Item 5 Fees and Compensation
PORTFOLIO MANAGEMENT SERVICES FEES
Our annual fees for Portfolio Management Services are based upon a percentage of assets
under management and generally range from 0.6% to 1.0%.
The annualized fee for Portfolio Management Services is charged as a percentage of assets
under management, according to the following schedule:
Assets Under Management Annual Fee
First $1,000,000 1.00%
From $1,000,000 to $2,000,000 0.90%
From $2,000,000 to $3,000,000 0.80%
From $3,000,000 to $5,000,000 0.70%
All Assets over $5,000,000 0.60%
A minimum of $500,000 of assets under management is required for this service. This
account size may be negotiable under certain circumstances. Nauset Wealth Management,
LLC may group certain related client accounts for the purposes of achieving the minimum
account size and determining the annualized fee.
Limited Negotiability of Advisory Fees: Although Nauset Wealth Management, LLC has
established the aforementioned fee schedule(s), we retain the discretion to negotiate
alternative fees on a client-by-client basis. Client facts, circumstances and needs are
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 is identified in the contract between the adviser and each client.
We may group certain related client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee.
Discounts, not generally available to our advisory clients, may be offered to family members
and friends of associated persons of our firm.
FINANCIAL PLANNING FEES
Nauset Wealth Management, LLC's Financial Planning fee is 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.
Our Financial Planning fees are calculated and charged on an hourly basis, at $300 per hour.
Although the length of time it will take to provide a Financial Plan will depend on each client's
personal situation, we will provide an estimate for the total hours at the start of the advisory
relationship.
Financial Planning Fee Offset: Nauset Wealth Management, LLC reserves the discretion to
reduce or waive the hourly fee and/or the minimum fixed fee if a financial planning client
chooses to engage us for our Portfolio Management Services.
The client is billed quarterly in arrears based on actual hours accrued.
GENERAL INFORMATION
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. Upon termination
a pro-rated fee is charged for the potion of the current quarter according to the applicable fee
schedule.
Mutual Fund Fees: All fees paid to Nauset Wealth Management, LLC for investment
advisory services are separate and distinct from the fees and expenses charged by mutual
funds and/or ETFs to their shareholders. These fees and expenses are described in each
fund's prospectus. These fees will generally include a management fee, other fund expenses,
and a possible distribution fee. If the fund also imposes sales charges, a client may pay an
initial or deferred sales charge. A client could invest in a mutual fund directly, without our
services. In that case, the client would not receive the services provided by our firm which are
designed, among other things, to assist the client in determining which mutual fund or funds
are most appropriate to each client's financial condition and objectives. Accordingly, the client
should review both the fees charged by the funds and our fees to fully understand the total
amount of fees to be paid by the client and to thereby evaluate the advisory services being
provided.
Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible
for the fees and expenses charged by custodians and imposed by broker dealers, including,
but not limited to, any transaction charges imposed by a broker dealer with which an
independent investment manager effects transactions for the client's account(s). Please refer
to the "Brokerage Practices" section (Item 12) of this Form ADV for additional information.
Grandfathering of Minimum Account Requirements: Pre-existing advisory clients are
subject to Nauset Wealth Management, LLC's minimum account requirements and advisory
fees in effect at the time the client entered into the advisory relationship. Therefore, our firm's
minimum account requirements will differ among clients.
ERISA Accounts: Nauset Wealth Management, LLC is deemed to be a fiduciary to advisory
clients that are employee benefit plans or individual retirement accounts (IRAs) pursuant to
the Employee Retirement Income and Securities Act ("ERISA"), and regulations under the
Internal Revenue Code of 1986 (the "Code"), respectively. . As such, our firm is subject to
specific duties and obligations under ERISA and the Internal Revenue Code that include
among other things, restrictions concerning certain forms of compensation. To avoid
engaging in prohibited transactions, Nauset Wealth Management, LLC may only charge fees
for investment advice about products for which our firm and/or our related persons do not
receive any commissions or 12b-1 fees, or conversely, investment advice about products for
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