Independent Wealth Management LLC

Item 5       Fees and Compensation
We are compensated by fees that clients (“you,” “your”) pay by check or by a deduction from your
investment accounts. You pay us for developing and monitoring your financial plans, which may involve
coaching related to financial behavior, selecting appropriate financial and insurance products, or other
financial advisory services. If you want us to manage your investments as a separate service or as a result
of financial life planning advice, we require that you initial and sign a separate section of a Financial
Services Agreement (“agreement,” “engagement”) that outlines clearly what fees will be charged and how
they are paid for each service we offer.
A. Advisory Fee Structures
       1. Financial Planning: One-time or Ongoing Fee Options
Financial Planning fees may be negotiated on a one-time, project basis (“flat fee” for specific services or
deliverables) or on an ongoing or periodic basis, often called a retainer. We reserve the right at our sole
discretion to offset, waive, or otherwise set aside our right to collect any fee, in whole or in part, that we
would be entitled to under the Financial Services Agreement.
You may engage our firm on a one-time or ongoing basis in the following manner:
   On an hourly basis, typically for an investment of $250 per hour, we address your specific financial
   questions and concerns with verbal and/or written analyses and recommendations.
   On a one-time project basis, we calculate the expected total number of hours to complete a basic or
   comprehensive financial plan. After the free initial consultation, we will provide a written proposal for
   approval based on the complexity of your situation and the number of specific areas of concern:

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A Basic Financial Plan consists of a financial overview that assists you to become aware of life transitions
and to develop goals. We gather process and analyze data; and offer verbal and written recommendations
for consideration. The scope is limited typically to Cash Flow Management and one or more areas of
financial concern.
This investment in your financial future typically ranges up to $2,500.
A Comprehensive Financial Plan builds on the Basic Financial Plan with written analyses of each
recommendation, and the development of a comprehensive action plan that addresses all six financial
planning areas. For example, if your main concern is Retirement Planning, this specific area of concern is
analyzed from a cash-flow, investment, retirement accumulation, distribution, tax, risk and estate
planning perspective.
Such an investment of yours and our time typically ranges from $2,500 to $10,000 depending on complexity.
On an ongoing, periodic or retainer basis typically involves a schedule of meetings and activities to
monitor the implementation of the basic or comprehensive plan including an annual plan update as life
circumstances change. Ongoing planning fees typically are considered separate and apart from
investment management fees although, subject to a complete listing of the services offered, may be all-
inclusive. We provide you with a written estimate of the fees for services in the Financial Services
Agreement, which you authorized before initiating the service.
We require advance deposit of up to one-half of the estimated fee before starting a financial life plan or
analysis. The maximum advance deposit will not exceed $1,200. In the event you change your mind and
want to terminate the agreement, we will return to you any fees collected but not yet earned. Fees for the
financial planning services we provide may be more or less than those for comparable services offered
elsewhere.
        2. Investment Management Fees
Fees for Investment Management Services are calculated as a percentage of assets under management
(“AUM”), based on the market value of the assets in the managed account on the last trading day of each
quarter and are collected in advance. The value of all securities traded on any national securities exchange
will be the closing price of those securities on the principal market on which those securities are traded on
the date they are to be valued. Any other securities or investments comprising the assets will be valued in
a manner we believe in good faith to reflect the fair market value of such securities as of that date.
B. Investment Management Fee Schedule and Payment Options
Generally, fees for investment management are calculated as follows:
    i.   Portfolio Analysis Fee – $500.00 (negotiable based on whether initial portfolio analysis was
         included in a one-time or ongoing financial planning engagement); and
    ii. Tiered fee structure (% applies to each tier under management):
                      Portfolio Value      Annual Fee as Percentage of AUM
                      First $500,000.00    1.00%
                      Next $500,000.00     0.75%
                      Next $1,000,000.00   0.60%
                      Next $2,000,000.00   0.45%
                      Over $4,000,000.00   0.25%
We have the right to change our fees on 30 days’ advance written notice to you.
You authorize us to request from the custodian and deduct one-fourth of the annual management fee
directly from your account five (5) days after quarter-end. You may arrange to pay by check upon invoice.
You also authorize Jordan Financial and custodian to sell money-market shares and then securities, in
that order of preference, if sufficient cash balances are not available in the account at the time the fee is
debited.

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We retain the discretion and the right to waive, offset, or set aside our interest in the collection of any fee
due, in whole or in part, to which we would otherwise be entitled. You may negotiate all fees with us.
...

Item 7      Types of Clients
We primarily provide investment management services, investment advice and financial-planning
services to individuals, however, occasionally, and incidentally, we offer advice regarding trusts, estates,
small-businesses, charitable organizations, and other entities owned or controlled by individuals.
We do not require a minimum net worth, income, or account size for you to contract with us for financial
planning services. This applies also to investment management services, although we reserve the right to
direct you to other providers if we determine that it is not time-efficient or cost-effective for you to have us
manage your investments. In addition, we reserve the right not to accept financial planning or investment
management engagements if we do not have the specific expertise required and the client would be
better served by a service provider specializing in that subject niche.
Item 8      Methods, Strategies and Risks
A. Methods of Analysis and Investment Strategies
We use fundamental and technical analysis of securities in providing investment advice to you. Research
resources include but are not limited to financial newspapers and magazines, research materials prepared
by unaffiliated third parties, corporate rating services and annual reports, prospectuses, filings with the
US Securities and Exchange Commission, company press releases, information on the internet and similar
materials.
We also consult with other investment managers and industry professionals regarding investments and
investment strategies that are under consideration.
We use computer software that we have licensed from outside vendors to help us create financial plans
and to assist in consulting, developing account reports, asset-allocation models, risk-tolerance profiles,
portfolio analyses, historical investment reports and similar resources. We typically use investment
strategies that include long-term purchases. Subject to your needs and goals, we may include short-term
purchases where securities are bought and sold within a year, active trading where securities are bought
and sold within 30 days, margin transactions and options writing, including covered options or spreading
strategies.
B. Expected Risks vs. Unusual Risks
Although many people define risk as the potential to lose money, investment risk typically is a measure of
volatility or variability of returns from an expected outcome, such as a market benchmark. That risk or
deviation can be positive or negative and is related to the idea that to achieve higher long-term returns,
an investor must accept higher short-term volatility.
Inherent in our investment management task is to match the level of risk of a particular diversified
portfolio to the risk tolerance indicated by your financial circumstances and your propensity or capacity

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to accept risk to meet your goals. Any investment in securities involves some measure of risk, no matter
how large or small, and you should be prepared to accept an appropriate level of risk that seeks to achieve
your goals.
If, as part of your investment policy, you request short-term purchases, active trading, margin
transactions or options writing, the risk of losses are compounded by the increased cost of trading and
potential taxable events. Our policy is to educate and disclose to you as many types of risks that are
known by the investment strategy we employ on your behalf.
C. Types of Investments
We may include the following investments, without limitation, in your accounts: exchange-listed and
over-the-counter stocks, corporate or municipal debt, commercial paper, FDIC-insured certificates of
deposit, US-government securities, options contracts on securities, limited partnerships, real estate
investment trusts, unit investment trusts, open- and closed-ended mutual funds, exchange-traded funds
and exchange-traded notes. We direct the investments within variable life insurance and annuity
contracts only on a non-discretionary basis as part of an ongoing financial planning engagement.