Financial Gravity Asset Management Inc

Item 5: Fees and Compensation

Fee Schedule

FG Asset Management Programs
For investment advisory models managed within the FG Asset Management Program, clients will be
charged an asset-based fee that covers advisory, custodial, portfolio management, and certain
reporting services. Accounts are billed monthly in arrears based on the average daily balance of
program-eligible assets. The fee includes the Financial Professional’s fee, which is typically
negotiated between the Investment Advisor Representative and client. The amount agreed upon
will be charged as stated in the client agreement and will not exceed the maximum annual amount
of 2.00%.

The fee includes the Program fee, which is typically negotiated among the program sponsor,
Investment Advisor Representative, and client as stated in the client agreement. The amount
agreed upon will be charged as stated in the client agreement and will not exceed the maximum
annual program fee of 0.65%.

                   Total Assets                                          Annual Fee

                    All Assets                                 Negotiable with a 0.65% maximum

These material changes were made on March 1st, 2023 and accounts opened prior to this change
will be charged in conjunction to their client agreement based on their model allocation with the
annual program fee for the 4 Alpha model being. 55% while the program fee for the 4 Beta Equity
and Taxable Fixed Income models at .35%, and the Dependable Return Model 0.15%. Refer to prior
client agreement for blended model and breakpoint details.

Clients may terminate their contracts without penalty, for full refund, within 5 business days of
signing the advisory contract. Thereafter, clients may terminate their contracts with ten days
written notice.

Fees are calculated by FG Asset Management using third-party software. FG Asset Management and
advisory fees will be billed using the average of the daily closing market values of the account
during the month multiplied by the applicable annual percentage divided by applicable annual
percentage divided by the number of days in the month. The fees are aggregated and charged as
one fee, please refer to your monthly custodial statement provided by the Custodian.

As to held away assets that are treated as assets under FG Asset Management’s management, fees
will be debited from the account holding the assets, but if we are unable to debit fees from the
accounts holding the assets, those fees will be assigned to the client’s accounts with FG Asset

8​                           Financial Gravity Asset Management, Inc.

Management, and debited from those accounts. Additionally there is a cost to the third-party
platform, which cost may be an additional expense charged to the client.

Payment of Fees
FG Asset Management and Advisory fees are paid monthly in arrears. Fees are withdrawn directly
from the client’s accounts with Client written authorization and FG Asset Management will
therefore:

     A.​ Possess written authorization from the client to deduct advisory fees from an account held
         by a qualified custodian.
     B.​ Use a custodian that sends at least quarterly statements.
     C.​ Use a custodian that has online access to statements.

Clients Are Responsible For Third Party Fees
Clients are responsible for the payment of all third-party fees (i.e., custodian fees, mutual fund fees,
transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged by
FG Asset Management. Please see Item 12 of this brochure regarding broker/custodian.

Prepayment of Fees
FG Asset Management collects its portfolio management fees in arrears.

Outside Compensation For the Sale of Securities to Clients
Investment Advisor Representatives of FG Asset Management may also be licensed insurance
agents and, in this role, accept compensation for the sale of insurance products to FG Asset
Management clients. This presents a conflict of interest and gives the supervised persons an
incentive to recommend insurance based on the compensation received rather than on the client’s
needs. However, each Investment Advisor Representative is required to base insurance sales on the
best interest of the clients and based on FG Asset Management’s investment philosophy seen in
Item 8 of this brochure.

To help mitigate the conflict of interest, FG Asset Management always attempts to act in the best
interest of the client consistent with its fiduciary duty and uses and presents the firm’s investment
methodology outlined in Item 8. Additionally, clients will always have the right to purchase FG Asset
Management-recommended products through other brokers or agents that are not affiliated with
FG Asset Management.

In addition, supervised persons will only offer insurance products to clients in the respective states
in which the supervised person is properly licensed as an insurance agent.

Item 7: Types of Clients

FG Asset Management generally provides investment advice and/or management supervisory
services to the following Types of Clients:

      ●​   Individuals
      ●​   Business Owners
      ●​   Entrepreneurs
      ●​   High-Net-Worth Individual

There is $25,000 account minimum but may be waived under certain circumstances at the
discretion of FG Asset Management