Key Financial Inc

Item 5: Fees and Compensation
Generally, KFI seeks to provide comprehensive financial planning services as well as asset
management services that are intended to allow clients to achieve the goals and objectives
included in their individualized financial plan. As such, KFI charges its Phase One Financial
Planning clients fees for the services related to the research, development, and recommended
actions included as part of the client’s initial financial plan. For Phase Two clients receiving
ongoing financial planning and asset monitoring services, KFI charges asset-based Advisory
Fees. Under certain circumstances where comprehensive financial planning services are not
required, KFI may offer investment advisory services that do not include financial planning
services. The Advisor may choose to provide services for a reduced rate or waive the initial
financial planning fee and/or quarterly financial planning and asset monitoring fees (“Advisory
Fees”). The fees and other sources of compensation associated with each of the previously
mentioned Advisor-client relationships are described in this section. KFI does not make any
advisory fee adjustments for intra-period additions to, or withdrawals from, managed accounts.

Types of Fees for Services
Fees for Comprehensive Financial Planning Services (Phase One – “Financial Planning Fee”):

Phase One Financial Planning clients are charged a fixed fee amount for a comprehensive Initial
Financial Plan which is estimated by the Advisor during the initial meeting in consideration of
the services requested, the complexity of the client's financial situation, the composition of the
client’s accounts, and the estimated time required to complete the requested financial planning
services.

Fees for Ongoing Financial Planning & Asset Management (Phase Two Advisory Fees):

While it is a common practice among financial advisors to distinguish between different tiers of
financial planning services, KFI offers its full menu of comprehensive financial planning services
to its financial planning clients. Additionally, while many advisors distinguish between and
charge separate and/or additional fees for ongoing financial planning services and asset
management services, KFI believes these services complement and enhance one another. As
such, KFI includes both the ongoing financial planning and asset management services in its
asset-based Advisory Fee structure.

                                                   Form ADV - Part 2A (KFI 2026 Firm Brochure) - Page 17

Phase Two clients are charged fees for ongoing financial planning and asset monitoring
(collectively referred to as “Advisory Fees”). The Advisory Fees are calculated as a percentage of
assets under management and are paid on a quarterly basis. If a client chooses to dollar cost
average from a lump sum deposit, fees will be assessed as of the date of the deposit. Advisory
Fees will be due and payable in arrears on the first business day of each calendar quarter in the
amount based upon the total value of Client’s Account(s) on the last business day of the
previous quarter. Advisory Fees are not charged on the basis of a share of capital gains or
capital appreciation of the funds or any portion of the funds of an advisory client. Fees paid to
the Advisor for investment advisory services are separate and distinct from the fees and
expenses charged by clearing firms or by mutual funds and to their shareholders. These fees
and expenses are described in each fund’s prospectus and the addendum to the Phase Two
Agreement. Such fees will generally include management fees, other fund expenses, possible
distribution fees, or clearing charges. If the fund imposes sales charges, only non-discretionary
Retail Account clients will bear the costs of any initial or deferred sales charge(s).

Cash Positions: Key Financial continues to treat cash as an asset class. As such, unless
determined to the contrary by Key Financial, all cash positions (money markets, etc.) shall
continue to be included as part of assets under management for purposes of calculating Key
Financial’s advisory fee. At any specific point in time, depending upon perceived or anticipated
market conditions/events (there being no guarantee that such anticipated market
conditions/events will occur), Key Financial may maintain cash positions for defensive purposes.
In addition, while assets are maintained in cash, such amounts could miss market advances.
Depending upon current yields, at any point in time, Key Financial’s advisory fee could exceed
the interest paid by the client’s money market fund.

A client could invest in a mutual fund directly, without the services of KFI. In that case, the
client would not receive the services provided by the Advisor that are designed, among other
things, to assist the client in determining which mutual fund or funds are most appropriate to
the client’s financial condition, objectives, tax liability and financial planning. Accordingly, the
clients should consider both the fees charged by the funds and the fees charged by KFI to fully
understand the total amount of fees to be paid by the clients and to thereby evaluate the
advisory services being provided. KFI is responsible for the calculation of advisory fees and
requesting the debiting of all fees from the clients’ account(s) held by the Advisor’s approved
custodians. Clients will provide written authorization to the custodian to debit the Advisory
Fees from their account(s) and to pay the fees to KFI. Fee amounts are based on the account’s
asset value as of the last business day of the previous calendar quarter. As a term of the
Advisory Agreement, clients authorize the Advisor to deduct the Advisory Fees directly from the
client’s advisory account in accordance with applicable custody rules. KFI follows current best

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Item 7: Types of Clients
KFI offers financial planning and investment advisory services to a wide variety of clients
including, but not limited to, individuals including high net worth individuals, pension and
profit-sharing plans (other than plan participants), trusts, estates, 401(k) sponsor plans and
Individual Retirement Accounts (IRA, SEP, ROTH IRA), charitable organizations, corporations and
other business entities, including sole proprietorships.

As noted above at Item 5, KFI generally requires (with exceptions) a $500,000 assets under
management minimum for new clients. KFI, in its discretion, may charge a lesser or higher
investment advisory fee, charge a flat fee, waive its $500,000 minimum asset level, waive its fee
entirely, or charge fee on a different interval, based upon certain criteria (i.e. anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be managed,
related accounts, account composition, complexity of the engagement, anticipated services to
be rendered, grandfathered fee schedules, employees and family members, courtesy accounts,
competition, negotiations with client, etc.). Please Note: As result of the above, similarly
situated clients could pay different fees. In addition, similar advisory services may be available
from other investment advisers for similar or lower fees. ANY QUESTIONS: KFI’s Chief
Compliance Officer, Patti Brennan, remains available to address any questions that a client or
prospective client may have regarding advisory fees.

                                                     Form ADV - Part 2A (KFI 2026 Firm Brochure) - Page 28