Independent Solutions Wealth Management LLC

Item 5 – Fees and Compensation
Financial Planning and Consulting
Independent Solutions provides financial planning and consulting services specific to each client’s
financial concerns, risk tolerance, investment return objectives and, where applicable, their tax
status. Their advisor may also provide general non-investment advice on topics ranging from tax
and budgetary planning, estate planning, insurance planning and business planning. While

generalized advice may be given in these areas, neither the Firm nor its IARs are tax accountants
or attorneys. In these areas, clients are instructed to consult with their tax or legal advisors for
specific recommendations.

Clients electing comprehensive financial planning services are charged a fee ranging from $500 to
$10,000 based on the complexity of their financial concerns and the range of services to be
provided by the Firm in conjunction with developing their financial plan. In these cases, the
advisor performs all necessary information gathering and is primarily responsible for interactions
with the client. If a financial planning client was referred to us by a solicitor, the client may also
be charged a solicitor’s fee ranging from $0 to $10,000 if the referring solicitor assists with
information gathering from the client. The Firm does not share in the solicitor fee, if charged.

The advisor estimates the length of the project, the amount of work involved and the range of
services that will be provided. These issues are discussed with the client and the fees are noted in
the financial planning or consulting agreement the client signs. Fees for these services are due and
payable either upon completion of the services or monthly in arrears based on the services received.

It is anticipated that the financial plan produced will be delivered within six months of the date of
the agreement. The advisor considers fees for financial planning or a consulting project to be
earned as progress is realized toward creation of the plan or completion of the service. Since fees
are payable after services are performed, there are no unearned fees and the client is not due a
refund upon early termination of an agreement. However, the advisor’s fees are prorated from five
(5) business days after signing the agreement to the date of termination.

When multiple services are offered, there is a potential conflict of interest since there is an incentive
for the party offering financial planning services to recommend products or services for which the
advisor, or a related party, may receive compensation. However, financial planning clients are under
no obligation to act upon any recommendations of the advisor or to affect any transactions through
the advisor if they decide to follow the recommendations.

If a client elects to engage the Firm for consulting services, we will typically charge hourly rates
ranging from $150 to $300 per hour depending on the nature and complexity of the project. Fees
for consulting projects may be billed monthly, at the end of a project or as agreed to with the client.

Advisory Fees
Depending on specific client circumstances or particular models, the Firm’s advisory fees may be
waived or negotiated, at the discretion of the Firm’s Management. Advisory fees for our Mutual
Fund Portfolio Management service, ETF Portfolio Management service and Third-Party Manager
Selection service range from 0% (if fees are waived) up to 2.50% (250 basis points) of the assets
in the account as specified in our Investment Management Agreement. Our advisory fee for the
Stock Portfolio Management service may range from 0% (if fees are waived) up to 2.75% (275
basis points) of the assets in the account.

Advisory fees assessed to clients are specified in the Investment Management Agreement executed
at the time a client engages the services of Independent Solutions. Appropriate portfolio models

and their respective fee schedules are determined by the IAR based on suitability and financial
objective parameters conveyed by the client during initial discovery interviews. Fees may be
negotiable within a client’s selected Fee Schedule at the discretion of the IAR.

In determining the fee that we charge clients who are referred to us by a solicitor, we start with a
base fee of either 0.20% (20 basis points), 0.50% (50 basis points) or 0.75% (75 basis points),
depending upon which portfolio a client will be utilizing. Generally, fixed income portfolios will
have a base fee starting at 0.20%, most mutual fund or ETF portfolios at 0.50% and stock portfolios
at 0.75%. To that base fee, we add the solicitation fee charged by the referring solicitor, which is
specified in the Solicitor Disclosure Statement given to them by their solicitor. If there is no
solicitor involved, we will charge a fee of 0.50% (50 basis points) up to 2.50% (250 basis points).
If you are referred to us by a solicitor, your total advisory fee will be based, in part, on the amount
of the solicitation fee paid by us to the solicitor. Depending upon the amount of fees paid to a
solicitor, you may be paying more or less than our other clients who were not referred by a solicitor
for the same advisory services. As stated above, the Firm’s management may allow exceptions to
these fees, at his discretion.

The advisory fees are in addition to any fees charged by third-party investment advisors utilized
as independent asset managers under our Third-Party Manager Selection service. You may also
incur fees and charges for brokerage and/or custodial services such as ticket charges or other
expenses charged by third parties such as custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees or other fees and taxes on
brokerage accounts and securities transactions in connection with the management of your
account. Mutual funds and exchange-traded funds may also charge sales commissions and internal
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Item 7 – Types of Clients

Independent Solutions provides portfolio management services to individuals, high net worth
individuals, corporate pension and profit-sharing plans and trust programs. The minimum dollar
amount generally required to open an advisory account is $50,000. However, Independent
Solutions’ Small Account model permits a lower minimum of $3,000 to open an account utilizing
this model. The minimum dollar amount generally required to maintain an account in our services,
including some ETF portfolios, is $25,000. We may waive this requirement for any reason
including, but not limited to, a client that has additional or related accounts that together exceed
the minimum requirements.