SMP Financial Planning LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services
provided by the Advisor. Each Client engaging the Advisor for services described herein shall be
required to enter into one or more written agreements with the Advisor.

A. Fees for Advisory Services
Wealth management fees are paid quarterly, at the end of each calendar quarter, pursuant to the
terms of the wealth management agreement. Wealth management fees are based on the market
value of assets under management at the end of the prior calendar quarter. Wealth management
fees range from 0.40% to 1.00% annually based on the following tiered schedule:

Assets Under Management ($)                                      Annual Rate (%)
Up to $1,000,000                                                            1.00%
Next $1,000,000                                                             0.85%
Next $3,000,000                                                             0.75%
Next $5,000,000                                                             0.50%
Over $10,000,000                                                            0.40%

The wealth management fee in the first quarter of service is prorated from the inception date of
the account[s]to the end of the first quarter. Fees may be negotiable at the sole discretion of the
Advisor.

Certain Clients may be offered a fixed rate fee schedule, based on the Advisor’s discretion. The
Client’s fees will take into consideration the aggregate assets under management with the
Advisor. All securities held in accounts managed by SMP will be independently valued by the
Custodian. SMP will not have the authority or responsibility to value portfolio securities.

The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and
custody fees, and other related costs and expenses described in Item 5.C below, which may be
incurred by the Client. However, the Advisor shall not receive any portion of these commissions,
fees, and costs.

B. Fee for Financial Planning Services
Financial planning services provided on a stand-alone basis are charged in advance through a fixed fee
or hourly arrangement as agreed upon between the Client and SMP. There will never be an instance
where $500 or more in fees is charged six or more months in advance. Hourly fees are generally
charged when the scope of services cannot be determined or if the services are limited to just one
meeting. Fixed fees are generally quoted to the Client for longer term consulting projects, and are
calculated based on an hourly rate multiplied by the estimated time of plan completion. Fees are
negotiable and vary depending upon the complexity of the Client situation and services to be provided.
Hourly fees range from $150 to $500 per hour, depending upon what is negotiated between SMP and
the Client. Similar financial planning services may be available elsewhere for a lower cost to the Client.
Fixed fees for longer-term consulting projects range from $1,000 to $10,000 per project, and are
calculated based on an hourly rate multiplied by the estimated time of project completion. An estimate
for total hours and charges is determined at the start of the advisory relationship.

Typically, Clients will be invoiced monthly for all time spent by SMP as agreed upon by Client or upon
completion of the services if less than one month. In certain instances, SMP may charge for financial
planning services in arrears. Clients that wish to terminate the planning process prior to completion may
do so with written notice. The Client may obtain a refund of a pre-paid fee if the advisory contract is
terminated before the end of the billing period by contacting Mitchell Poirier at (202) 450-0784. Upon its

signing. The amount to be refunded is based on the difference between the pre-paid fee and the actual
hours used prior to termination.

C. Fee Billing
Wealth management fees are calculated by the Advisor or its delegate and deducted from the
Client’s account[s] at the Custodian. Fees are paid quarterly in arrears. IA uses the end of quarter
balance in the Client’s account for the billing period, for purposes of determining the market value
of the assets upon which the advisory fee is based. Clients will be provided with a statement, at
least quarterly, from the Custodian reflecting deduction of the investment advisory fee. Clients are
urged to also review their quarterly statements carefully, as the Custodian does not perform a
verification of fees. Clients provide written authorization permitting advisory fees to be deducted
by SMP to be paid directly from their account[s] held by the Custodian as part of the wealth
management agreement and separate account forms provided by the Custodian.

D. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than SMP, in connection
with investments made on behalf of the Client’s account[s]. The Client is responsible for all
custody and securities execution fees charged by the Custodian, as applicable. The Advisor's
recommended Custodian does not charge securities transaction fees for ETF and equity trades in
a Client's account, provided that the account meets the terms and conditions of the Custodian's
brokerage requirements. However, the Custodian typically charges for mutual funds and other
types of investments. The fees charged by SMP are separate and distinct from these custody and
execution fees.

In addition, all fees paid to SMP for investment advisory services are separate and distinct from
the expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees
and expenses are described in each fund’s prospectus. These fees and expenses will generally
be used to pay management fees for the funds, other fund expenses, account administration
(e.g., custody, brokerage and account reporting), and a possible distribution fee. A Client may be
...

Item 7 – Types of Clients
SMP offers investment advisory services to individuals, high net worth individuals, trusts, estates,

and retirement plans, specifically employer sponsored 401(k) plans. SMP generally does not
impose a minimum relationship size.

Item 8 – Method of Analysis, Investment Strategies and Risk of Loss
A. Methods of Analysis
SMP primarily employs fundamental and technical analysis methods in developing investment
strategies for its Clients. Research and analysis from SMP are derived from numerous sources,
including financial media companies, third-party research materials, Internet sources, and review
of company activities, including annual reports, prospectuses, press releases and research
prepared by others.

Fundamental analysis utilizes economic and business indicators as investment selection criteria.
This criterion consists generally of ratios and trends that may indicate the overall strength and
financial viability of the entity being analyzed. Assets are deemed suitable if they meet certain
criteria to indicate that they are a strong investment with a value discounted by the market. While
this type of analysis helps the Advisor in evaluating a potential investment, it does not guarantee
that the investment will increase in value. Assets meeting the investment criteria utilized in the
fundamental analysis may lose value and may have negative investment performance. The Advisor
monitors these economic indicators to determine if adjustments to strategic allocations are
appropriate. More details on the Advisor’s review process are included below in Item 13 –Review of
Accounts.

Technical Analysis involves studying past price patterns and trends in the financial markets to
better estimate the direction of both the overall market and specific stocks. Technical analysis
attempts to predict a future stock price or direction based on market trends. The assumption is
that the market follows discernible patterns and if these patterns can be identified then a
prediction can be made. The risk is that markets do not always follow patterns and relying solely
on this method may not work long term.

Dollar-Cost Averaging is a technique of buying a fixed dollar amount of securities at regularly
scheduled intervals, regardless of the price per share. This may gradually, over time, decrease
the average share price of the security. Dollar-cost averaging may lessen the risk of sharp asset
price fluctuations impacting a Client’s long-term goals through gradual investment.

As noted above, SMP generally employs a long-term investment strategy for its Clients, as
consistent with their financial goals. The Advisor’s investment strategy is based upon long-term
investment objectives. SMP will typically hold all or a portion of a security for more than a year,
but may hold for shorter periods for the purpose of rebalancing a portfolio or meeting the cash
needs of Clients. At times, SMP may also buy and sell positions that are more short-term in
nature, depending on the goals of the Client and/or the fundamentals of the security, sector or

B. Risk of Loss
Investing in securities involves a number of investment risks. Securities are subject to fluctuation
in value, which may lead to complete loss. Clients should be prepared to bear the potential risk of
loss. SMP will assist Clients in determining an appropriate strategy based on their tolerance for
risk and other factors noted above. However, there is no guarantee that a Client will meet their
investment goals. Please see Item 8.B. for risks associated with the Advisor’s investment
strategies as well as general risks of investing.

While the methods of analysis help the Advisor and evaluating a potential investment, it does not
guarantee that the investment will increase in value. Assets meeting the investment criteria utilized
in these methods of analysis may lose value and may have negative investment performance. The
Advisor monitors these economic indicators to determine if adjustments to strategic allocations
are appropriate. More details on the Advisor’s review process are included below in Item 13 –