Item 5 Fees and Compensation
Strategic Wealth Management (SWM) Individual Portfolio Management
The maximum annualized fee for Individual Portfolio Management that may be charged as a percentage
of assets under management, according to the following schedule:
Assets Under Management Annual Fee
Up to $199,999 2.00%
$200,000 to $499,999 1.25%
$500,000 to $999,999 1.00%
$1,000,000 to $2,999,999 0.90%
$3,000,000 to $4,999,999 0.80%
$5,000,000 and over 0.70%
Fees are computed and billed quarterly, in advance, and are based on the market value of client’s account
on the last day of the month in the prior quarter. Fees will be prorated, on a monthly basis, with respect
to new accounts opened during a quarter. Management fees are deducted from our client’s accounts.
LPL Financial will make quarterly adjustments for deposits and withdrawals in client accounts. As part of
this process, you understand and acknowledge the following:
a) Each client’s custodian sends statements at least quarterly to clients showing all
disbursements for their account, including the amount of the advisory fees paid to our firm;
b) The client has provided authorization permitting fees to be directly paid by these terms;
c) Each custodian calculates the advisory fees and deducts them from the client’s account.
We are compensated by a fee for managing our clients’ portfolios based on the assets we manage and
we receive no other form of compensation related to the management thereof.
Individual Accounts for immediate family members (such as husband, wife and dependent children) are
aggregated, and the fee is charged based on the total value of all family members’ Accounts.
The fee schedule above may be amended from time to time by Adviser upon at least forty-five (45) days’
advance written notice to Client, subject to Client’s right to terminate the Agreement before an increased
fee schedule takes effect upon at least thirty (30) days written notice to Adviser.
Upon termination, advisory fees will be prorated to the effective date of termination. Client will promptly
be sent a refund of any fees paid but not yet earned through the effective date of termination.
Where acting in the capacity of a registered representative, investment advisory representatives of
MWM Advisory may, as broker or agent, effect securities transactions for typical and customary
compensation. Clients are not obligated to use investment advisory representatives of MWM Advisory
Services LLC to execute such securities transactions. Commissions and other compensation for the sale
of investment products, including asset-based distribution fees from the sale of mutual funds, currently
provide the primary compensation from investment-related services provided by MWM Advisory
Services LLC.
Financial Planning Fees
MWM Advisory Services LLC Financial Planning fee will be determined based on the nature of the services
being provided and the complexity of each client’s circumstances. All fees are agreed upon prior to
entering into a contract with any client. Consulting services include Financial Position Planning,
Retirement Planning, Protection/Family Security, Education, Income Tax, Estate Planning, Small Business,
Financial Plan and Future Savings Goals.
Our Financial Planning fees are calculated and charged on either an hourly basis or a fixed fee basis.
Although the length of time it will take to provide a Financial Plan will depend on each client's personal
situation and complexity of the client’s circumstances, we will provide an estimate for the total hours or
the amount of the fixed fee at the start of the advisory relationship and upon beginning the planning
process.
The client shall pay to MWM Advisory Services LLC for services provided, a fee of an hourly rate ranging
from $200 to $300. The financial planning fee may be calculated and charged on a fixed fee basis, typically
ranging from $2,500 to $25,000, subject to the specific arrangement reached with the client. The hourly
fee and the fixed fee rates may be negotiated.
The client agrees to pay MWM Advisory Services LLC upon completion of services according to the terms
of the Consulting Services Agreement. Client agrees that service shall be deemed completed upon client’s
receipt of a financial plan or project report. To the extent client requests additional consulting services,
fees for such services shall be determined, and be payable in advance.
Upon termination of the agreement, any prepaid unearned fee will be refunded to the client. Any fee for
services already completed and yet unpaid shall be billed to the client. Client agrees to pay such bill
promptly.
In General
Negotiability of Advisory Fees: MWM Advisory Services LLC retains the discretion to negotiate fees on a
client-by-client basis. Client facts, circumstances and needs will be considered in determining the fee
schedule. These include the complexity of the client, assets to be placed under management, anticipated
future additional assets, related accounts, portfolio style, account composition, reports, among other
factors. The specific annual fee schedule will be identified in the contract between the adviser and each
client.
Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either
party, for any reason upon receipt of 30 days written notice. As disclosed above, certain fees are paid in
advance of services provided. Upon termination of any account, any prepaid, unearned fees will be
promptly refunded. In calculating a client’s reimbursement of fees, we will pro rate the reimbursement
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