Fusco Financial Services Inc

Item 5 – Fees and Compensation

In addition to the information provide in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements.

FINANCIAL PRODUCTS AND SERVICES AVAILABLE

Fusco Financial Services, Inc. offers a broad range of financial products and services. Fusco Financial
Services’ Wealth Management services and fee arrangements are described in the following pages.
Clients are offered this wide range of products and services in order to better meet their specific needs.

Through Fusco Financial Services, clients can obtain investment advice, investment management,
securities brokerage, fixed and variable annuities, other insurance products, and a variety of other
financial services. Clients are under no obligation to purchase any financial products or services from
Fusco Financial Services. Clients are not required to work with Fusco Financial Services on an exclusive
basis and may obtain financial products and services from other sources.

INVESTMENT RISKS AND REWARDS

Securities and other types of investments all bear different types and levels of risk. Those risks are
typically discussed with Clients in defining the investment policies and objectives that will guide
investment decisions for their accounts. Upon request, as part of our advisory services, Fusco Financial
Services consultants can discuss those investments and investment strategies that we believe may tend
to reduce these risks for a particular Client’s circumstances.

Clients must realize that obtaining higher rates of return on investments entails accepting higher levels of
risk. Based upon discussions with Clients, Fusco Financial Services consultants attempt to identify the
balance of risks and rewards that is appropriate and comfortable for the Client. It is still the Client’s
responsibility to ask questions if he or she does not fully understand the risks associated with any
investment. Clients are strongly encouraged to read prospectuses, when applicable, and ask questions
prior to investing.

Fusco Financial Services and its Wealth Management consultants strive to render our best judgment for
our Clients. Still, we cannot assure Clients that investments will be profitable or assure that no losses will
occur in their portfolios. Past performance is an important consideration with respect to any investment or
investment advisor, but it is not necessarily an accurate predictor of future performance.

SERVICES OFFERED BY FUSCO FINANCIAL SERVICES

A variety of Wealth Management services are available. With the assistance of Fusco Financial Services
and its consultants, Clients can select appropriate planning services from among three general
categories. Specific services, related fee arrangements, and all terms and conditions of our services are
contained in the applicable Client Services Agreement that is provided for Clients’ signature. The three
general advisory service categories are:

Plan 1 – Financial Planning Services: Financial planning components may be any or all of the following:

          •    Tax Analysis

Fusco Financial Services, Inc.                                                               Disclosure Brochure

          •    Cash Flow Analysis
          •    Retirement Analysis
          •    Estate Analysis
          •    Investment Analysis
          •    Insurance Analysis

Financial Planning services are rendered on behalf of Clients by Fusco Financial Services consultants at
an hourly rate or a fixed fee. Single-need analysis is also offered with the scope of our review and
recommendations related solely to a specific objective.

PLAN 1 - Financial Planning

When generating a financial plan, the Fusco Financial Services consultants may:

A. Consult with Client and analyze the Client’s financial needs and objectives based upon the information
   provided by the Client; or

B. Prepare a written financial plan based upon the Client’s identified financial needs and objectives; or

C. Discuss and review with the Client at least annually or more frequently as is dictated by the nature of
   the Client’s investments or Client’s request; and

D. Recommend either verbally or in writing, changes in Client investments, strategy, or financial plan in
   connection with the review of Client investments or the identification of new financial needs or objectives
   by the Client.

E. When called for, Fusco Financial Services’ consultants may conduct a single-needs analysis to provide
   research, plan design, or specific investment advice for the Client who does not need or desire the
   more traditional financial planning process described in parts (a) through (d).

All financial planning analyses and recommendations will be based upon information provided to Fusco
Financial Services consultants by the Client. There will be no independent investigation of Client
background information, nor update of such information, without the express involvement and consent of
the Client. It remains the Client’s responsibility to advise the Fusco Financial Services consultants of any
changes in circumstances, e.g., financial needs, objectives, goals and investments held with other firms
or any other changes which would impact the Client’s financial condition.

PLAN 1 - Fees

If you elect to engage us for this service, we will provide financial analysis and financial planning services
consistent with your current financial and tax status, financial goals, investment attitudes and risk/reward
parameters. The fees for these services are generally based on the complexity of the proposed plan and
the time required to perform the services and is billed on a per hour basis.

Charges for professional services performed by Fusco Financials’ Investment Advisor Representatives
range from $250 to 1,000 per hour, subject to a minimum fee of $1500 and a maximum fee of $10,000
...

Item 7 – Types of Clients

Fusco Financial Services generally provides investment advice to the following types of clients:

     •    Individuals
     •    High-Net Worth Individuals
     •    Pension and profit sharing plans
     •    Trusts, estates, or charitable organizations

Minimum Investment Amounts Required

Fusco Financial Services typically requires a minimum of $500,000.00 to establish and maintain an Asset
Management Account. To reach this account minimum, clients can aggregate all household accounts.
Exceptions may be granted to this minimum based at the discretion of the advisor based on the type of
client, the complexity of the client's situation, the composition of the client's account (i.e., equities versus
mutual funds), and the relationship of the client with the advisor.

Fusco Financial Services has a minimum fee of $1500 for preparation of a written financial plan.