Item 5 Fees and Compensation
INVESTMENT ADVISORY FEES
Standard Offering:
Fee Calculation: The annualized fee will be charged as a percentage of assets under management,
according to the following schedule:
Assets Under Management Total HFA Annual Fee
$0 - $2,000,000 1.00%
$2,000,001 - $3,000,000 0.75%
$3,000,001 - $5,000,000 0.50%
Over: $5,000,000 0.35%
Accounts will be aggregated by household when determining total assets under management. Our fee
schedule is tiered, with households more than $2,000,000 having a blended fee rate. For example, a
$3,000,000 household would have a blended annual rate of 0.92%, with the first $2,000,000 billed at
1% and the next $1,000,000 billed at 0.75%.
Fees are due and payable quarterly in arrears and are pro-rated for partial quarters or for any flows
into and out of the account. In the event of contract termination, the fee shall be pro-rated to the date
of termination.
HFA's advisory fees are negotiable and may vary from client to client.
Payment Method: HFA recommends the services of Charles Schwab & Co., Inc. (“Schwab”) as
custodian for its clients’ accounts. Clients will establish and maintain at least one account with Schwab.
Fees are billed and deducted automatically from the Schwab account(s). Additional accounts may be
established and maintained with other third-party custodians as authorized and directed by Client
(“Held Away Assets”). Fees for Held Away Assets will generally be deducted from the client’s account
at Schwab and not from the third-party custodian account.
Beacon Offering:
Fee Calculation: The annualized fee will be charged as a percentage of assets under management,
according to the following schedule:
Annual Rate
HFA Fee 0.75% on all assets
Sub-Adviser Fee 0.25% on assets up to $2 million
0.15% on assets over $2 million
Management fees are calculated quarterly in arrears on the average daily market value of the assets in
the account during the quarter.
Payment Method: Client authorizes HFA and Sub-Adviser to instruct Custodian to deduct
management fees directly from the account. Client will be responsible for verifying the accuracy of
the fee calculation as Custodian will not do so.
FINANCIAL PLANNING FEES
Fees for ongoing financial planning services are typically included in investment advisory fees. All fees
are agreed upon prior to entering into a contract with any client.
CONSULTING SERVICES FEES
Our Consulting Services fee will be determined based on the nature of the services being provided
and the complexity of each client’s circumstances. All fees are agreed upon prior to entering into a
contract with any client.
ADDITIONAL FEE AND EXPENSE INFORMATION
Terminating the Advisory Relationship: A client agreement may be canceled, by either party, for any
reason upon seven days advance written notice.
Mutual Fund Fees: All fees paid to us for investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds and/or ETFs to their shareholders. These fees and
expenses are described in each fund's prospectus. These fees will generally include a management fee,
other fund expenses and a possible distribution fee. If the fund also imposes sales charges, a client
may pay an initial or deferred sales charge. A client could invest in a mutual fund directly, without our
services. In that case, the client would not receive the services provided by our firm, which are
designed, among other things, to assist the client in determining which mutual fund or funds are most
appropriate to each client's financial condition and objectives. Accordingly, the client should review
both the fees charged by the funds and our fees to fully understand the total amount of fees to be
paid by the client and to thereby evaluate the advisory services being provided.
Wrap Fee Programs: In some instances, HFA may recommend investment strategies that are available
as part of a wrap fee program sponsored by Schwab or Betterment. Clients participating in wrap fee
programs may be charged various program fees in addition to the advisory fee charged by our firm.
Such fees may include the investment advisory fees of the third-party manager, which may be charged
as part of a wrap fee arrangement. In a wrap fee arrangement, clients pay a single fee for advisory,
brokerage and custodial services. Client’s portfolio transactions may be executed without commission
charge in a wrap fee arrangement. In evaluating such an arrangement, the client should also consider
that, depending upon the level of the wrap fee charged by the broker-dealer, the amount of portfolio
activity in the client’s account and other factors, the wrap fee may or may not exceed the aggregate
cost of such services if they were to be provided separately. We will review with clients any wrap
program fees that may be charged to clients.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible for the
fees and expenses charged by custodians and imposed by broker/dealers, including, but not limited
to, any transaction charges imposed by a broker/dealer with which an independent investment
manager effects transactions for the client's account(s). Please refer to the "Brokerage Practices"
section (Item 12) of this Form ADV for additional information.
Grandfathering Minimum Account Requirements: Pre-existing advisory clients are subject to our
minimum account requirements and advisory fees in effect at the time the client entered into the
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