Shankland Financial Advisors LLC

Fees and Compensation

Fees for Investment Management

 Please note, unless a client has received the firm’s disclosure brochure at least 48 hours

prior to signing the investment advisory contract, the investment advisory contract may
be terminated by the client within five (5) business days of signing the contract without
incurring any advisory fees. How we are paid depends on the type of advisory service we
are performing. Please review the fee and compensation information below.
Comparable Services

We believe that SFA’s fees are competitive and reasonable for the services provided;
however, lower fees for comparable services may be available from other sources.
For our investment management services, we charge an annual fee based on the assets we
manage. Our annual fee is prorated and charged quarterly, in arrears, calculated using the
market value of the account as determined on the last business day of the preceding
quarter.
Our initial fee will be prorated based on the number of days during the initial quarter that
our advisory agreement was in effect.
Should either one of us terminate the advisory agreement we have entered into before
the end of a calendar quarter, you will only be charged our fee for the number of days
during that quarter that our agreement was in effect.
You may make additions to and withdrawals from the account at any time. If the addition
or withdrawal occurs after the inception of a quarter, the fee payable with respect to those
assets may be adjusted or prorated based on the number of days remaining in the quarter
at SFA’s discretion.
A third-party investment manager performing investment management services to a SFA
client will charge and collect their own separate fee for their services. The fee for services
by a third-party investment manager will also be calculated on the market value of the
assets being managed. The third-party investment manager’s fee, and how the fee is billed,
is set forth in that investment manager’s agreement, and also in that investment manager’s
ADV the client receives.

SFA offsets their advisory fee with the third-party investment manager’s fee so the total
fee will never exceed the fees shown in the schedules below.
The third-party investment manager will debit the client’s account for both the third-
party investment manager fee, and SFA’s advisory fee, and will remit SFA’s fee to SFA.
Although the fee schedules disclose the total fee charged to the client including the third-
party investment manager fee, the client will sign separate documentation acknowledging
the third-party investment manager fee as a separate fee, and as a result, this does not
constitute a fee-sharing or referral arrangement.

The annual fee will vary depending on the types of securities in the account as set out
in the fee schedules below. If an account holds different types of securities, the fee rates
may be blended based on the composition of the account. With discretionary authority,
we are authorized to select the investments in the account. This presents a conflict of
interest in recommending a particular security for the account if the recommendation
would increase our management fee. SFA always operates in the client's best interest and
according to the client's investment objects, goals and risk tolerance, and has adequate
safeguards in place to mitigate any conflict in interest in recommending a particular
security for the account.
All fees are negotiable only at our sole discretion. We may negotiate a lesser fee based
upon certain criteria such as amount of assets, related accounts, account location, future
additional assets, pre-existing relationships and account composition.
There are “legacy” clients under a previous fee schedule.
The maximum annual advisory fees for the management of your account(s) are as
follows:
Actively Managed Portfolios including Individual Equities, ETFs and Mutual Funds:

PORTFOLIO VALUE                                                                             ANNUAL FEE

up to $250,000 .................................................................................... 2.00%

$250,001 - $500,000.......................................................................... 1.90%

$500,001 - $1,000,000. ...................................................................... 1.75%

above $1,000,000 .............................................................................. 1.50%

Portfolios including only Fixed Income Securities, Cash and Cash Equivalents:

PORTFOLIO VALUE                                                                  ANNUAL FEE

up to $750,000 .................................................................................... 0.50%

above $750,000 ................................................................................. 0.35%

We require that you authorize us in writing to direct your account’s custodian to pay
our investment advisory fees directly to us by debiting your account. This authorization is
set forth in the investment advisory agreement clients execute to retain our services.
For our services provided to a client’s Held Away Account where SFA does not have

the authority to directly deduct our fees from the account, clients will pay our fee directly
through SFA’s approved third-party payment system. Each time the fee is owed, SFA
will provide the client with an invoice showing the fee owing, the balance upon which
the fee was calculated, and the time period covered by the fee.
We will provide you with a copy of our invoice at the time that we submit the invoice
to the custodian. Your custodian will also provide you with statements that show the
amount of the advisory fees paid directly to us.
Your custodian does not verify the accuracy of our fee calculations so please review
your statements along with SFA's invoice carefully.
In addition to our fee, you may be required to pay other charges such as:

      custodial fees,
      brokerage commissions,
...

Types of Clients
We provide advisory services primarily to individuals and families, including their trusts,
estates and retirement accounts. We also provide services to charitable organizations,
corporations and other business entities.
We do not impose any minimum account size for opening an advisory account with
SFA.

   Methods of Analysis, Investment Strategies and Risk of Loss

In managing your portfolio, we utilize both fundamental and technical analysis.
Fundamental analysis is a method of evaluating a company that has issued securities by
attempting to measure the value of its underlying assets. This entails studying overall
economic and industry conditions as well as the financial condition and the quality of the
company’s management. Earnings, expenses, assets, and liabilities are all important in
determining the value of a company. The value is then compared to the current price
of the company’s securities to determine whether to purchase, sell or hold those
securities.
Technical analysis is a method of evaluating securities by analyzing statistics associated
with market activity, such as past prices and trading volume. Technical analysts do not
attempt to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future performance.
The main sources of information used to formulate investment advice and/or manage
assets includes financial publications, research materials prepared by others, corporate
rating services, annual reports, prospectuses, filings with the SEC, company press releases
and timing services.
We design our portfolios as long-term investments. While we do not use options or short
sales, we may use short ETFs to hedge positions. We may employ a tactical approach,
such as going to all cash or using Stop-Loss orders. And we give consideration to the tax
implications of certain strategies within your account. For our investment strategy for a
held away account, we are limited to the investments offered by the retirement plan
itself.
You may place reasonable restrictions on the strategies we employ to manage your
account, such as restricting the types or sectors of investments to be held in your

account.

Although we manage your account in a manner that we believe is consistent with your
specific investment objectives and risk tolerances, there can be no guarantee that our
efforts will be successful. All investments are subject to loss, including (among other
things) loss of principal, a reduction in earnings (including interest, dividends and other
distributions), and the loss of future earnings. General economic conditions, current
interest rates, the performance of a particular industry or a particular company, and any
number of other factors can affect investment performance. You should be prepared
to bear the risk of loss.
There are certain risks related to investments in equities directly or through mutual funds
and ETFs, including but not limited to:
      Financial Risk that the underlying companies may perform poorly.
      Market Risk that the Stock Market will generally decline, decreasing the value of the
      securities.
      Inflation Risk that returns will be reduced by the increases in prices.
      Political and Government Risk that the value of investments is impacted by new
      regulations.
Certain risks are also related to investments in bonds, including but not limited to:
      Interest Rate Risk that the value of the bond will decline as interest rates rise. Call
      Risk that your bond investment will be called or purchased by the issuer when the
      conditions are not favorable to you.
      Default Risk that the issuer may be unable to pay the interest and/or principal.
In a cash account, your risk is minimal and limited to the amount of money that you have
invested, but you may miss out on potential gains as a result.
You should also be aware that transactions in the account (including account reallocations
and rebalancing) may trigger a taxable event for you, unless your account is a qualified
retirement account.
When a third-party investment manager is providing services to a client’s account, that
investment manager’s ADV will disclose the particular investment strategy utilized by
that investment manager for their account.
When Dunham & Associates Investment Counsel, Inc. (“Dunham & Associates”) is
acting as a third-party investment manager to SFA clients, the client is participating in
their asset allocation and mutual fund wrap program using a series of proprietary mutual
funds and non-proprietary money market funds. Clients should refer to Dunham and
Associates’ ADV for complete information on their investment strategies and risks
associated with the program.