Item 5 – Fees and Compensation
Investment Management Fees
The Adviser is compensated for investment management services based on a client’s
assets under management. Fees are paid quarterly in arrears and may be negotiable.
Fees are due on the first day of the calendar quarter and are based on the account’s
asset value as of the last business day of the prior calendar quarter. Fees are prorated
for accounts opened during the quarter. The Adviser invoices clients or deducts fees
directly from client accounts.
Annualized Fees
Assets under management Per Year
$0 - $2,000,000 1.75%
$2,000,001 - $5,000,000 1.50%
$5,000,001 – No limit 1.25%
The Adviser will charge NO fees to clients that are invested in a Private Fund where the
Adviser has executed an Investment Management Agreement and is being compensated
by the Private Fund.
The account custodian may charge fees, which are in addition to and separate from
advisory fees. Accounts may incur transaction costs, retirement plan administration
fees, mutual fund annual expenses and other fees. Clients should note that fees for
comparable services vary and lower or higher fees may be charged by different providers
for similar services.
Clients will have a period of five (5) business days from the date of signing an advisory
agreement to unconditionally rescind the agreement and receive a full refund of all fees.
Thereafter, either party may terminate the advisory agreement with 30 days written
notice. Since fees are payable only after services are provided, there are no unearned
fees and the client will not have a refund due upon early termination of the advisory
agreement. However, the Adviser will prorate fees to the date of termination. Existing
clients may pay fees as a different rate.
Private Fund Fees
The Adviser charges an annual management fee of 1.00% to Private Fund Investment
Vehicles where it has executed an Investment Management Agreement. Management
fees are payable quarterly in arrears and are based on the market value of the assets
under management when assets are placed in the portfolio or sold and the 4th quarter
fee is adjusted based on the 4th quarter market value. The Adviser prorates fees for
Fund investments that are at times other than the start of a calendar quarter. The
Adviser deducts fees directly from Fund accounts. Private fund management fees are
negotiable with the Fund managers and may be paid from the fees charged by the Fund
managers on a different schedule than quarterly. Investors should note that lower or
higher fees for comparable services may be available from other sources.
The fees cover the normal operating expenses of the Adviser and the Funds will cover all
other expenses. The Adviser reserves the right to waive or reduce its management fee
to certain Fund investors.
Financial Planning & Consulting Fees
The Adviser charges clients an hourly or fixed fee for financial planning and consulting
services. Fees are based on the complexity of the plan or project and the range of
services provided. Clients are billed at the rate of $175 an hour or a fixed fee that
generally ranges from $1,000 to $10,000 based on the range and complexity of the
services provided. Advisory clients should note that fees for comparable services vary
and lower or higher fees for comparable services may be available from other sources.
The Adviser provides clients with an estimate of the amount of time a financial plan or
project will take and upon signing an agreement, a deposit of 50% of the estimated fee
is required. The balance is due upon delivery of the financial plan or completion of the
service.
If clients elect to implement recommendations made in a financial plan, their accounts
may incur transaction costs, retirement plan administration fees, and other mutual fund
annual expenses that are charged by broker-dealers, plan administrators or mutual fund
companies that sell securities or provide additional services to Adviser clients. These
fees are in addition to and separate from planning and consulting fees.
The Adviser anticipates that the financial plan produced will be delivered within six
months or sooner of the date of the agreement. The Adviser considers fees for financial
planning or a consulting project to be earned as progress is realized toward creation of
the plan or completion of the service. Under no circumstances will the Adviser earn fees
in excess of $1,200 more than six months in advance of services rendered.
Clients will have a period of five (5) business days from the date of signing an agreement
to unconditionally rescind the agreement and receive a full refund of all fees. Thereafter,
either party may terminate the agreement prior to delivery of the plan or completion of
the services with written notice. Upon termination, the Adviser will prorate fees to the
date of termination and will refund any unearned portion of the fee.
Receipt of Additional Compensation
Neither the Adviser nor any supervised person is associated with any broker dealer or
accepts compensation for the sale of securities or other investment products, including
asset-based sales charges or service fees from the sale of mutual funds.