Tea & Taxes Company DBA Prosperitea Planning

​Item 5 - Fees and Compensation​
​ rosperiTea Planning is paid according to the amount set in the contract in advance for​
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​that engagement. The method of calculation can vary depending on the package.​

​ rosperiTea Planning chooses the package that is appropriate for your needs. It is​
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​designed to fit your situation, neither under nor over-serving you.​

​Our different packages are:​

   ​1.)​ ​ProsperiTea Planning Open Retainer​​: the most common​​package. It​
          ​follows the Alliance of Comprehensive Planners fee model and includes​
           ​investment management & financial planning, and tax planning & preparation.​
            ​The contract can be modified to not include tax preparation if you have another​
             ​accountant;​

   ​2.)​ ​ProsperiTea Planning Limited Retainer​​: a limited retainer​​for clients who​
          ​only need some of the full range services and are comfortable meeting no more​
           ​than twice a year;​

   ​3.)​​De Minimis Investment Advisory Agreement:​​a limited​​retainer for the​
         ​children and young adults of Open Retainer Clients;​

   ​4.)​ ​Project-based Financial Planning​​: on rare occasions,​​we will accept a​
          ​limited scope engagement. These are offered on a case by case basis.​

​ProsperiTea Planning Open Retainer​

​ rosperiTea Planning is priced under an “open retainer” model. Fees are calculated​
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​based on the client’s amount and sources of income, overall complexity, net worth,​
 ​and number of adults in the family. The amount charged is calculated once a year at​
  ​the beginning of the engagement and each anniversary after that. The annual retainer​
   ​fee ranges from a minimum of $7,500 (to new clients) upward. The calculation is​
    ​individual for each engagement, using a formula based on the one developed by, and​
     ​for, the Alliance of Comprehensive Planners. The formula is based on net worth,​
      ​income, and complexity of the engagement.​

​ e provide these services using in-depth consultations with the people we serve. An​
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​initial meeting, which may be by telephone or Zoom, is free of charge and is​
 ​considered an exploratory interview to determine whether or not we can effectively be​
  ​of service to you, as well as to allow you to evaluate us. If both the Advisor and the​
   ​Client feel that ProsperiTea Planning can meet the Client’s needs, we either schedule a​
    ​second meeting to present the fees and chart the course of action or we send a​
     ​proposal by email.​

​ he first year we see people several times.​​The initial​​year we have a series of​
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​extra meetings to get the puzzle pieces to click into place:​

​ e work on your main concerns, start​​goal setting,​​and get an analysis of your​
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​current situation. This includes developing a Net Worth statement and an inventory of​
 ​assets for estate planning.​

​From there, we start solving a Rubik’s Cube of different issues, most of which interact.​

                                       ​We get your cash flow needs identified;​

                                       ​ e get your investment policy created and​
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                                       ​implementation underway;​

                                       ​We establish your tax plan;​

                                          ​ e input the facts and your present goals into​
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                                          ​our financial planning software, RightCapital;​

                                          ​ e review your estate plan and see if and where​
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                                          ​it needs improving;​

                                          ​ e review your insurance situation and see​
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                                          ​If and where it needs improving;​

​As soon as we can, we click people into our main business cycle:​

​●​   ​every February/March we are focused on tax preparation for the past year and the​
      ​initial tax plan for the current year​
​●​   ​every May/June we are focused on getting investments rebalanced (especially for​
      ​new IRA contributions) as well as revisit goals/work on goals and retirement plans​
      ​in RightCapital,​
​●​   ​every September/October we focus on a rotating series of typical financial​
      ​planning issues (estate planning, insurance review, college savings, budgeting,​
      ​etc), and​
​●​   ​In the November/December time frame we revisit everyone’s tax planning,​
      ​retirement distribution planning and tax loss harvesting of investments.​
​ he first year may be out of order as we just move through the materials as things​
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​become pressing. You always have the ability to add to or change the agenda for​
 ​things that have come up in your own life.​
  ​We generally take new people in January and July so we can get a quick start, but will​
   ​occasionally onboard someone as other people roll-off at other times of the year.​

​De Minimis Investment Advisory Agreement​

​ or people whose accounts we have opened at the request of an Open Retainer Client,​
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​we offer investment management at no charge for De Minimis Investment Advisory​
 ​Clients who meet all three of these conditions:​
         ​▪​ ​they are a lineal relation to the Open Retainer Client (parent, grandparent,​
                ​child, grandchild, etc) who continues to engage us, AND​
          ​▪​ ​the total of their investment accounts under our management is under​
                 ​$​100,000​​,​​AND​
           ​▪​ ​they are under the age 30 when this agreement begins.​

​ or people whose account balances under our management are over $100,000, OR​
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​who turn 30, OR who no longer are affiliated with a current Open Retainer Client, we​
 ​will begin charging them under the Limited Retainer calculation. We will always​
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​Item 7 - Types of Clients​
​ rosperiTea Planning provides holistic financial planning and investment advisory​
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​services primarily to individuals and their families, the closely held businesses they​
 ​own, and the trusts and estates for which they are trustees or personal​
  ​representatives. We strive to work with people from all different walks of life, as such,​

​ ur retainer model allows us to have no minimum net worth or asset requirements. In​
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​practice, though, we are particularly valuable to people who are (or will be) 62 with​
 ​$500,000 or more in assets in qualified plans, as the tax issues associated with those​
  ​plans can make mistakes costly.​

​ ur Open Retainer model makes us a helpful “retirement concierge”, by which we​
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​mean we manage your investments to provide you cash flow in retirement,​
 ​considering how to minimize tax impact, while helping you to be free to go live your​
  ​fabulous life!​

I​ tem 8 - Methods of Analysis, Investment Strategies, and​
 ​Risk of Loss​