The Financial Resource Center Inc

Item 5 – Fees and Compensation
Investment Management
Fees are generally paid quarterly in arrears based on the average daily market value not to exceed 2% based on the
scope, complexity, amount of time and expertise required. Retirement plan consulting fees are in arrears.

   •   Clients will receive quarterly statements from the Custodian that provides details of the advisory fees.
   •   The investment advisory fee in the first period of service is pro-rated from the inception date of the
       account[s] to the end of the first quarter.
   •   The firm will not have the authority or responsibility to value portfolio securities.

Mutual Fund Share Class Disclosures
The Financial Resource Center strives to select the lowest cost share class available; however, certain mutual
fund share classes charge a 12b-1 fee that generally amounts to an additional .25% expense ratio or more. The
purpose of 12b-1 fees, as approved by the SEC, are to cover marketing expenses and shareholder services such
as support services and “other expenses” such as legal, accounting and the administrative functions of the
custodian. When selecting a mutual fund, Investment Advisor Representatives have a fiduciary duty to choose
the share class that helps manage the overall fee structure of the account. The entire fee structure includes such
fees as the asset management fee, the expense ratio and ticket charges. (Ticket Charges are rebated to the
Client.)

   •   Mutual funds typically offer multiple share classes, including lower-cost share classes that do not charge
       12b-1 fees and are therefore usually less expensive.
   •   Investment Advisor Representatives will consider investing Client’s funds in 12b-1 fee-paying share
       classes even when a lower-cost share class is available as appropriate to account for the overall fee
       structure and tax considerations as well as attributes of a fund not available for lesser fees.

 ADV 2A / 2B – Firm & Individual Disclosure Brochure

Financial Planning
The fee for financial planning is based on fixed or hourly rate depending on the nature of the planning. Fixed
fees are generally paid 50% in advance with the balance due upon completion.

                                   Hourly Rate                            Fixed Rate
                             $350 to $400 per hour                $1,750 to $3,000 per quarter

The applicable fee is determined by the scope and complexity of a particular Client’s financial situation as well
as the amount of time and expertise required. In some cases, a fee greater or lesser then the typical fee range
may be warranted. Financial planning fees are payable by check to The Financial Resource Center.

Hourly Consulting Fees
The hourly consulting fee will be based on the type of services to be provided, experience and expertise, and the
sophistication and bargaining power of the client. Individual complexities will determine the fixed fee charged
based on the number of hours estimated to complete the plan but not billed based on actual hours. A higher or
lower fee may apply under extenuating circumstances and requires approval by the Chief Compliance Officer.

Clients are not “fit” into a particular service level, but a plan is designed to be specific to each individual client and
their unique circumstances. The following criteria will be considered as appropriate when determining the number
of hours expected to create a client specific financial plan.

              •   Total Income
                                                              •     Risk Tolerance
              •   Net Worth
                                                              •     Objectives
              •   Marital Status
                                                              •     Account Types and Holdings
              •   Tax Bracket
                                                              •     Investment Experience
              •   Assets under Management
                                                              •     Budget
              •   Children
                                                              •     Expected number of Meetings
              •   Education Costs
                                                              •     Phone Conferences
              •   Timeframe
                                                              •     Amount of material required to review
              •   Number of Accounts

Compensation for Sales of Securities
The Financial Resource Center does not receive commission compensation for advisory services.

Other Fees and Expenses
Clients will incur transaction charges for trades executed in their accounts. These transaction fees are separate
from our fees. Also, Clients will pay the following separately incurred expenses, which we do not receive any

 ADV 2A / 2B – Firm & Individual Disclosure Brochure

part of: charges imposed directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed
in the fund’s prospectus (i.e., fund management fees and other fund expenses). If a Client’s assets are invested in
mutual funds or other pooled investment products, Clients should be aware that there will be two layers of
advisory fees and expenses for those assets. Clients will pay an advisory fee to the fund manager and other
expenses as a shareholder of the fund. Clients will also pay Advisor the advisory fee with respect to those assets.
Most of the mutual funds available in the program may be purchased directly. Therefore, Clients could generally
avoid the second layer of fees by not using the management services of The Financial Resource Center and by
making their own investment decisions. Further information regarding fees assessed by a mutual fund is
available in the appropriate prospectus.
Termination
A contract between The Financial Resource Center and a Client may be cancelled at any time with thirty (30)
...

Item 7 – Types of Clients
The firm generally provides investment advice to individuals and high net worth individuals, but services are
available to other types of Clients.