Spectrum Financial Resources LLC

Item 5. Fees and Compensation
Financial Planning Services Fees
Fees for financial planning will consist of a minimum planning fee of $1500. The minimum fee can provide
a plan that covers such topics as: basic cash flow, risk assessment, income projections, tax efficiency and
review, tactical asset allocation, and a review of diversification needs. The fee associated with a
comprehensive written plan focusing on estate planning issues will be as follows:

Assets                                   Planning Fee
Less than $500,000                         $1500
$500,000 - $1,000,000                      $3500
$1,000,001 - $2,000,000                    $7500
Over $2,000,000                          Negotiable

Fees may be modified at the determination of the SFR, depending upon the complexity of service,
resources required, net worth issues, complexity and scope of services. Financial planning fees are
determined at the time of engagement and clearly outlined in the Client Agreement.

Fees for Plans are due and payable upon delivery of the Plan. If client circumstances or objectives change
such that a new plan is required, there may be an additional charge. SFR will not engage in providing
additional time, effort or services before notifying the client that additional fees will apply.

SFR or the client may terminate the financial planning agreement within five days of the date of acceptance
without penalty to the client. After the five-day period, either party may terminate the financial planning
agreement by providing written notice to the other party. However, the client will incur a charge based on
time spent on the financial plan prior to such termination. Refunds are not applicable as fees are payable
in arrears.

Advisory Consulting Services Fees
SFR’s consulting services are provided at the firm's hourly rate of $75. The consulting fee is payable at the
conclusion of each session.

The client acknowledges, in advance, that they only desire consultation in regard to the specific financial
area agreed upon to be reviewed and/or analyzed. Under this arrangement, a written financial plan will not
be provided to the client. Furthermore, client agrees to hold SFR harmless from any liability arising out of
any area(s) that SFR has not reviewed and/or analyzed.

Implementation of Financial Planning or Advisory Consulting Recommendations
Financial planning services are prepared with the client given the option of implementing recommendations
made within the plan through Spectrum or Spectrum’s IARs. However, clients are not obligated to do so. If
clients elect to have an IAR of Spectrum implement the advice provided as part of the financial planning
services, implementation will be made through the client’s IAR in the IAR’s capacity as a registered
representative of United Planners Financial Services of America (United Planners) or as an independent
insurance agent. When clients implement recommended transactions through the IAR in one of these
separate capacities, the IAR will receive additional compensation in the form of commissions. This receipt
of additional compensation from the implementation of investment advisory recommendations can conflict
with the fiduciary duties owed to clients by an investment advisor. Investment advisory clients are under no
obligation to purchase from their Spectrum IAR any commissionable securities or insurance products that
he or she recommends and may purchase such products from the broker-dealer or insurance company or
agent of their choice. When clients purchase commissionable securities or insurance products from a
Spectrum IAR, Spectrum may waive or reduce the amount of the financial planning fee as a result of the
additional fees and/or commissions being earned. Any adjustment to the financial planning fee is at the
discretion of Spectrum and will be disclosed to the client prior to implementing transactions.

Commissions may be higher or lower at United Planners than at other broker/dealers. United Planners
registered representatives are restricted to only offering those products and services that have been
reviewed and approved for offering to the public by United Planners and for which United Planners has
obtained a selling agreement.

While Spectrum has procedures in place that endeavors to at all time to put the interest of the clients first
as a part of the Spectrum’s fiduciary duty, clients should be aware that the receipt of commissions and
additional compensation itself creates a conflict of interest, and may affect the judgment of these individuals
when making recommendations.

Third-Party Investment Advisor Referral Program Fees
SFR will receive compensation as provided for in its agreements with TPIAs for introducing clients. The
compensation to SFR is typically equal to a percentage of the investment advisory fee charged by that TPIA
or a fixed percentage of your assets and is disclosed to the client in the TPIA’s Form ADV Part 2 or Solicitors
Disclosure Statement and agreed to in your TPIA agreement.

Since the fee for SFR’s services is paid by the independent TPIA, the fee paid to SFR is generally not
negotiable. Fees paid by clients to independent TPIAs are established and payable in accordance with the
Form ADV Part 2 or other equivalent disclosure provided by each independent TPIA to whom SFR refers
its clients, and may or may not be negotiable, as disclosed in the disclosure documents of the TPIA.

Certain programs may charge a “wrap fee”, which is single periodic fee that is charged to the client for both
brokerage and investment management services. Selection of a wrap fee program may result in the
payment of fees by clients that exceed the combined total of separate advisory fees and brokerage
commissions the client might otherwise pay if the account was not a wrap fee account. If a wrap fee program
is not selected, the client will be charged separately the management fee by the TPIA and transaction
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Item 7. Types of Clients
SFR offers its investment advisory services to individuals, pension and profit sharing plans, trusts, estates,
charitable organizations, corporations and other business entities.

SFR generally requires a minimum account size of $25,000 to open and maintain a portfolio management
account. This account minimum may be reduced or waived in the sole discretion of SFR. Additionally, higher
account minimums may be imposed by your custodian, third-party investment advisor or other third-party.