Item 5 Fees and Compensation
PORTFOLIO MANAGEMENT FEES
FWF’s fee for portfolio management services, as well as the monitoring and updating of the
financial plan, will be charged as a percentage of assets under management, according to the
following schedule:
Assets Under Management Annual Fee (%)
Up to $1,000,000 1.50%
The next $1,000,001 - $3,000,000 1.25%
The next $3,000,001 - $5,000,000 1.00%
The next $5,000,001 - $10,000,000 0.75%
The next $10,000,001 - $20,000,000 0.50%
The next $20,000,001 and above 0.25%
Our fees are billed quarterly, in advance, at the beginning of each calendar quarter based
upon the value (market value or fair market value in the absence of market value), of the
client's account (assets under management) at the end of the previous quarter, including any
accrued interest. Please Note: the value of fixed annuities and client’s legacy positions will be
included in client’s total assets under management.
A new client may get billed in arrears for the first billing period. Fees will be debited from the
account in accordance with the client authorization in the Client Services Agreement.
PARTICIPANT-DIRECTED EMPLOYEE BENEFIT PLAN SERVICES FEES
The annual fee for participant-directed employee benefit plan services will be charged as a
percentage of assets, billed quarterly in advance based on the market value of plan assets on
the last day of the preceding quarter.
There are a number of factors that could impact pricing for any given client. The factors are
discussed prior to acceptance of the service agreement. These factors include but are not
limited to:
• Number of participants in plan
• Fixed minimum fee for start-up plans
• Frequency of enrollment meetings per year
• Number of enrollment locations
FINANCIAL PLANNING FEES
FWF’s financial planning fee will be determined based on the nature of the services being
provided and the complexity of each client’s circumstances. All fees are agreed upon prior to
entering into a contract with any client.
Typically, the fee for an initial financial plan is $4,000. Financial planning fees are due and
payable at the time the client agreement is executed. Typically, the financial plan will be
presented to the client within 90 days of the contract date, provided that all the information
needed to prepare the financial plan has been promptly provided by the client. After the initial
financial plan is prepared, the fee charged for portfolio management services will include the
monitoring and updating of the client’s financial plan.
GENERAL INFORMATION REGARDING FEES
The principal executive officer, the company and other employees of FWF are separately
licensed as insurance agents. As such, these individuals/entity, in their separate capacities as
registered representatives and/or insurance agents, will be able to purchase insurance
products for clients. As a result, FWF will receive separate, yet customary compensation (i.e.,
commissions or other sales-related forms of compensation). These individuals may spend as
much as 5% of their time on this related activity.
A conflict of interest exists as a result of these individuals receiving commissions from
insurance companies; however, FWF selects insurance products from a vast array of
companies and keeps the clients’ needs in mind before recommending an insurance
product. Clients are under no obligation to act upon any recommendation of insurance
products.
Limited Negotiability of Advisory Fees: Although FWF has established the aforementioned
fee schedule(s), FWF, in its sole discretion, may charge a lesser investment advisory fee,
waive advisory fees on certain legacy positions, and/or a charge a flat fee 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, competition,
negotiations with client, etc.).
As result of the above, including clients grandfathered under older fee schedules, similarly
situated clients could pay different fees. In addition, similar advisory services may be
available from other investment advisers for similar or lower fees.
Discounts, not generally available to our advisory clients, may be offered to family members
and friends of associated persons of our firm.
Termination of the Advisory Relationship: A client agreement may be canceled at any
time, by either party, for any reason upon receipt of 30 days notice. As disclosed above,
certain fees are paid in advance of services provided. Upon termination of any account, any
prepaid, unearned fees will be promptly refunded on a pro rata basis.
Mutual Fund Fees: All fees paid to FWF for investment advisory services are separate and
distinct from the fees and expenses charged by mutual funds and/or ETFs to their
shareholders. These fees and expenses are described in each fund's prospectus. These fees
will generally include a management fee, other fund expenses, and a possible distribution fee.
Accordingly, the client should review both the fees charged by the funds and our fees to fully
understand the total amount of fees to be paid by the client and to thereby evaluate the
advisory services being provided.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible
for the fees and expenses charged by custodians and imposed by broker dealers, including,
but not limited to, any transaction charges imposed by a broker dealer with which an
independent investment manager effects transactions for the client's account(s).
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