Item 5 Fees and Compensation
A.
INVESTMENT ADVISORY SERVICES
The Registrant’s annual investment advisory fee for discretionary or non-discretionary investment
advisory services shall be based upon a percentage (%) of the market value and type of assets placed
under the Registrant’s management and shall generally range between negotiable and 1.75% as follows:
Large Cap Equity, Small Cap Equity, Cash Balances or International Equity Account:
Asset Value Annual Fee
First $500,000 1.75%
Next $500,000 1.50%
Over $1,000,000 1.25%
Domestic or International Fixed Income Account
Asset Value Annual Fee
Any amount 1.00%
* The Registrant may also choose, at its sole discretion, to offer its investment advisory services on a
negotiated fee basis.
RETIREMENT PLAN CONSULTING SERVICES
The terms and conditions of the Registrant’s retirement plan consulting services shall generally be set
forth in a Retirement Plan Consulting Agreement between the Registrant and the plan sponsor.
Registrant’s negotiable retirement plan consulting fees generally range between negotiable up to 1.00%
of the value of plan assets under advisement, depending upon the level and scope of the service(s)
required and the professional(s) rendering the service(s).
The Registrant’s investment advisory fee is negotiable at Registrant’s discretion, depending upon
objective and subjective factors. As a result, similarly-situated clients could pay different fees, the
services to be provided by the Registrant to any particular client could be available from other advisers
at lower fees, and certain clients may have fees different than those specifically set forth above.
B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial account. Both
Registrant's Investment Advisory Agreement and the custodial/clearing agreement may authorize the
custodian to debit the account for the amount of the Registrant's investment advisory fee and to directly
remit that management fee to the Registrant in compliance with regulatory procedures. In the limited
event that the Registrant bills the client directly, payment is due upon receipt of the Registrant’s invoice.
The Registrant shall deduct fees and/or bill clients quarterly in arrears, based upon the market value of
the assets on the last business day of the previous quarter.
C. As discussed below, unless the client directs otherwise or an individual client’s circumstances require,
the Registrant shall generally recommend that Charles Schwab & Co. Inc. (“Schwab”) serve as the
broker-dealer/custodian for client investment management assets. Broker-dealers such as Schwab charge
brokerage commissions and/or transaction fees for effecting certain securities transactions.
Under certain circumstances, the Registrant may negotiate lower commissions for transactions based on
the type of security in question, dollar amount of the transaction, or other factors, on a case-by-case
basis.
In addition to Registrant’s investment management fee, brokerage commissions and/or transaction fees,
clients will also incur, relative to all mutual fund and exchange traded fund purchases, charges imposed
at the fund level (e.g. management fees and other fund expenses).
Clients of the Registrant who have accounts with Schwab are charged other fees for such services as
wire transfers and other services. A list of such fees is available on Schwab’s website
(https://www.schwab.com/pricing or upon request.
Tradeaway/Prime Broker Fees. When in the reasonable determination of the Registrant that it would
be beneficial for the client, individual equity and/or fixed income transactions may be executed through
broker-dealers other than the account custodian. In that event, the client will generally incur both the fee
(commission, mark-up/mark-down) charged by the executing broker-dealer and a separate “tradeaway”
and/or prime broker fee charged by the account custodian.
D. Registrant's annual investment-advisory fee shall be prorated and paid quarterly, in arrears, based upon
the market value of the assets on the last business day of the previous quarter. The Registrant does not
generally require an annual minimum fee or asset level for investment advisory services.
The Investment Advisory Agreement between the Registrant and the client will continue in effect until
terminated by either party by written notice in accordance with the terms of the Investment Advisory
Agreement.
Upon termination, the Registrant shall be due a pro-rated quarterly fee, based upon the number of days
during the terminating quarter services were rendered, calculated based upon the value of the client’s
account as of the date of termination.
However, if a client terminates the advisory relationship within five (5) days of first engaging the
Registrant, the full fee is refunded or not billed (as the case may be) at the end of the following quarter
- thereafter the fee is pro-rated.
For a number of reasons, including but not limited to the activity of allocating or re-allocating a new
client’s account, the Registrant, at its discretion, may choose not to bill its advisory fees during the first
quarter upon managing a new client relationship. The client in such a circumstance would however be
responsible for any commission charges during that quarter.
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