Innovative Financial LLC

Item 5 – Fees and Compensation
Please note, unless a Client has received the firm’s Disclosure Brochure at least 48 hours prior to signing
the investment advisory contract, the investment advisory contract may be terminated by the client within
five (5) business days of signing the contract without incurring any advisory fees. How we are paid depends
on the type of advisory service we are performing. Please review the fee and compensation information
below.
Wealth Management Fees
For Wealth Management, we charge fixed fees and/or asset-based fees calculated as a percentage of
assets under management. as described in the Portfolio Management Fees below. Your exact fee and
payment terms will be discussed with you prior to engaging our services, and clearly set forth in the advisory
agreement you sign.
Portfolio Management Fees
Our standard advisory fee is an asset-based fee calculated on the market value of the assets under
management, according to the following schedule:

                         Account Value                          Annual Advisory Fee
                         First $1,000,000                               1.00%
                         Next $2,000,000                                0.80%
                         Over $3,000,000                                0.60%

The annual fees are negotiable and paid in arrears on a quarterly basis. The advisory fee is a blended-tier
fee and is calculated by assessing the percentage rates using the predefined levels of assets as shown in
the above chart and applying the fee to the account value as of the last business day of the current quarter.
For example, an account valued at $2,000,000 would pay an effective fee of 0.90% with the annual fee of
$18,000. The quarterly fee is determined by the following calculation: (($1,000,000 x 1.00%) + ($1,000,000
x 0.80%)) ÷ 4 = $4,500.
In determining the advisory fee, we may allow accounts of members of the same household to be
aggregated. We rely on the valuation as provided by your custodian in determining assets under

management. Accounts initiated or terminated during a calendar quarter will be charged a pro-rated fee
based on the amount of time remaining in the billing period. Portfolio Management Services may be
terminated with written notice at least five calendar days in advance. Because fees are paid in arrears, no
refund will be needed upon termination of the account. Any earned but unpaid fees will be due up to the
last business day prior to termination.
Clients may make additions or withdrawals from their account at any time; however, we reserve the right to
adjust our advisory fees on a pro-rata basis on account of any such cash-flow transactions.
Advisory fees are typically directly debited from client accounts, or upon our mutual agreement, the client
may choose to pay via electronic funds transfer.
Ongoing Financial Planning Fees
Ongoing Financial Planning consists of an initial fee, ranging from $0 to $5,000, and an ongoing fee that is
paid quarterly, in arrears, at the rate of $1,000 to $10,000 per quarter. Fees are based on the complexity of
your financial situation. The initial fee covers the initial meetings, data gathering, research and analysis
needed to create the initial financial plan and is due upon entering into the advisory agreement. Fees may
be negotiable in certain cases, and the final agreed upon fee will be outlined in your advisory agreement.
Fees for this service may be paid by electronic funds transfer. This service may be terminated with five
days’ notice. Upon termination of any agreement, the fee will be prorated and any unearned fee will be
refunded to the client.
Project Based Financial Planning Fees
Project Based Financial Planning will generally be offered on a fixed fee basis. The fixed fee will be agreed
upon before the start of any work. The fixed fee can range between $500 and $15,000. The fee is
negotiable. If a fixed fee program is chosen, half of the fee is due at the beginning of the process and the
remainder is due at completion of work. However, we will not bill an amount above $1,200 more than 6
months in advance. Fees for this service may be paid by electronic funds transfer. In the event of early
termination any prepaid but unearned fees will be refunded to the client and any completed deliverables of
the project will be provided to the client and no further fees will be charged.
Tax Preparation and Tax Planning Fees
Tax planning and tax preparation services may be offered as part of our advisory relationship. Typically, if
a client pays at least $10,000 in annual fees under our Wealth Management Services, the cost of routine
individual income tax return preparation and related tax planning services may be included within the
advisory fees paid by the client and no separate fee is charged. For other clients, we typically charge a flat
fee starting at $500 for a standard federal and state return. We reserve the right to charge an additional fee
for certain tax services, including but not limited to complex tax returns, business returns, amended returns,
multi-state filings, trust or estate returns, extensive tax consulting projects, or other services requiring
substantial additional time or expertise. When charged separately, tax preparation and consulting fees are
generally assessed as either a fixed fee based on the nature and complexity of the engagement; or an
hourly fee based on the time required to complete the services.
Separate tax service fees are negotiated in advance and disclosed to the client prior to engagement. Such
fees may be invoiced upon completion of the services or pursuant to the terms of a separate tax
engagement agreement.
Clients are under no obligation to obtain stand-alone tax services from the firm or its associated persons.
Likewise, stand-alone tax clients are under no obligation to engage the firm for investment advisory
services.

Educational Seminars and Speaking Engagements
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Item 7 – Types of Clients
We offer financial planning and investment management services to individuals and institutions, including
endowments, foundations, pension, profit-sharing plans, trusts, estates, charitable organizations,
corporations, and other business entities.
Our minimum account size requirement is $500,000 to open or maintain an account under our
management. IF may reduce or waive the minimum account size requirement on a case-by-case basis. We
may also impose a minimum annual fee for our Wealth Management Services in some cases.