Manchester Financial Inc

Item 5 Fees and Compensation
Financial Planning and Portfolio Management Services
Whether or not a client engages MFI for Financial Planning & Portfolio Management Services or stand-
alone Portfolio Management Services, as described in Item 4 above, advisory fees are the same. The
annual advisory fee is based on the value of the account as reported by the account custodian on the
last business day of the billing period.

The specific annual fee to which a client is subject will be specified in the Investment Advisory
Agreement executed between the client and MFI, and will not exceed 1.25% of account assets under
management. MFI may agree to household a client's multiple accounts for purposes of establishing
the client's specific fee. The fee is generally payable quarterly in advance of services rendered,
however, some accounts are billed quarterly in arrears, as specified in the Agreement.

Advisory fees are typically debited directly from a client's account, as agreed upon in writing. Clients
are responsible for verifying the accuracy of fee calculations, as the custodian of the account does not
verify accuracy. In some cases, MFI may allow a client to pay fees directly, upon presentation of an
invoice. Advisory fees are negotiable at the sole discretion of MFI and fees may be higher or lower
than fees charged by other investment advisers.

Fees paid by clients who are referred to a SAM are established and payable in accordance with the
Form ADV Part 2 or other equivalent disclosure document of each independent SAM to whom MFI
refers its clients and may or may not be negotiable, as disclosed in the disclosure documents of the
SAM. MFI does not receive a portion of the fee charged by the SAM and will charge its normal and
customary asset management fee (as disclosed above) separate and apart from the fee charged by
the SAM. Thus, a client may pay more for advisory services provided by a SAM. Clients who are
referred to SAMs will receive disclosure documents that include disclosures of services rendered by,
and fee schedules of SAMs, at the time of the referral by delivery of a copy of the relevant SAM's Form
ADV Part 2 or equivalent disclosure document.

Plan Participant Portfolio Management
If a client engages MFI to provide investment management services to 401k or other Held-Away
assets, a separate asset management fee will be charged for management of these assets as
specified on the Advisory Agreement. A third-party platform (Pontera) will typically be utilized to
faciliate the management of these Held-Away assets, upon authorization from the client. Held-Away
accounts managed through Pontera are not eligible to have fees debited directly and fees will be
direct-billed to a client or debited from another custodial account, as directed in writing by the client.
See Item 4 for a description of the services provided to Held-Away assets.

Consulting Services
Investment advisory services provided on a more limited basis are billed according to an hourly fee
schedule. MFI's current hourly rates range from $250 to $500, depending on the type of consulting
services provided and the complexity of the client's situation. Clients are presented with an invoice

detailing the hours expended and the total fee due. In the event a consulting services client engages
MFI for portfolio management services within 2 years of the consulting services, 50% of hourly fees
paid will be credited toward the portfolio management fees for the first year.

1031 Exchange Consulting Services
MFI generally charges a flat fee for consulting services related to DST investments considered in
connection with a 1031 exchange. Fees are established pursuant to a written agreement with the client
and are based on the scope, size and complexity of the services provided, rather than the amount
invested in any individual DST. Fees for DST-related 1031 consulting services are separate from, and
in addition to, any fees charged for ongoing investment advisory services. Assets invested in DSTs as
part of a 1031 exchange are generally held directly by the client and are not included in the MFI's
assets under management for billing purposes unless otherwise agreed in writing. MFI does not
receive transaction-based compensation, placement fees, referral fees, revenue sharing, or other
compensation from DST sponsors, real estate firms, or qualified intermediaries in connection with
client investments. Clients may incur additional fees and expenses charged by third parties, including
DST sponsors, property managers, qualified intermediaries, custodians, attorneys, and tax advisers.
These fees and expenses are separate from and in addition to the fees paid to MFI.

Compensation from Purchase of Insurance Products
Some persons providing investment advice on behalf of our firm are licensed as independent
insurance agents. MFI also maintains an insurance license and an affiliated insurance agency. MFI will
earn commission-based compensation from insurance products clients purchase through us.
Insurance commissions earned by MFI are separate and in addition to our advisory fees. This practice
presents a conflict of interest because persons providing investment advice on behalf of our firm may
have an incentive to recommend insurance products to you for the purpose of generating
commissions. You are under no obligation, contractually or otherwise, to purchase insurance products
through MFI or any person affiliated with our firm. Any recommendation for the purchase of an
insurance product is made with your best interest in mind.

Mutual Fund Share Classes
Mutual funds are sold with different share classes, which carry different cost structures. Each available
share class is described in the mutual fund's prospectus. When we purchase, or recommend the
purchase of, mutual funds for a client, we select the share class that is deemed to be in the client's
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Item 7 Types of Clients
MFI provides investment advisory services to individuals, high-net worth individuals, pension and profit
sharing plans, corporations or other businesses, trust, estates and charitable organizations. MFI
typically provides its portfolio management services to clients who have at least $500,000 of assets
under management. Family or related accounts may be aggregated to reach this minimum asset
threshold. This minimum may also be waived at MFI's sole discretion.