Item 5. Fees and Compensation
LPA offers services on a fee basis, which include fixed and/or hourly fees, as well as fees based upon assets
under management depending on the client engagement.
Financial Planning and Consulting Fees
LPA generally charges a fixed and/or hourly fee for providing financial planning and consulting services
under a stand-alone engagement. For one-time project-based financial planning and consulting services,
these fees are negotiable, but generally range from $5,000 to $25,000 on a fixed fee basis and/or from $150
to $750 on an hourly basis, depending upon the scope and complexity of the services and the professional
rendering the financial planning and/or the consulting services. For ongoing financial planning and
consulting services, the fees are also negotiated but generally range from $2,000 to $25,000 per year,
depending on, among other things, the complexity of the work to be performed and the professional
rendering the financial planning or consulting services.
The terms and conditions of the financial planning and/or consulting engagement are set forth in the
Advisory Agreement and LPA generally collects the fees (estimated hourly or fixed) payable upon
execution of the Advisory Agreement. The outstanding balance is generally due upon delivery of the
financial plan, if any, or completion of the agreed upon services.
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Disclosure Brochure LPA
Investment Management Fees
LPA offers investment management services for an annual fee based on the fair market value of assets
under management. For many clients, LPA’s investment management fee is based on the following fee
schedule: 1.25% of the first $1 million under management, 0.75% on the next $4 million, 0.50% on the
next $5 million and 0.25% thereafter. For clients for whom LPA delegates responsibility for managing
assets, Altium will receive a portion of the management fees payable to LPA by such client. For other
clients, LPA’s investment management fee is a negotiated fixed percentage of the market value of the
assets being managed. Fees may vary from the standard schedule due to particular circumstances of the
client or as otherwise negotiated. For clients for whom LPA arranges for Altium to employ the Fixed-
Income Strategy, LPA does not charge any management fees. However, Altium charges an annual fee of
0.20% of the assets managed using such strategy.
The annual fee is prorated and charged monthly, in advance or arrears, based upon either (1) the market
value of the assets being managed by Altium on the last day of the previous billing period or (2) the average
daily market value of the assets being managed by Altium during the last billing period.
For the initial period of an engagement, the fee is calculated on a pro rata basis. In the event the advisory
agreement is terminated, the fee for the final billing period is prorated through the effective date of the
termination and the outstanding or unearned portion of the fee is charged or refunded to the client, as
appropriate.
Additionally, for asset management services the Firm provides with respect to certain client holdings (e.g.,
held-away assets, accommodation accounts, alternative investments, etc.), LPA may negotiate a fee rate
that differs from the range set forth above.
Fee Discretion
LPA may, in its sole discretion, negotiate to charge a lesser fee based upon certain criteria, such as
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, pre-existing/legacy client relationship, account retention
and pro bono activities.
Additional Fees and Expenses
In addition to the advisory fees paid to LPA, clients also incur certain charges imposed by other third parties,
such as broker-dealers, custodians, trust companies, banks and other financial institutions (collectively
“Financial Institutions”). These additional charges include investment management fees charged by Altium
and Independent Managers, securities brokerage commissions and other transaction costs, custodial fees,
platform fees, reporting charges, margin costs, charges imposed directly by a mutual fund or ETF in a
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Disclosure Brochure LPA
client’s account, as disclosed in the fund’s prospectus (e.g., fund management fees and other fund
expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees,
and other fees and taxes on brokerage accounts and securities transactions. The Firm’s brokerage practices
are described at length in Item 12, below.
Direct Fee Debit
Clients generally provide LPA, Altium, and the Independent Managers with the authority to directly debit
their accounts for payment of the investment advisory fees. The Financial Institutions that act as the
qualified custodian for client accounts, from which the Firm retains the authority to directly deduct fees,
have agreed to send statements to clients not less than quarterly detailing all account transactions, including
any amounts paid to LPA.
Account Additions and Withdrawals
Clients may make additions to and withdrawals from their account at any time, subject to LPA’s right to
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