SFG Wealth Management LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Portfolio Management:

The maximum annual fee to be charged to the client’s account(s) will not exceed 1.50%. The fee to be
assessed to each account will be detailed in the client’s signed advisory agreement, LPL Account
Application, or LPL Tiered Fee Authorization form. Fees are billed on a pro-rata basis quarterly in
advance based on the value of the account(s) on the last day of the previous quarter. Fees will be
adjusted for deposits and withdrawals made during the quarter. If accounts are opened during the
quarter, the pro-rata advisory fees will be deducted during the next regularly scheduled billing cycle.
Unless indicated otherwise in writing, our firm bills on cash. In rare cases, our firm will agree to direct
bill clients. Fees are negotiable and will be deducted from the account(s). As part of this process,
clients understand the following:

    a) LPL, as the client’s custodian, sends statements at least quarterly, showing all disbursements
       for each account, including the amount of the advisory fees paid to our firm.
    b) Clients provide authorization permitting LPL to deduct these fees.
    c) LPL calculates the advisory fees for all fee schedules and deducts them from the client’s
       account.

Financial Planning & Consulting:

Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $400. Flat fees
will not exceed $10,000. Our firm may require a retainer of 50% of the ultimate financial planning or
consulting fee at the time of signing. The remainder of the fee will be directly billed to the client and
due within 30 days of a financial plan being delivered or consultation rendered. Our firm will not
require a retainer exceeding $1,200 when services cannot be rendered within 6 months.

Retirement Plan Consulting:

Our Retirement Plan Consulting services are billed on an hourly basis or according to a fee based on
the percentage of Plan assets under management. The total estimated fee, as well as the ultimate fee
charged, is based on the scope and complexity of our engagement with the client. The maximum
hourly fee to be charged will not exceed $350. Fees based on a percentage of managed Plan assets
will not exceed 1.00%. The fee-paying arrangements for Retirement Plan Consulting service will be
determined on a case-by-case basis and will be detailed in the signed consulting agreement.

LPL Sponsored Advisory Programs:

The account fee charged to the client for each LPL advisory program is negotiable, subject to the
following maximum account fees:

Form ADV Part 2A                                                                   SFG Wealth Management, LLC

                                  Advisory Program                  Annual Fee
                               Guided Wealth Portfolios             Up to 1.35%
                                Manager Asset Select                Up to 1.50%
                                Model Wealth Portfolio              Up to 1.50%
                               Optimum Market Portfolio             Up to 1.50%

Referrals to Third Party Money Managers:

The total annual advisory fee for this service shall not exceed 3.00%. A portion of this fee will be paid
to our firm and will be outlined in the third party money manager’s advisory agreement to be signed
by the client. Clients will be provided with a copy of the chosen third party money manager’s Form
ADV Part 2, all relevant Brochures, a disclosure statement detailing the fees to be paid to both firms
and the third party money manager’s privacy policy. All fees that our firm receives from the third
party money managers and the written separate disclosures made to clients regarding these fees
comply with applicable state statutes and rules. The billing procedures for this service vary based on
the chosen third party money manager. The total fee to be charged, as well as the billing cycle, will
be detailed in the third party money manager’s ADV Part 2A and separate agreement to be signed by
the client.

Other Types of Fees & Expenses

Non-Wrap Clients will incur transaction charges for trades executed in their accounts. These
transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Clients may also pay holdings charges imposed by the chosen custodian for certain
investments, charges imposed directly by a mutual fund, index fund, or exchange traded fund, which
shall be disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses),
initial or deferred sales charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable
annuity fees, IRA and qualified retirement plan fees. Our firm does not receive a portion of these fees.

LPL Financial offers a trading platform with select exchange traded funds (“ETFs”) that do not charge
transaction fees. The no-transaction-fee ETF trading platform is available to clients participating in
LPL Financial’s Strategic Wealth Management (“SWM”) program, which our firm only offers to family.
Clients will be subject to transaction fees charged by LPL Financial for ETFs not included in LPL
Financial’s platform and for other types of securities. The limited number of ETFs available on LPL
Financial’s no-transaction fee platform may have higher overall expenses than other types of
securities and ETFs not included in the platform. Other major custodians have eliminated transaction
fees for all ETFs and U.S. listed equities, so clients may pay more for investing in the same securities
at LPL Financial.

Wrap clients will not incur transaction costs for trades. More information about this can be found in
our separate Wrap Fee Program Brochure.

Termination & Refunds
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Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Pension and Profit Sharing Plans;
   • Corporations, Limited Liability Companies and/or Other Business Types.

Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging
us.

Please refer to the descriptions of the LPL Sponsored Advisory Programs in Item 4 for their minimum
account balance requirements.

Form ADV Part 2A                                                                  SFG Wealth Management, LLC