Item 5 – Fees and Compensation
In most situations, the fees for services will be based on the amount of assets you have managed by the Representative.
You will be provided with an advisory agreement that will outline the investment management services to be provided by
the Advisor, as well as a description of the fees charged. Your advisory fees will be automatically deducted from your
accounts on a quarterly basis. The fee will be charged in arrears, meaning it is collected at the end of the quarter, and is
noted on the advisory agreement you sign with the Advisor. The value of the fee used to calculate the fee will include all
positions in the account, cash, dividends, accrued interest and interest payments unless specifically excluded in the Special
Instructions section of the Agreement.
All fees charged by the Advisor for investment management services are separate and distinct from the fees and expenses
charged by investments like mutual funds and exchange traded funds (ETFs). In these cases, the fees and expenses are
described in each fund's prospectus or available through common financial websites. These fees will generally include a
management fee, other fund expenses, and a possible distribution fee. In addition to Advisor’s Advisory Fees, you are
also responsible for the transaction charges, fees and other expenses charged and imposed by the firm who holds your
assets (Custodian). Accordingly, you should review both the fees charged by the funds/ETFs, the Custodian and the fees
charged by the Advisor to fully understand the total amount of fees to be paid.
The standard fee rate for the Advisor is as follows:
Total Advisory Assets Annual Fee
$0 to $250,000 1.30%
$250,001 to $500,000 1.20%
$500,001 to $1,000,000 1.05%
$1,000,001 to $3,000,000 0.90%
$3,000,001 and up 0.80%
In addition to Investment Management Services the Advisor may provide financial planning “Planning”. Fees charged for
Planning services may be up to $250 per hour or up to $2,500 per financial plan. As noted earlier it is possible that the
Advisor could recommend insurance products that could create additional compensation for the Advisor. Please know
that you are not obligated to use the Advisor for any of these transactions.
Fees may be lowered or in some cases waived at the discretion of the Advisor depending on the bargaining power,
investment complexity or investment sophistication level of the client. As mentioned earlier, Advisor has purchased the
assets of IMH, and it is possible that there could be different fee schedules with these clients that are different, but not
higher, than the schedule noted above. Additionally, the Advisor may waive or lower fees for family and friends of the
Representative. It is important to note that you may be able to obtain comparable services from other providers for a
lower fee. Aside from the sale of insurance products, neither the Advisor nor any supervised persons accept any
compensation for the sale of securities or other investment products.
The investment management services may be terminated for any reason by any party effective upon receipt of written
notice of one party to another. In the event Client or the Advisor terminates this agreement during a quarter, the fee is
pro-rated for the portion of the quarter where services were provided. The termination date used is the date the Advisor
or Client notifies the other party in writing (to address of record) of the termination. In the event the account is not
available for electronically debiting the fee, Client agrees to pay the invoice for the partial quarter within 30 days of receipt.