Shepherd Financial Investment Advisory LLC

Fees & Compensation
held by, or offered through, the plan, and those guidelines       Individual Wealth Management Fees
are typically referenced in the plan’s investment policy
statement.                                                        All individual wealth management services are provided
                                                                  exclusively through our wrap fee program. Wealth
We also offer additional services to our retirement plan          management fees are paid monthly, at the end of each
clients, including assisting the plan’s named fiduciaries with    month or upfront each quarter for acquisition clients
drafting the plan’s investment policy statement, selecting an     pursuant to the terms of the wealth management
appropriate qualified designated investment alternative,          agreement. Wealth management fees are based on the
investment manager search, selection, due diligence and           average daily closing market value of assets under
monitoring, fiduciary training, fee benchmarking analysis,        management during the month. Wealth management fees
and investment education / engagement, financial wellness         range from 0.50% to 1.20% annually based on several
and enrollment services for the plan’s participants.              factors, including: the scope and complexity of the services
                                                                  to be provided; the level of assets to be managed; and/or
The asset allocation and mutual fund recommendations we
                                                                  the overall relationship with the advisor. Relationships with
give to plan clients may differ from those we give to our high-
                                                                  multiple objectives, specific reporting requirements,
net-worth and affluent individuals and institutions because,
                                                                  portfolio restrictions and other complexities may be charged
among other reasons, a participant’s asset allocation target
                                                                  a higher fee. The wealth management fee may be offered
typically consists of a smaller number of asset categories to
                                                                  as a fixed annual rate or a tiered, incremental fee schedule,
reflect the relatively smaller size of the participant’s
                                                                  not to exceed to the range above.
investment assets; or the sponsor has constrained the
investment alternatives from which we may make                    The wealth management fee in the first month of service is
recommendations. In such cases, we may be required to             prorated from the inception date of the account[s] to the end
observe quantitative criteria established by the sponsor in       of the first month. Fees may be negotiable at the sole
preparing participant-oriented lists of mutual funds, or to       discretion of the advisor. The client’s fees will take into
confine the advice given to choices among a relatively            consideration the aggregate assets under management
narrow set of investment alternatives established by the          with us. All securities held in accounts managed by
sponsor. Participants are informed when the plan sponsor          Shepherd will be independently valued by the custodian.
imposes constraints on our ability to recommend mutual            Shepherd will not have the authority or responsibility to
funds or other securities.                                        value portfolio securities.
Discretionary Asset Management                                    The firm has a number of legacy clients who were
                                                                  acquired, that were not participating in the firm’s wrap
When we provide discretionary asset management
                                                                  program. All acquired clients will be subject to the new fee
services, we receive a limited power of attorney to effect
                                                                  program, unless you notify us of your intent to opt out.A
securities transactions for our clients that include securities
                                                                  client investment advisory agreement may be canceled at
and strategies described under “Methods of Analysis,
                                                                  any time by the client, or by us with 30 days’ prior written
Investment Strategies & Risk of Loss” below. Our
                                                                  notice to the client. Upon termination, any earned, unpaid
discretionary asset management services are predicated on
                                                                  fees will be due and payable/unearned, prepaid fees will be
the plan’s investment mandate or investment policy
                                                                  refunded.
statement.
                                                                  ERISA-Qualified Plan Fees
Client-Tailored Services & Client-Imposed Restrictions
                                                                  We charge either on a percentage of assets in the
Each Advisory Client’s account will be managed on the
                                                                  retirement plan or as a flat amount. These fees are
basis of the client’s financial situation and investment
                                                                  negotiable and vary greatly based upon the size of the plan
objectives and in accordance with any reasonable
                                                                  and the services we provide. Retirement plan clients may
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