RTW Financial Advisors Inc

Item 5 - Fees and Compensation

RTW charges fees based on a percentage of assets under management as well as fixed fees and hourly fees,
depending upon the particular types of services to be provided. The specific fees charged by RTW for
services provided will be set forth in each client’s agreement.

     A. Investment Management and Financial Planning Services

Fees for Investment Management Services
In providing investment management services, RTW charges an annual investment management services
fee that is agreed upon with each client and set forth in an agreement executed by RTW and the client. The
RTW investment management services fee is based on a percentage of the value of assets under
management and is generally paid quarterly in advance. Fees for investment management services range
up to 1% of assets under management per annum. RTW does charge a minimum fee of $1,000 per annum.

When a client’s account is opened, the investment management services fee is billed for the remainder of
the current quarterly billing period and is based on the client’s initial contribution to the client account.
Subsequent quarterly investment management services fees will be based on the client’s account value as
of the last business day of the previous calendar quarter. If cash or securities, or a combination thereof, are
deposited to or withdrawn from a client’s account on an individual business day during a quarter, RTW will
(i) assess investment management services fees to the deposited assets based on the value of the assets on
the date of deposit for the pro rata number of days remaining in the quarter, or (ii) refund prepaid investment
management services fees based on the value of the assets on the date of withdrawal for the pro rata number
of days remaining in the quarter.

For purposes of the investment management services fee calculation, RTW utilizes third party sources, such
as pricing services, custodians, fund administrators, and client-provided sources. For purposes of fee
calculation, the asset value of client accounts include cash and cash equivalents, as well as margined
securities. RTW does not reduce the investment management fees for margin borrowing, regardless of
whether the assets are in cash or other securities. RTW has a financial incentive to recommend that clients
borrow money for the purchase of additional securities for the client’s investment management services
account or otherwise not liquidate some or all the assets RTW manages. RTW addresses this conflict of

RTW Financial Advisors                                                        Disclosure Brochure

interest through this disclosure and working to ensure that any recommendation to a client regarding the
use of margin is suitable for the client.

RTW’s policy is to include all related client accounts, specifically the accounts of direct family members
sharing the same residence address, for purposes of determining a client’s market value of assets.

Fees for Financial Planning Services
Clients that receive financial planning services are charged a fixed fee ranging up to $25,000 or an hourly
fee rate up to $1,500, depending upon the complexity of a client’s plan and services provided. For clients
receiving ongoing financial planning services the annual fee is charged monthly, quarterly or for such other
period as agreed upon by the client and RTW. For financial planning services that are completed upon the
delivery of RTW’s recommendations, the fixed fee can be charged in monthly or quarterly installments, or
otherwise in full upon delivery of RTW’s recommendations. Actual fees charged are clearly outlined in the
financial planning agreement.

Notwithstanding the foregoing, RTW and the client may choose to negotiate an advisory fee that varies
from the schedule and ranges set forth above. Factors upon which a different annual advisory fee may be
based include, but are not limited to, the size and nature of the relationship, the services rendered, the nature
and complexity of the products and investments involved, time commitments, and travel requirements. The
investment management services fee charged by the Firm will apply to all of the client’s assets under
management, unless specifically excluded in the client agreement. Although RTW believes that its fees are
competitive, clients should understand that lower fees for comparable services may be available from other
sources and firms.

The investment advisory agreement between RTW and the client may be terminated at will by either RTW
or the client upon written notice. RTW does not impose termination fees when the client terminates the
investment advisory relationship, except when agreed upon in advance.

Fees for Performance Measurement Services
RTW’s fees for these services are negotiable and are typically fixed monthly or quarterly fees based on the
defined scope of work, number of investments, and specific presentation output requested by the client.
Fees for these services typically range from 1-40 basis points annually, but the specific fee arrangements
are outlined in the applicable services agreement as mutually agreed.

Investment Management Services and Performance services are offered separately or as part of a bundled
arrangement. For clients receiving both services, RTW will charge a single combined fee. In certain cases,
the fee is calculated based on the value of all assets included in the reporting arrangement, including assets
over which RTW does not provide Investment Management Services. With respect to assets not managed
by RTW, the fee compensates RTW for reporting, account aggregation, coordination with third-party
professionals, and other administrative services. Fees are negotiable based on scope and complexity of
services provided.

     B. Payment of Fees

RTW Financial Advisors                                                      Disclosure Brochure
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Item 7 - Types of Clients

RTW offers investment advisory services to individuals, high net worth individuals, estates and trusts,
pensions and profit sharing plans, charitable organizations, and family offices. However, RTW reserves
the right to accept or decline a potential client for any reason in its sole discretion.