Item 5 Fees and Compensation
A. The client can determine to engage the Registrant to provide discretionary investment
advisory services on a fee-only basis.
INVESTMENT ADVISORY SERVICES
If a client determines to engage the Registrant to provide discretionary investment
advisory services on a fee-only basis, the Registrant’s annual investment advisory fee
shall be based upon a percentage (%) of the market value and type of assets placed under
the Registrant’s management (between negotiable and 1.00%) as follows:
Market Value of Portfolio % of Assets
First $2,000,000 1.00%
Next $1,000,000 0.80%
Next $1,000,000 0.70%
Next $1,000,000 0.60%
Next $5,000,000 0.50%
Next $5,000,000 0.40%
Over $15,000,000 Negotiable
Registrant's annual investment advisory fee shall include investment advisory services,
and, to the extent specifically requested by the client, financial planning and consulting
services. In the event that the client requires extraordinary planning and/or consultation
services (to be determined in the sole discretion of the Registrant), the Registrant may
determine to charge for such additional services, the dollar amount of which shall be set
forth in a separate written notice to the client.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent specifically requested by a client, the Registrant may determine to provide
financial planning and/or consulting services (including investment and non-investment
related matters, including estate planning, insurance planning, etc.) on a stand-alone fee
basis. Registrant’s planning and consulting fees are negotiable, but generally range from
$200 to $600 on an hourly rate basis, depending upon the level and scope of the
service(s) required and the professional(s) rendering the service(s).
Financial Planning for Corporate Executives
Financial planning is also offered as “packaged” consulting service for corporate
executives. Under this arrangement, a fixed fee for specific consulting projections within
specific time parameters is established. Registrant’s financial planning and consulting
fees are negotiable, but generally range from $7,500 to $50,000 on a fixed fee basis,
depending upon the level and scope of the services(s) required and the professional(s)
rendering the service(s).
Please Note: The Registrant uses the above fee schedule as a guideline as all fees are
negotiable. The basis for negotiation may include several factors, such as: the relationship
with the corporate organization, the complexity of the compensation package, the
complexity of the client’s financial affairs, other professional advisors such as Certified
Public Accountants and attorneys within the client’s team of advisors; the degree of
sophistication of the client and prior experience with financial planning principles in
practice.
TAX PREPARATION SERVICES
Registrant’s tax preparation fee generally ranges from $800 - $5,000 depending upon the
level and scope of the tax return.
B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial
account. Both Registrant's Wealth Management Agreement and the custodial/ clearing
agreement may authorize the custodian to debit the account for the amount of the
Registrant's investment advisory fee and to directly remit that management fee to the
Registrant in compliance with regulatory procedures. In the limited event that the
Registrant bills the client directly, payment is due upon receipt of the Registrant’s
invoice. The Registrant shall deduct fees and/or bill clients semi-annually in advance,
based upon the market value of the assets on the last business day of the previous half-
year.
C. As discussed below, unless the client directs otherwise or an individual client’s
circumstances require, the Registrant shall generally recommend that Charles Schwab
and Co., Inc. (“Schwab”), TD Ameritrade (“Ameritrade”), Fidelity Investments
(“Fidelity”), TIAA-CREF and/or Vanguard serve as the broker-dealer/custodian for client
investment management assets. Broker-dealers such as Schwab, Ameritrade, Fidelity,
TIAA-CREF and Vanguard charge brokerage commissions and/or transaction fees for
effecting certain securities transactions (i.e. transaction fees are charged for certain no-
load mutual funds, commissions are charged for individual equity and fixed income
securities transactions). In addition to Registrant’s investment management fee,
brokerage commissions and/or transaction fees, clients will also incur, relative to all
mutual fund and exchange traded fund purchases, charges imposed at the fund level (e.g.
management fees and other fund expenses).
D. Registrant's annual investment advisory fee shall be prorated and paid semi-annually, in
advance, based upon the market value of the assets on the last business day of the
previous half-year. The Registrant generally requires an annual minimum fee of $10,000
for investment advisory services. The Registrant, in its sole discretion, may reduce its
investment management fee and/or reduce or waive its minimum fee requirement based
upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition,
negotiations with client, etc.).
The Wealth Management Agreement between the Registrant and the client will continue
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