Lifesteps Financial Inc

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Advisory Services
LifeSteps charges advisory fees for investment management services. LifeSteps’ advisory fees are
charged based on a percentage of the market value of the portfolio, per the following schedule:

                            Assets Under Management                   Annual Fee
                            First            $500,000                   1.50%
                            Next             $250,000                   1.25%
                            Next             $250,000                   1.00%
                            Next            $1,500,000                  0.80%
                            Next            $2,500,000                  0.70%
                            Next            $2,500,000                  0.60%
                            Next            $2,500,000                  0.50%
                            Next            $5,000,000                  0.45%
                                   $15,000,000+                       Negotiable

Some accounts are under different fee schedules honoring prior agreements. LifeSteps reserves the
right to negotiate all fees and terms with clients. At LifeSteps’ discretion, services are provided without
charge to employees and their family members, and in other limited circumstances, which sometimes

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include accounts containing all cash and smaller accounts managed as a courtesy to existing clients.
LifeSteps aggregates related account balances of clients within the same household for purposes of
achieving the advisory fee breakpoints listed above.

Short-Term Cash Management
Short-term cash management services are billed at a negotiable annual rate not to exceed 0.25%. At its
discretion, LifeSteps may waive fees for this service. Clients open a separate account to custody
positions held for short-term cash management purposes. We do not apply fee rates for short-term cash
management services to cash balances in investment advisory services accounts managed on a long-
term basis.

Bill Payment and Reconciliation Service
The minimum fee for this service is $6,000 annually, which is negotiable at LifeSteps’ discretion. We
determine the fee based on the number of anticipated transactions and accounts requiring
reconciliation.

Billing Method

Investment Advisory Services
LifeSteps’ advisory fees for investment advisory clients are monthly in advance. Our fees are based on
the market value of the assets in the account as of the last business day of the previous calendar month.
The formula used for the calculation is as follows: (Annual Rate) x (Total Assets Under Management at
Month End) / 12. For new investment advisory clients, the initial fee billing will be prorated based on the
number of days remaining in the month after the client’s assets are placed in the account. Some
accounts are billed under different methodologies honoring prior agreements. LifeSteps generally
aggregates client accounts that have family relationships with each other for purposes of calculating the
advisory fees applicable to each client.

With client authorization, an independent custodian will withdraw LifeSteps’ advisory fee on a monthly
basis from the client’s account based on LifeSteps’ instruction. All clients will receive brokerage
statements from the custodian no less frequently than quarterly (typically, monthly). The custodian
statement will show the deduction of the advisory fee. The custodian will not determine whether the
fee is properly calculated. It is the client’s responsibility to verify the accuracy of the fee calculation.

Bill Payment and Reconciliation Service
LifeSteps’ fees for the Bill Payment and Reconciliation Service are payable quarterly in advance at the
beginning of each calendar quarter. We charge one fourth of the fixed annual fee rate each quarter. We
will send an invoice to all clients that is payable upon receipt.

Sub‐Advisory Services
LifeSteps receives our standard fee as described above for assets managed through outside advisers
through Schwab’s/Fidelity’s 55ip platform. Fees paid to outside managers for sub-advisory services
under the 55ip platform are paid by Schwab/Fidelity. Clients are not charged a fee beyond LifeSteps’
standard advisory fees.

LifeSteps Financial, Inc.                            11                                      Part 2A Brochure

Other Fees and Expenses

LifeSteps’ fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer fees,
and/or other similar charges incurred in connection with transactions in accounts, from the assets in the
account. These charges are in addition to the fees the client pays to LifeSteps. See Item 12 - Brokerage
Practices below for more information.

In addition, any fund shares held in a client’s account are subject to fund-related expenses, and, if
applicable, 12b-1 fees and/or early redemption fees on mutual funds.. Generally, LifeSteps does not
purchase funds with deferred sales charges/12b-1 fees; however, they sometimes apply when selling
legacy positions brought in by clients. The fund’s prospectus fully describes the fees and expenses. All
fees paid to LifeSteps for investment advisory services are separate and distinct from the fees and
expenses charged by funds. Funds pay advisory fees to their managers, which are indirectly charged to
all holders of the fund shares. Consequently, clients with funds in their portfolios are effectively paying
both LifeSteps and the fund manager for the management of their assets.

Termination

Either party may terminate the advisory agreement at any time by providing written notice to the other
party. The client may terminate the agreement at any time by writing LifeSteps at our office. LifeSteps
will refund any prepaid, unearned advisory fees based on the effective date of termination. Upon
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ITEM 7 - TYPES OF CLIENTS
LifeSteps offers discretionary and/or non-discretionary investment advisory services, financial planning
services, and bill payment and reconciliation services to individuals, high net worth individuals, trusts
and estates, and individual participants of retirement plans. In addition, we offer advisory services to
pension and profit sharing plans, charitable organizations, and businesses.

Account Requirements

LifeSteps generally requires clients to maintain a minimum portfolio size of $500,000. In the event a
client withdrawal causes the managed account balance to fall below this threshold, we may request that
the client deposit additional funds sufficient to restore the account to an appropriate level for continued
portfolio management. If additional funds are not deposited within a reasonable timeframe, we may, at

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our discretion, terminate the advisory relationship. LifeSteps may also reduce or waive account
minimums on a case-by-case basis.