Jennings & Associates Financial Advisors LLC

Item 5 – Fees and Compensation
Investment advisory fees are paid quarterly in advance based on a percentage of assets under management not to
exceed 2.5%. Jennings & Associates Financial Advisors, LLC does not require a minimum amount to open or
maintain an account but a minimum of $250,000 is encouraged.
Friends & Family
Fees can be waived, in whole or in part, for clients who are members of the family or friends. In certain other
circumstances, fees and account minimums are negotiable and therefore, fees can vary from client to client.

   •    The investment advisory fee for the first month of service are prorated from the inception date of the
        account[s] to the end of the first month.
   •    Fees are negotiable at the sole discretion of the Advisor.
   •    Fees for special circumstances may be offered at a reduced rate.
   •    All securities held in accounts managed by Jennings & Associates Financial Advisors, LLC will be
        independently valued by the Custodian. Jennings & Associates Financial Advisors, LLC will not have the
        authority or responsibility to value portfolio securities.
Fee Billing
Investment advisory fees are calculated by LPL Financial and deducted from the client’s account[s] held at LPL
by a separate agreement between the client and LPL. Clients will be provided with a statement, at least quarterly,
from LPL reflecting the deduction of the investment advisory fee. Clients are encouraged to verify the accuracy of
fees as listed on the LPL brokerage statement. Clients provide written authorization permitting advisory fees to be
deducted from their account[s] as part of the investment advisory agreement and by a separate and direct
agreement with LPL.

 Disclosure Brochure

Mutual Fund Fees and Other Fees and Expenses
Client assets are primarily invested in mutual funds managed by third parties. The funds pay their investment
managers and other service providers fees, which reduce the funds’ investment returns and are borne
proportionately by all fund shareholders, including clients of Jennings & Associates Financial Advisors, LLC.
These mutual fund fees, or “expense ratios,” are described in the funds’ prospectuses, and are separate from and
in addition to the fees charged by Jennings & Associates Financial Advisors, LLC. Client assets are also held in
brokerage accounts which are subject to certain custodial fees; such as, checks returned or debit declines for
insufficient funds as well as a full transfer out fee and potential third-party service provider costs. These fees
and expenses are further described in the brokerage agreement.
Mutual Fund Share Class Disclosure and Fiduciary Duty (12b-1 Fees)
Section 206 of the Investment Advisers Act of 1940 (“Advisers Act”) imposes a fiduciary duty to act in a
client’s best interests and specifically prohibits investment advisers, directly or indirectly, from engaging in any
transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective
client. However, the fiduciary duty to which advisers are subject is not specifically defined in the Advisers Act
or the Commission rules but reflects a Congressional recognition “of the delicate fiduciary nature of an
investment advisory relationship” as well as a Congressional intent to eliminate, or at least expose, all conflicts
of interest which might incline an investment adviser, consciously or unconsciously, to render advice which was
not disinterested. When selecting a mutual fund for a client’s advisory account, the investment advisor
representative has a fiduciary duty to select the share class that helps manage the overall fee structure of the
account.
Payment of Fees and Termination
Either party may terminate the investment advisory agreement, at any time, by providing advance written notice to
the other party. The Client’s investment advisory agreement with the Advisor is non-transferable without the
Client’s prior consent.
Compensation for Selling Securities and Insurance Products
Jennings & Associates Financial Advisors, LLC does not buy or sell securities for commission compensation.
However, investment advisor representatives, in their individual capacity as registered representatives, can
receive commission compensation for selling securities.
Commission rates differ from product to product and carrier to carrier. In addition to commissions, investment
advisor representatives can, individually, receive marketing support, reasonable meals and entertainment, and
reimbursement of the cost to attend training, conferences, and events hosted by insurance companies and third-
party marketing organizations that are contracted with and receive compensation from the insurance company.
Insurance commissions and other benefits are significant sources of compensation and are paid separately from
advisory fees on assets in a client’s managed securities account. Commissions are generally paid up-front, at
the time of sale, unlike asset-based fees which are paid periodically over the course of the relationship. The
amount and form of insurance compensation creates a conflict of interest in that investment advisor
representatives in their individual capacity as insurance agents are incentivized to recommend insurance
products based on the compensation received rather than on a client’s needs.

 Disclosure Brochure

Investment advisor representatives in their individual capacity as insurance agents are not required to offer the
products of a specific insurance company. The compensation received from selling securities or insurance is
separate from and does not offset regular advisory fees. Although, Jennings & Associates Financial Advisors,
LLC will not charge advisory fees on any insurance products. Clients are under no obligation to implement any
recommendations and have the option to implement such recommendations through a different registered
representative or insurance agent.
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Item 7 – Types of Clients
The clients served by Jennings & Associates Financial Advisors, LLC are individuals and high net worth
individuals who generally want help developing a comprehensive income plan. In most cases, clients have
spent years saving, investing, or building a business and need assistance piecing together income from 401ks,
IRAs, and 403B plans while navigating social security decisions and taxes. Jennings & Associates Financial
Advisors, LLC also provides services to small businesses and other types of clients as opportunities may arise.