Item 5 - Fees and Compensation
Service 1: Financial Planning and Consulting Services: Fees may be fixed or hourly and are always negotiable. There is
no maximum rate for fixed fees. Hourly fees are billed at a maximum rate of five hundred dollars ($500.00) per hour.
Fees are estimated by your IAR based upon a preliminary assessment of the complexity of your financial
circumstances, the level of skill required to perform the services, and, accordingly, the time likely to be required to
perform the services. The fees will be specific in the Agreement. For fixed or hourly fees, one-half of the estimated
fixed fees may be due and payable upon acceptance of the Agreement by your IAR. In such a case, the balance of the
fees will be due and payable upon delivery of the plan, recommendations or otherwise at the conclusion of the
services. While financial planning and consulting fees can be charged in advance of services rendered. Under no
circumstances will SSNAI or your IAR require prepayment of a fee more than six months in advance and in excess of
$1200.00.
Agreements can be contracted for any time interval that is agreed to by the both the Client and Advisor. The
Agreement may be terminated at any time at the Client’s discretion. The IAR or SSNAI may terminate the Agreement
at any time upon 30-days written notice to Client. If fees were billed in advance, any unearned fees will be returned to
the client. Once the Advisor’s work product has been delivered, either by time frame conclusion or by product
deliverable, there are no provisions for refunds when services have been rendered.
SSNAI has contracted with a company named AdvicePay to offer billing services to credit cards or checking accounts. This
service will enhance the opportunity for both project based and subscription based financial consulting services with
electronic payment processing. Subscription based fee services automatically renew one year from the date of Client’s
signature unless cancelled by written notice prior to that date. In the event of such termination, Client is entitled to a
refund of any “unearned” portion of fees already paid, on a pro rata basis.
Electronic payments through AdvicePay – by entering the written financial consulting agreement the Client agrees to
receive invoices electronically and remit payment through the AdvicePay portal forwarded to Client by Advisor. Client
understands that it is Client’s responsibility to cancel subscription payments made through AdvicePay and that such
payments may continue until cancelled by Client.
Service 2: Asset Management Services: The maximum annual fee for participation in the asset management services
program is 2.50% and may be negotiated. Fees for this service are paid either in advance or arrears.
Advisory fees due to SSNAI may be either:
a. Deducted from the client’s account, when due: SSNAI will liquidate money market shares to pay the fees and, if
insufficient money market shares or cash are available, other investments will be liquidated to pay the fees.
The investment(s) to be liquidated will be selected at random by your IAR. Authorization for the automatic
deduction of fees from your account(s) is contained in the Agreement.
b. Paid by check. Fees that are not directly debited from your account should be paid by check. Your check should
be made payable to SSN Advisory, Inc. FBO (IAR name).
Fees are calculated on your account(s) in accordance with the Agreement on a monthly or quarterly basis. Unless
otherwise agreed to by contract, the fee is calculated based upon either:
a. the average daily value of your account computed and payable in advance or arrears during the preceding
month or quarter, as determined by your advisory services agreement; Or
b. the fair market value of the assets in the account payable in advance or arrears as of the end of the month or
quarter, as determined by your advisory services agreement.
Fee Schedules may be either tiered or linear:
a. Tiered fee schedule - similar to our current income tax system. Each level of assets is charged its own
corresponding percentage rate. For example, a tiered fee schedule might charge 2.5% on the first $250,000,
1.75% on the next $250,000 and 1.5% on the next $250,000, effectively giving you a blended and lower rate
than the maximum 2.5%.
b. Linear fee schedule - as your assets grow and breakpoints are met, fees are decreased. Unlike the tiered fee
schedule, once a breakpoint has been met all of the assets back to dollar one is then charged at the new lower
percentage rate.
Account value used to calculate advisory fees is based on the “settlement value” of your account. Investors must
complete or "settle" their security transactions within three business days. This settlement cycle is known as "T+3,"
shorthand for "trade date plus three days." T+3 means that when you buy a security, your payment must be received by
your brokerage firm no later than three business days after the trade is executed. When you sell a security, you must
deliver to your brokerage firm your securities certificate no later than three business days after the sale. For example:
• If a position that settles in three days is purchased, the value of that position will not be included in the
account value until the end of the three-day settlement period;
• If a position that settles in three days is sold, the value of that position will be included in the account value
until the end of the three-day settlement period.
Not every security will have the same settlement periods; periods vary between T+1, T+2 and T+3. If you are
purchasing and selling positions on the same date with different settlement periods, your account settlement value
used for fee calculation purposes may be more or less than other account value calculation methods.
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