Spectrum Financial Alliance Ltd LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 - Advisory Business, this section provides details
regarding our services along with descriptions of the fees and compensation arrangements.

Disclosure Brochure                                                         Spectrum Financial Alliance

If a client chooses to implement our services for an account not held at Schwab, they authorize SFA and
Charles Schwab to deduct all applicable fees and charges from the Client's account custodied at Charles
Schwab. Those clients that do not have a non-qualified account custodied at Charles Schwab will be mailed
a direct billing and requested to return payment via check. Fees and charges will be noted on the Client's
statements. You can also have your fees direct billed to you or utilize “Advice Pay” to collect management
fee via credit card or bank account.

You agree to notify us if there is ever a change in your financial situation or investment objectives so that
we can review, evaluate, and/or revise any prior recommendations made or services provided. We will
contact you at least annually to determine whether your financial situation or investment objectives have
changed, or if you want to impose and/or modify any reasonable restrictions on your accounts.

Asset Management Services

We charge for asset management services based on a percentage of assets under management. For
assets maintained at Schwab, fees are billed monthly in arrears and calculated based on the average daily
balance of the account assets during the previous month when we can readily get daily downloads from
the custodian. Fees are generally non-negotiable. Fees are charged according to the following schedule:

The above fee schedule is negotiable based upon the complexity of your financial situation, composition of
the account, previous history with us, and related accounts. SFA may credit a portion of its management
fees to certain investors who incur charges to surrender annuities, CDs, load mutual funds, REITS, other
securities, or instruments in order to have the proceeds managed by SFA. In addition, you can bundle
accounts of household members in order to reach a higher total account value and therefore a lower fee
level. Accounts opened mid-period are prorated based on the number of days that services are provided
during the first billing period. At client request, due to market growth or the deposit of additional
assets, Spectrum Financial Alliance may adjust the fee associated with the account.

For those accounts not maintained at Schwab and that do not have daily valuation data available,
management fees are charged monthly or quarterly in arrears and based on the market value of the assets
as of the last business day of the billing period. If assets calculated by market value are withdrawn mid-
period, fees are prorated. The fees on accounts not maintained at Schwab will be negotiated at the time of
the advisory agreement completion and may be higher or lower than the equivalent Schwab fees depending
on the complexity of Spectrum’s managing those assets. The fees can either be deducted from your
account or billed directly to you. (See Annuity and Retirement Plan Management, below.)

Fees are generally automatically deducted from an account designated by you and paid directly to us by
the account custodian. You must provide the custodian with written authorization to have the fees deducted
from the account and paid directly to us. At least quarterly, you receive an account statement from your
custodian detailing transactions in your account, including advisory fees charged. You should review the
account statements received from the account custodian and verify that appropriate advisory fees are being

Disclosure Brochure                                                         Spectrum Financial Alliance

deducted. The custodian will not verify the accuracy of the advisory fees deducted. If you request fees to
be billed directly to you, we provide you with a detailed billing statement that is due upon receipt. You can
also have your fees billed directly to you or utilize Advice Pay to collect management fee via credit card or
bank account.

Schwab does not currently charge a separate custodial fee although other qualified custodians may charge
this separate fee. In addition, non-Schwab account custodians may charge brokerage commissions and/or
transaction fees directly to you. We do not receive any portion of the commissions or fees from either the
custodian or from you. You may also incur certain charges imposed by third parties other than us in
connection with investments made through your account, including, but not limited to,12(b)-1 fees and
surrender charges, variable annuity fees and surrender charges, investment advisory (IAR) fees and
qualified retirement plan fees. Our management fees are separate and distinct from the fees and expenses
charged by investment company securities that may be recommended to you. A description of these fees
and expenses is available in each security prospectus.

Asset management services are considered ongoing, although either party can terminate services at any
time by providing written notice to the other. Termination is effective upon receipt of the notice or ten days
from the date of termination notice, whichever occurs sooner, or at a later date specified in the notice. If
termination is at a later date, we continue working until effective on existing items but do not begin any new
services without your specific instruction. If services are terminated, we charge a prorated fee based on
the number of days that services were provided prior to the effective date of termination.

Annuity & Retirement Plan Management

We charge for management services relative to: (1) variable life/annuity products and (2) individual
employer-sponsored retirement plans (i.e., 401(k) plan, pension plan, profit sharing plan, etc.) Fees are
...

Item 7 – Types of Clients

We generally provide investment advice to:

        Individuals (including high-net worth individuals);
        Pension and profit sharing plans;
        Trusts, estates, or charitable organizations; and
        Corporations or other business entities.

Minimum Investment Amounts Required

We do require a minimum household portfolio size of $500,000 to establish an account managed by SFA.
Beginning June 1, 2026, this minimum will increase to $750,000. We reserve the right to accept or establish
a relationship with a client that is below the minimum threshold for any reason. We also consider any pro
bono activities that may be required or requested, such as a church donation liquidation or limited military
spouse assistance. There is no charge for these types of pro bono activities. SFA reserves the right to
accept accounts that fall below the established minimum account requirements at its discretion.