Innovative Financial Solutions NJ LLC

Item 5 – Fees and Compensation
Asset Management Programs
Clients who elect to receive asset management services through one or more of Virtus Wealth Solutions’s
asset management programs will generally pay the firm and their advisor for those services with an annual
asset management fee based on a percentage of assets under management, including cash and money
market positions. The maximum account management fee that can be charged in any of our firm’s
managed account program is listed in the fee schedule below. Certain managed account programs have
lower maximum annual fee amounts, and fee schedules will vary among programs. Clients are urged to
carefully review and discuss the contents of this Brochure with their advisor, including descriptions of the
various programs and services offered, the fees and charges clients will pay, the means by which Virtus
Wealth Solutions and your advisor are compensated, and the conflicts of interest that exist between the
client and Virtus Wealth Solutions and your advisor in respect to each program or service offered, to
determine the most appropriate programs or services for your specific needs.

Commonwealth PPS Program Fee Schedules
Following are the maximum allowable fee schedules for Commonwealth’s various PPS programs.

PPS Custom Program
The maximum allowable annual management fee schedule for a new PPS Custom Program account is:

Other charges
In addition to the platform fee, transaction charges of $15 for buys and sells and a maximum of $3 for
periodic investment plans and systematic withdrawal plans will apply in the following mutual fund
families: Dodge & Cox, Vanguard, and Dimensional Fund Advisors (DFA), except that DFA sells are $0. For
trader-assisted transactions, an additional $5 fee is charged to Virtus Wealth Solutions. A transaction
charge of $1 per contract for purchases and sales of options will apply. A $5 quarterly paper document
fee will apply account by account to all accounts not enrolled in electronic delivery of statements and
confirmations.

PPS Select Program
Clients participating in the PPS Select Program will pay a total account fee that consists of a combination
of an advisor fee and a program fee.

The maximum allowable advisor fee in the PPS Select Program is as follows:

In addition to the annual advisor fee, all clients participating in PPS Select will pay an annual program
fee. There are several different PPS Select model portfolios with program fees that vary; however, the
maximum fee within the PPS Select program is as follows:

 The maximum annual advisor fee for certain account sizes and types may be negotiated.

 Commonwealth will charge a minimum annual program fee of $600 ($150 quarterly) for certain accounts, which
may exceed the maximum annual program fee percentage based on account size.

PPS Direct Program
Clients participating in the PPS Direct Program will pay an annual fee that consists of a combination of an
advisor fee and a program fee not to exceed 3.00%. In the event the combination of the advisor fee and
the program fee for a particular money manager and investment strategy exceeds 3.00%, the advisor fee
will be reduced such that the annual fee will not exceed 3.00%.

The maximum allowable advisor fee in the PPS Direct Program is as follows:

The maximum program fee in the PPS Direct Program is as follows:

Commonwealth performs fee billing on our firm’s behalf. In substantially all cases, the annual account
management fees are payable quarterly in advance and are computed as one-quarter of the annual fee
based on the account’s AUM on the last business day of the previous calendar quarter.

To the extent that you hold positions in your account for which pricing data is not readily available,
Commonwealth receives quarter-end values from alternative investment issuers or other service
providers which are used when calculating billable AUM for our clients. Neither Virtus Wealth Solutions
nor Commonwealth engages in an independent valuation of your account assets and relies on valuations
provided by the investment issuers or other service providers. Virtus Wealth Solutions (via
Commonwealth and further via the account custodian) will provide periodic account statements which
include the market value of the alternative investment based on information received from the
investment issuer or other service provider. In providing these account statements, or any other valuation
information to you, (i) Virtus Wealth Solutions relies on the valuation information provided by the
manager of the alternative investment or other service provider, (ii) the valuation information used to
determine the billing fee is based on estimates that may be outdated as of the dates of the account
statements, (iii) the products final valuations may be higher or lower than the values reflected in the
periodic account statements and (iv) while Commonwealth will adjust material estimated fee billings on
a best efforts basis on Virtus Wealth Solutions’ behalf, neither Virtus Wealth Solutions nor Commonwealth

is under no obligation to provide notice or compensation to you for differences in estimated alternative
investment valuations.

*Account values in the Commonwealth reporting system will be used for our firm’s quarterly fee
calculations for advisory accounts custodied at National Financial Services (NFS). Although account
holdings and asset valuations should generally match, month-end market values reflected in
Commonwealth's Practice 360 reporting system sometimes differ from those provided by NFS on their
month-end statements. The three most common reasons why these values may differ are (i) differences
in the manner in which accrued interest is calculated, (ii) differences in the date upon which "as of"
dividends and capital gains are reported, and (iii) differences in whether settlement date valuations or
trade date valuations are used. If you have any questions or believe there are material discrepancies
...

Item 7 – Types of Clients
Virtus Wealth Solutions generally provides advisory services to the following types of clients
     Individuals (other than high-net-worth individuals)
     High net worth individuals
     Pension and profit-sharing plans
     Charitable organizations
     Corporations or other businesses not listed above

Virtus Wealth Solutions managed account programs generally have a $1,000,000 minimum investment
requirement. We reserve the right to waive the minimum investment requirement for any reason in our
sole discretion.