Item 5 – Fees & Compensation
Portfolio Management Service Fees
For individual Portfolio Management services, also sometimes referred to as our Private Wealth Accounts, GIA
charges an annual aggregated and blended fee rate, based on a calculated percentage of total household
Investment Advisory assets under management which is calculated and charged monthly based upon asset levels
at the end of the prior month. Household is defined as all Investment Advisory accounts owned or controlled in
a fiduciary capacity by an individual and their spouse. GIA’s fees are exclusive of, and in addition to, brokerage
commissions (payments to custodians for execution of various transactions), transaction fees, and other related
costs and expenses which are incurred by the client. GIA does not receive any portion of these brokerage
commissions, transaction fees, and other related costs. Fees are charged per the GIA fee schedule in the client
agreement. The annual aggregated fee can vary (between 0.20% and 1.50%) depending upon the market value
of the assets under management and the type of investment management services to be rendered. Clients are
encouraged to bring additional assets under management to help reduce the overall fee rate. Under some
circumstances, such as for long-standing clients whose relationship predates our current agreement or for family
members of those long-standing clients, our fee schedules are negotiable at our sole discretion. GIA uses money
market/stable value funds and cash defensively and tactically in its management process, therefore assets
invested in money market/stable value funds and cash are subject to GIA’s management fee. GIA charges an
additional $4.00 monthly administration fee on Traditional Private Wealth accounts.
The fee schedule for individual Portfolio Management services identified as an Emerging Wealth (“EW”)
account will be identical to the individual Portfolio Management services, except that the monthly
administration fee of $4 will be waived for clients who only have an Emerging Wealth account; however, if a
client also has a Private Client account and is already paying the monthly administration fee, the EW account
assets will be included on the client’s performance reports. It is possible for an individual to purchase the same
or similar investments directly through another source, which would allow the client to forego paying the
Investment Advisory Fee to Guidance. Depending on the investment, the client may pay transaction fees to
buy or sell the funds and other investments in their accounts. Mutual fund managers charge fees separate
from those of Guidance, so there may be layered investment management fees imbedded in these investments
which contribute to the overall expense ratio; however, Guidance does not receive or retain any of these
layered fees. For legacy Broker Dealer clients who originally paid a commission for their investments and now
want to transition to an EW account, the implementation of the advisory fees may be delayed by GIA,
depending on when the investments were purchased, to compensate for prior commissions paid and help
provide clients with an equitable transition.
GIA offers programs which allow us to bring specialty investment services to our clients by using third-party or
separate account managers. Many of these services do not include any compensation for the advisor; therefore,
GIA will assess a fee in addition to the underlying fees already charged by the investment manager for this service.
GIA does not offer a “Wrap Account” program, which is a type of investment account in which all expenses,
including advisory fees and commissions, relating to the account are wrapped into a single annual fee. GIA
believes that all fees should be separately accounted for and fully disclosed to the client.
Financial Planning/Consulting Service Fee
Basic Financial Planning and Consulting Services are available to our clients as part of the advisory relationship.
If a client requests additional services, we reserve the right to enter into a separate consulting services
agreement. Extraordinary research or analysis may involve additional costs and will be negotiated on an
individual basis prior to beginning such work.
If a separate Financial Planning or Consulting Services agreement is entered into, under no circumstances will
GIA require prepayment of a fee more than six months in advance and/or in excess of $500, as services will be
rendered within six months of receipt of payment.
The client may terminate the consulting agreement within five days of the date of executing the agreement for
services without penalty. After the five-day period, either party may terminate the agreement by providing
written notice to the other party. In the event there are any prepaid unearned fees, GIA will promptly refund a
pro-rata share of the unearned fees to the client.
Advisory services for Employer Sponsored Retirement Plans
GIA provides both advisory and consulting services on employer sponsored retirement plans. Depending on the
size of the plan and the scope of services desired, GIA’s annual base advisory service fee can range from 1.50%
to 0.04% (the lowest fee would be for a $100 Million plan with the minimum fiduciary services provided) of the
total plan assets under management. The actual aggregated averaged fee percentage charged depends on the
size of the account and the level of services requested. Additional service fees may apply depending on optional
services selected by each respective plan sponsor. These combined services may result in a fee rate as high as
1.50%. GIA may also elect to charge a flat fee depending on the scope of work performed.
Investment Advisory Agreement
Both the description of services offered and the specific manner in which fees are charged by GIA are established
in the client’s written “investment advisory agreement” with GIA. Depending on the type of account, GIA bills
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