Item 5 – Fees and Compensation
Wealth Management Fees
Our fees vary among the different types of advisory services we offer and may be negotiated at our sole discretion.
The specific fees and manner in which fees are charged and calculated are described in your investment advisory
agreement. Clients should carefully review the investment advisory agreement prior to signing it. IFC will request
authority from clients to receive quarterly payments directly from the client’s account(s) held by an independent
qualified custodian.
Fees for our advisory services may be higher than fees charged by other advisers who offer similar services. A
client may be charged different fees than similarly situated clients for the same services. Clients should carefully
review this brochure to understand the fees and other sources of compensation that exist among our services prior
to entering into an investment advisory contract with our firm. In certain circumstances, all fees, account
minimums and their applications to family circumstances may be negotiable.
IFC offers investment and wealth management services for an annual fee based on the amount of assets under the
firm’s management and typically ranges from 0.10% to 1.75%. Fees are generally billed in advance each calendar
quarter based on the market value of the account at the end of the calendar quarter. New accounts will be charged
a pro-rated fee for the remainder of the quarter in which the account is incepted. Advisory fees shall apply to
accrued interest and shall apply to cash balances unless negotiated or agreed upon otherwise. Upon termination of
any agreement, any prepaid, unearned fees will be promptly refunded. For individual additions or withdrawals of
more than $100,000 in the account throughout the quarter, advisory fees will be prorated based on the number of
days in the quarter services were received or the assets under IFC’s management.
IFC, in our sole discretion, may waive or negotiate the annual fee based upon certain criteria, including, but not
limited to, anticipated future earning capacity and/or additional assets, dollar amount of assets to be managed,
related accounts, account composition, pre-existing client relationships, account retention, and pro bono activities.
For investment and wealth management services IFC provides with respect to certain client holdings (e.g., held-
away assets, 529 plans, etc.), we may negotiate a fee rate that differs from our standard fee schedule.
This fee schedule may be based on cumulative billable household assets under management. However, certain
ERISA rules prevent householding corporate plans with personal assets for fee reductions. Existing clients will be
grandfathered and charged according to their existing fee rate. Clients should refer to their advisory agreement for
their specific fee rate(s).
All fees paid to IFC are separate and distinct from the fees and expenses charged by mutual funds and ETFs to their
shareholders or the transaction fees charged by the custodian. Mutual fund and ETF expenses are described in each
fund's prospectus. These expenses will generally include a management fee, other fund expenses, and possibly a
distribution fee. A client could invest in mutual funds or ETFs directly, without the services of IFC. In that case, the
client would not receive the services provided by IFC which are designed, among other things, to assist the client in
determining which mutual fund/ETF 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, the transaction fees charged
by the custodian, as well as the fees charged by IFC to fully understand the total amount of fees to be paid by the
client.
Employee Benefit Retirement Plan Services
The annual fee for 401k plan services will be charged as a percentage of assets within the plan and typically ranges
from 0.10% to 1.75%. Fees are typically calculated in the same manner as described above for Wealth Management
Services. However, third-party administration service providers may actually calculate the fee each quarter based
on their records and remit such fee to IFC.
Independent Managers
Fees for advisory services offered through Wells Fargo are inclusive of IFC and Wells Fargo’s advisory fees and are
generally as follows:
Program Program Type Maximum Annual Advisory Fee
Private Advisor Network Separately Managed Account 1.75%
Personalized Unified Managed Unified Managed Account 1.25%
Account
FundSource® Mutual Fund Advisory Program 1.25%
Wells Fargo will calculate and directly debit advisory fees from the clients’ accounts for assets within their
program.
Financial Planning and Consulting Services
Financial planning and consulting fees shall be charged depending on the nature and complexity of client’s
circumstances and upon mutual agreement with client. IFC’s fees are negotiable, but for this type of financial
planning, fees generally range from a fixed fee of $25,000, but more complex or longer engagements will incur a
significantly higher fixed fee. The exact amount depends upon the level and scope of the services required and the
professionals rendering the services. IFC May request a retainer to initiate financial planning and consulting
services, with the balance due upon completion of services. IFC will not require any payment greater than $1,200
more than six (6) months in advance of services to be rendered.
You may retain IFC for additional investment management services to assist with implementing one or more
financial planning recommendations. As such, you will incur additional fees if you retain our firm for such services.
You have complete freedom in selecting an investment adviser to assist you in implementing any
...