Item 5: Fees and Compensation
Discretionary or AUM Fee Schedule
Total Assets Under Management Annual Fee
All Assets Under Management 0.10% - 2.00%
We charge fees based on a percentage of your assets under management. This fee arrangement
applies to individual, institutional, and retirement plan clients as well as subadvisory
relationships. You are never charged additional fees to cover the fee sharing agreements
associated with our subadvisory relationships. The fees shared will not exceed any limit
imposed by any regulatory agency.
Our fees are negotiable depending on your needs and complexity of your situation. In all cases,
the final fee schedule is outlined in the agreement that you sign. Generally, our Fees are paid
quarterly in arrears, and you may terminate your agreement with thirty (30) days’ written
notice. Because fees are charged in arrears, no refund policy is necessary. Fees associated with
new accounts are pro-rated based on the time invested. In addition, fees associated with cash-
flows (contributions and withdrawals) are pro-rated based on the timing of the cash flow. You
may terminate your accounts without penalty within five (5) business days of signing the client
agreement.
Financial Planning, Fixed & Hourly Fee Schedule
Depending on the complexity of your situation and needs, the consultation fee is between $50
and $400 per hour for Hourly Financial Planning while Fixed Fee Financial Planning is
determined on a case by case basis. The fees are negotiable and the final fee schedule will be
outlined in the planning agreement that you sign. Fees are typically paid in arrears upon
completion, however, some Investment Advisor Representatives may choose to require up to
one-half of the fee (estimated hourly or fixed) payable upon engagement with the balance
generally being due upon delivery of the financial plan or completion of the agreed upon
services. You may terminate your agreement without penalty within five (5) business days of
signing the planning agreement.
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Form ADV 2A
Payment of Discretionary or AUM Fees
Advisory fees are generally withdrawn directly from your account with your written
authorization, including accounts established through a subadvisory arrangement. You may
remove this authorization for direct billing of fees at any time by notifying us or your custodian
in writing. Advisory fees may also be invoiced and billed directly to you on a quarterly basis
and in arrears. You may select the billing method of your choice.
Payment of Financial Planning, Fixed & Hourly Fees
Financial Planning, Fixed and Hourly fees are paid via check upon completion with up to half
of the fee collected at time of engagement. In the event our services are terminated prior to
completion, we will bill you based on hours expended or the portion of the project already
completed through the date of termination.
Clients Are Responsible For Third Party Fees
You are responsible for the payment of all third-party fees (i.e. custodian fees, mutual fund fees,
transaction fees, etc.). Insurance products, such as annuities, may also have associated fees and
expenses. All third-party fees are separate and distinct from the fees and expenses that we
charge. Please see ITEM 12 of this brochure regarding brokerage practices.
ETFs and mutual funds typically charge their shareholders various transactions and operating
expense costs associated with the establishment and operation of the funds. These fees will
generally include a management fee, shareholder servicing, other fund expenses, and
sometimes a distribution fee.
However, because of differences in distribution and often lower transaction costs, total
operating expense ratios for ETFs have been historically less than those for corresponding
mutual funds. These separate fees and expenses are disclosed in each fund’s prospectus, which
is available from the fund or, we can provide it to you upon your request.
Consequently, for any type of fund investment, it is important for you to understand that you
are directly and indirectly paying two levels of advisory fees and expenses: you pay one layer of
fees to the fund and one layer of advisory fees and expenses to us. Generally speaking, most
funds may be purchased directly, without using our services or incurring our advisory fees.
Subadvisory fees
When we use a third-party manager as a subadvisor, the fee we charge will include our
advisory fee and the advisory fee charged by the subadvisor. We do not retain any portion of
the subadvisory fee but pass it on to the subadvisor. Details of the subadvisor’s fee, which is in
addition to our fee, will be disclosed to you in the subadvisor’s disclosure brochure and related
investment advisory agreement. You should read both carefully and retain for your records.
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Termination of Services
If you terminate your agreement with us, you must notify us in writing or transfer your assets
from the custodian. Similarly, if you work with a separate investment adviser and you
terminate that relationship, it will terminate our services as well. If we charge you in arrears,
we will bill your account for the portion of time that we managed your account and no refund
of fee will be necessary.
Outside Compensation for the Sale of Securities to Clients
Our advisers may accept commissions associated with insurance-based products. This outside
compensation is independent of the products and services offered through our firm, will be
disclosed to you separately and will be paid through other unaffiliated financial services firms
(e.g., a life insurance company, or an insurance marketing organization).