Freedom Advisory LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4, Advisory Business, this section provides details
regarding our services along with descriptions of the fees and compensation arrangements.

A. Compensation

Financial Planning Services

We provide financial planning services that focus on your specific needs and concerns. These services
can include giving advice on investment and non-investment related matters (e.g., tax and estate
planning/gifting matters on a stand-alone basis).

Written Plan

The services provided by us typically focus on one or more of the following areas:

Freedom Advisory, LLC                                                                      Disclosure Brochure

    •   Retirement Planning: The process of determining retirement income goals and the actions and
        decisions necessary to achieve those goals. Retirement planning includes identifying sources of
        income, estimating expenses, implementing a savings program and managing assets. Future
        cash flows are estimated to determine if the retirement income goal will be achieved.

    •   Tax Planning: The goal of tax planning is to arrange your financial affairs so as to minimize your
        taxes. There are three basic ways to reduce your taxes, and each basic method might have
        several variations. You can reduce your income, increase your deductions, and take advantage of
        tax credits.

    •   Investment Planning: The goal of investment planning is to determine the investment mix and
        policy, matching investments to objectives, asset allocation for individuals and institutions, and
        balancing risk against performance. The process is all about strengths, weaknesses,
        opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs.
        safety, and many other tradeoffs encountered in the attempt to maximize return at a given
        appetite for risk.

Our investment advisor representatives (“representatives”) meet with client to gather information and
documentation needed to perform an analysis and review of your situation as well as your objectives and
goals. One or more meetings may be required in order to gather all needed information and determine
the services best suited to help meet your needs. We rely on the information provided by you. Therefore,
it is very important that the information you provide is complete and accurate. We are not responsible for
verifying the information supplied by you or your other professional consultants (i.e., attorney, accountant,
etc.).

Our services do not include legal or tax advice. We urge you to work closely with your attorney,
accountant or other professional consultants regarding your financial and personal situation. We also
request that you notify us if there is ever a change in your financial situation or investment objectives so
that we can review, evaluate and/or revise any prior recommendations made or services provided.

After completing a review and analysis of the information and documents received, our representatives
develop their analyses and recommendations and present a written plan that can be either
comprehensive or modular (segmented), as you request. A comprehensive plan focuses on your overall
financial situation and covers several of the areas previously noted, as needed by your specific situation.
A modular (segmented) plan focuses only on one or more specific areas of concern to you. You should
be aware that other important issues may not be taken into consideration when our representatives
develop their analyses and recommendations. All of our recommendations are generic in nature and are
not limited to any specific product or service offered by the financial services industry.
We charge a fixed fee for written plans that does not exceed $7,500 and is charged as follows:

        Client Net Worth                                  Fixed Fee

         Less than $3,000,000                               $2,500
         $3,000,000 to $10,000,000                          $4,000
         Greater than $10,000,000                           $7,500

Fees are negotiable based on the complexity of your financial situation, the level and scope of the
services provided, and experience and knowledge level of our representative providing the services.
Fees are disclosed to you prior to any services being provided and are payable at the time the client
agreement is signed.

Services terminate upon presentation of the written plan to you. However, either party can terminate
services at any time by providing written notice to the other party. Termination is effective upon receiving
the notice. If services are terminated within 5 business days of signing the client agreement, they are
terminated without penalty. You are responsible for paying fees incurred for services completed prior to

Freedom Advisory, LLC                                                                       Disclosure Brochure

termination. We provide you with a prorated refund of any unearned financial planning fees, which is
determined based on the percentage of work completed prior to receiving the termination notice.

Consultations

Consulting services focus on specific areas of concern or interest to you. Consultations can include, but
are not limited to, the following:

    •   Strategic Investment Plans – Recommendations based on your age, long term views and
        risk/return characteristics.
    •   Asset Allocation – Determining an efficient asset mix with portfolio optimization that considers risk
        and return.
    •   Investment Policy Statements – Determining a statement of purpose, responsibility, goals and
        objectives, investment guidelines, standards of performance, review, and evaluation,
        communication and reporting.
    •   Customized Performance Benchmarks – Creating of custom benchmarks based on selected or
...

Item 7 – Types of Clients

Description of Types of Clients Provided Advice

We provide investment advice to the following types of clients:

    •   Individuals (including high-net worth individuals)

Freedom Advisory, LLC                                                                        Disclosure Brochure

    •   Pension and profit-sharing plans
    •   Trusts, estates, or charitable organizations
    •   Corporations or business entities other than those listed above

Minimum Investment Amounts Required

The minimum fee for financial planning services is $2,500.

We charge a minimum $1,500 fee for management services. The minimum account value required to
establish a managed account with us is $250,000. However, third-party managed programs generally
have account minimum requirements, and these minimum requirements vary from investment advisor to
investment advisor.