Providence Financial and Insurance Services Inc

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides details
regarding our advisory services, fees and compensation arrangements.

Investment Management Services

The client may engage Providence to design an investment portfolio and provide ongoing corresponding
investment management services on a fee-only basis. Unless the client directs otherwise, we will
generally recommend investment management accounts be established with Charles Schwab and Co.
Member FINRA/SIPC/NFA.

We provide an additional service for accounts not directly held with Schwab, but where we do have
discretion, and may leverage an Order Management System to implement tax-efficient asset location and
opportunistic rebalancing strategies on behalf of the client. These are primarily employer sponsored
retirement accounts (i.e. 401(k), 403B etc.), HSA’s, and other assets we do not custody. We regularly
review the available investment options in these accounts, monitor them, and rebalance and implement
our strategies in the same way we do other accounts, though using different tools, as necessary.

Advisory recommendations are based on the client’s financial situation at the time the services are
provided and are based on financial information disclosed by the client to us. You are advised that certain
assumptions may be made with respect to interest and inflation rates and the use of past trends and
performance of the market and economy. Past performance is in no way an indication of future
performance. As the client’s financial situation, goals, objectives, or needs change, the client must notify
us promptly.

Our fees for investment management services generally range between 1.25% and 1.50% of the invested
assets and are charged as follows:

            Assets Under Management                      Maximum Annual Advisory Fee
                  $0-$250,000                                   $2500 flat fee
                      $250,000-$1,000,000                         1.50%
                      $1,000,001+                                 1.25%
Our fees are subject to negotiation and charged on a pro-rata (annual) basis monthly in arrears based on
the average daily market value of the account during the most recent calendar month. Our fees are
negotiable based on factors such as the client’s financial situation and circumstances, the amount of
assets under management, and the overall complexity of the services provided.

Clients may receive the same or comparable services from other financial advisors at a lower fee.

Prior to Providence providing investment management services, the client will be required to enter into a
formal Investment Advisory Agreement with us setting forth the terms and conditions under which the
Firm will manage the client's assets, and a separate custodial/clearing/management agreement with the
account custodian. Our Investment Advisory Agreement and the custodial/clearing/ management
agreement may authorize the account custodian to debit the client account in the amount of the
Providence investment advisory fee and to directly remit the management fee to the Firm in accordance
with applicable state and/or regulatory procedures. The applicable procedures require that Providence to
provide clients with a fee notification contemporaneously with any fees being deducted from the account.

Providence Financial and Insurance Services, Inc.                                           March 2025 Brochure

The fee notification expressly states the amount of fees for the month, the manner in which the fees are
deducted, any adjustments to the fees, as well as an explanation regarding any adjustments. The
account custodian provides client statements, at least quarterly, showing all disbursements for the
account including the amount of the advisory fee deducted directly from the account. The exception for
this is directly-managed held-away accounts, such as 401(k)’s and other employer sponsored retirement
plans. As it is impossible to directly debit the fees from these accounts, those fees will be assigned to the
client’s other pre-tax or taxable accounts on a pro-rata basis. If the client does not have a pre-tax or
taxable account, they will be required to establish one in order to use this service. If we only manage your
held-away assets for part of a quarter, the charge will be prorated. Furthermore, although the fee for this
service will be charged according to the fee schedule above, the fee for directly-managed held-away
accounts will be based on the value of the account on the last day of the quarter and will be deducted
quarterly in arrears.

Advice offered by Providence may involve investments in mutual and/or money market funds, unit
investment trusts, real estate investment trusts, variable annuities, and/or the use of third-party money
managers who also charge a separate fee. Clients are hereby advised that all fees paid to the Firm for
investment advisory services are separate and distinct from the fees and expenses charged by these
funds (described in each fund’s prospectus) to their shareholders. These fees may include, but are not
limited to, a management fee, upfront sales charges, and other fund expenses. In addition, transaction
charges may apply when purchasing or selling securities. Providence does not share in any portion of the
brokerage fees/transaction charges imposed by the custodian holding the client funds or securities. You
should review all fees charged by mutual and/or money market funds, Providence and others to fully
understand the total amount of fees to be paid by the client.

In performing its services, Providence is not required to verify any information received from the client or
from the client’s other professionals and may rely on the information provided in servicing the client
account. The client is free to accept or reject any recommendation made by us. Moreover, each client is
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Item 7 – Types of Clients

We generally provide investment advice to the following types of clients:

           •    Individuals
           •    Pension and profit-sharing plans
           •    Trusts, estates, or charitable organizations
           •    Corporations or business entities other than those listed above

Minimum Investment Amounts Required

Although we reserve the right make an exception, there is a minimum investment amount of $250,000
required for establishing an account managed by Providence. Prior to engaging us to provide investment
advisory services, the client is required to enter into an Investment Advisory Agreement with the Firm
setting forth the terms and conditions of the engagement, describing the scope of the services to be
provided, and the portion of any fee that is due from the client prior to us commencing services.