HFR Wealth Management LLC

Fees & Compensation
Our Investment Advisory Fees
HFR is a “fee only” investment management firm: We charge clients an annual fee based on a percentage of assets
under management with each client. We have a written Agreement with each client that includes a fee schedule
detailing our advisory fees. Our fees are typically paid quarterly in advance and charged at a rate of ¼ of the
annual fee, based on the value of client account assets at the end of each calendar quarter. Clients may elect to be
billed directly for portfolio management fees, though typically clients authorize their custodian, typically Charles
Schwab & Co., Inc., to allow us to our directly debit our advisory fees from client accounts. Clients receive
copies of bills or receipts, detailing fee calculations and notices of payment. Our standard fee schedule is as
follows:
                                                Annual Fee Schedule:
                                   Assets Under Management ($)        Annual Fee (%)
                                       On the first 500,000                 1.0
                                       On the next 500,000                  0.8
                                       On the next 1,000,000                0.6
                                    On assets over 2,000,000                0.5
General Minimums:
Account Size .............$500,000
Quarterly Fee ............$625
Fees and account minimums for all services are negotiable based upon certain criteria (i.e. level of service
required, anticipated future additional assets, dollar amount of assets to be managed, related accounts, account
composition and complexity, etc.).
We may group certain related client accounts for the purposes of determining the account size and/or annualized
fee.
Certain client agreements may be governed by fee schedules different from those listed above.
The initial billing for a new client account is calculated on a pro-rata basis for the remainder of the current
calendar quarter, based upon the market value of the account (provided by the account custodian) either when the
assets are transferred in to establish the new account, or when an existing Schwab account is linked to our
computer systems. The terms of the specific account’s management fees are detailed in client’s Agreements.
Quarterly fees are due on the first business day of each calendar quarter and may be charged by us at any time
during that quarter.

Unless agreed to otherwise, any and all account asset classes, including cash positions, are included in the firm’s
advisory fee calculation. At certain times our advisory fee may exceed the money market yield for cash assets.

Additional Custodial and Brokerage Services Fees and Charges
Our advisory fees are exclusive of custodial and brokerage fees that may be addition to HFR’s annual portfolio
management fee. Clients pay transactional commissions to their broker/dealer and/or custodian for the purchase
and sale of securities, plus mutual fund management fees for mutual funds (including money market funds).
Schwab Advisor Services, the custodian we currently use to execute trades for our clients, has generally
eliminated stock trading brokerage commission charges for trades that we do in our client’s accounts. In the rare
event that we need to execute trades with special settlement terms, commission charges may be assessed by
Schwab. Mutual fund fees are disclosed in the funds’ prospectuses, which we can provide our clients. When
clients transfer mutual fund assets into the accounts we manage, generally we will liquidate the funds and Schwab
Advisor Services may charge a commission, generally less than $50, per fund sale. There may be additional
brokerage and custodial service charges, fees and taxes.
Generally, we purchase common stocks and investment grade bonds for portfolios. Typically, bonds we purchase
are from Schwab Advisor Services, acting as principal, with no bond commission charges. There may be
commissions, typically less than $100 per trade, when Schwab Advisor Services acts as agent for the bond
transaction. We minimize the use of mutual funds (though we do use money market funds), except with respect
to smaller accounts where it is impractical and difficult to achieve cost-effective diversification with a portfolio
of individual stocks and bonds.
   HFR receives no share of any commissions generated through portfolio trading for any clients, nor
   does it receive any portion of mutual fund fees or other custodial or trading charges.
All of our Agreements with our clients may be terminated at any time, by either us or by our client, via written
notification. Clients can alternatively notify their custodian, who will promptly notify us that our management
services have ended. In case of any termination of our services, clients will only be charged for the pro-rated
portion of the quarterly fee of management, and will be refunded the pro-rata portion of the quarterly fee not used,
within 10 business days of notification. Such refund will be calculated from the day following notification
through the remainder of the calendar quarter. If a client terminates an advisory Agreement within five business
days of the execution of the Agreement, the client is entitled to a full refund of any advisory fees paid to us.

Types of Clients
HFR provides portfolio management services for individuals, high net worth individuals, corporations, pension
and profit sharing plans, as well as charitable organizations and foundations.