Item 5. Fees and Compensation
Financial Planning and Consulting-Hourly Fee
SFG may provide its clients with a broad range of financial analysis and consulting services and
will charge a fee (fixed and/or hourly) for these services. Fixed consulting services can range
from $1,200-$9,000 depending on the level and scope of the services provided. In some cases,
a monthly fee between $100-$750 can be assessed in lieu of paying the fixed fee and will be
paid in advance each month via auto debit. The first month’s fee will be paid upon
engagement. Once most of services have been provided, Client has the option to opt for a
monthly “maintenance fee” of $100 until termination of agreement. Hourly consulting services
can range between $150-$350/hour with a minimum of 3 hours depending on the level and
scope of the service provided. All planning and consulting fees can be negotiated based on the
size, complexity and scope of the work provided, and whether the financial plan is broad-based
or restricted to a specific area (modular planning). SFG will charge 50% of the minimum
amount up front, not to exceed $1500, with the balance due upon completion and does not
accept payment six or more months in advance. Payments are accepted via check or draft
from a U.S Financial Institution as well as through Client’s Custodian, which will require prior
authorization.
Wealth Advisory Fees-Percentage of Assets
The Client will pay a wealth advisory fee based upon a percentage of the market value of the
assets being managed. The value of the account assets (securities, cash and cash equivalents)
under management shall be valued as of the valuation date, set forth by an independent
pricing service, where available, or otherwise in good faith. SFG will send Client a description
of all advisory fees billed to Client’s account on a quarterly basis. It is the responsibility of the
Client to verify the fees and immediately notify SFG of any billing errors. Billing information will
be sent to the Custodian for withdrawal and to the client. The Firm, at its sole discretion, may
charge a lesser advisory fee based upon certain criteria that is applied objectively (i.e.,
anticipated future earning capacity, anticipated future assets, dollar amount of assets to be
managed, related accounts, pre-existing Client, account retention, pro bono activities, etc.)
SFG does not charge higher fees to other clients to offset the lower management fees that are
charged in select cases.
The annualized advisory fees as a percentage of assets are as follows:
Assets under Management Annual Fee
$1,000,000 - $2,000,000 .45%
$2,000,001 - $3,000,000 .40%
$3,000,001 - $4,000,000 .35%
Strauss Financial Group, Inc.
Disclosure Brochure
$4,000,001 - $6,000,000 .25%
$6,000,001 + .20%
Investment Advisory Fees – Percentage of Assets
The Client will pay an advisory fee based upon a percentage of the market value of the assets
being managed. Fees may be negotiated depending on individual circumstances and may vary
from client to client. Advisory fees are based upon many factors including but not limited to the
type of account, the size, the projected nature of trading, and the range and number of
supplemental advisory and client-related services to be provided by Advisor. The Firm, at its
sole discretion, may charge a lesser management fee based upon certain criteria that is
applied objectively (i.e., anticipated future earning capacity, anticipated future assets, dollar
amount of assets to be managed, related accounts, account composition, pre-existing Client,
account retention, pro bono activities, etc.) SFG does not charge higher fees to other clients
to offset the lower management fees that are charged in select cases.
Custom Asset Management Program:
The annualized advisory fees as a percentage of assets are as follows:
Assets under Management Annual Fee
$ 0 -- $ 500,000 1.50%
$ 500,001 -- $1,000,000 1.25%
$ 1,000,001 -- $5,000,000 1.00%
$ 5,000,001 + Negotiable
The annual investment advisory fee shall be paid quarterly in advance pursuant to the
Investment Advisory Agreement with the Client. The fee will be payable when the account is
established, pro-rated for the first partial quarter, if any. Thereafter, fees will be payable on
the 1st day of each calendar quarter based on the asset value of the account as of the last
business day of the prior quarter. Additional deposits to the account are subject to the same
fee procedures and are prorated. Client understands that their fee may be reduced or
increased on a quarterly basis based on the fluctuation in the value of their portfolio and/or
withdrawals from the account.
Additions may be in cash or securities provided that SFG reserves the right to liquidate any
transferred securities or decline to accept certain securities into a Client’s account. The Firm
may consult with its Clients about the options and ramifications of transferring securities.
However, Clients are advised that when transferred securities are liquidated, they are subject
to transaction fees, fees assessed at the mutual fund level (i.e., contingent deferred sales
charge) and/or tax ramifications. When securities transfer into the account, SFG will make best
efforts to determine cost basis, but ultimately it is the responsibility of the client to provide
accurate cost basis and date of purchase.
SFG procedures prohibit the opening of a fee account by deposit of securities and the
depositing of additional securities which were purchased by the Client on a commission basis in
the prior six months, unless the Client is made aware of such charges. The purpose of this
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