Financial Architects LLC

Item 5 - Fees and Compensation

General Fee Information
Fees paid to FA are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Please see Item 12 – Brokerage Practices for additional
information. Fees paid to FA are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus or
offering materials). The client should review all fees charged by funds, brokers, FA, and others to
fully understand the total amount of fees paid by the client for investment and financial-related
services.

Financial Planning Fees
An estimate of the time required to develop a financial plan for each client is made at the initial
meeting with one half of the estimated fees assessed and payable at the beginning of the engagement
with the remainder due upon delivery of the financial plan.

The comprehensive financial planning engagement is typically $6,000, but these services may be
more (or occasionally less) depending on the complexity and scope of the services to be provided. If
the engagement is terminated prior to the completion of the plan, any prepaid, unearned fees will be
promptly refunded, and any earned unpaid fees will be due and payable.

Portfolio Management Fees
The annual portfolio management fee schedule, based on a percentage of assets under management,
is as follows:

               Assets Under Management                   Annual Fee
               First $2,000,000                            1.00%
               Thereafter                                  0.50%

Accordingly, as an example, if an account is valued at $2,500,000, the first $2,000,000 would be
charged 1.00% annually, while the balance of $500,000 would be assessed a fee of 0.50% per year.

FA generally requires a minimum asset level of $2,000,000 for its portfolio management services.
However, FA retains the right to reduce is minimum asset requirement, at its sole discretion.

Portfolio management fees are generally payable quarterly, in arrears. If management begins after the
start of a quarter, fees will be prorated accordingly. Portfolio management fees will not be prorated
for capital contributions or withdrawals made during the applicable calendar quarter. In determining
market value, FA’s includes accrued interest and accrued dividends. With client authorization and
unless other arrangements are made, fees are normally debited directly from client account(s).

Either FA or the client may terminate their Investment Management Agreement at any time, subject
to any written notice requirements in the agreement. In the event of termination, any paid but
unearned fees will be promptly refunded to the client based on the number of days that the account
was managed, and any fees due to FA from the client will be invoiced or deducted from the client’s
account prior to termination.

General Consulting Fees
When FA provides general consulting services to clients, these services are generally separate from
FA’s financial planning and portfolio management services. Fees for general consulting are
negotiated at the time of the engagement for such services, and are normally based on an hourly fee
of $500 or a flat fee, depending on the nature of the engagement.

Item 7 - Types of Clients

FA serves individuals, trusts, estates, and charitable organizations.