Stiles Financial Services Incorporated

Item 5 – Fees and Compensation

Individual Financial Plan Consulting

A base fee of $3,000 is generally the minimum fee charged to develop a comprehensive financial
plan (the “Plan”). Generally, an annual maintenance update does not incur an additional
charge unless it results in a complete overhaul of the Financial Plan and the fee arrangement will
be discussed and agreed upon with the client in advance. Financial planning fees are typically a
fixed amount but may be based on an hourly fee. This fee can increase depending on the
complexity of the Plan being developed. The complexity of a Plan is determined by the type of
Plan the client requests.

Portfolio review fees for non-managed and outside investments can also be provided as a part of
our financial planning services. These fees vary according to the number of reviews requested
over a 12-month period and are agreed upon prior to signing an agreement.

Number of Portfolio Reviews                    Minimum Fee

4 quarterly reviews                             $4,000/annually

2 semi-annual reviews                          $2,500/annually

1 annual review                                 $2,000/annually

For Financial Plans, 50% of the fee is charged up-front. This upfront fee is refundable only up to
the unearned services provided by SFSI and will be returned within 60 days. The remainder
of the fee is due upon completion of the Plan. Investment advice or other consultation that is
outside of the scope of a Financial Plan provided by SFSI and that is not part of the wrap fee
program and not on a retainer is charged as a Project Fee; 50% of the fee is charged up front for
the Project and is refundable for unearned work and will be returned within 60 days cancellation.
The remainder of the fee is due upon the completion of the Project. A Project can include how
the client’s assets are currently allocated, how SFSI would allocate their assets, and a summary
of our overall services to the client if they wish to hire us on retainer as part of our wrap fee
program. A Project can also provide consultation and advice to a client on negotiating a
severance package or accepting a job offer with a variety of compensation tiers and alternatives.
A Project can also involve a family estate planning execution or beneficiary asset distribution.
Depending on the complexity of the project, the maximum fee charged can be up to $20,000. If
the Project or Plan is cancelled prior to completion, the client will be issued a refund of unearned
fees within 60 days. Most Plans are completed within 6 months of the engagement, and all fees
are agreed upon prior to signing an agreement. Project completion time is heavily dependent on
the scope of the Project and will be discussed and determined at the time of engagement. When
a client hires SFSI on retainer, they are charged a fee based on the Fee Schedule detailed above.
These fees are charged in advance, quarterly, on an ongoing basis.

Additionally, a fee for Project work or additional ad hoc Financial Planning ranging from $200 to
$500 per hour can be charged for special activities and projects. This fee varies based on staff
assignments and levels of expertise.

If the client terminates the agreement prior to completion of the Plan, services provided through
the termination date must be paid upon receipt of the invoice. The agreement continues
until it is terminated by either party by giving written notice to the other, which can be received
via email, in person, or by mail. SFSI prepares client specific bills following the terms in the signed
agreement. These bills are then sent via mail or email directly to the client for payment.

SFSI does not accept cash or credit card payments and cannot deduct the bill from any type of
client account.

Portfolio Management

Please review the Form ADV Wrap Brochure for a complete review of the fees and
appropriate conflict disclosures related to SFSI’s wrap program.

Other Fees and Compensation

Life, disability, and long-term care products recommended in the Financial Plan developed for
clients of SFSI may be purchased through SFSI employees that hold a current in force insurance
license. Some of these products may pay a commission that will be disclosed and paid to SFSI.
This is separate from a fee paid by the client for the development of the Financial Plan. If an
insurance product carrier offers a fee-based product alternative, SFSI will generally recommend
such a product that is under the execution of the Wrap Fee Program.

Clients are under no obligation to purchase insurance products through SFSI. Insurance products
do not fall under the asset-based management fee or the program fee.
SFSI does not receive free marketing services from insurance companies in exchange for
marketing the insurance company’s products. SFSI is also aware of the conflicts of interest in
recommending “switches” from one insurance product to another to earn additional
commissions. Insurance products are typically recommended to clients on a limited basis and a
“switch” from one insurance product to another will only be recommended if it is truly in the
client’s best interest. If insurance commissions are paid on the product purchased by our clients,
the insurance product is not included in the advisory or program fee calculations. This means we
are only paid insurance commissions or advisory and program fees on the same product – not
both. Commissionable insurance products are typically term, universal or whole life policies.
Long-term care insurance and disability policies may also be recommended.

Item 7 – Types of Clients

SFSI provides individual financial planning, and portfolio management offered through SFSI’s
wrap program, to individuals, families, trusts, estates, charitable organizations, foundations, and
corporations.