Heartwood Wealth Advisors LLC

Item 5 – Fees & Compensation

Portfolio Management Service Fees
For individual portfolio management services, Heartwood charges an aggregated fee, based on a percentage
of total household assets under management. The maximum annual fee to be charged for our services will not
exceed 1.5% of assets under management. The fee assessed to the client account(s) will be detailed in our
firm’s Investment Advisory Agreement ("Advisory Agreement"). The detailed fee schedule shall be applied
to the market value of the account’s assets as reasonably determined by our firm. Heartwood 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 the management fee.
Heartwood enters into a written Advisory Agreement with its clients. The Advisory Agreement contains
the fee arrangement. Either party may cancel the Advisory Agreement without penalty upon thirty days’ written
notice. The client may also cancel the Advisory Agreement within five days of receiving this Form ADV Part
2A and Form ADV Part 2B.

Our annual portfolio management fee is billed and payable quarterly in advance based on the value of your
account on the last trading day of the previous quarter. If the Advisory Agreement is executed at any time
other than the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that the
advisory fee is payable in proportion to the number of days in the quarter for which you are a client.
Payment of Fees
Investment clients generally authorize Heartwood to take payment of fees as they become due out of the
client’s account. Heartwood has the discretion to redeem at the then price or current net asset value a sufficient
number of account securities in order to pay these fees. Fees are deducted quarterly. Some clients choose to
pay by check. The custodian of the client’s investment assets provides a written confirmation of the fees taken.
At our discretion, we combine the account values of family members or business partners to determine the
applicable advisory fee. Heartwood may, in its sole discretion, change the actual fee charged upon thirty days
written notice to the client. Clients may accept the change or close the account.
Outside Brokerage Arrangements
Ben Gurley is a registered representative with Purshe Kaplan Sterling Investments (“PKS”), a securities broker-
dealer and member FINRA/SIPC. This arrangement is to administer and service brokerage products for
Heartwood clients. As such, Mr. Gurley is entitled to receive brokerage commissions. This could present a
potential conflict of interest due to the incentive to generate commissions. Clients are under no obligation,
contractually or otherwise, to purchase any commission- based securities products through Mr. Gurley. It is
important to note that Heartwood Wealth Advisors does not receive any of these commissions or share in this
revenue. Heartwood highly values transparency and will make clear to you the compensation Mr. Gurley will
receive in such transactions. Heartwood attempts to mitigate this conflict of interest by disclosing the
conflict to clients and informing clients that they are always free to purchase commission-based securities
products through other advisors that are not affiliated with the firm, or to determine not to purchase the
commission-based security product at all. Heartwood also attempts to mitigate the conflict of interest by
requiring employees to acknowledge, in the firm’s Code of Ethics, their individual fiduciary duty to the clients

 of Heartwood, which requires that employees put the interest of clients ahead of their own.
 Financial Planning/Consulting Service Fee
 Under a separate financial planning agreement, Heartwood provides financial planning/consulting services for
 individuals, families, and estates. Our fixed fees are mutually agreed upon beforehand and are predicated on
 the complexity and scope of services to be performed.
 Income Tax Return Preparation and Filing Fees

In consideration of the provision of income tax return preparation and filing, Heartwood charges a
predetermined annual fee based on the scope of the work, payable via deduction from the client’s investment
account. The fees charged by The Tax Complex are payable directly by Heartwood.

 Important note about additional fees: In addition to advisory and underlying investment fees, client
 accounts are also subject to various custodial or account administration fees. These fees vary with each
 custodian but are always fully disclosed to the client in advance.
 Client fees imposed by custodians, brokers, and other third parties could include:

     •   Fees charged by fund companies
     •   Fees charged by separate account managers
     •   Brokerage commissions
     •   Wire transfer and electronic fund transfer fees
     •   Custodian fees
     •   Mark-ups/mark-downs on security
         transactions

Item 7 – Types of Clients

 Heartwood offers advisory and planning services to high net worth individuals, families, trusts, estates,
 charitable organizations, small businesses, pension plans and profit sharing plans. To be able to offer our clients
 our most effective work, Heartwood recommends (but does not require) that clients have at least $2,000,000
 in total manageable assets with the firm. This allows us to prudently diversify client accounts into lower cost
 investment vehicles and avoid conflicts caused by certain investment minimums.