Item 5. Fees and Compensation
Investment Supervisory Services Fees
We are a fee only advisory firm, meaning we are compensated only by our clients and do not receive
compensation or commissions from any other parties. We believe this method of compensation minimizes
conflicts of interest that are common in the investment management industry.
Compensation to us for our services will be calculated in accordance with the fees set forth in the Investment
Management Agreement entered into which each client when we begin our professional relationship. We
reserve the right to amend the fees and Investment Management Agreement itself upon 30 days prior written
notice to each client. Our IARs set their own asset- based fee for their services, so long as their asset-based
fee does not exceed the Firm’s maximum fee of 2% of account assets per year. IARs consider numerous factors
in determining what fee to charge, which may include, among other things, the nature and size of the overall
Client relationship. Clients may negotiate fees for the IAR’s services. Account fees are structured utilizing a
flat asset-based fee or on tiered fee basis, with a reduced percentage rate based on the account reaching certain
thresholds. IARs receive a portion of the wrap fee for their services. This compensation may be more than what
the IAR would receive id a Client paid separately for investment advice, brokerage, and other services. IARs
therefore may have a financial incentive to recommend a wrap fee program over other services.
As stated throughout this document, Clients will incur charges imposed by third parties including, but not
limited to, broker/custodian fees and internal expense and management fees in connection with transactions in
certain types of securities such as mutual funds, exchange traded products, direct investment products, and
alternative investments which can vary considerably. These fees are separate from and in addition to the fee
the Client pays us.
Clients with assets in the MAS, MWP, and OMP Programs will also pay fees to other third parties, such as a
Portfolio Manager fee, and platform fee which typically ranges from 0.15% to 1% of account assets per year.
On occasion, a Portfolio Manager may agree not to receive a fee. Our broker/custodians will charge you a flat
dollar amount as a “prime broker” or “step-out” fee for each trade that a Portfolio Manager executed by a
different broker-dealer but where the securities bought, or the funds sold are settled into your account. These
fees are in addition to the fee you pay us. Clients are encouraged to review the disclosure brochures for selected
third parties before investing for more information regarding the additional fees and expenses they will be
paying. Since PPP began providing these services, it has had other fee structures in effect, which may have been
lower or higher, as the case may be, than that described above. As new fee structures are put into effect, they
are generally made applicable only to new Clients, and fees to existing Clients are generally not affected.
Financial Planning Fees
Financial Planning fees are negotiable and are generally determined based on the nature and extent of the
services being provided, the complexity of the Client’s circumstances, as well as other aspects of the Client’s
current and historical relationship with PPP. Fees are generally a flat fee or an hourly fee and are agreed upon
prior to entering into an Agreement with any Client. Fees are paid by ACH, Credit Card, or Check. We use
an independent, secure third party payment processor (AdvicePay) in which the Client can securely input their
banking information and pay their fee. We do not have access to the Client’s banking information at any time.
Financial Planning fees are paid in advance and may and may change depending on whether or not new
complexities present themselves. Any changes made to a financial plan will be discussed with Clients in
advance, and a new agreement will be signed to reflect the changes. The fees charged to a Client are paid to
PPP and a portion of the fee is paid to the IAR.
Payment of Fees
For accounts custodied at LPL, fees are due and payable in advance and are based upon the ending account
values as of the close of business on the last day of the previous calendar quarter. Fees are calculated and
deducted from the managed account by LPL, the qualified Custodian. Fees for the initial quarter are adjusted
pro rata based upon the number of calendar days in the calendar quarter that the Investment Advisory
Agreement goes into effect. If assets are deposited into or withdrawn from an account after inception of a billing
period, the fee payable with respect to such assets is prorated to reflect the change in portfolio value. Payment
of fees may result in the liquidation of a Client’s securities if there is insufficient cash in the account. The
advisory relationship may be terminated by the Client or by us at any time on thirty (30) days prior written
notice. The Client receives a pro rata refund of any prepaid unearned advisory fees. Clients receive an account
statement from LPL at least quarterly. The statement includes the amount of any fees debited or credited from
the Client’s’ account pursuant to written authorization. Clients bear the responsibility for verifying the
accuracy of fee calculations.
The fee for all accounts held at LPL includes an advisory fee and a manager fee, if applicable. The advisory fee
will include the PPP advisory fee in addition to LPL administrative/program fees. The manager fee will include
the third party investment manager charge, if applicable, depending on the program you are invested in.
For accounts in the Fidelity Institutional Service Program, fees are due and payable in advance and are based
upon the ending account values as of the close of business on the last day of the previous calendar quarter.
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