Successful Money Strategies Inc

Item 5: Fees and Compensation

Compensation
Successful Money Strategies, Inc earns fees in two ways:

Financial Planning Fees
Successful Money Strategies, Inc. charges a fixed fee of $1,500 to $5,000 for the development
and implementation of the financial plan based on the complexity of the analysis needed.
Payment of the financial planning fee will be made at the delivery of the financial planning
document.

Investment Management Fees
The current investment management fees range from 0.40% to 1.5% based on assets managed,
complexity of the portfolio and other circumstances. These fees are negotiable.

Any funds invested in mutual funds are subject to both mutual fund advisor fees and Successful
Money Strategies, Inc. investment management fees.

In addition, a client may pay other fees or commissions to the Broker/Dealer holding their
account. We recommend that clients utilize Charles Schwab to hold their assets. We have found
that at Schwab, these fees (which usually involve the purchase and sale of individual stocks or
bonds) tend to be minimal.

Investment management fees will be billed in arrears, at the end of each quarter. (ex: March,
June, September, December). Invoices are based on quarterly ending account values, with
fractional months being billed on a pro-rata basis in the first billing. All fees are debited directly
from the client accounts unless otherwise agreed upon in advance. Quarterly management fees
on subsequent deposits of greater than $5,000 will be pro-rated accordingly as well.
Withdrawals during the quarter are not pro-rated.

Not all clients will pay both a Financial Planning and Investment Management fee. Accepting
one service does not require you to accept the other.

Calculation and Payment
The specific manner in which fees are charged by Successful Money Strategies, Inc. is
established in a client’s written agreement. Successful Money Strategies, Inc. will generally
calculate fees in arrears on a quarterly basis. Clients authorize Successful Money Strategies, Inc.
to directly debit fees from client accounts.

Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account any earned, unpaid fees will be due and payable.

Other Fees

There are no additional types of fees or expenses that Successful Money Strategies, Inc. clients
pay in connection with the delivery of advisory services.

Agreement Terms
A client may terminate the client agreement at any time by notifying Successful Money
Strategies, Inc. in writing and paying the rate for the time spent on the investment advisory
engagement prior to notification of termination.

Successful Money Strategies, Inc. may terminate the client agreement at any time by notifying
the client in writing.

Other Compensation
Neither Successful Money Strategies, Inc. nor any of its supervised persons (employees) accept
compensation for the sale of securities or other investment products.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
...

Types of Clients
Generally, the clients of Successful Money Strategies, Inc. are individuals and high net worth
individuals whose focus is on a successful retirement. We do counsel some charities, as well as
trusts and estates. All of these other cases stem from existing individual client relationships.

Account Minimums
Successful Money Strategies, Inc. requires a minimum account of $100,000 for investment
advisory clients, although this may be negotiable under certain circumstances. Successful
Money Strategies, Inc. may group certain related client accounts for the purposes of achieving
the minimum account size.