Item 5: Fees and Compensation
HIL offers its services on a fee basis, which may include hourly fees, as well as fees based upon assets under
management.
Portfolio Management Fee
HIL provides investment advisory and management services for an annual fee based upon a percentage of the
market value of the assets being managed by HIL (“Management Fee”). HIL’s investment adviser
representatives/Hegarty Investment Logic, may provide investment management and retirement planning services
(see Retirement Planning services described above) without charging an additional retirement planning fee. HIL’s
Management Fee is exclusive of, and in addition to, other related costs and expenses, which are incurred by the
client. HIL does not receive any portion of brokerage commissions, transaction fees or other expenses charged by
Custodians. The annual money Management Fee varies depending on the type of account and account size. For
example, our various fees for money management are as follows:
a) 2% for our Income & Growth type strategies (utilizing No-Load mutual funds/ETF’s and No-Load annuity sub-
accounts) for the first $2 Million, then negotiable thereafter.
b) 2% for our Growth type strategies (utilizing No-Load mutual funds/ETF’s and No-Load annuity sub-accounts) for
the first $2 Million, then negotiable thereafter.
c) Negotiable Fees for Qualified Plan type accounts including No-Load 529 College Savings Plans.
Our management fees and our planning fees can be reduced or waived at HIL’s sole discretion.
The management fee is charged quarterly in arrears based on the value of the account on the last business day of
the previous quarter as determined by the custodian. This means we provide our service first and then we bill the
client quarterly.
HIL shall under no circumstances have physical custody of Client funds or securities. At no time is the Client required
to pre-pay more than $500 in fees, more than 6 months in advance.
The Management Fee for the initial quarter is calculated on a pro-rota basis commencing on the day the assets are
initially designated to us for management. Clients may make additions to and withdrawals from the account at any
time, subject to our right to terminate an account.
Termination: The Client may terminate this Agreement at any time by written notice of some kind or email. HIL must
give the Client a two-week notice before terminating any client’s contract. Upon notification of death of a client or joint
client this Agreement shall automatically terminate unless a surviving “joint owner” or “person of authority” wishes to
continue the agreement. Notice shall be given in writing. Any accrued fees for past work that has been earned by HIL
shall be paid within 15 days of the termination of this Agreement . HIL will have no obligation to the Client under this
Agreement after termination.
Retirement Planning Fees
HIL may charge retirement planning fees separately for such services in addition to the agreed upon Management
Fee. Retirement planning services can be offered as a complimentary service and/or for a fee for more complicated
cases. Typical hourly fees of between $150-$250 per hour are charged depending on the complexity of the client’s
situation and needs. All fee arrangements are authorized in writing to ensure client’s understand all fees charged.
Such fees are in addition to any investment Management Fees set forth above and negotiated with each client
separately unless otherwise set out in the Investment Management Agreement.
Fees Charged Custodians
Clients may incur certain charges imposed by the Custodians, and other third parties such as custodial fees, charges
imposed directly by a mutual fund or ETF in the account, which are disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses ), deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Additionally, clients may incur brokerage commissions and transaction fees. Such charges and fees are exclusive of
and in addition to HIL’s Management Fee.
HIL instructs the Custodians to debit its management fees from client accounts.
Any Custodians recommended by HIL have agreed to send a statement to the client, at least quarterly, indicating all
amounts disbursed from the account including the amount of management fees paid directly to HIL. This capability
will be authorized by the client in writing. HIL will send a copy of the invoice contemporaneously with instructions for
the custodian to make a fee deduction.