Madrid Wealth Management LLC

Item 5: Fees and Compensation
MWM bases its fees on a percentage of assets under management, including cash positions, and fixed fees. Hourly
fees may be assessed for some consulting and planning agreements. Please note, unless a Client has received this
brochure at least 48 hours prior to signing an Advisory Contract, the Advisory Contract may be terminated by the
Client within five (5) business days of signing the Advisory Contract without penalty.

How we are paid depends on the type of advisory services we perform. Below is a brief description of our fees,
however, you should review your executed Advisory Contract for more detailed information regarding the exact
fees you will be paying. No increase to the agreed-upon advisory fees outlined in the Advisory Contract shall occur
without prior Client consent. Please note, lower fees for comparable services may be available from other sources.

Clients with services performed and delivered in New Mexico receive a passthrough tax from MWM to pay gross
receipts tax on the advisory fee. MWM will collect this tax when fees are assessed and send to the state of New
Mexico’s tax and revenue department. Please visit tax.newmexico.gov for current rates based in Albuquerque.

Wealth Management Services and Investment Management Services

The fee is based on a percentage of assets under management and is negotiable. The annualized fees for wealth
management services are based on the following fee schedule:

                        Assets Under Management                       Annual Advisory Fee

                              $0 - $2,500,000                                 1.00%

                          $2,500,001 - $5,000,000                             0.80%

                         $5,000,000 - $10,000,000                             0.60%

                          $10,000,000 and Above                               0.40%

A minimum annual fee of $10,000 will apply but is waived if using MWM’s investment management through
Betterment. Betterment charges an additional fee of 0.15%.

The annual advisory fee is paid quarterly in arrears based on the value of Client’s account(s) as of the last day of
the billing period. The advisory fee is a blended tier. For example, for assets under management of $3,000,000, a
Client would pay 1.00% on the first $2,500,000 and 0.80% on the next $500,000. The quarterly fee is determined
by the following calculation: (($2,500,000 x 1.00%) + ($500,000 x 0.80%) ÷ 4 = $7,250.00.

In determining the advisory fee, we may allow accounts of members of the same household to be aggregated. MWM
relies on the valuation as provided by Client’s custodian in determining assets under management. Our advisory fee
is prorated for flows and partial billing periods occurring during the engagement, including the initial and
terminating billing periods.

Fee schedules may be negotiated up or down depending on the complexity of accounts, the inclusion of other
services, and the amount service time the client desires. Similarly, a flat fee or custom fee schedule can be
negotiated based on client needs.

If MWM utilizes an Outside Manager, the above fee schedule does not include the Outside Manager’s fee. The
Outside Manager will debit the Client's account for its fee. The Outside Manager’s wrap fees, advisory fees, billing
schedule, and payment procedures are set forth in their separate written disclosure documents, advisory agreements,
and/or the account opening documents of your account Custodian.

Ongoing Financial Planning

We charge an initial fee of $5,000 for initial construction of the plan and a recurring fixed fee for Ongoing Financial
Planning. Recurring fees are paid quarterly in arrears, starting from $2,500 per quarter. The fee range is dependent
upon variables including the specific needs of the Client, complexity, estimated time, research, and resources
required to provide services to you, among other factors we deem relevant. Fees are negotiable and the final agreed
upon fee will be outlined in your Advisory Contract.

Tax Advisory and Preparation

Tax advisory and preparation fees may range from $500 to $10,000 based on the complexity and time involved.
These fees are in addition to the Client’s wealth management fee. Depending on the complexities of the work and

size of the relationship, Clients of MWM may seek to have tax preparation fees waived, which MWM may
approve at its sole discretion.

Project-Based Financial Planning & Consulting

MWM charges either a fixed or hourly fee for Project-Based Financial Planning and Consulting. Fixed fee rates
start at $3,500 with additional fees depending on complexity and the inclusion of various financial planning
segments. Our hourly rate is $500.

The fee is dependent upon variables including the specific needs of the Client, complexity, estimated time, research,
and resources required to provide services to you, among other factors we deem relevant. Fees are negotiable and
the final agreed upon fee will be outlined in your Advisory Contract. MWM may request a portion of the fee be
collected in advance with the remainder due upon completion of the services. MWM will not bill an amount above
$1,200 more than 6 months or more in advance of rendering the services.

Retirement Plan Management and Consulting
The fee is based on a percentage of assets under management and is negotiable. The annualized fees for retirement
plan investment management services are based on the following fee schedule:

       Assets under Management                Retirement Plan Consulting            Retirement Plan Management
                                                  Annual Advisory Fee                   Annual Advisory Fee

            $0 - $1,000,000                              $3,500                                $5,000

        $1,000,001 - $2,500,000                          $5,000                                $7,500
...

Item 7: Types of Clients

We provide services to individuals, high net-worth individuals, banking or thrift institutions, investment
companies, pension and profit sharing plans, charitable organizations, corporations or other businesses, state or
municipal government entities, tribal governments and commercial enterprises, and other investment advisers.

We do not have a minimum account size requirement, but we have a minimum annual fee of $10,000 to open or
maintain an account under our management. MWM may reduce or waive the minimum fee requirement on a case-
by-case basis.