Item 5 – Fees and Compensation
Financial Planning
GFG Solutions does not charge separately for financial planning.
Asset Under Management
Advisory fees are billed in advance based on the previous monthly end value. The initial fee is prorated based on the account opening
date. Fees are according to the below schedule:
Assets Under Management Percentage of Assets
Under $250,000 1.10%
$250,000 - $499,000 1.00%
$500,000 - $999,000 0.90%
$1,000,000 - $1,900,000 0.80%
$2,000,000 - $2,900,000 0.70%
$3,000,000 - $4,900,000 0.60%
Above $5,000,000 0.50%
• The fee for Fixed Income only accounts 0.50%
• An additional 0.25% fee applies to held away accounts.
Disclosure Brochure
Friends & Family
Fees can be waived, in whole or in part, for clients who are members of the family or friends. In certain other circumstances, fees and
account minimums are negotiable and therefore, fees can vary from client to client. In addition, Fees for special circumstances may be
offered at a reduced rate.
Valuation
All securities held in accounts managed by GFG Solutions will be independently valued by the Custodian. GFG Solutions will not have
the authority or responsibility to value portfolio securities.
Mutual Fund Share Class Disclosure and Fiduciary Duty (12b-1 Fees)
Section 206 of the Investment Advisers Act of 1940 (“Advisers Act”) imposes a fiduciary duty to act in a client’s best interests and
specifically prohibits investment advisers, directly or indirectly, from engaging in any transaction, practice, or course of business which
operates as a fraud or deceit upon any client or prospective client. However, the fiduciary duty to which advisers are subject is not
specifically defined in the Advisers Act or the Commission rules but reflects a Congressional recognition “of the delicate fiduciary
nature of an investment advisory relationship” as well as a Congressional intent to eliminate, or at least expose, all conflicts of interest
which might incline an investment adviser, consciously or unconsciously, to render advice which was not disinterested. When selecting
a mutual fund for a client’s advisory account, the investment advisor representative has a fiduciary duty to select the share class that
helps manage the overall fee structure of the account.
Mutual Fund Fees and Other Fees and Expenses
Client assets are primarily invested in mutual funds managed by third parties. The funds pay their investment managers and other
service providers fees, which reduce the funds’ investment returns and are borne proportionately by all fund shareholders, including
clients of GFG Solutions . These mutual fund fees, or “expense ratios,” are described in the funds’ prospectuses, and are separate from
and in addition to the fees charged by GFG Solutions . Client assets are also held in brokerage accounts which are subject to certain
custodial fees; such as, checks returned or debit declines for insufficient funds as well as a full transfer out fee and potential third-party
service provider costs. These fees and expenses are further described in the brokerage agreement.
Hourly Consulting Services
Consulting services are subject to an hourly fee ranging from $100 to $500, depending on the scope and complexity of the subject matter.
Payment of Fees and Termination
Either party may terminate the investment advisory agreement, at any time, by providing advance written notice to the other party. The
Client’s investment advisory agreement with the Advisor is non-transferable without the Client’s prior consent.
Compensation for Selling Securities
GFG Solutions does not buy or sell securities for commission compensation.
Compensation Insurance Products
Investment advisor representatives, in their capacity as insurance agents, can receive commission compensation for selling insurance
products. Commission rates differ from product to product and carrier to carrier. In addition to commissions, investment advisor
representatives as insurance agents can receive marketing support, reasonable meals and entertainment, and reimbursement of the cost
to attend training, conferences, and events hosted by insurance companies and third-party marketing organizations contracted with and
receive compensation from the insurance company. Insurance commissions and other benefits are significant sources of compensation
and are paid separately from advisory fees on assets in a client’s managed securities account. Commissions are generally paid up-front,
at the time of sale, unlike asset-based fees which are paid periodically over the course of the relationship. The amount and form of
insurance compensation creates a conflict of interest in that investment advisor representatives in their individual capacity as insurance
agents are incentivized to recommend insurance products based on the compensation received rather than on a client’s needs.
Investment advisor representatives as insurance agents are not required to offer the products of a specific insurance company. The
compensation received from selling securities or insurance is separate from and does not offset regular advisory fees.
Disclosure Brochure
• GFG Solutions will not charge advisory fees on any insurance products.
• Clients are not obligated to implement any recommendations and can implement such recommendations through a different
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