Ritter Daniher Financial Advisory LLC

Fees and Compensation
Wealth Management Fees: RDFA offers ongoing Wealth Management services on a fee-only
basis. This wealth management fee is based upon your assets under management. The wealth
management fee schedule is as follows:

                 Assets Under Management 1                               Annualized Fee
                 On the first $2,000,000                                 1.00%
                 On the next $3,000,000                                  0.75%
                 On the next $5,000,000                                  0.50%
                 Above $10,000,000                                       0.25%

RDFA reserves the right to vary its fees upon such factors as the size of the account, the complexity
of the portfolio, the extent of the activity needed to manage the account, or other reasons agreed
upon by RDFA and Client. Additionally, Client and RDFA may agree to carve-out certain assets
from the fee calculation if the asset meets the following terms: The asset is valued at over $100,000
and is at least 10% of Client’s assets under management. Furthermore, RDFA does not bill on
Schwab Charitable Donor Advisor Fund accounts.

The fee is set at the beginning of an engagement with a client by signing the Client Engagement
Agreement. The fee is calculated monthly and paid in advance based on your assets under
management at the end of the prior period. Each account that you hold with us will pay its pro-
rata portion of your monthly fee or, at RDFA’s discretion, fees may be consolidated for the
purposes of billing out of one primary account. RDFA reserves the right to aggregate family
accounts to reach lower fee tiers or reduce the overall fee under special circumstances. Some
clients with established relationships with RDFA or a pre-existing arrangement with an IAR before
that IAR became registered with RDFA may remain on their former fee schedule as indicated within
their respective signed Client Engagement Agreement.
The client will expressly authorize RDFA to instruct the Custodian to deduct all applicable fees,
including fees payable under the Agreement, from the client account.

Project Based and Hourly Based Financial Planning: Project Based Planning is done on a fee
basis that is calculated using a quasi-hourly rate based upon the complexity of the situation and the
estimated time involved. A fee range is quoted and agreed upon at the time the Client Engagement
Agreement is discussed and signed. This agreement outlines the scope of the engagement, as well as
the timing of the payment of fees. In certain cases, hourly based or “segmented” planning may be
done for a client. In these cases, fees are charged based on an agreed upon hourly rate. Currently,
those hourly rates are:

        Job Function / Title                  Rate               Job Function / Title                 Rate
    Sr. Financial Advisor / CFP®          $200/hour           Financial Advisor / CFP®             $150/hour
       Financial Para-planner             $100/hour                Staff Employee                   $50/hour

Non-Profit Investment Advisory Fees: The fees for this service are as follows:
Investment Portfolio Value Managed by RDFA                              Annualized Fee
On the first $1,500,000                                                     0.75%
On the next $1,500,000                                                      0.50%

 “Assets Under Management” is defined as Client assets held at the custodian in accounts that are managed by
RDFA.

Above $3,000,000                                                     0.25%
The fee is set at the beginning of an engagement with a client by signing of the Client Engagement
Agreement. The fee is calculated monthly and paid in advance based on your assets under
management at the end of the prior period; each account that you hold with us will pay its pro rata
portion of your monthly fee. The client will expressly authorize RDFA to instruct the Custodian
to deduct all applicable fees, including fees payable under the Agreement, from the client account.

Corporate Retirement Plan Management: This service is typically provided for a flat fee based
upon the assets under management and negotiated on a case-by-case basis.

Additional Cost Information: Client must authorize RDFA in writing to have the custodian pay
us directly by charging your account. The custodian will provide statements that show the amount
paid directly to RDFA. Clients should review and verify the calculation of RDFA’s fees. The
custodian does not verify the accuracy of fee calculations.
In addition to RDFA’s fee and where applicable, clients are required to pay other charges such as:
custodial fees; brokerage commissions; transaction fees; internal fees and expenses charged by
mutual funds; variable annuities; interval funds, direct private placements (“DPPs”), and exchange
traded funds (“ETFs”); brokerage account maintenance fees; and other fees and taxes on brokerage
accounts and securities transactions.
Mutual fund companies, ETFs, DPPs, and variable annuity issuers charge internal fees and
expenses for their products. These fees and expenses are in addition to any advisory fees charged
by RDFA. Complete details of these internal fees and expenses are explained in the prospectus or
other applicable offering document for each investment. Clients are strongly encouraged to read
these explanations before investing any money. Clients may ask their Financial Advisor any
questions they have about fees and expenses.
Please see the section titled ‘Brokerage Practices’ below, which further describes the factors
RDFA considers in selecting or recommending broker-dealers for client transactions and
determining the reasonableness of their compensation (e.g., commissions).
Fee Billing: All fees are negotiable at our sole discretion. Such negotiations are based upon the
number of accounts, account size, complexity and level of services provided, prior relationships
...

Types of Clients
RDFA offers its advisory services primarily to individuals and their families, including high net
worth individuals and trusts. RDFA may also provide advisory services to pension and profit-
sharing plans and plan participants, as well as to charitable organizations.

Methods of Analysis, Investment Strategies and Risk of Loss
General Beliefs. RDFA manages investment portfolios with a belief that asset allocation,
diversification, security selection and portfolio rebalancing are the primary drivers in investment
success. Members of our firm sit on our Investment Committee, and this committee is responsible
for determining the strategies to be employed in client portfolios.
The investment advice which RDFA offers is based upon long-term investment strategies which
incorporate the principles of Modern Portfolio Theory. The utilization of several different asset
classes as part of an investor’s portfolio is emphasized, as this historically has been shown to
usually affect a reduction in portfolio volatility over long periods of time. We believe that markets
are normally fairly efficient, although not always rationale, and that portfolio returns are
principally determined by asset allocation decisions and are assisted by maintaining a focus on low
internal cost structure of investments used.
Clients of the firm are offered the services of our developed investment philosophies and strategies,
research and due diligence, account monitoring and trading. After discussions with each client, an
agreed upon asset allocation model is selected which serves as a target when portfolio reviews take

place. This may or may not include an amount of cash which represent dollars that are segregated
from the rebalancing process.

Investment Vehicles. We primarily utilize mutual funds and ETFs to provide broad
diversification within an asset class. We generally use a combination of “active” and “passive”
management styles within these investments. Where appropriate, we will also use individual
stocks and bonds, alternative investment strategies, certificates of deposit and other strategies.
Generally, the firm utilizes investments that are readily marketable. We employ these vehicles as
part of an overall strategic asset allocation for a client, and in doing so, we possess a reasonable
belief that the risk/return relationship for these securities will likely be beneficial for the investor
over long periods of time. Here is a summary of those risks:

   •   Risk of Loss: Investing in most securities involve a risk of loss that clients should be
       prepared to bear. We endeavor to limit this risk through broad global diversification, but
       this methodology will still subject the client to declines in the value of their portfolios,
       which can at times be dramatic. Invested assets are generally long-term in nature and any
       dollars that cannot be subjected to portfolio volatility should be segregated from the asset
       allocated portfolio.
   •   Asset Allocation Risk. We invest in a broad array of asset classes and may allocate assets
       to an asset class that underperforms other asset classes. For example, we may overweight
       equity-related investments when the stock market is falling and the fixed income market is
       rising.
   •   Exchange-Traded Funds (“ETF”) Risk: ETFs are securities that track an index, a
       commodity, or a basket of assets like an index fund, but that trade like a stock on an
       exchange. ETFs can also be actively managed. ETFs experience price changes
       throughout the day as they are bought and sold.
   •   Mutual Fund Risk: Investing in mutual funds carries the risk of capital loss, and thus
       you may lose money investing in mutual funds. All mutual funds have costs that lower
       investment returns.
   •   Equity Investment Risk: Generally, refers to buying shares of stocks by an individual or
       firm in return for receiving a future payment of dividends and capital gains if the value of
       the stock increases. There is an innate risk involved when purchasing a stock that it may
       decrease in value; the investment may incur a loss.
   •   Market Risk: The price of a security, bond, or mutual fund can drop in reaction to tangible
       and intangible events and conditions. External factors cause this type of risk, independent
       of security’s underlying circumstances. For example, political, economic, and social
       conditions can trigger market events.
   •   Stock Market Risk: The market value of stocks will generally fluctuate with market
       conditions. While stocks have historically outperformed other asset classes over the long
       term, they tend to fluctuate over the short term because of factors affecting the individual
       companies, industries, or the securities market.
   •   Credit Risk: The return on fixed income investments (e.g., bonds and preferred stock) is
       dependent on the issuer of the security meeting its commitment to making agreed upon
       payments. Credit risk is the risk that the issuer does not meet that obligation.
   •   Interest Rate Risk: Fluctuations in interest rates will cause investment prices to fluctuate.
       For example, when interest rates rise, yields on existing bonds become less attractive,

       causing their market values to decline.

Past performance is not a guarantee of future returns. Investing in securities involves a risk
of loss that you, as a client, should be prepared to bear.