Item 5 – Fees and Compensation
SIFP’s fees for its financial planning and investment management services are charged according to
the type of engagement as described below and are negotiable. There are legacy clients of the firm
who are under differing fee schedules than those below because those legacy clients are invested in
investments or receive services that are no longer offered by SIFP.
Combined Financial Planning and Investment Management Services Fees
SIFP charges clients an initial onboarding fee and an annual, flat fee determined by the scope of the
services, the complexity of the client’s financial planning needs, and the amount of assets under SIFP’s
management. Clients pay the initial onboarding fee at the time they sign their agreement with SIFP
via check or through SIFP’s approved third-party vendor. The annual flat fee is collected quarterly, in
arrears. Clients authorize SIFP with the authority to deduct SIFP’s fees directly from their account
held at the independent custodian. For clients who choose the tax preparation, supplemental tax
planning, tax assessment, and tax advice through the third-party vendor, there is an annual, flat fee of
$1,000.00 payable in quarterly installments, in arrears.
Ongoing Financial Planning Service Fee
SIFP charges clients an initial onboarding fee and an annual, flat fee determined by the scope of the
services and the complexity of the client’s financial situation. SIFP’s initial onboarding fee is due and
payable upon signing the agreement via electronic funds transfer or check. SIFP bills clients for the
annual flat fee quarterly, in arrears, and clients can make payment via check or through a third-party
vendor approved by SIFP.
Stand Alone Investment Management Service Fee
SIFP charges clients an annual fee, quarterly, in advance, based upon a percentage of the market value
of the assets under management on the last day of the previous calendar quarter.
The fee schedule range for these services is as follows:
Cash and Fixed Income – 0.10% to 1.00%
Actively Managed Portfolios – 0.10% to 2.00%
The percentage fee a given client will pay is set based upon the total amount of assets and the total
number of accounts managed by SIFP on behalf of the client.
Clients authorize SIFP with the authority to deduct SIFP’s fees for this service directly from their
account held at an independent custodian.
Limited-Scope, Project-Based Financial Service Fee
SIFP charges clients either a fixed fee or an hourly fee for limited-scope, project-based financial
planning services. When utilizing a fixed fee, SIFP determines the fee based on the scope of the
services performed and the complexity of the client’s financial situation. SIFP estimates the number
of hours required to complete the task and collects one half of the fixed fee upon signing the
agreement and the remainder of the fee upon the presentation of SIFP’s recommendations. When
utilizing an hourly fee, SIFP bills in 6-minute increments and charges $300 - $500 per hour depending
upon the complexity of the services needed.
All fees are payable via check, or third-party vendor. In the case of either the fixed or hourly fee,
should SIFP or the client choose to terminate the agreement for limited-scope, project-based services
before its completion, SIFP will refund to the client a prorated portion of any fees determined, at its
sole discretion, to be unearned. Clients are responsible for any of the costs associated with
implementation of the plan.
Other Fees and Expenses
In addition to the Fees described above, clients also bear certain expenses including: custodial fees;
brokerage commissions and/or transaction fees charged by the relevant custodians (i.e., transaction fees
are charged for certain no-load mutual funds, commissions are charged for individual equity and fixed
income securities transactions); “trade away fees”; charges and fees imposed at the level of exchange-
traded funds and/or mutual funds into which clients invest; organizational and operating expenses;
fees and expenses charged by any retained investment managers and/or unaffiliated third-party funds;
and, in the event a client desires to purchase options, futures and/or commodities for its account,
commissions paid to the relevant futures commission merchant. These expenses are paid by the client
directly to such custodian or broker-dealer.
Fees at Termination
For fees charged for ongoing services that clients pay in arrears, upon termination, fees will be payable
up to the date of termination. For fees charged for Standalone Investment Management, which are
paid in advance, any prepaid but unearned fees will be prorated to the date of termination and
promptly refunded. Limited-scope financial planning clients pay one half of the fee in advance. Should
a client choose to terminate the agreement for limited-scope, project-based services before its
completion, SIFP will refund to the client a prorated portion of any fees determined, at its sole
discretion, to be unearned.