Income & Asset Advisory Inc

Item 5       Fees and Compensation
                      INDIVIDUALIZED PORTFOLIO MANAGEMENT FEES
The annualized fee for Investment Supervisory Services, which is payable on a monthly basis in
arrears, is calculated based on the fair market value of the managed assets at the close of business on
the last day of the preceding month. An advisory fee is charged on cash balances in the account. We
do not, however, charge an advisory fee on interests in limited partnerships, or other non-managed
assets. IAA's standard portfolio management fee schedule is as follows:
       Assets under Management                              Annualized Fee
       Less than $500,000                                          1.25%
       $500,001 to $1,000,000                                      1.10%
       $1,000,001 to $2,000,000                                    1.05%
       $2,000,001 to $3,000,000                                    1.00%
       $3,000,001 to $4,000,000                                    0.85%
       $4,000,001 to $5,000,000                                    0.70%
       $5,000,001 to $10,000,000                                   0.60%
       More than $10,000,000                                       0.45%

                                    PENSION CONSULTING FEES
We charge a fixed fee for Pension Consulting Services which ranges from 0.25% to 1.50% of plan
assets depending on the services requested and the size of the plan. Fees are agreed upon at the time
of the engagement and are payable in arrears on a monthly basis.
Certain associated persons of IAA can receive commissions for executing securities transactions, or
12b-1 distribution fees from the investment companies chosen by the plan sponsor. In such cases, we
provide full disclosure to plan sponsors regarding such commissions and fees. IAA will offset any
commissions or fees received by such associated persons from asset-based advisory fees charged by
our firm for ongoing pension consulting services. The receipt of such additional fees and their
availability from different vendors may create conflicts of interest.
                                    CONSULTING SERVICES FEES
IAA's Consulting Services fee is 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 an
advisory contract with any client.
We charge for consulting services on a flat rate or an hourly basis. Our flat and hourly rates are
generally not negotiable. For hourly projects, we provide an estimated fee range prior to beginning

Income & Asset Advisory, Inc.                                                                        7

the engagement, calculated at the rate of $250 per hour. Fees typically range from $250 to $2,000,
depending on the complexity of the financial situation, the amount of research that is required, the
number of expected meetings, and time expected to complete the engagement.
Consulting Services Fee Offset: We reserve the discretion to reduce or waive the hourly fee and/or the
flat fee if a consulting client chooses to engage us for our Portfolio Management Services.

                                OTHER SECURITIES COMPENSATION
Mr. Waxler is a registered representative of Osaic Wealth, Inc., a registered broker-dealer and an
investment adviser representative of Osaic Wealth, Inc.. a SEC registered investment adviser . Through
Osaic Wealth, Inc., he may sell securities or other investment advisory services to Income and Asset
Advisory, Inc.’s clients for a commission or additional advisory services. This causes a conflict of
interest because the additional commissions and advisory fees are separate from the fees outlined
above. Mr. Waxler attempts to mitigate this conflict of interest to the best of his ability by placing the
client’s interest ahead of his own through his fiduciary duty. Additionally, it is our policy that
recommended securities purchases or advisory services do not have to be purchased through Mr.
Waxler or any affiliate.
                                     GENERAL INFORMATION
Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either
party, for any reason upon receipt of 30 days written notice.
Limited Negotiability of Advisory Fees: Although IAA has established the aforementioned fee
schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis. Client
facts, circumstances and needs are considered in determining the fee schedule. These include the
complexity of the client, assets to be placed under management, anticipated future additional assets;
related accounts; portfolio style, account composition, reports, among other factors. The specific
annual fee schedule is identified in the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum account size
requirements and determining the annualized fee.
Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.
Billing Terms. We bill the advisory fee in arrears every month. When authorized by the client, fees are
debited from the account in accordance with the terms set forth in the Client Management
Agreement. Our clients receive an account statement directly from their custodian reflecting the
deduction of the advisory fee.
Additional Fees or Expenses. In addition to our advisory fee, clients are also responsible for the fees
and expenses charged by custodians and imposed by broker dealers, including fees for custodial
services, account maintenance fees, transaction fees, and other fees associated with maintaining an
account.
We may recommend mutual funds that charge sales fees, which are often called “loads”
(commissions), and so-called no-load mutual funds that do not charge sales fees. In addition, load and
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Item 7       Types of Clients
We furnish investment management services to individuals, trusts, estates, charitable organizations,
tax-exempt funds (such as pension and profit-sharing plans), 401(k) plans corporations, and other
business entities. Our minimum account size is generally $100,000. We aggregate accounts held by
members of the same household when determining whether to accept an account. We reserve the
right to accept accounts of any size in our sole discretion.