Tanglewood Wealth Management Inc

Item 5 – Fees and Compensation

Tanglewood’s exclusive source of compensation from clients is from fees they pay in exchange for
advice and other services we provide. The fees for either the Wealth Management or Investment
Management relationship are fully disclosed in our Advisory Agreement with you. This makes it very
easy to determine all compensation for Tanglewood services.

      Tanglewood Total Wealth Management, Inc.
      March 25, 2026

Clients pay fees primarily based on assets under management. We do not receive any compensation
from the sale of investment or insurance products, or from other investment vehicles we may
recommend or purchase in managed accounts.

WEALTH MANAGEMENT RELATIONSHIP

The standard tiered advisory fee schedule for the Wealth Management relationship (wealth planning
and investment management combined) based on assets under management ranges from 0.70% to
0.20% with a minimum annual fee of $14,000 per year.

INVESTMENT MANAGEMENT (only) RELATIONSHIP

The standard tiered advisory fee schedule for the Investment Management relationship (investment
management only) ranges from 0.50% to 0.20% with no minimum annual fee.

Financial Planning Fees
Wealth planning services as described in Item 4 above are provided at no additional charge to most
Wealth Management clients. In some cases, a monthly or quarterly Wealth Planning retainer fee is
charged in addition to an assets under management fee. Retainer fees are often better-suited for
advising clients with large, complex situations where most of the client’s assets are committed to
operating companies, real estate or other illiquid investments where an AUM fee is not commensurate
with the planning work necessary. If an additional retainer fee is deemed warranted by the Advisor, it
will be discussed and agreed upon with the client prior to the engagement and noted in that client‘s
Advisory Agreement.

Family Financial Consulting services for the adult children of Wealth Management clients are also
provided at no additional charge. Financial planning fees are not applicable for Investment
management only clients, as financial planning is not a part of the relationship.

Quarterly Billing
The assets under management advisory fee is based upon the average daily account value of the
previous calendar quarter. The fee is applied to each account on a pro rata basis and is billed quarterly,
in arrears. Fees are deducted directly from the account(s) unless other arrangements are made
between Tanglewood and the client.

PLEASE NOTE: In either relationship, Tanglewood, in its sole discretion, may charge a lesser or higher
investment management fee, and/or reduce or waive its minimum annual fee and /or apply a retainer
fee based upon certain criteria (i.e., anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition, negotiations
with client, etc.). As a result of the above, similarly situated clients could pay different fees. In addition,
similar advisory services may be available from other investment advisers for similar or lower fees. If a
client is subject to the annual minimum fee, the client will pay a higher percentage fee than the fee
percentage referenced in the above fee ranges.

      Tanglewood Total Wealth Management, Inc.
      March 25, 2026

FEES & CHARGES COMMON TO ALL TANGLEWOOD CLIENTS

Charles Schwab & Co., Inc., the current custodian of the majority of assets under our management,
charges transaction fees on the purchase or sale of some of the mutual funds we select for client
accounts (maximum fee is $12). Mutual funds that participate in Schwab’s One Source program are
bought and sold without any transaction costs. As broker/dealer on each managed account, Schwab has
waived its commissions for the purchase or sale of closed-end mutual funds, Exchange Traded Funds
(ETFs) and most other stock and bond transactions. Sale confirmations will however indicate an
“Exchange Processing Fee” which Schwab charges to offset fees imposed by the national securities
exchanges.

Every mutual fund and ETF has internal management fees, legal, accounting, brokerage, custodial and
operating expenses that are borne by the fund investor. These expenses are never directly observed by
fund investors as they are netted against gross returns and only the net returns are reported to
shareholders. The charges can vary for each position in the portfolio. Our intent is to limit the weighted
average of such internal fund expenses within each client account to less than 0.50% per year through
the selection of funds (where available) that demonstrate competitive fee structures and/ or offer
institutional class shares with reduced expenses to clients of advisors.

In unique circumstances, specific clients may incur certain charges imposed by custodians, brokers, third
party investment and other third parties such as custodial fees, redemption fees, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Such
charges, fees and commissions are exclusive of and in addition to Tanglewood’s fee, and Tanglewood
shall not receive any portion of these commissions, fees, and costs.

Tanglewood does not recommend the use of margin for investment purposes. As described in Item 4, a
margin account is a brokerage account that allows investors to borrow money to buy securities and/or
for other non-investment borrowing purposes. The broker/custodian charges the investor interest for
the right to borrow money and uses the securities as collateral. Additionally, by using borrowed funds,
the customer is employing leverage that will magnify both account gains and losses. The use of margin
can cause significant adverse financial consequences in the event of a market correction.

We will use the gross value of your account to calculate our fee. If you borrow against the value of any
...

Item 7 – Types of Clients

Tanglewood provides its services to individuals, high net worth individuals, corporations, pension and
profit-sharing plans, charitable institutions, foundations and other trust programs.