Item 5 ● Fees and Compensation
Asset Management: Client can engage us for Asset Management services on a fee-only basis. The Advisory Fee
will typically be based on a percentage (%) or on a flat fee rate percentage (%) of the market value of the assets
placed under our management and will be fully described in the Advisory Agreement (“Agreement”) signed by
the client. Fees will be charged from the date the Agreement is signed and will continue until terminated by either
party. Clients should refer to their Agreement for the exact fee rate on their accounts. The standard fee schedule
is noted below, but it is possible that a flat rate fee, percentage or a different fee schedule could be used for
existing clients or as negotiated by the client.
Annual Advisory Fee Assets Under Management
1.25% on the first $2,000,000, plus
0.90% on the next $3,000,000, plus
0.60% on the next $5,000,000, plus
Depends on Services Rendered on amounts over $10,000,000
Our Annual Advisory Fee shall include Asset Management and Financial Planning and Consulting services. Our
Agreement and the custodial/clearing agreement will authorize the custodian to debit the account for the amount
of the Advisory Fee and to directly remit to us in compliance with regulatory procedures. In the unlikely event
that we bill the client directly, payment is due upon receipt of our invoice.
For Financial Planning we typically charge a minimum fee of $5,000 per year payable at $1,250 per quarter. In
our sole discretion we may charge a lesser Advisory Fee and/or reduce or waive the minimum fee requirements
based upon certain criteria (i.e. anticipated future earning capacity or asset level, related accounts, account
composition, negotiations with the client, etc.) In some cases where previously negotiated, we will pay tax
preparation fees for existing clients. We bill the Advisory Fee in advance or arrears at the beginning of every
calendar quarter. The Advisory Fee will be calculated using the value at the end of the previous quarter and the
value used will include all positions in the account(s), cash, declared and paid dividends, accrued income and
interest payments, unless specifically excluded or restricted from billing in writing by the client. In the Buckets
program, Clients will pay an annual fee of 0.50% on assets managed. There is a minimum account size of $5,000
to participate in Buckets.
For Plan Services we utilize the same fee structure noted above for Annual Advisory Fees or a negotiated Annual
flat rate fee as noted in the Plan Agreement. Fees may be assessed on a quarterly basis and may be in arrears or
advance. Fees may be paid from Plan assets or paid directly by the Plan sponsor.
Unless the client directs otherwise, we will generally recommend that Charles Schwab and Co., Inc. (“Schwab”)
and/or TD Ameritrade, Inc. (“TD Ameritrade”) serve as the broker-dealer/custodian (“Custodian”) for client
assets. All Custodians charge transaction fees for effecting certain securities transactions (i.e. transaction fees for
certain no-load mutual funds, individual equity and fixed income securities transactions, etc.). In addition to our
Advisory Fee and transaction fees, clients may also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g. management fees and other fund expenses). Accordingly,
clients should review the fees charged by the investments, Custodian(s), Sub-Advisors and the Advisor to fully
understand the total amount of the fees being paid. Additionally, the investments selected for the clients are not
exclusively available to us and could be obtained through other unaffiliated firms and potentially at a lower fee.
The Agreement will continue in effect until terminated by either party by written notice in accordance with the
terms of the Agreement. Upon termination, we will refund the pro-rated portion of the advanced advisory Fee
paid based upon the number of days remaining in the billed period.