Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
written agreements with the Advisor.
A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
wealth management agreement. Wealth management fees are based on the market value of assets under
management at the end of the prior quarter. The Advisor imposes a minimum annual fee of $10,000, which may be
reduced or waived at the Advisor’s discretion. Wealth management fees are based on the following schedule:
Assets Under Management ($) Annual Rate (%)
Up to $1,000,000 0.90%
$1,000,001 to $2,000,000 0.80%
$2,000,001 to $4,000,000 0.70%
$4,000,001 to $8,000,000 0.60%
$8,000,001 to $15,000,000 0.50%
$15,000,001 to $25,000,000 0.40%
Over $25,000,000 0.30%
Certain legacy Clients may have a minimum annual fee different from the above, pursuant to the terms of their
wealth management agreement with Palo Alto.
The wealth management fees in the first quarter of service are prorated from the inception date of the account[s] to
the end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. Certain Clients may also
be offered a fixed dollar fee arrangement. The Client’s fees will take into consideration the aggregate assets under
management with the Advisor. For Clients who engage the Advisor for DAF, Palo Alto will waive the fees of up to
$500,000 placed under the DAF platform. All securities held in accounts managed by Palo Alto will be
independently valued by the Custodian. Palo Alto will conduct periodic reviews of the Custodian’s valuation to
ensure accurate billing.
Palo Alto Wealth Advisors, LLC
715 Colorado Avenue, Suite A, Palo Alto, CA 94303
Page 6 Phone: (650) 656-9800
www.PaloAltoWealth.com
The Client may make additions or withdrawals from the account[s] at any time, subject to the Advisor’s right to
terminate an account or the overall relationship. Additions may be in cash or securities provided that the Advisor
reserves the right to liquidate any transferred securities or decline to accept particular securities into a Client’s
account[s]. Clients may withdraw account assets on notice to Palo Alto, subject to the usual and customary
securities settlement procedures. However, the Advisor typically designs its investment portfolios as long-term
investments, and the withdrawal of assets may impair the achievement of a Client’s investment objectives. Palo
Alto may consult the Client about the implications of such transactions. Clients are advised that when such
securities are liquidated, they may be subject to securities transaction fees, short-term redemption fees, and/or tax
ramifications. If assets in excess of $50,000 are deposited into or withdrawn from the Client’s account[s], an
adjustment will be made in the next billing period to reflect the fee difference. The Advisor may negotiate a fee that
differs from the schedule above for certain account[s] or holdings.
The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5.C. below, which may be incurred by the Client. However,
the Advisor shall not receive any portion of these commissions, fees, and costs.
Financial Planning Services
Palo Alto offers standalone financial planning services for a fixed fee of $5,000 per engagement. Fees may be
negotiable depending on the nature and complexity of each Client’s circumstances and the experience of the
personnel providing services. A cost estimate will be provided to the Client in advance of engaging for these
services. If a Client engages the Advisor for wealth management services within two (2) years of the financial
planning engagement, Palo Alto may offset all or a portion of its fees for those services based upon the amount
paid for financial planning services.
B. Fee Billing
Wealth Management Services
Wealth management fees will be calculated by the Advisor or its delegate and deducted from the Client’s
account[s] at the Custodian. The Advisor or its delegate shall send an invoice to the Custodian indicating the
amount of the fees to be deducted from the Client’s account[s] at the respective quarter-end date. The amount due
is calculated by applying the quarterly rate (annual rate divided by 4) to the total assets under management with
Palo Alto at the end of the previous quarter. Clients will be provided with a statement, at least quarterly, from the
Custodian reflecting the deduction of the wealth management fee. It is the responsibility of the Client to verify the
accuracy of these fees as listed on the Custodian’s statement as the Custodian does not assume this
responsibility. Clients provide written authorization permitting advisory fees to be deducted by Palo Alto directly
from their accounts held at the Custodian as part of the wealth management agreement and separate account
forms provided by the Custodian.
Financial Planning Services
Financial planning fees are invoiced up to fifty percent (50%) upon execution of the financial planning agreement
and with the balance due upon receipt of the agreed upon deliverable[s].
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