Item 5: Fees & Compensation
How We Are Compensated for Our Advisory Services
Wrap Portfolio Management:
Please see our ADV 2A Appendix 1: Wrap Fee Program Brochure for details on the fees and
compensation arrangements pertinent to our Portfolio Management services.
Asset Management:
The maximum annual fee charged for this service will not exceed 1.00%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the client. Our firm bills on cash unless indicated
otherwise in writing. Annualized fees are billed on a pro-rata basis monthly in arrears based on the
value of the account(s) on the average daily balance of the month. Certain illiquid securities may
have a valuation lag in which case we will bill on the most recently available valuation. Fees are
negotiable and will be deducted from client account(s). Our firm does not offer direct invoicing. As
part of this process, Clients understand the following:
a) The client’s independent custodian sends statements at least quarterly showing the market
values for each security included in the Assets and all account disbursements, including the
amount of the advisory fees paid to our firm;
b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
firm will send an invoice directly to the custodian; and
c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
information provided in our statement with those from the qualified custodian will be
included.
Financial Planning & Consulting:
We charge on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee that we charge you, is based on the scope and complexity of
our engagement with you. Our maximum hourly fee is $1,000, and our maximum flat fee is $150,000.
The client has the option of having the financial planning and consulting fee deducted from their
managed account or be billed directly. If the client elects to have the fee billed directly, the fee will be
due to us within thirty (30) days of your financial plan being delivered or consultation being
rendered to you. In all cases, we will not require a retainer exceeding $1,200 when services cannot
be rendered within 6 (six) months. If at any point the client is not satisfied with the service, our
firm will issue a full refund of the fees received.
Retirement Plan Consulting:
Our maximum fee for our Retirement Plan Consulting service is 1.00% of the assets under
advisement. We may also charge on an hourly basis for one-time consulting services. The total
estimated fee, as well as the ultimate fee that we charge you, is based on the scope and complexity of
our engagement with you.
ADV Part 2A – Firm Brochure Page 6 Granite Harbor Advisors, Inc.
Our firm’s annualized fees are generally billed on a pro-rata basis monthly or quarterly in arrears
based on an average daily balance of the account(s) value during the billing period. Hourly
engagements will be billed directly.
Due to limitations at certain custodial platforms, we may bill based upon the account balance as of
the final day of the previous billing period. The specific fee-paying arrangements for Retirement Plan
Consulting service will be determined on a case-by-case basis and will be detailed in the signed
Retirement Plan Consulting Agreement.
Other Types of Fees & Expenses
Non-Wrap Clients will incur transaction fees for trades executed by their chosen custodian, via
individual transaction charges. These transaction fees are separate from our firm’s advisory fees and
will be disclosed by the chosen custodian. Charles Schwab & Co., Inc. (“Schwab”) does not charge
transaction fees for U.S. listed equities and exchange traded funds.
Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), distribution
fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, mark-ups and
mark-downs, spreads paid to market makers, fees for trades executed away from custodian, wire
transfer fees and other fees and taxes on brokerage accounts and securities transactions. Our firm
does not receive a portion of these fees.
Wrap fee clients will receive our Form ADV, Part 2A, Appendix 1 (the “Wrap Fee Program Brochure”).
Wrap fee clients will not incur transaction costs for trades. More information about this is disclosed
in our separate Wrap Fee Program Brochure.
Termination & Refunds
We charge our advisory fees quarterly or monthly in arrears. If you wish to terminate our services,
you need to contact us in writing and state that you wish to cancel the advisory agreement. Upon
receipt of your letter of termination, we will proceed to close out your account and charge you a pro-
rata advisory fee(s) for services rendered up to the point of termination.
Commissionable Securities Sales
Our firm and representatives do not sell securities for a commission in advisory accounts.
ADV Part 2A – Firm Brochure Page 7 Granite Harbor Advisors, Inc.