Model Wealth Inc

Item 5: Fees and Compensation
The specific fees charged by Model Wealth are established in a client’s written agreement with
Model Wealth and depend upon the nature of the engagement and the services rendered. Fees are
negotiable at Model Wealth’s sole discretion.

Financial Planning Fees
Clients engage Model Wealth initially to provide services on specific tasks or to evaluate their
financial situation and provide a comprehensive financial plan without an ongoing relationship.
Under those circumstances, Model Wealth will either bill specifically by the hour or will quote a
fixed fee based upon an estimate of the amount of time involved to provide that service. Model
Wealth’s current hourly rate is $400, which may change from time to time. Hourly based fees are
due upon completion of the work involved.

At the outset of project-based engagements, one half of the agreed upon fee is due. The remainder
of the fee is payable on the delivery of the plan or completion of the service. Clients can terminate
the agreement, and Model Wealth will be refunded on a prorated basis based on services performed
through the date of termination.

Following the delivery of the plan or the completion of the service, clients can seek out clarification
from Model Wealth for a period of 30 days without incurring a charge; thereafter, clients can, from
time to time, seek out the guidance and advice of Model Wealth regarding revisions and
implementation at the then current hourly rate. Clients can pay these fees via check or credit card.

Wealth Management Fee
Model Wealth provides ongoing financial planning and investment management services for a flat
annual fee. This fee is based on the scope of services to be provided and the complexity of the
client’s overall financial situation. Annual fees may range up to $50,000 for highly complex client
engagements. However, most clients pay between $7,900 and $12,000 per year.

Fees are generally billed quarterly, either in advance or in arrears, depending on the client’s
specific custodian and/or investment manager. The specific fee arrangement, billing methodology,
and payment terms are outlined in the wealth management agreement executed between the client
and Model Wealth prior to the commencement of services.

In certain circumstances, Model Wealth may agree to charge a percentage-based fee not to exceed
0.75% of the client’s total portfolio value, particularly where a flat annual fee would be excessive
relative to the size of the portfolio. Under such arrangements, the total advisory fee will not exceed
the amount that would otherwise be charged under a comparable flat fee structure.

Model Wealth’s fees are negotiable at the firm’s discretion based on factors including, but not
limited to, the complexity of the client’s financial situation, the level and scope of services to be
provided, and the anticipated time and resources required to service the relationship.

Clients may terminate their advisory agreement at any time, upon written notice, in accordance
with the terms of the agreement. Upon termination, any unearned fees paid in advance will be

refunded on a pro rata basis, and any earned but unpaid fees will be due and payable through the
date of termination.

Pre-existing advisory clients are charged fees in accordance with the terms in effect at the time
they entered into the advisory relationship. As a result, similarly situated clients may pay different
fees.

Betterment for Advisors
Betterment for Advisors Fees will be deducted directly from accounts held by the custodian.
Betterment for Advisors Fees are payable quarterly, in arrears, for the previous calendar quarter.
The fee is currently 0.15% but is subject to a maximum annual fee of 0.50%. This fee is in addition
to the Model Wealth’s management fee. Additional information relating to the Betterment for
Advisors Fee may be obtained in their Disclosure Brochure.

Vanguard Personalized Investment Management (“VPIM”)
Vanguard Personalized Investment Management Fees will be deducted directly from accounts held
by the qualified custodian (Charles Schwab). VPIM fees are payable quarterly, in advance, for the
upcoming calendar quarter based upon the previous quarter-end average balance. The fee is
currently tiered and has a maximum annual fee of 0.20%. This fee is in addition to the Model
Wealth’s management fee. Additional information relating to the VPIM Fee may be obtained in
their Disclosure Brochure.

Fee Billing
Clients may pay Model Wealth’s annual Wealth Management fee either directly (e.g., by check or
electronic payment) or by authorizing the Firm to deduct fees from their account(s) held at an
independent qualified custodian. Any such authorization will be provided in writing by the client.

Model Wealth may adjust its fees from time to time based on changes in the client’s financial situation,
scope of services, or overall complexity. Any increase in fees will be communicated to the client in
advance and will not become effective without the client’s consent. Clients may terminate the advisory
relationship at any time in accordance with the terms of the agreement.

Fees are generally billed quarterly, in advance. Accounts opened or terminated during a billing period
will be charged a prorated fee based on the number of days services are provided during the period.
Upon termination, any prepaid and unearned fees will be refunded on a prorated basis.

Other Fees and Expenses
Clients may incur certain fees and expenses imposed by third parties in connection with the
maintenance of their accounts. These may include custodial fees, account maintenance fees, transaction
charges, and fees associated with retirement accounts (e.g., IRA fees), as well as banking-related
charges.

Clients may also incur fees and expenses associated with investments, such as mutual funds or
exchange-traded funds. These fees are described in the applicable fund prospectus and may include
...

Item 7: Types of Clients
Model Wealth’s clients are primarily individuals, high net worth individuals, families, pension and
profit-sharing plans, trusts, estates, charitable organizations, and small businesses.