Lantz Financial LLC

Item 5 – Fees and Compensation

Investment Management Services

Fees charged for discretionary and non-discretionary investment management services are
negotiated prior to the engagement at a rate not to exceed 1.25% of assets under management.
The firm may at its discretion require a minimum annual household fee of $1,000, and accounts

terminated within twelve months may at the firm’s discretion be subject to a $1,000 termination
fee. The firm may also at its discretion charge separate ongoing fixed fees for supplemental
advisory or planning services, but such fees will be disclosed in advance.

Asset based investment management fees are generally calculated and charged quarterly in
advance based on the quarter ending balance of assets under management at the end of the
preceding quarter (i.e. the beginning of the quarter of service). Fees for partial quarters are
prorated and adjusted based on the number of days assets are under management (e.g. new
accounts, terminated accounts, cash inflows into an existing account, cash outflows from an
existing account, etc.) Ongoing fixed fees for supplemental advisory and or planning services
are generally charged monthly or quarterly in advance. Fees are generally deducted directly from
client accounts, but clients may elect to alternatively pay fees by check.

Services may be terminated at any time by either party with 30 days written notice to the other
party, and fees will be prorated accordingly. Any payments made in advance will be prorated
and any unearned portion will be refunded to the client subject to the notice provision above.

All management fees paid to Lantz Financial are separate and unrelated to any fees or expenses
assessed by mutual funds or exchange traded funds. Information pertaining to fund-generated
fees and expenses can be found in mutual fund and exchange traded fund prospectuses.
Management fees paid to Lantz Financial are also separate from any trade commission charged
by an account custodian, although trade commissions may at times be paid by Lantz Financial at
the firm’s discretion. Fees paid to outside managers under a sub-advisory arrangement are also
separate and payable by Client, although such fees will be disclosed to Client in advance.

Investment Advisory Services

Fees charged for advisory services may be charged in advance or in arrears depending on the
service provided. Fees are negotiated in advance, and generally range from .25% to 1.00%
depending on the level of complexity of the engagement. Fee rates are based on actual services
provided rather than being based solely on the level of assets managed as detailed above for
investment management services.

In some cases, fees may be deducted directly from client accounts, but clients generally are
billed directly on a quarterly basis.

Services may be terminated at any time by either party with 30 days written notice to the other
party, and fees will be prorated accordingly. Any payments made in advance will be prorated
and any unearned fees will be refunded to the client subject to the notice provision above.

All advisory fees paid to Lantz Financial are separate and unrelated to any fees or expenses
assessed by any broker, custodian, or other outside party.

Financial Planning Services

Fees charged for financial planning services are quoted in advance and charged at a fixed amount
or are quoted on an hourly basis. Quoted fixed fees will be based on the complexity and level of
service provided on a case by case basis. Hourly fees will be estimated based on the complexity
and level of service provided on a case by case basis. As mentioned above, services may include
planning in areas such as education funding, retirement planning, estate planning, risk
management, employee benefits planning, tax planning, etc. Since each of these areas can vary
in complexity depending on the complexity of the client’s financial situation, cost will vary as
well. Fees are negotiable depending on the circumstances of the engagement, location, etc.

Fees are generally billed directly to the client in arrears, although a portion of which may be
billed in advance.

Services may be terminated at any time by either party with 30 days written notice to the other
party, and fees will be prorated based on the degree to which services have been completed. Any
payments made in advance will be prorated and any unearned fees will be refunded to the client
subject to the notice provision above.

All financial planning fees paid to Lantz Financial are separate and unrelated to any fees or
expenses assessed by any broker, custodian, or other outside party.

Retirement Plan Services

Fees charged for retirement plan services may be charged in advance or in arrears depending on
the service provided. Fees may be fixed or asset based (not to exceed 1.50% annually), and are
negotiable depending on the complexity of the service. Fee levels (whether fixed or asset
based) are primarily based on actual services to be provided.

Fees may be deducted directly from client accounts on a quarterly basis, or clients may elect to
alternatively pay fees by check or wire transfer. There is a minimum annual fee of $1,000 per
plan.

Services may be terminated at any time by either party with 30 days written notice to the other
party, and fees will be prorated accordingly. Any payments made in advance will be prorated
and any unearned fees will be refunded to the client subject to the notice provision above.

All retirement plan fees paid to Lantz Financial are separate and unrelated to any fees or
expenses assessed by any broker, custodian, or other outside party.

Item 7 – Types of Clients

Lantz Financial provides services to individuals, businesses and retirement plans.

For its services, Lantz Financial does not require a minimum dollar value in assets for
establishing or maintaining a client’s account, but the firm reserves the right to decline
engagements for various reasons including account size.