Luminescent Wealth Management Inc

Item 5: Fees and Compensation

We base our fees on hourly charges or a percentage of assets under management, which are
described below.

Compensation – Financial Planning
Financial Planning fees will be charged in one of two ways, depending upon the nature and
complexity of each client’s circumstances:

   •   on an hourly basis ranging from $500 to $800 per hour As an annual fixed fee,
       typically ranging from $20,000 to $40,000

Hourly financial planning fees are due in arrears upon completion of the services. Annual
financial planning fees are due in quarterly increments charged quarterly in arrears.

Compensation – Wealth Management Services
Wealth Management fees are charged as follows:

                   Assets Under Management            Annual Fee
                        First $5,000,000                1.00%
                        Next $5,000,000                 0.60%
                       Next $10,000,000                 0.50%
                       Over $20,000,000                 0.30%

This is a blended fee schedule; the wealth management fee is calculated by applying different
rates to different portions of the portfolio. We may group certain related client accounts for the
purposes of achieving the minimum account size and determining the annualized fee.

Fees are billed quarterly in arrears based on the amount of assets managed as of the close of
business on the last business day of the quarter. Fees will be adjusted for cash flows during the
quarter.

Compensation – Sub-Advisory Services
When we engage Sub-advisers to manage a portion of a client's portfolio, the client may incur
additional management fees. These fees are typically included within the total advisory fee
charged to the client, rather than being billed separately. However, in certain cases, a Sub-
adviser's fees may be charged in addition to our advisory fees. In such instances, the additional
fees will be clearly disclosed to the client in writing prior to engagement.

The total fee charged to clients for our services, including those provided by Sub-advisers, will
not exceed the maximum fee disclosed in the client agreement. Clients should refer to their
specific agreement for detailed fee schedules and can request a breakdown of any fees
attributable to Sub-advisers.

Calculation and Payment
The specific manner in which we charge fees is established in a client’s written agreement with
us. Clients may elect to be invoiced directly for fees or to authorize us to directly debit fees
from client accounts.

Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and
any earned, unpaid fees will be due and payable.

In no case will more than $1,200 be collected from the client more than 6 months in advance.

Other Fees
There are no additional types of fees or expenses that our clients pay in connection with the
delivery of advisory services.

Agreement Terms
Either party may terminate an agreement at any time by notifying the other in writing. If the
client made an advance payment, we would refund any unearned portion of the advance
payment.

If the client made a payment in arrears, we would collect any earned yet unpaid fees.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).

Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients.’

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
...

Types of Clients
We provide services to individuals, high-net-worth individuals, and families. We may also serve
trusts, estates, charitable organizations, and business entities.

Account Minimums
We require a minimum account of $2,000,000 for investment advisory clients. This may be
negotiable at our discretion. We may group certain related client accounts for the purpose of
achieving the minimum account size.