TFC Financial Management Inc

Item 5. Fees and Compensation
We are a fee-only investment adviser, which means that all of our revenues are derived from the
fees paid by our clients. We are not paid, and do not accept any compensation from any third
parties, for the purchase or sale of securities or other investment products by or for the accounts of
our clients. Regardless of the services we provide to a client, the relevant fee schedule is set forth
in our contract with the client.
Investment Management Fees
Our fees for discretionary investment management services are a percentage of the market value
of the assets under management, valued on the last day of each calendar quarter. These fees are
paid quarterly, in arrears, by deducting them directly from the client’s custodial account, as
permitted by each client’s Investment Management Agreement with us. The quarterly fees are
calculated by applying one-fourth of the annual fee rate to the value of the managed assets at the

end of each calendar quarter. If a client has more than one account under management or if several
members of the same family are clients, the accounts may be aggregated for purposes of calculating
our fees. Fees for any period less than a quarter of a year are pro-rated on a per diem basis.
The annual fee charged by us generally ranges from 0.50% - 1.00% of the assets under
management.
For example, on a $2 million account at the fee rates set forth above, the annual fee equates to
$20,000, payable in quarterly installments in arrears of $5,000.
Our fees for our non-discretionary investment management services are negotiated separately with
each client, are generally asset-based, and depend on the complexity of the client’s situation and
the services required.
Investment management fees for clients with assets under management in excess of $5 million are
negotiable. Moreover, in our sole discretion, we may allow certain clients to pay negotiated fixed
fees in lieu of asset-based compensation. In addition, while substantially all of our clients are
charged fees as described above, we retain the discretion to negotiate alternative fees on a client-
by-client basis. In these cases, client facts, circumstances and needs will be considered in
determining the alternative fee schedule. These factors include the complexity of the client
circumstances, assets under management, anticipated future additional assets, related accounts,
portfolio style, account composition, and reporting requirements. Alternative fee schedules may
be lower than those described above. In addition, we may offer discounted fees to family members
of long-time clients and to friends of associated persons of the firm.
In addition to our fees, our investment management clients will pay brokerage commissions and
other transaction costs; see Item 12, Brokerage Practices. Clients may also pay custodial charges,
depending on which custodian they select. Clients who choose to use Charles Schwab & Co., Inc.,
our recommended custodian, pay discounted transaction charges, but do not pay custodial fees.
Our investment management clients are primarily invested in institutional class, no-load mutual
funds and/or ETFs, which are investments that do not carry a sales charge. Clients invested in
mutual funds do bear a share of other mutual fund expenses, such as a management fee payable to
the fund manager, transaction costs, accounting and audit, and administration expenses. We take
these expenses (as a percentage of fund net asset value) into account when we evaluate and select
mutual funds for client portfolios.
Within five days after signing an Investment Management Agreement with us, a client may
terminate the agreement without penalty. After five days, either party may terminate the agreement
with 30 days’ notice; fees will be charged at the applicable fee rate on a prorated basis through the
date of termination.
Third-Party Managers
Selected third-party managers may elect to directly debit client accounts for their management fees
upon receiving permission from each client. These managers may charge their fees in advance or
in arrears, monthly or quarterly, depending on the terms of each investment program and each
selected manager’s billing practices. Third-party management fees are debited in addition to TFC
investment management fees.

Financial Planning Fees
Our fees for financial planning services are quoted as a range agreed with the client and are payable
in two installments, the first at the beginning of an engagement and the second six months later.
A typical engagement is for 12 months. A client who engages us for follow-up planning after the
initial 12 months pays an agreed annual fee in semi-annual installments. Our financial planning
fees are generally in the range of $1,000 to $10,000 per engagement, although some may be higher
based on the amount of services provided.
A financial planning client may terminate the agreement and receive a full refund of all fees paid
within five days after signing a financial planning agreement. After five days, either party may
terminate the agreement with 30 days’ notice. In that event, we will agree upon an equitable fee
for the services performed through the date of termination, and we will refund any prepaid amount
above the agreed upon fee.
Consulting Fees
Investment Consulting Fees
Fees for this service are charged quarterly in arrears and are based on the market value of the
portfolio(s) being monitored. Our fees for investment monitoring services are negotiated
separately with each client and depend on the complexity of the client’s situation and the services
required.
Trustee Fees
At our sole discretion, we may charge additional fees, as negotiated with each client, for providing
trustee services.
Administrative/Consulting Fees
At our sole discretion, we may charge additional fees, as negotiated with each client, for
administrative and consulting services.
Fees in General
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Item 7. Types of Clients
We provide Investment management services to the following types of clients:
   • High net worth individuals
   • Non-profit and charitable organizations
Although there are no required account size minimums or fee minimums, we do recommend an
account size of $2 million and above.