Shakespeare Wealth Management LLC

Item 5: Fees and Compensation

E. Important Disclosure – Custodian Investment Programs
Please be advised that the firm utilizes certain custodians/broker-dealers. Under these
arrangements we can access certain investment programs offered through such custodian(s)
that offer certain compensation and fee structures that create conflicts of interest of which
clients need to be aware. Please note the following:
Limitation on Mutual Fund Universe for Custodian Investment Programs: There are certain
programs in which we participate where a client’s investment options may be limited in certain
of these programs to those mutual funds and/or mutual fund share classes that pay 12b-1 fees
and other revenue sharing fee payments, and the client should be aware that the firm is not
selecting from among all mutual funds available in the marketplace when recommending
mutual funds to the client.
Conflict Between Revenue Share Class (12b-1) and Non-Revenue Share Class Mutual Funds:
Revenue share class/12b-1 fees are deducted from the net asset value of the mutual fund and
generally, all things being equal, cause the fund to earn lower rates of return than those mutual
funds that do not pay revenue sharing fees. The client is under no obligation to utilize such
programs or mutual funds. Although many factors will influence the type of fund to be used, the
client should discuss with their investment adviser representative whether a share class from a
comparable mutual fund with a more favorable return to investors is available that does not
include the payment of any 12b-1 or revenue sharing fees given the client’s individual needs
and priorities and anticipated transaction costs. In addition, the receipt of such fees can create
conflicts of interest in instances where the custodian receives the entirety of the 12b-1 and/or
revenue sharing fees and takes the receipt of such fees into consideration in terms of benefits it
may elect to provide to the firm, even though such benefits may or may not benefit some or all
of the firm clients.

                Part 2A of Form ADV: Shakespeare Wealth Management, LLC Brochure

Item 7: Types of Clients
Shakespeare provides advisory services to Individuals (other than high net worth individuals),
high net worth individuals, and corporations and other entities.
A minimum of $1,000,000 of assets under management is required for portfolio management
services. Shakespeare may choose to waive this minimum at its discretion.

                Part 2A of Form ADV: Shakespeare Wealth Management, LLC Brochure

                                Item 8: Investment Philosophy, Investment Strategies, and Risk of Loss

Item 8: Investment Philosophy, Investment Strategies, and Risk of
Loss

A. Investment Philosophy and Investment Strategies

 Investment Philosophy
  ▪   Diversification. Shakespeare believes one of the best ways to manage risk, preserve
      principal, and strive for returns is to own a mixture of different types of investments, such
      as equity, fixed income, international, cash, alternative, real estate and more. In addition,
      we favor investments such as mutual funds and ETFs that are more diversified than
      individual stocks or bonds.
  ▪   Asset Allocation. Blending different types of investments together is known as asset
      allocation. The percentage of stocks, bonds, cash, etc., in a portfolio is the major
      determinant of the risk and return that will be achieved by a client.
  ▪   Time Horizon. Investing can be volatile. Having a time horizon of at least 5 years allows
      investors the needed time to withstand market volatility. Shakespeare works primarily
      with clients who have a long time horizon.
  ▪   Market Timing. Shakespeare does not time the market. Rather, we believe time in the
      market is the best way to increase your chance of success in dealing with the uncertainty
      of future market movements. We do not move in and out of the market based on
      perceived market valuations, political events, or any other scenario.
  ▪   Efficient Markets. There are trillions of dollars on a daily basis throughout the world
      determining the market prices of virtually every marketable security. As a result, we
      believe markets, in the long-term, are efficient.
  ▪   Factors of Return. Academic research has identified various factors that add value over
      time. To take advantage of these factors, Shakespeare will tilt client portfolio towards
      owning securities that focus on these factors. These factors include:
       ▪   Equities outperforming bonds over time
       ▪   Small cap equities outperforming large cap equities over time
       ▪   Value outperforming growth over time
  ▪   Mutual Fund and/or ETF Analysis. We own both index, fundamental index, and actively
      managed funds. We look at the experience, track record, and consistency of the
      manager of the mutual fund or ETF in an attempt to determine if that manager has
      demonstrated an ability to invest over a period of time and in different economic
      conditions. We also look at the underlying assets in a mutual fund or ETF in an attempt
      to determine if there is significant overlap in the underlying investments held in another
      fund(s) in the client’s portfolio. We also monitor the funds or ETFs in an attempt to
      determine if they are continuing to follow their stated investment strategy.
      A risk of mutual fund and/or ETF analysis is that, as in all securities investments, past
      performance does not guarantee future results. A manager who has been successful may
      not be able to replicate that success in the future. In addition, as we do not control the

               Part 2A of Form ADV: Shakespeare Wealth Management, LLC Brochure

                                  Item 8: Investment Philosophy, Investment Strategies, and Risk of Loss

       underlying investments in a fund or ETF, managers of different funds held by the client
       may purchase the same security, increasing the risk to the client if that security were to
       fall in value. There is also a risk that a manager may deviate from the stated investment
       mandate or strategy of the fund or ETF, which could make the holding(s) less suitable for
       the client’s portfolio.
Risk of Loss. Securities investments are not guaranteed, and you may lose money on your
investments. We ask that you work with us to help us understand your tolerance for risk.

 Full Engagement Portfolio Management
Our firm provides portfolio management services to clients using model asset allocation
portfolios. Each model portfolio is designed to meet a particular investment goal. The equity
portion of each portfolio is a combination of domestic and international equities. In addition,
we’ll own securities of different sizes (Large, Mid, Small Cap) and different investment
philosophies (Value & Growth). The fixed income portion of each portfolio is a combination of
various bonds, including short-term and longer duration bonds. In addition, we’ll own bonds of
different quality, from high quality to high yield bonds. The more conservative portfolios will
own proportionally more fixed income securities than the growth orientated portfolios, and
more large cap equities relative to small cap equities. The opposite is true for the growth
orientated portfolios. Each portfolio is monitored on an ongoing basis. Each security is awarded
a targeted percent weighting within the portfolio, along with an upper and lower parameter. If
either parameter is breached, it triggers rebalancing, either buying or selling the security back
within the bandwidth.
   ▪   The 50/50 Conservative investor may be taking income on a regular basis from their
       portfolio and would like a balance between income and growth, helping to minimize
       market volatility relative to portfolios that have a higher equity allocation. This portfolio
       is typically invested 50% equity and 50% cash, bonds, and other income producing
       assets.
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