New England Professional Planning Group Inc

Item 5: Fees and Compensation

Compensation
We base our fees on a percentage of assets under management, hourly charges, and fixed fees,
as described below.

Compensation – Investment Advisory Services

Ambassador
The advisory fees for Ambassador accounts are as follows:

Fee Schedule:

 Fee-Based Relationship Value                          Annualized Fee
 First $500,000                                           1.00%
 Next $4,500,000                                          0.75%
 Next $10,000,000                                         0.50%
 Next $10,000,000                                         0.40%
 Amounts over $25,000,000                                 0.30%

A portion of the asset-based advisory fee is paid to RJFS and RJA for administrative services.

Freedom – Independent Managers
The maximum fee charged for Freedom program accounts is 1.25%.

A portion of the asset-based advisory fee is paid to RJA for execution, custodial and advisory
services.

RJCS – Independent Managers
The maximum fee charged for RJCS is 1.65%.

A portion of the asset-based advisory fee is paid to RJA for execution as well as a sub-advisory
fee paid to the Managers.

Raymond James Trust
The maximum fee for Raymond James Trust accounts is 1.58%.

A portion of the asset-based advisory fee is paid to Raymond James Trust Company.

Compensation – Financial Planning
Our financial planning clients are billed in arrears with fees due and payable upon completion
of the engagement. Billing is a fixed fee or hourly rate.

Fixed fee engagements range from $1,000 to $10,000 depending on the nature and complexity
of the client’s circumstances, as well as the Firm advisor(s) involved in the planning process.

Hourly fee engagements range from $250 to $500 per hour. An estimate for total hours is
determined at the start of the advisory relationship and communicated to the client.

Calculation, Payment Agreement Terms of Ambassador, Freedom and RJCS
The annual asset-based fee is charged quarterly in advance. RJA deducts asset-based fees from
the client's account and sends statements reflecting amounts disbursed from the client's
account, including the asset-based fee amount, the value of the assets on which the fee was
based, the number of days in the billing period and the specific manner in which the fee was
calculated.

At account opening, the asset-based fees are billed for the remainder of the current billing
period and based on the initial contribution. Upon termination, the client pays an asset-based
fee for the period the account was managed prior to notification of termination. If payment
was in advance, any unearned fee is refunded.

Charges excluded from the asset-based advisory fee are detailed in the client agreement and
reflected on the client statement, as charged. Margined account fees are based on the absolute
market value. The use of margin also results in interest charges in addition to other fees and
expenses.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on:

    •   your desire to have an allocation to cash as an asset class, to support a phased market
        entrance strategy,
    •   to facilitate transaction execution,
    •   to have available funds for withdrawal needs or to pay fees, or
    •   to provide for asset protection during periods of volatile market conditions.

Your cash and cash equivalents will be subject to our investment advisory fees unless
otherwise agreed upon. You may experience negative performance on the cash portion of your
portfolio if the investment advisory fees charged are higher than the returns you receive from
your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on. We may

also recommend rollovers from IRA Accounts to Plan Accounts, from Plan Accounts to Plan
Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
Firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients.

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
...

Types of Clients
Our clients include individuals, high net worth individuals, trusts, estates, charitable
organizations, corporations, endowments, and foundations.

Account Minimums
We require a minimum account of $500,000 for investment advisory services, although this
may be negotiable under certain circumstances. Waivers or exceptions from the minimum
account requirement for investment advisory accounts may be granted at the exclusive
discretion of the Firm.