Forbes Financial Planning Inc

Item 5 - Fees and Compensation
5(A)1 Description of Fees for Financial Planning Services
Financial Planning Services are offered at both a fixed fee for a financial plan or an hourly fee.
Lower fees for comparable services may be available from other investment advisers or
financial planners. Financial planning fees are negotiable. The exact fee and services agreed
upon will be described in your financial planning agreement.

Fixed Financial Planning Fee
Our standard fixed fee for a comprehensive financial plan is $4,000 for the first year. The fee is
broken down as follows:
1) $2,000 for initial setup;
2) $500 per quarter for ongoing maintenance

Following the first 12 months, the ongoing maintenance fee remains at $500 per quarter.

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Hourly Financial Planning Fee
Financial planning is also offered at an hourly rate of $400.

5(B)1 Payment Methods
Fixed Financial Planning Fee
When entering into a fixed fee for a financial plan, the Firm requires an upfront deposit of $2,000 for
the initial set up. Clients are then invoiced each quarter in arrears for ongoing maintenance.

Hourly Financial Planning Fee
Clients are invoiced monthly in arrears for Financial Planning Services performed on an hourly
basis.

5(C)1 Other Fees and Expenses
Financial Planning Services generally recommend the implementation of the financial plan
through the purchase and/or sale of securities and insurance products. Implementation of a
financial plan will incur additional costs such as custodial fees and brokerage fees which
prospective clients should carefully review. Furthermore, the Firm may recommend its
Investment Management Services offering and/or the purchase of insurance products (e.g., life
insurance, disability insurance, long-term care, or annuities) through its affiliated insurance
agency, Forbes Insurance Agency, Inc. (“FIA”) This represents a material conflict of interest in
that both FFP and FIA are wholly owned by Mr. Forbes, and as a consequence, he benefits
directly.

5(D)1 Termination Provisions, Refunds and Assignments
Prior to initiating financial planning services, the Client will be required to enter into a written
agreement that sets forth the terms and conditions of the engagement; and describes the scope
of services provided. Agreements may be terminated by either party at any time without penalty
upon receipt of 30 day’s written notice. If the Client terminates the agreement within five (5) days
of its signing, the Client will receive a full refund of all fees. If the agreement is terminated after
five (5) business days of its signing, any prepaid fees shall be prorated, and the unused portion
shall be returned to the Client.

5(A)2 Investment Management Services Fee
The Firm calculates its Investment Management Services fee based upon the percentage of
assets under management (“AUM”). AUM is based on the account value of each account.
Lower fees for comparable services may be available from other investment advisers. Fees
for related accounts may be negotiable for purposes of calculating assets under
management. The annualized Investment Management Services fee is calculated according
to the following schedule below:

        Assets Under Management                               Annual Fee
              Up to $1,000,000                                   1.10%
       Above $1,000,000 -$3,000,000                              1.00%
      Above $3,000,000 - $5,000,000                              0.90%
             Above $5,000,000                                    0.75%

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Note, the “annualized fee” excludes brokerage costs such as commissions, markups,
markdowns, ticket charges, and underlying mutual fund expenses. FFP does not receive or
share in any such fees.
Generally, the Firm will recommend the purchase of mutual funds and/or exchange-traded funds
(“ETFs”) as part of its Investment Management Services offering. When purchasing mutual funds
or ETFs, effectively Clients are subject to two (2) layers of fees:
     1) Direct advisory fee pursuant to the fee schedule; and
     2) Indirect advisory fees (that is, the advisory fee paid by the mutual fund to the adviser of
        the mutual fund.
     For a detailed treatment of brokerage costs, please carefully review “Item 12- Brokerage
     Practices”.

5(B)2 – Payment Methods
Fees for Investment Management services are directly deducted by Fidelity Clearing & Custody
Solutions 4 (“Fidelity”) on a quarterly basis in advance. Fidelity is FFP’s qualified custodian, and
Clients will receive statements from Fidelity on a quarterly basis. Should you believe that your fee is
calculated incorrectly, please contact FFP promptly to resolve this issue.

5(C)2 – Other Fees and Expenses
In connection with Investment Management Services, implementation will generally include the
purchase and/or sale of securities. Implementation will incur additional costs such as custodial fees
and brokerage fees which prospective clients should carefully review. Please refer to “Item – 12

Item 7 - Types of Clients
 Forbes Financial Planning, Inc. generally provides investment advice to individuals, high net worth
 individuals, trusts, estates, and qualified retirement plan sponsors. Neither the Firm’s Financial
 Planning Service nor its Investment Management Service requires a minimum account size.