Global Wealth Management Investment Advisory Inc

Item 5 – Fees and Compensation

In addition to the information provided 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. It
should be noted that lower fees for comparable service may be available from other sources. The exact fees and
other terms will be outlined in the agreement between you and GWMIA.

Fees for Asset Management Services

For information on GWMIA’s asset management services, please see our Wrap Fee Brochure (ADV Part 2A
Appendix 1).

Fees for Financial Planning Services

We offer financial planning services in the form of financial plans that can be either full or modular. Our initial
consultation is free of charge. If you decide to engage us for financial planning services, we enter into a Financial
Planning Agreement disclosing the length of the relationship, the services to be provided and the terms of the
advisory fee.

We develop a financial plan based on information and documentation provided by you. Information gathered
includes, but is not limited to, your financial objectives, risk tolerance, financial resources, family situation and future
financial goals. You are asked to provide documents necessary to perform the requested services, such as your
tax returns, current retirement account statements, insurance information, etc. We rely on the information provided
by you. Therefore, it is very important that the information you provide is complete and accurate. Neither we nor our
investment advisor representatives (“representatives”) are responsible for verifying the information you supply. You

are responsible for informing us of any material changes relating to your financial situation or personal information
that could impact our analysis or recommendations relative to the services you request.

Included in your plan and/or as part of our discussion with you is an explanation of the risks involved with each
recommended strategy and discussions about contingency options or alternative strategies. Although we strive to
provide accurate estimates, we do not prepare tax returns and we are not licensed as an accounting firm. In addition,
we are not licensed to practice law. You are urged to work closely with your attorney, accountant or other
professionals regarding you financial and personal situation. We encourage you to confirm all estimates with your
tax professional and seek licensed legal counsel for creating and implementing any legal documents. At your
request, we may recommend local accountants and/or attorneys to assist you with these services. You are under
no obligation to use any outside professional that we recommend. We do not receive any referral or other fee when
providing these recommendations.

If you sign a Financial Planning Agreement with us for either full or modular financial planning services, fees are
charged at either a fixed or hourly rate. Full services are usually charged a fixed fee ranging from $500 and does
not exceed $10,000 and depends on the complexity of your situation and the additional advisory services provided
to you. Modular services focus on specific areas of concern to you and are charged at an hourly fee ranging from
$300 - $500 per hour. When billed hourly, we provide you with an estimate of the hours needed to complete the
planning services. If more time is needed than the original estimate, we contact you for permission to continue with
the additional work needed. You are charged for the actual hours expended on the requested plan. One-half of the
fixed fee is due at the time the Financial Planning Agreement is signed with the remainder due upon presentation
of the plan. Financial plans will be delivered to the client within six (6) months of the engagement. Hourly fees are
due upon completion of the requested services. We provide you with a billing statement detailing the fees paid by
and due from you.

GWMIA may also provide financial planning and consulting services to clients currently receiving asset
management services from GWMIA for an asset management fee. If a client is currently receiving asset
management services from GWMIA for an asset management fee, GWMIA may waive the fee for financial planning
or consulting services. For more information on GWMIA asset management services, please see our Wrap Fee
Brochure (ADV Part 2A Appendix 1).

On-Going Services

You can also contract for on-going financial planning services that continue for a one-year period unless terminated
sooner by either of us. During this time, you can contact us concerning any topic of interest or concern to you,
including a review and update of any previously prepared financial plan. In addition, we can help monitor the
performance of our recommendations during this time. Fees for on-going financial planning services will range from
$500 - $10,000 per year, billed quarterly in advance and due upon receipt of our billing statement. This minimum
fee may be waived at the discretion of our representatives when they consider other advisory services provided by
us. Fees are negotiable based upon the complexity of your situation and the requested and anticipated services
provided during the engagement period.

Termination of Services

Financial planning services terminate upon presentation of the plan or completion of the consultations unless on-
going services are contracted for. Either party can terminate services by providing written notice to the other party
at least three days before the effective termination date. If the agreement is terminated within five business days of
signing the Financial Planning Agreement, services are terminated without penalty and we refund all prepaid fees.
After that, you are responsible for our time expended on the requested services, which is billed at $300 per hour. If
on-going services are terminated, unused fees are refunded to you on a prorated basis. We provide a billing
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Item 7 – Types of Clients

GWMIA generally provides investment advice to the following types of clients:

    •   Individuals
    •   High net worth individuals
    •   Charitable organizations
    •   Corporations or other businesses

You are required to execute a written agreement with GWMIA specifying the particular advisory services in order
to establish a client arrangement with GWMIA.

Minimum Investment Amounts Required

GWMIA does not require a minimum investment amount, however, as described above in our Wrap Fee Brochure
and Item 4 of this Brochure, some of the sub-advisers GWMIA recommends may have minimum amounts for
investment.