McBroom & Associates LLC

Item 5 – Fees and Compensation
The Firm generally requires a minimum initial investment of $1,000,000 to open an account, which
amount may be lowered by the Firm in its sole discretion.

This account size may be negotiable under certain circumstances. McBroom & Associates, LLC may
group certain related client accounts for the purposes of achieving the minimum account size and
determining the annualized fee.
Our annual fees for investment advisory services are based upon a percentage of assets under
management, account size, and the types of investments as follows:
     •   1% for equity and ETF investments
     •   0.4% for fixed income (such as municipal bonds) investments
     •   2% for accounts significantly below the minimum size
In summary, our fees generally can range from 0.4% to 2.0% (annualized) depending on managing
assets and account sizes.
McBroom & Associates, LLC retains the right to negotiate an alternative fee schedule on a client-by-
client basis depending on client circumstances. These include client complexity, anticipated future
assets, related accounts, portfolio style, and account composition.
The specific annual fee schedule is identified in the contract between the adviser and each client.
Discounts may be offered to family members and friends of associated persons of our firm.
We manage funds for clients under a contractual arrangement that mitigates conflicts of interest by
charging a fee that collectively captures management and administrative services.
Our fees are billed quarterly, in advance, at the beginning of each calendar quarter based upon the
custodian-reported value of the client's account at the end of the previous quarter. Fees will be debited
from the account in accordance with the client authorization in the client contract. In certain
circumstances, and at the adviser’s discretion, clients may be billed directly rather than having fees
deducted from their custodial account.
Clients may incur charges for other account services provided and not directly related to the execution
and clearing of transactions, including, but not limited to, IRA custodial fees, safekeeping fees, interest
charges on margin loans, and fees for transfers of securities.
Client accounts are held at custodial firms such as Charles Schwab & Co., UBS, and Deutsche Bank.
Neither McBroom & Associates nor its representatives have direct access to client funds.
A client agreement may be canceled at any time, by either party, for any reason upon receipt of written
notice. A client has the right to terminate a client agreement without fee or penalty within five (5) business
days of acceptance of a client agreement. Clients may also effectively terminate the advisory relationship
by transferring assets from the account to another financial institution. Upon termination of any account,
any prepaid, unearned fees will be refunded at the next quarterly billing.
Pre-existing advisory clients are subject to our minimum account balance requirements and advisory fees
in effect at the time the client enters the advisory relationship. Therefore, our firm's minimum account
requirements will differ among clients.

Item 7 – Types of Clients
McBroom & Associates, LLC provides investment advice to individuals, trusts, estates, charitable
organizations, corporations, and other business organizations. The firm generally requires a minimum of
$1,000,000.00 to open an account, which amount may be lowered by the Firm in its sole discretion.
McBroom & Associates, LLC may group certain related client accounts for the purposes of achieving the
minimum account size and determining the annualized fee.