Shotwell Rutter Baer Inc

Item 5 – Fees and Compensation

Project Based Financial Planning
The fee for project based financial planning is a fixed fee, typically ranging from $2,400 to
$22,000. The fee is dependent upon variables including the specific needs of the client,
complexity, estimated time, research and resources required to provide services to you, among
other factors we deem relevant.
Fees are not negotiable and will be outlined in your advisory agreement. Our firm collects a
portion of the fee to be collected in advance with the remainder due upon completion of the
services. Fees are payable by electronic funds transfer or check.
Project based financial planning is not an ongoing engagement, thus upon receipt of the final fees,
the advisory agreement will automatically be terminated. Clients may terminate at any time
provided written notice. If fees are paid in advance, a prorated refund will be given, if applicable,
upon termination of the advisory agreement for any unearned fee. For fees paid in arrears, the
Client shall be charged a pro-rata fee based upon the percentage of the work done up to the date of
termination.
Initial Planning Engagement & Onboarding (3 Month Engagement)
This initial engagement consists of a one-time fee of $2,400.00 payable at the start of the
onboarding process. At the end of the engagement, if both parties agree to move forward with an
ongoing planning arrangement, the fee schedule below payments will commence starting the
month following the end of the 3-month engagement. Fees are non-refundable once earned and are
paid via ACH through a secured independent payment processor from the client’s bank account.
This onboarding fee may be waived at the Advisor’s discretion for past clients that reengage us for
our services.
Ongoing Planning & Investment Management
The fee for ongoing financial planning services is determined based on the net worth of the client
as outlined below. This service may also include investment management services when selected
by the client during the execution of their agreement.

                        Net Worth Range & Tiers                      Annual Advisory Fee

                   $0                        $749,999                        $5,665

                $750,000                     $999,999                        $6,695

               $1,000,000                   $1,499,999                       $8,240

               $1,500,000                   $1,999,999                      $10,300

               $2,000,000                   $2,999,999                      $13,390

               $3,000,000                   $3,999,999                      $18,025

               $4,000,000                     And up                        $22,660

Fees are updated annually based on changes in a client’s net worth. The firm will evaluate
managed accounts based on June 30th values and will use the most recent reported values for non-
managed assets. Following our evaluation, the client will be provided with notification of any fee
changes, as well as a net worth statement showing the values we used for the calculation. Fee
changes will be implemented the following January, and at the Client’s discretion, the fee change
will be implemented over a two-year period. When the fee decreases, it will be effective on
January 1st. The client can contact the firm prior to year-end to discuss any discrepancies in their
fee or net worth calculation. Any changes in the annual fee based upon the client’s net worth shall
not be effective without agreement from the client by signing the updated net worth statement and
agreement addendum.
On an annual basis, the advisory fee will be reviewed for COLA (Cost of living adjustment) and
may be increased by 3%. At that point, the fee schedule will reflect the updated fees, and clients
will be notified of this change by the Firm via an addendum. Fee changes will be effective January
1st of the upcoming year.
Fees will be paid in arrears, on a monthly, quarterly, or annual basis as determined by the client
and may be paid securely from the client’s bank account, from their managed accounts, or a
combination of both.
Ongoing Planning & Investment Management services may be terminated at any time with written
notice by either party. In the event of termination, the advisor will refund the client any prepaid but
unearned fees within 30 days of termination, or the client will be billed for any earned but unpaid
fees for the number of days in the current billing period up to the date of termination.
Fees clients pay for these services may vary based on the fee arrangements that were in place when
some clients entered into an agreement with our firm. New clients connected to current clients
through an existing relationship may be assigned our past AUM fee schedule. This may include
employer retirement plans and family members of current clients.
Previous fee schedules are noted below for existing relationships with Assets under Management:
           a. At third party management companies, fees are deducted from client account(s) and
              transmitted to the advisor according to the following schedule:

                      Account Portion                    Annual Fee
                      Up to $499,999.99                  1.00% (0.25% quarterly)
                      $500,000.00 to $999,999.99         0.80% (0.20% quarterly)
                      $1,000,000,00 to $1,999,999.99     0.60% (0.15% quarterly)
                      $2,000,000.00 and up                0.20% (0.05% quarterly)

              Accounts held at SEI Private Trust Company with a quarter-ending balance of less
              than $50,000 may be subject to an annual account service fee of $60, imposed by
              SEI and deducted from the account at $15 per quarter. The fee is not imposed on
              accounts with a quarter-ending balance under $50,000 that were opened between
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Item 7 – Types of Clients

Shotwell Rutter Baer provides financial planning and portfolio management services to individuals
and high-net-worth individuals. Asset management services may also be extended to small
individual or corporate retirement plans when such plans are held by an assets-under-management
client (for example, SEP, SIMPLE, and 401(k) plans).
Shotwell Rutter Baer does not have a minimum portfolio size requirement.