SKM Wealth Management LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 SKM offers direct asset management services to advisory Clients. SKM charges an annual
 investment advisory fee based on the total assets under management as follows:
        Assets Under Management                  Annual Fee                  Quarterly Fee
     First $2,000,000 ($0-$2,000,000)              1.00%                         .25%
            Your next $3,000,000                   0.75%                       .1875%
       ($2,000,000.01 - $5,000,000)
            Your next $5,000,000                      0.50%                     .125%
      ($5,000,000.01 - $10,000,000)
            Subsequent amounts
                                                                Negotiable
             ($10,000,000.01+)
 This is a tiered/blended fee schedule, the asset management fee is calculated by applying
 different rates to different portions of the portfolio. SKM may group certain related Client
 accounts for the purposes of achieving the minimum account size and determining the
 annualized fee.
 For example (based on quarterly billing period):
 Client with $3,500,000 under management would pay $7,812.50 on a quarterly basis.
              AUM                  Quarterly fee        Total
              First $2,000,000     x 0.25% =            $5,000.00
              Next $1,500,000      x 0.1875% =          $2,812.50
              Grand total for the quarter               $7,812.50

 The annual fee may be negotiable. Accounts within the same household may be combined
 for a reduced fee. SKM considers cash to be an asset class, and as such is included in fee
 calculations. Also, to be noted, at times fees will exceed the money market yield. Fees are
 billed quarterly in arrears based on the amount of assets managed as of the close of
 business on the last business day of the previous quarter. If the Account does not contain
 sufficient funds to pay advisory fees, SKM has authority to sell or redeem securities in
 sufficient amounts to pay advisory fees.
 SKM may also utilize the services of a Sub-Advisor to manage Clients’ investment portfolios
 by executing a Sub-Advisor agreement with other registered investment advisor firms.
 When using Sub-Advisors, the Client will not pay additional fees. The Sub-Advisors fees are
 inclusive of the total fee disclosed by SKM. Sub-Advisor directly deducts their portion of the
 fee separately from SKM.
 Lower fees for comparable services may be available from other sources. Clients may
 terminate their account within five (5) business days of signing the Investment Advisory
 Agreement with no obligation and without penalty. After the initial five (5) business days,
 the agreement may be terminated by SKM with thirty (30) days written notice to Client and
 by the Client at any time with written notice to SKM. For accounts opened or closed mid-
 billing period, fees will be prorated based on the days services are provided during the
 given period. All unpaid earned fees will be due to SKM. Client shall be given thirty (30)

 days prior written notice of any increase in fees. Any increase in fees will be acknowledged
 in writing by both parties before any increase in said fees occurs.
 FINANCIAL PLANNING AND CONSULTING
 SKM charges an hourly fee of $300 per hour for financial planning. Prior to the planning
 process the Client will be provided an estimated plan fee.
 Fees for financial plans are billed 50% in advance with the balance due upon plan delivery.
 Services are completed and delivered inside of thirty (30) days contingent upon timely
 delivery of all required documentation. Client may cancel within five (5) business days of
 signing Agreement with no obligation and without penalty. If the Client cancels after five
 (5) business days, any unearned fees will be refunded to the Client, or any unpaid earned
 fees will be due to SKM. SKM reserves the right to waive the fee should the Client
 implement the plan through SKM.
Client Payment of Fees
 Fees for asset management services are deducted from a designated Client account. The
 Client must consent in advance to direct debiting of their investment account.
 Fees for financial plans will be billed:
    •   Check – to be remitted by Client to SKM
Additional Client Fees Charged
 Custodians may charge transaction fees and other related costs on the purchases or sales of
 mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
 market funds and exchange-traded funds also charge internal management fees, which are
 disclosed in the fund’s prospectus. SKM does not receive any compensation from these fees.
 All of these fees are in addition to the management fee you pay to SKM. For more details on
 the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
 SKM does not require any prepayment of fees of more than $500 per Client and six months
 or more in advance.
 Fees for financial plans are billed 50% in advance with the balance due upon plan delivery.
 If the Client cancels after five (5) business days, any unearned fees will be refunded to the
 Client, or any unpaid earned fees will be due to SKM.
External Compensation for the Sale of Securities to Clients
 Investment Advisor Representatives of SKM receive external compensation from sales of
 investment related products such as insurance as licensed insurance agents. This
 represents a conflict of interest because it gives an incentive to recommend products based
 on the commission received. This conflict is mitigated by disclosures, procedures, and
 SKM’s fiduciary obligation to place the best interest of the Client first and Clients are not
 required to purchase any products or services. Clients have the option to purchase these
 products through another insurance agent of their choosing.

Item 7: Types of Clients
Description
 SKM generally provides investment advice to individuals and high net worth individuals.
 Client relationships vary in scope and length of service.
Account Minimums
 SKM requires a minimum of $500,000 per household to open and maintain an account. In
 certain instances, the minimum account size may be lowered or waived.