Item 5 – Fees and Compensation
In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding my firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources. The exact fees and other terms will be outlined in the agreement between you and RPM
Advisors.
RPM Advisors, LLC Page 10 Form ADV Part 2A Disclosure Brochure
Discretionary Portfolio Management for Individual Services
Fees charged for my asset management services are charged based on a percentage of assets under
management, billed in arrears (at the end of the billing period) on a quarterly calendar basis and
calculated based on the fair market value of your account as of the last business day of the current billing
period. Fees are prorated (based on the number of days service is provided during the initial billing
period) for your account opened at any time other than the beginning of the billing period. If asset
management services are commenced in the middle of the billing period, then the prorated fee for that
billing period will be billed in arrears at the end of that billing period.
The Discretionary Portfolio Management for Individual services continue in effect until terminated by
either party (i.e., RPM Advisors or you) by providing written notice of termination to the other party. When
fees are billed in arrears, RPM Advisors will prorate the final fee payment based on the number of days
services are provided during the final period. The amount of client assets on the termination date will be
used to determine the final fee payment.
The annual fee for asset management services will be 1.00%.
There is a minimum account size of $50,000. RPM Advisors has a minimum annual fee of $500.
RPM Advisors believes that its annual fee is reasonable in relation to: (1) services provided and (2) the
fees charged by other investment advisers offering similar services/programs. However, my annual
investment advisory fee may be higher than that charged by other investment advisers offering similar
services/programs. In addition to my compensation, you may also incur charges imposed at the mutual
fund level (e.g., advisory fees and other fund expenses).
The investment advisory fees will be deducted from your account and paid directly to my firm by the
qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your account to
deduct fees from your account and pay such fees directly to my firm. My firm will send you a billing
statement prior to time that fee deduction instruction is sent to the qualified custodian(s) of your account.
The billing statement will detail the formula used to calculate the fee, the assets under management and
the time period covered. See Item 15 – Custody for more details.
You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.
Brokerage commissions and/or transaction ticket fees charged by the qualified custodian are billed
directly to you by the qualified custodian. RPM Advisors does not receive any portion of such
commissions or fees from you or the qualified custodian. In addition, you may incur certain charges
imposed by third parties other than RPM Advisors in connection with investments made through your
account including, but not limited to, mutual fund sales loads, 12(b)-1 fees and surrender charges,
variable annuity fees and surrender charges, IRA and qualified retirement plan fees, and charges
imposed by the qualified custodian(s) of your account. Management fees charged by RPM Advisors are
separate and distinct from the fees and expenses charged by investment company securities that may be
recommended to you. A description of these fees and expenses are available in each investment
company security’s prospectus.
RPM Advisors, LLC Page 11 Form ADV Part 2A Disclosure Brochure
Financial Planning Services
The following are the fee arrangements available for financial planning services offered by RPM Advisors.
RPM Advisors provides financial planning services under a fixed fee arrangement. The Fixed Fee
charged for my financial planning services is negotiable based upon the type of client, the services
requested, the complexity of the client's situation and the composition of the client's account. There is a
range in the amount of the fixed fee charged by RPM Advisors for financial planning services. The
minimum fixed fee is generally $500, and the maximum fixed fee is generally no more than $2,000. The
amount of the fixed fee for your engagement is mutually agreed upon and specified in your financial
planning agreement with RPM Advisors. Upon completion and delivery of the financial plan, the fixed fee
is considered earned by RPM Advisors and any unpaid amount is immediately due.
The financial planning services terminate upon delivery of the written financial plan or upon either party
providing the other party with written notice of termination.
You may terminate the financial planning services within five (5) business days of entering into an
agreement with RPM Advisors without penalty or fees due. If you terminate the financial planning
services after five (5) business days of entering into an agreement, you will be responsible for immediate
payment of any financial planning services performed by RPM Advisors prior to the receipt by RPM
Advisors of your notice. For financial planning services performed by RPM Advisors under a fixed fee
arrangement, you will pay RPM Advisors a pro-rated fixed fee equivalent to the percentage of work
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