Redbud Advisors LLC

Item 5: Fees and Compensation

De p e nd ing o n the a rra ng e me nts ma d e a t the inc e p tio n o f the e ng a g e me nt, Re d b ud Ad vis o rs
ma y c ha rg e e ithe r a fixe d fe e o r a fe e b a s e d o n a s s e ts und e r ma na g e me nt fo r we a lth
ma na g e me nt s e rvic e s . Fe e s a re ne g o tia b le fo r fina nc ia l p la nning a nd e s ta te p la nning c lie nts .

Fees
Fo r s ta nd a lo ne inve s tme nt ma na g e me nt s e rvic e s , the Firm g e ne ra lly c ha rg e s nine ty- five (9 5)
b a s is p o ints b a s e d o n the ma rke t va lue o f the a s s e ts b e ing ma na g e d b y the Firm, a ltho ug h tha t
a mo unt ma y b e hig he r o r lo we r d e p e nd ing o n va rio us c irc ums ta nc e s . We a lth a d vis o ry o ve rs ig ht
s e rvic e s a re g e ne ra lly p ro vid e d fo r a fixe d fe e , b a s e d o n the s c o p e a nd c o mp le xity o f the
a g re e d up o n s e rvic e s .
The s e fe e s a re a t the s o le d is c re tio n o f Firm ma na g e me nt.
The a nnua l fe e fo r Re d b ud Ad vis o rs ’ s e rvic e s is p ro ra te d a nd c ha rg e d p ro s p e c tive ly o n a
q ua rte rly b a s is . In the e ve nt the Ag re e me nt is te rmina te d , the fe e fo r the fina l b illing p e rio d is
p ro ra te d thro ug h the e ffe c tive d a te o f the te rmina tio n a nd the o uts ta nd ing b a la nc e is c ha rg e d to
the c lie nt, a s a p p ro p ria te , o r a ny p ro s p e c tive p a yme nt in e xc e s s of the p ro ra te d p o rtio n is
c re d ite d to the c lie nt’s a c c o unt.

Fee Discretion
Re d b ud Ad vis o rs , in its s o le d is c re tio n, ma y ne g o tia te to c ha rg e a g re a te r o r le s s e r fe e b a s e d
up o n c e rta in c rite ria , s uc h a s the c o mp le xity o f the c lie nt’s p o rtfo lio , the le ve l of e xp e rtis e
re q uire d to s e rvic e the a c c o unt, the s ta ff time invo lve d in s e rvic ing the a c c o unt, p o te ntia l va lue
a d d e d to the c lie nt fo r the s e rvic e s to b e p ro vid e d , p re - e xis ting c lie nt re la tio ns hip s , a ntic ip a te d
future a d d itio na l a s s e ts , d o lla r a mo unt o f a s s e ts to b e ma na g e d , a c c ount re te ntio n a nd p ro b o no
a c tivitie s a mo ng o the r fa c to rs .
Re la te d c lie nt a c c o unts ma y b e a g g re g a te d fo r p urp o s e s o f c a lc ula ting fe e s . Re d b ud Ad vis o rs
ma y wa ive its a d vis o ry fe e a t a ny time whe n it d e e ms it a p p ro p ria te a nd /o r ne c e s s a ry.
In the e ve nt we c ha rg e a fixe d fe e fo r we a lth a d vis o ry o ve rs ig ht s e rvic e s , o ur a nnua l fe e
(“We a lth Ad vis o ry Ove rs ig ht Fe e ”) will b e p ro ra te d a nd b ille d in a d va nc e o n a q ua rte rly b a s is .
The a mo unt o f the We a lth Ad vis o ry Ove rs ig ht Fe e is a q ua rte rly fixe d fe e , g e ne ra lly ra ng ing fro m
$ 1 - $ 2 50 ,0 0 0 p e r ye a r, whic h will inc re a s e b y 3 % a nnua lly. Suc h fe e s c o uld p o te ntia lly b e in
e xc e s s of the ind us try no rm.
Simila r a d vis o ry s e rvic e s c a n b e ob ta ine d fo r le s s .
A fixe d fe e is typ ic a lly utiliz e d und e r o ne o r mo re o f the fo llo wing s itua tio ns :
    ●    Clie nt a s s e ts und e r ma na g e me nt e xc e e d $ 10 millio n fo r the ho us e ho ld .
    ●    Clie nt d e s ire s we a lth a d vis o ry o ve rs ig ht s e rvic e s witho ut the a b ility to ha ve a s s e ts und e r
         ma na g e me nt (fo r e xa mp le , a c lie nt with the b ulk o f the ir ne t wo rth inve s te d in the ir 4 0 1(k),
         re s tric te d s to c k, p riva te b us ine s s , re a l e s ta te , a nd /o r o the r a s s e ts whic h a re una b le to b e

REDBUD ADVISORS, LLC                                                                 FORM ADV PART 2 A | BROCHURE

         managed in a liquid portfolio).
    ● Clie nt ha s s e ve ra l e xte rna l a nd c o mp e ting inve s tme nt a d vis o rs a nd wis he s to le ve ra g e us
      to c o ns o lid a te re p o rting a nd c o o rd ina tio n o f e a c h inve s tme nt ma na g e rs ’ s tra te g y s o tha t
      c lie nt is we ll p o s itio ne d in a g g re g a te to a c c o mp lis h the ir g o a ls . We will no t ha ve AUM
      und e r this c irc ums ta nc e , ye t we a lth a d vis o ry o ve rs ig ht is s o ug ht o ut b y the c lie nt.
A fe e b a s e d o n a s s e ts und e r ma na g e me nt (AUM) is typ ic a lly utiliz e d und e r o ne o r mo re of the
fo llo wing s itua tio ns :
    ●    Clie nt a s s e ts und e r ma na g e me nt a re le s s tha n $ 10 millio n fo r the ho us e ho ld .
    ●    Clie nt ha s minima l a s s e ts o the r tha n the ir a s s e ts und e r ma na g e me nt a nd ho m e s te a d .
Po te ntia l c lie nts tha t wo uld b e c ha rg e d a fixe d fe e to wa rd s the up p e r limit o f $ 2 50 ,0 0 0 a re
typ ic a lly ultra - hig h ne t wo rth fa milie s with a ne t wo rth o f $ 50 m illio n - $ 3 0 0 m illio n. The na ture
o f s e rvic e s a ntic ip a te d fo r a c lie nt p a ying $ 2 50 ,0 0 0 a nnua lly wo uld like ly inc lud e s o me o r a ll o f
the fo llo wing s e rvic e s :
    ●    Inve s tme nt ma na g e me nt o f ho us e ho ld AUM g re a te r tha n $ 10 millio n
    ●    Pe rfo rma nc e re p o rting o n multip le e xte rna l illiq uid a lte rna tive inve s tme nts o r liq uid
         inve s tme nts a nd tra c king o f c a p ita l c a lls , liq uid ity, a nd o the r me tric s imp o rta nt to the
         c lie nt.
    ●    We a lth Ad vis o ry Ove rs ig ht s e rvic e s to multip le nuc le a r fa milie s , e a c h re q uiring the ir o wn
         s tra te g ie s , me e ting s , a nd re p o rts . Fo r e xa mp le , a fa mily with 3 living g e ne ra tio ns , e a c h o f
         whic h a re ultra - hig h ne t wo rth a nd ha ve o wne rs hip in s ha re d a s s e ts .
    ●    Sig nific a nt p la nning ne e d s , inc lud ing b ut no t limite d to :
             ○    Ge ne ra l Fina nc ia l Ove rs ig ht
             ○    Ins ura nc e Re vie w
...

Item 7: Types of Clients

We o ffe r inve s tme nt a d vis o ry s e rvic e s to ind ivid ua ls (o the r tha n hig h ne t wo rth ind ivid ua ls ) a nd
hig h ne t wo rth ind ivid ua ls .
In g e ne ra l, we d o no t re q uire a minim um d o lla r a mo unt to o p e n a nd ma inta in a n a d vis o ry
a c c o unt; ho we ve r, we ha ve the rig ht to te rmina te yo ur a c c o unt if it fa lls b e lo w a minimum s iz e
whic h, in o ur s o le o p inio n, is to o s ma ll to ma na g e e ffe c tive ly.
We ma y a ls o c o mb ine a c c o unt va lue s fo r yo u a nd yo ur mino r c hild re n, jo int a c c o unts with yo ur
s p o us e , a nd o the r typ e s o f re la te d a c c o unts to me e t the s ta te d minimum.

REDBUD ADVISORS, LLC                                                                  FORM ADV PART 2 A | BROCHURE