Item 5: Fees & Compensation
Compensation for Our Advisory Services
Comprehensive Portfolio Management:
The maximum annual fee charged for this service will not exceed 2.00%. Fees are negotiable and may
vary amongst clients. The actual annualized percentage of assets under management to be paid by
the client will be detailed in the signed advisory agreement. For example, a client with $100,000 of
assets under management may be charged an annualized fee up to $2,000. However, the actual fee
paid by the client may be lower than the disclosed maximum. Let us assume that the client and our
firm have negotiated an annualized fee of 1.00% of assets under management. In this scenario, the
client would be charged a monthly advisory fee of $83.33.
Annualized fees are billed on a pro-rata basis monthly in arrears based on the value of the account(s)
on the last day of the month. Unless otherwise noted in writing, our firm bills on cash. Fees will be
deducted from client account(s). Adjustments will be made for deposits and withdrawals during the
month. Our firm does not offer direct invoicing. As part of this process, Clients understand the
following:
a) Clients must provide our firm with written authorization permitting direct payment of
advisory fees from their account(s) maintained by a custodian who is independent of our
firm;
b) Our firm sends the qualified custodian an invoice or statement of the amount of the fee to be
deducted from the client’s account;
ADV Part 2A – Firm Brochure Page 5 Malone Wealth
c) Our firm sends monthly statements to the client showing the fee amount, the value of the
assets upon which the fee is based, and the specific manner in which the fee is calculated as
well as disclosing that it is the under the responsibility of our firm to verify the accuracy of
fee calculation, and that the custodian does not determine its accuracy; and
d) The account custodian sends a statement to the client, at least quarterly, showing all account
disbursements, including advisory fees.
Financial Planning & Consulting:
Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $250. Flat fees
will not exceed $1,000.
The payment options are as follows: (1) Payment in full will be due upon execution of the Financial
Planning & Consulting Agreement; (2) An initial retainer of the fee will be due upon execution of the
Financial Planning & Consulting Agreement with the remainder of the fee directly invoiced to the
client and due within thirty (30) days of rendering services; (3) Payments in equal monthly or
quarterly installments; or (4) Payment in full will be due upon rendering of services. Please note that
Payment Option 1 is not available if the client is billed on an hourly basis for the engagement.
The fee-paying arrangements will be determined on a case-by-case basis and will be detailed in the
signed consulting agreement. Clients will be directly invoiced by our firm for financial planning and
consulting fees. Our firm will not require a retainer exceeding $500 when services cannot be
rendered within 6 months.
Other Types of Fees & Expenses
Clients will incur transaction fees for trades executed by their chosen custodian. These transaction
fees are separate from our firm’s advisory fees and will be disclosed by the chosen custodian. Our
firms’ recommended custodian, SEI Investments Distribution Co., does not charge transaction fees
for U.S. listed equities and exchange traded funds.
Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees, distribution fees, surrender charges,
variable annuity fees, IRA and qualified retirement plan fees, mark-ups and mark-downs, spreads
paid to market makers, fees for trades executed away from custodian, wire transfer fees and other
fees and taxes on brokerage accounts and securities transactions). Our firm does not receive a
portion of these fees.
For additional information regarding our firm’s recommended custodian, please see Item 12 of the
brochure.
Termination & Refunds
Either party may terminate the advisory agreement signed with our firm for our Comprehensive
Portfolio Management service in writing at any time. Upon notice of termination pro-rata advisory
fees for services rendered to the point of termination will be charged. If advisory fees cannot be
deducted, our firm will send an invoice for due advisory fees to the client.
ADV Part 2A – Firm Brochure Page 6 Malone Wealth
Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in effect.
Clients will receive a pro-rata refund of unearned fees based on the time and effort expended by our
firm.
Commissionable Securities Sales
Our firm and representatives do not sell securities for a commission in advisory accounts.