Item 5 Fees and Compensation
Description of Fee Calculations and Schedule for Wealth and Investment Management Services
The Firm generally bases its fees on a percentage of assets under management as described in the
client’s investment management agreement. NEIRG’s current fee schedule for investment
management accounts is as follows:
Account Size Standard Tiered Annual Fees
First $250,000 ..........1.25%
Next $1,250,000 ..........1.00%
Next $3,500,000 ..........0.75%
Balance over $5,000,000 ..........0.65%
All Accounts are subject to a minimum annual Management Fee of $3,000.
Fees are negotiable and may be modified or waived in the sole discretion of the Firm. The Firm, in its
sole discretion, may charge a different investment advisory fee based upon certain criteria (e.g.,
historical relationship, type of assets, anticipated future earning capacity, anticipated future additional
assets, dollar amounts of assets to be managed, related accounts, account composition, negotiations
with clients, etc.). The Firm may negotiate hourly fees and/or fixed fees in certain circumstances for its
investment advisory fees and Financial Planning services.
For Plan Account Allocation Services, the Firm assesses an annual fee ranging from 0.30% to 0.60%
(depending on the complexity and size of the account) of the value of the retirement plan account
balance billed on a quarterly basis, but such fees may be modified or waived depending upon certain
criteria at the Firm’s sole discretion, as noted above.
For Retirement Plan Services, the Firm assesses an annual fee ranging from .20% to 1.00%
(depending on the complexity and size of the plan as well as the scope of services provided),
determined and billed monthly or quarterly depending on the plan.
For certain clients, we charge an advisory fee for services provided to the held-away accounts
mentioned above in Item 4, just as we do with client accounts held at our primary custodians(s). The
specific fee schedule charged by us is provided in the client’s investment advisory agreement with us.
Although a client has the right to make withdrawals from his account at any time, the Firm may
terminate an account that falls below its minimum portfolio size of $200,000. If assets are deposited to
or withdrawn from an account after the inception of a quarter that exceed $50,000, per transaction, the
management fee payable with respect to the assets will be pro-rated based on the number of days
remaining in the quarter.
Fee Billing for Wealth and Investment Management Services
Investment management fees are billed quarterly, in advance, meaning that NEIRG charges its fee
before the three-month billing period has begun, based upon the market value of the Assets on the last
day of the previous quarter as valued by third-party sources. Cash and accrued interest will be
included for billing purposes unless we determine otherwise, in our sole discretion. We reserve the
right, and will in our sole discretion, adjust our fee for contributions made during the quarter. Fees are
usually deducted from a designated client account to facilitate billing. The client must consent in
advance to direct debiting of their investment account. Clients will be provided with an account
statement by the custodian which will detail the amount of the advisory fee deducted from the client’s
account. Clients have the option of paying as invoiced by NEIRG or through a direct debit from their
account. Clients may make arrangements to pay management fees for a qualified account through a
direct debit from their non-qualified account, if necessary.
If the account does not contain sufficient funds to pay the advisory fees, NEIRG has limited authority to
sell or redeem securities in sufficient amounts to pay advisory fees.
Fees for Plan Account Allocation Services, financial planning services or other wealth management
consulting services are to be paid directly to the Firm as negotiated between NEIRG and the client (the
Firm may in some cases deduct such fees from other investment management accounts the client has
with the Firm, if applicable, through direct debiting as described above if authorized by the client).
Other Fees for Wealth and Investment Management Services
In addition to the Firm’s fees, clients are responsible for the fees and expenses associated with the
investment of their assets, including management fees of third-party managers, fees and expenses of
mutual funds, exchange-traded funds and other pooled investment vehicles, brokerage commissions,
transaction fees, custodial fees, deferred sales charges, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions.
The Firm recommends that clients establish accounts with TD Ameritrade Institutional, a division of TD
Ameritrade, Inc. (“TD Ameritrade”), Fidelity Brokerage Services LLC ("Fidelity"), or Charles Schwab &
Co., Inc. (“Schwab”) (generally and collectively, “Custodian(s)”), to maintain custody of clients' assets
and to effect trades for their accounts. Although the Firm may recommend that clients establish
accounts with a Custodian, it is the Client's decision where to custody assets. NEIRG is not affiliated
with TD Ameritrade, Fidelity, or Schwab. The client does not pay a custody fee to TD Ameritrade,
Fidelity or Schwab, although the client will incur transaction charges and other expenses, such as a
custody fee for certain non-standard assets.
The Firm generally purchases shares of mutual funds at net asset value; however, any mutual fund
shares held in a client account may be subject to deferred sales charges, 12b-1 fees, short-term
redemption fees, and other mutual fund annual expenses. The fees and expenses are fully described
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