Human Investing LLC

ITEM 5
FEES AND COMPENSATION                                      For new clients beginning with assets above
                                                           $3,000,000 we have an alternative fee schedule, in
A. Our Fees. We are a “fee-only” investment advisor        accordance with the following fee schedule:
and neither our firm, nor any of our associated
persons, accept commissions or any other form
                                                           VALUE OF ASSETS MANAGED             ANNUAL ASSET-BASED FEE
of remuneration for the sale of any securities or          BY HUMAN INVESTING
insurance products to clients. We act as your
                                                           Up to $3,000,000                  1.00% (100 basis points)
fiduciary and will only recommend investments
to you when we believe them to be in your best             $3,000,001-$5,000,000              0.85% (85 basis points)
interests. The fees we charge for our services are set
forth in a written advisory agreement entered with         $5,000,001-$10,000,000             0.80% (80 basis points)
the client at the inception of our relationship. We may
negotiate fees with clients in certain circumstances.      $10,000,001-$20,000,000            0.70% (70 basis points)
Our fees may be amended prospectively from time to
                                                           $20,000,001+                       0.50% (50 basis points)
time upon thirty (30) days’ prior written notice to the
client.                                                    Fees for these services are typically billed quarterly
                                                           in advance and are paid to Human Investing via
Fees for Combined Financial Planning and                   direct fee deduction from the client’s account at
Investment Management Services: As reflected               the qualified custodian. Unless otherwise agreed,
above in Item 4, clients typically receive financial       we will rely on the market value of your account
planning services in conjunction with our rendering of     as determined by the custodian of your assets in
ongoing investment management services. In these           calculating our advisory fees. Fees for the initial
circumstances, we will charge you an annual asset-         period of services are based on the market value
based fee calculated as percentage of the market           of the client’s assets as of the date of the deposit.
value of your account.                                     Thereafter, such fees will be calculated based upon

human investing®                                                                       FORM ADV PART 2 • 6

the market value of your assets as of the end of the                 a combination of assets under management for
prior quarter. We will pro-rate our asset-based fees                 the client and the expected complexity of the Tax
for any partial billing periods (based on the number                 Services. In the event we go over the expected hours
of days services were provided) and for mid-period                   to complete a tax return, we will alert that we will
additions and withdrawals of capital to or from your                 start billing an hourly rate for additional work. We will
account (based on the transaction date).                             typically charge you hourly fees at a rate of $300 per
                                                                     hour. All fees will be set forth in a written agreement
In some instances, and only with your prior written                  executed by the client and Human Investing prior to
consent, Human Investing may charge you hourly                       our performance of any Tax Services. All fees are due
fees of up to $300 per hour for certain projects, as                 upon presentation of our invoices and are payable to
authorized in the Investment Advisor Agreement                       us via check or other mutually agreed upon payment
(“IAA”). These fees will be invoiced to you and paid                 method.
by check, wire transfer or ACH, or debited directly
from your nonqualified account at the qualified                      Fees for Workplace Advisory Services: When you
custodian of your assets with 30 days prior written                  engage us for these services, the fee structure will
notice or your approval. Hourly fees, if any, are                    depend on the size and complexity of the plan and
separate and distinct from the asset based charges                   the level of services required to properly serve the
described above.                                                     plan and will typically be paid via direct fee deduction
                                                                     from the client’s account at the qualified custodian.
For those utilizing VPI’s services, VPI’s fee schedule               Plan sponsors have the choice of how to absorb or
is in accordance with the following. Fees are billed                 delegate the fee payment. Asset-based fees are billed
quarterly in arrears, based on the last day of the                   in advance, using the quarter end balance based on
quarter as valued by the custodian. Additional rates                 the recordkeeper for the plan. All fees are negotiable.
may apply for utilizing specific indices.                            We have three typical approaches to structuring our
                                                                     workplace advisory fees, which can be combined.
                        FIRM LEVEL RATES
                                                                     •	 Flat Fees: Our flat fees range from $10,000 to
AGGREGATE ASSETS UNDER MANAGED
FOR HUMAN INVESTING BY VANGUARD             ANNUAL ASSET-BASED FEE      $20,000 a year. We may also charge flat fees for
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TYPES OF CLIENTS
   interest, fees, and investments;                         We provide investment advice to the following types
•	 follow policies and procedures designed to ensure        of clients:
   that we give advice that is in your best interests;
•	 charge no more than a reasonable fee for our             •	   Individuals, including high-net worth individuals;
   services; and                                            •	   Banks and credit unions;
•	 give you basic information about conflicts of            •	   Pension and profit sharing plans;
   interest.                                                •	   Trusts, estates, and charitable organizations; and
                                                            •	   Corporations and other business entities.
Many employers permit former employees to keep
their retirement assets in their company plan. Also,        Because each client is unique, we encourage
current employees can sometimes move assets out             involvement in the planning and processes involved
of their company plan before they retire or change          in the management of their accounts. Such
jobs. In determining whether to complete the rollover       involvement does not have to be time consuming,
to an IRA, and to the extent the following options are      however it is our goal that clients remain informed
available, you should consider the costs and benefits       and have a sense of security about their investments.
of a rollover.
                                                            As a firm, we value having a diverse client base
Note that an employee will typically have four options      and ensuring that professional financial advice
in this situation:                                          remains reasonably accessible to clients from all
1.	 leaving the funds in your employer’s (former            walks of life. For this reason, with the exception of
    employer’s) plan;                                       our minimum annual fee of $6,250 for combined
2.	 moving the funds to a new employer’s retirement         financial planning and investment management
    plan;                                                   services (described in Item 5), we do not impose
3.	 cashing out and taking a taxable distribution from      any minimum annual fee requirements or account

human investing®                                                                        FORM ADV PART 2 • 9

size requirements to open or maintain an advisory           we rely upon when researching and analyzing
relationship with our firm.                                 securities using fundamental analysis include
Clients wishing to obtain our combined financial            research materials prepared by others, annual
planning and ongoing investment management                  reports, corporate rating services, prospectuses, and
services while avoiding the foregoing minimum               company press releases.
annual fee requirement should consider engaging
Human Investing under our Access Program. We                Asset Allocation: Rather than focusing on selecting
maintain a separate informational brochure that             the particular securities or other assets to invest for
describes the nature of our Access Program services         your account, we attempt to identify an appropriate
and fees. Please inquire with us at the telephone           ratio of various types of investments (for example,
number reflected on the cover page of this brochure         stocks, fixed income, and cash) suitable to your
if you would like to receive a free copy of our Access      investment goals, time horizon, and risk tolerance. A
Program brochure.                                           risk of asset allocation is that you may not participate
                                                            in sharp increases in a particular security, industry,
                                                            or market sector. Another risk is that the ratio of
ITEM 8                                                      securities, fixed income, and cash will change over
METHODS OF ANALYSIS, INVESTMENT                             time due to stock and market movements and, if not

STRATEGIES AND RISK OF LOSS                                 corrected, will no longer be appropriate to meet with
                                                            your investment goals.
A. Methods of Analysis and Investment
Strategies. We construct portfolios based upon the          Mutual Fund and ETF Selection and Analysis: We
client’s financial plan, IPS (if applicable), and/or risk   evaluate and select mutual funds and ETFs based on
tolerance. Client portfolios are typically constructed      several factors which may include, without limitation,
using a diversified mix of some or all of the following     (1) the experience and track record of the underlying
instruments: mutual funds, ETFs, individual stocks          portfolio manager(s), (2) the performance of the fund
and bonds, cash, and cash equivalents.                      over time and through various market conditions;
                                                            (3) expected market conditions that might impact
We may use some or all of the following methods of          the underlying holdings of the fund or applicable
analysis in providing investment advice to you:             market sector; and (4) whether and to what extent
                                                            the underlying holdings of the fund overlap with other
Fundamental Analysis: In using fundamental                  assets held in your account. We also monitor the
analysis, we attempt to determine the intrinsic value       fund in an attempt to determine if it is continuing to
of target securities through a review of, among other       follow its stated investment strategy.
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