Item 5 Fees and Compensation
Financial Planning and Consulting Services
Prior to engaging our firm to provide financial planning services, you will be required to enter into a
separate written agreement with us that sets forth the terms and conditions of the engagement and
describes the scope of the services to be provided, and the fees to be paid. We charge an average
hourly fee of $200 for financial planning services. An estimate of the total time/cost will be determined
at the start of the advisory relationship. In limited circumstances, the cost/time could potentially exceed
the initial estimate. In such cases, we will notify you and request that you approve the additional fee.
The fees incurred for financial planning and/or consulting related services are calculated and billed on
a monthly basis upon completion of the contracted services. Depending on the scope and complexity
of the services requested, we may ask for a retainer. We will not require prepayment of a fee more
than six months in advance and in excess of $1,200.
You may terminate the financial planning agreement by providing written notice to our firm. You will incur a
pro rata charge for services rendered prior to the termination of the agreement. If you have prepaid advisory
fees that we have not yet earned, you will receive a prorated refund of those fees.
We may waive or offset the financial planning/consulting fees should you choose to implement the plan
through our portfolio management services described below. We reserve the right to determine
whether the financial planning and/or consulting fees will be waived or offset by the fees earned in the
implementation process. The scope and complexity of the services that were provided will determine
the waiver or offset of the fee.
Portfolio Management Services
The annual fee for portfolio management services is billed quarterly in advance based on the market
value of the assets under our management on the last day of the preceding quarter. Fees will be
assessed pro rata in the event the portfolio management agreement is executed at any time other than
the first day of a calendar quarter. On an annualized basis, our fees for portfolio management services
typically range between 1.30% and 0.50% based on the assets held in your account. Management
fees are negotiable under certain circumstances, at our sole discretion. Intersect Capital LLC's fee is
separate and distinct from the custodian and execution fees. All commissions, custody, execution fees
and other related costs or expenses charged by the qualified custodian and/or executing broker-dealer
or other financial institutions involved with the client account are charged separately (i.e. no
offsetting). Lower fees for comparable services may be available from other sources.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.
You may select one of the following billing methods:
(1) send you a quarterly invoice for the payment of our advisory fee, or
(2) deduct our quarterly fee directly from your account through the qualified custodian holding your
funds and securities. We will deduct our advisory fee only when you have given our firm written
authorization permitting the fees to be paid directly from your account. Further, the qualified custodian
will deliver an account statement to you at least quarterly. These account statements will show all
disbursements from your account. You should review all statements for accuracy.
If you receive an invoice from our firm, we encourage you to reconcile or compare our invoice with the
statement you receive from the qualified custodian. If you find any inconsistent information between
our invoices and the statements you receive from the qualified custodian please call our main office
number located on the cover page of this brochure.
You may terminate the portfolio management agreement upon 30-days' written notice to our firm. You
will incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees.
Advisory Services to Retirement Plans and Plan Participants
Our compensation for Advisory Services to Retirement Plans and Plan Participants mirror our fees
described above under Portfolio Management Services, that is they typically range between 1.30% and
0.50% based on the assets held in your account. We do not reasonably expect to receive any other
compensation, direct or indirect, for the services we provide to the Plan or Participants, unless the plan
sponsor directs us to deduct our fee from the plan or directs the plan record-keeper to issue payment
for our fee out of the plan. If we receive any other compensation for such services, we will:
(i) offset the compensation against our stated fees, and
(ii) promptly (1) disclose the amount of such compensation, (2) the services rendered for such
compensation and (3) the payer of such compensation.
Family Office Services
We charge an annual fixed fee for family office services. These fees are negotiable and range from
$10,000 to $250,000 annually, depending on the scope and complexity of services to be rendered.
Fees are billed and paid monthly in advance. If our services are retained in the middle of a month, the
fee for such month will be calculated on a pro rata basis, based upon the number of days remaining in
the month.
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