       schedule, but may be higher or lower in some cases. Client accounts may be subject to
       a minimum annual fee. Fees and minimums may be subject to negotiation or exceptions
       in some cases.

       Registrant shall generally price its advisory services based upon various objective and
       subjective factors. As a result, our clients could pay diverse fees based upon the type,
       amount and market value of their assets, the anticipated complexity of the engagement,
       the anticipated level and scope of the overall investment advisory services to be rendered,
       and negotiations. Additional factors affecting pricing can include related accounts,
       employee accounts, competition, and negotiations. As a result of these factors, similarly
       situated clients could pay diverse fees, and the services to be provided by Registrant to
       any particular client could be available from other advisers at lower fees. All clients and
       prospective clients should be guided accordingly.

       Registrant's annual investment advisory fee shall include investment advisory services,
       and, to the extent specifically requested and agreed, wealth advisory services, which
       may include financial advice, financial planning, and/or consulting services. These
       services may vary widely in scope, depth, and impact. In the event that the client requires
       extraordinary planning and/or consultation services (to be determined in the sole
       discretion of the Registrant), the Registrant may determine to charge for such additional
       services, the dollar amount of which shall be set forth in a separate written notice to the
       client.

       WEALTH ADVISORY SERVICES (STAND-ALONE)
       The Registrant may determine to provide wealth advisory services, which may include
       financial advice, financial planning, and/or other consulting services (including investment
Financial Alternatives, Inc. | Form ADV Part 2A                                               Page 10 of 22

       and non-investment related matters, including estate planning, retirement planning, etc.)
       on a stand-alone separate fee basis, to the extent specifically requested by a client and
       agreed. These services may vary widely in scope, depth, and impact.
       Wealth advisory and/or consulting engagements often begin with a written financial
       assessment process, the fee for which is generally $500. Registrant’s wealth advisory
       and consulting fees are negotiable, but generally are assessed at a $300 hourly rate or
       flat fee basis, depending upon the complexity, level, and scope of the service(s) required
       and the professional(s) rendering the service(s).
       Additional Fee Information, Possible Risks/Conflicts of Interest.
       In cases where the Registrant has succeeded or acquired only the assets of another
       registered investment advisor (“predecessor”), Registrant may assist in or provide
       continued services and/or assess agreed upon fees during a transition period depending
       on the client agreement and other facts and circumstances. Agreements between the
       client and the predecessor may allow for assignment to the successor by positive or
       negative consent of the client. The fees and services by the predecessor may vary
       substantially from those typically provided by the Registrant.
       Depending on the needs and circumstances of a client, the registrant may recommend the
       portfolio management services of an unaffiliated Third Party Asset Manager (“TPAM”).
       Generally, the client will enter into a separate agreement which describes the services,
       affected accounts, and fees of the TPAM. Any fees related to such services are separate
       and in addition to those of the Registrant. There may be circumstances where the TPAM
       arrangement is maintained, transitioned, or replaced with services provided by another
       TPAM or the Registrant.
       Potential conflicts of interest arise depending on how advisory fees are assessed. If fees
       are based on a percentage of assets under management, any advice or activity that
       increases assets under management will increase the fee, and the opposite will decrease
       the fee. If fees are based on time charged at an hourly rate, any advice or activity that
       requires more billable time and/or a higher hourly rate will increase the fee, and the
       opposite will decrease the fee. If the fee is based on a fixed or flat amount, any advice or
       activity that overestimates or increases the fee, relative to the service provided, will
       improve the economics of the fee for the Registrant, and the opposite will worsen the
       economics of the fee. Additionally, certain clients may be subject to a legacy fee schedule
       and may therefore receive different services under different fee schedules than as set
       forth above. These legacy clients have been or will be offered the ability to engage
       Registrant under its current fee schedules if it is more advantageous to such clients.
       Margin Accounts: Risks/Conflict of Interest. Registrant does not recommend the use
       of margin for investment purposes. A margin account is a brokerage account that allows
...

Item 7 | Types of Clients

       The Registrant’s clients shall generally include individuals, pension and profit sharing
       plans, business entities, trusts, estates and charitable organizations. Registrant generally
       requires a minimum annual fee for the first year of a new client engagement. Registrant
       shall generally price its advisory services based upon various objective and subjective
       factors. As a result, our clients could pay diverse fees based upon the type, amount and
       market value of their assets, the anticipated complexity of the engagement, the anticipated
       level and scope of the overall investment advisory services to be rendered, and
       negotiations. Additional factors affecting pricing can include related accounts, employee
       accounts, competition, and negotiations. As a result of these factors, similarly situated
       clients could pay diverse fees, and the services to be provided by Registrant to any
       particular client could be available from other advisers at lower fees. All clients and
       prospective clients should be guided accordingly. Additionally, Registrant, in its sole
       discretion, may charge a lesser investment advisory fee, charge a flat fee, waive its fee
       entirely, or charge fee on a different interval, based upon certain criteria (i.e. anticipated
       future earning capacity, anticipated future additional assets, dollar amount of assets to be
       managed, related accounts, account composition, complexity of the engagement,
       anticipated services to be rendered, grandfathered fee schedules, employees and family
       members, courtesy accounts, competition, negotiations with client, etc.). Registrant’s
       Chief Compliance Officer, James A. Freeman, remains available to address any questions
       that a client or prospective client may have regarding advisory fees.

Financial Alternatives, Inc. | Form ADV Part 2A                                                Page 14 of 22