Item 5 Fees and Compensation
A.
INVESTMENT ADVISORY SERVICES
The Registrant’s annual investment advisory fee is negotiable, but is generally based upon
a percentage (%) of the market value and type of assets placed under the Registrant’s
management 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
The Registrant generally requires an annual minimum fee of $10,000 for investment
advisory services. If a client maintains less than $1 million of assets under Registrant’s
management, and is subject to the $10,000 annual minimum fee, the client will pay a higher
percentage annual fee than the 1.00% referenced in the above fee schedule.
The Registrant’s investment advisory fee is negotiable at its discretion, depending upon
objective and subjective factors including but not limited to: the amount of assets to be
managed; portfolio composition; the scope and complexity of the engagement; the
anticipated number of meetings and servicing needs; related accounts; future earning
capacity; anticipated future additional assets; the professional(s) rendering the service(s);
prior relationships with the Registrant and/or its representatives, and negotiations with the
client. As a result of these factors, similarly situated clients could pay different fees, the
services to be provided by the Registrant to any particular client could be available from
other advisers at lower fees, and certain clients may have fees different than those
specifically set forth above.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
Registrant’s planning and consulting fees are negotiable, but generally range from $200 to
$1,000 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
Registrant’s fees for its “packaged” financial planning and consulting services 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).
Fees are Negotiable
The Registrant uses the above fee schedule and fee ranges as guidelines for its services.
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. As a result of these factors, similarly situated clients could pay different fees, the
services to be provided by the Registrant to any particular client could be available from
other advisers at lower fees, and certain clients may have fees different than those
specifically set forth above.
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 quarterly.
Registrant’s annual investment advisory fee shall be prorated and paid quarterly, in
advance, based upon the market value of the assets on the last business day of the previous
quarter.
The Registrant relies on Orion, a third party service provider, to calculate client fees. Due
to differences in how Orion determines the value of client accounts, our billing calculations
may be based on an account value that is either higher or lower than appears in a client’s
custodial statement. The Registrant believes these differences are immaterial.
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. an SEC-registered and FINRA/SIPC member broker-dealer (“Schwab”), TD
Ameritrade Institutional, a division of TD Ameritrade, Inc., an SEC-registered and
FINRA/SIPC member broker-dealer (“Ameritrade”), Fidelity Investments, an SEC-
registered and FINRA/SIPC member broker-dealer (“Fidelity”), TIAA Individual and
Institutional Services, LLC, an SEC-registered and FINRA member broker-dealer
(“TIAA”) and/or Vanguard Marketing Corporation, an SEC-registered and FINRA
member broker-dealer (“Vanguard”) serve as the broker-dealer/custodian for client
investment management assets. Broker-dealers such as Schwab, Ameritrade, Fidelity,
TIAA and Vanguard charge brokerage commissions and/or transaction fees for effecting
certain securities transactions.
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