HFM Investment Advisors Inc

Item 5: Fees and Compensation
Financial Planning
Financial Planning will generally be offered on a fixed fee basis. In special circumstances it may be
offered on an hourly basis at a rate of $200.00 per hour. Fixed fees will be determined on a case by
case basis with the fee based on the complexity of the situation and the needs of the client. The fixed
fee will be agreed upon before the start of any work. The fixed fee can range from $ 750.00 to
$15,000.00. The fee is negotiable and may be paid by check. HFM often uses plans, reports, and
proposals generated by Morningstar, Inc., and Financial Profiles. The fee charged for the services to be
performed is based on the relative complexity of the Client's situation. If the client is receiving
investment management services from HFM, we may waive the financial planning fee entirely.

If the fixed fee payment option is chosen, the client will deposit one-half of the fee upon signing the
Investment Advisory Agreement and the balance upon completion of the client's Financial Plan. No fee
would ever in any circumstance be payable six months or more in advance. The client has five (5)
working days after signing the Investment Advisory Agreement in which the deposit will be refunded in
full and after which time the deposit will be considered applying to expenses and costs incurred in
preparation of the Financial Plan. The contract may be terminated by the client in writing at any time.
However, if it is terminated beyond the first five (5) working days, any unearned fees will be refunded to
the Client.

If the hourly fee payment option is chosen, then the fee shall be payable in full upon completion of
work product and billing. All fees are subject to negotiation on a case-by-case basis and may be paid by
check.

Investment Management Services
Our standard advisory fee is based on the market value of the assets under advisement and will range
between 0.25% and 1.25%, depending on the situation, complexity, and services provided. The fee
amount and services will be agreed to between HFM and the client in the advisory contract.
The annual fees are negotiable and are pro-rated and paid in arrears on a quarterly basis. The fee
structure is subject to negotiation on a case-by-case basis. No increase in the annual fee shall be
effective without agreement from the client by signing a new agreement or amendment to their current
advisory agreement.
Advisory fees are directly debited from the client’s account. Accounts initiated or terminated during a
calendar quarter will be charged a pro-rated fee based on the amount of time remaining in the billing
period. An account may be terminated with written notice at least 30 calendar days in advance. Since
fees are paid in arrears, no rebate will be needed upon termination of the account.

Other Types of Fees and Expenses
Our fees are exclusive of transaction fees, and other related costs and expenses which may be incurred
by the client. Clients may incur certain charges imposed by custodians, brokers, and other third parties
such as custodial fees, 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.
Mutual fund and exchange traded funds also charge internal management fees, which are disclosed in a
fund’s prospectus. Such charges and fees are exclusive of and in addition to our fee, and we shall not
receive any portion of these fees, and costs.
Item 12 further describes the factors that we consider in selecting or recommending broker-dealers for
client’s transactions and determining the reasonableness of their compensation. We do not accept
compensation for the sale of securities or other investment products including asset-based sales
charges or service fees from the sale of mutual funds.

Item 7: Types of Clients
HFM Advises individuals, banks, pension plans,401(k) plans, profit sharing plans, charitable
organizations, trusts, estates, corporations and other business entities.
With respect to advisory clients that are accounts regulated under the Employee Retirement Income
and Security Act (“ERISA”) or individual retirement accounts (“IRAs”), we provide general investment
advice about the merits and risks of several investment alternatives. We have no discretionary
authority or control, whatsoever, with respect to ERISA accounts. The named Plan fiduciary must make
the investment decision about the purchase of any products based on his/her understanding of the
Plan’s needs and objectives, and we are in no way responsible for any investment decisions. The Plan
fiduciary is free to seek independent advice about the appropriateness of any investment for the Plan.
We do not have a minimum account size requirement.