The Money Men Inc

Item 5: Fees and Compensation

5.A. Method of Compensation and Fee Schedule
Sovereign’s portfolio management fee is a percentage of the client’s assets:

Portfolio assets range:                  Fee percentage:
$0              to      $249,000              2.50%
$ 250,000       to      $499,000              2.25%
$ 500,000       to      $749,000              2.00%
$ 750,000       to      $999,999              1.75%
$1,000,000      to      $1,499,999            1.50%
$1,500,000      to      and up                1.25%

Financial planning services fees are typically charged on an hour rate basis of up to $400 per hour.
Sovereign will provide clients with a good faith estimate of the anticipated total cost for the financial
planning work. Hourly financial planning fees are typically invoiced and due upon completion of the
project. Depending on the scope of the financial planning work, a portion of the fees may be required to
be paid upfront with the remaining balance due upon completion of the work. Sovereign does not require
or solicit prepayment of more than $1,200 in fees per client, six months or more in advance.

Fees are negotiable. To reduce fees, Sovereign may aggregate a client’s investments. Fees are
negotiable at the adviser’s discretion, based on past history and/or anticipated future relationships.

5.B. Client Payment of Fees
The advisor requires clients to agree to “direct billing” for portfolio management advisory fees. As part
of the advisory agreement, clients will allow the advisor to deduct its advisory fees directly from the

client’s account held by the custodian. Sovereign Asset Management bills its fee quarterly in arrears of
the portfolio management services performed.

5.C. Additional Client Fees Charged
Disclosure: Clients may pay other types of fees or expenses clients in connection with the advisory
services. Clients should be aware that opening an investment account carries with it costs beyond the
advisory fee(s) Sovereign Asset Management charges. When placing a transaction order to buy or sell
securities, advisory clients may have to pay any or all of the following charges in addition to the advisory
fees charged by this firm.

   •   annual custodian fees
   •   postage charges
   •   processing charges
   •   ticket charges
   •   early surrender or account closing fees
   •   transfer fees
   •   lawyering fees
   •   administrative fees for investments in mutual fund fees,
   •   12b-1 fees in addition to administrative fees, and other marketing fees for mutual funds, paid to a
       broker dealer
   •   account maintenance fees charged by a broker dealer for an account, especially if inactive
   •   pledging agreement charges
   •   other miscellaneous charges related to the administration of securities in a client’s account

We direct clients to this brochure’s Item 12 for further discussion of brokerage costs.

Third-party investment managers also charge separate and additional advisory and/or administrative fees for
their investment services. For more details regarding how the third-party investment managers’ fees are
charged, when, etc., clients are encouraged to review the third-party investment manager’s Form ADV Part
2A and other informational materials and brochures prepared and provided by the third-party investment
managers for additional disclosures.

5.D. Prepayment of Client Fees
Clients do not pay portfolio management fees in advance. For that reason, there is no issue of any refund
of a pre-paid fee if the contract is terminated prior to the end of a billing period. For hourly financial
planning fees that are collected in advance, we will refund any pre-paid, unearned fees if the financial
planning engagement is terminated prior to completion of the work. Conversely, at the time of
termination, financial planning fees that have been earned and not yet collected will be invoiced to client
and immediately due.

5.E. External Compensation For the Sale of Securities to Clients
Persons affiliated with Sovereign are licensed to sell insurance. Advice provided may include
recommendations to purchase insurance products. Insurance sales – fixed only – currently accounts for
about 5-8% of the firm’s income. If clients purchase these insurance products through us, we receive the
normal commissions. Thus, a conflict of interest exists between our interests and those of advisory
clients. The client is under no obligation to purchase products recommended, or to purchase products
either through us or through these insurance companies.

Disclosure 5.E.1. An advisor is a fiduciary who is required to make only those recommendations for a
client that solely are in the client’s own best interest, uninfluenced by any calculation of personal gain.

Our firm addresses this potential conflict of interest first by informing clients of the conflict in this
disclosure brochure.

Disclosure 5.E.2. Clients always have the option to purchase through unaffiliated broker-dealers and their
agents those investment products our firm recommends

Disclosure 5.E.3 Our advisory firm does not receive more than half its revenue from commissions and
other sales-based compensation. Our firm’s primary business activity, in time and in revenues, is its fee-
based advisory service

Disclosure 5.E.4. Question: Do we charge advisory fees in addition to commissions or markups?
We do, of course, charge advisory fees. Our investment advisory firm is not also a broker dealer and
therefore does not receive commissions or markups.

Other disclosures for this section: Sovereign primarily recommends mutual funds and ETFs. Those
recommendations do include “no-load” and “load waived” funds, which impose no commission or sales
charge (“load”) on the shareholder.

Rollover Recommendations
When Sovereign and our IA Reps provide any rollover recommendations (e.g. from your employer’s
retirement plan, such as a 401(k), 457, or ERISA 403(b) account to individual retirement accounts), we
...

Item 7: Types of Clients and Account Minimums

Typically, our clients include high net worth and other individuals, corporations’ and other businesses.

There are no minimums for working with Sovereign.