Item 5-Fees and Compensation
Investment Management
The Adviser bases its fees on a percentage of assets under management. Although the Advisory
Service Agreement is an ongoing agreement and constant adjustments are required, the length of
service to the client is at the client’s discretion. The client or the investment manager may
terminate an Agreement by written notice to the other party. At termination, fees will be billed
on a pro-rata basis for the portion of the quarter completed. The portfolio value at the completion
of the prior full billing quarter is used as the basis for the fee computation, adjusted for the
number of days during the billing quarter prior to termination. The investment management fees
are negotiable at the sole discretion of the Adviser.
Annualized Investment Management Fees
Account Value From Account Value To Annual Percentage
Fee
$0 $499,999 1.50%
$500,000 $1,000,000 1.25%
$1,000,001 $4,000,000 1.00%
$4,000,001 $10,000,000 0.75%
Over $10,000,000 0.60%
Financial Planning
Financial Plan
The Adviser will review the client’s financial situation and prepare a written financial plan that
includes recommendations to help the client meet his or her financial goals. The areas of
analysis may include goal setting, analysis of financial goals, asset/liability analysis, tax
planning, cash flow budgeting, investment review, insurance review, inventory of assets,
investment portfolio analysis, retirement planning, college planning, savings, and estate plan
review.
The Adviser will compile the necessary financial information and use it to construct a Financial
Plan tailored to the client’s specific financial situation. The written financial plan will typically
be constructed within three months but may take longer than six months depending on the
complexity of a client’s financial situation. Clients can implement recommendations contained
in the Financial Plan on their own or have the Adviser assist with implementation.
Financial Review
A Financial Review addresses up to two financial planning topics selected in advance by the
client. No follow-up services are provided with the Financial Review.
For Financial Plans and Financial Reviews, The Adviser charges a fixed fee. Financial planning
fees may be waived at the discretion of the Adviser for Investment Management clients.
Financial Planning Service Fee Type and Amount
Financial Plan $2,500 to $5,000 fixed fee
Financial Review $1,000 fixed fee
The Adviser may negotiate its fixed fee amount for Financial Plans based on complexity of the
financial plan. The final fee amount will be specified in the Financial Planning Agreement
which details the scope of the relationship and responsibilities of both the Adviser and client.
Advice and services provided under the Financial Planning Agreement are tailored to the stated
objectives of the client.
One-half of the estimated fee stated in the Financial Planning Agreement is due at signing. The
balance shall be due and payable upon completion of the agreed upon services. If a client
chooses to terminate within five (5) business days from the date of execution or at any time via
written notice before the product is delivered or service is complete, The Adviser will charge a
prorated amount for the work completed and will deliver any work product completed.
The fee for a Financial Review is due at the beginning of the Review appointment.
Notwithstanding the above, all fees are negotiable and certain clients may be charged less,
depending on a number of factors, including portfolio size, employment and relationship to the
Adviser.
Project Retainer
Project Retainer services are narrower in scope. The services include various client consultations
as well as written and/or oral recommendations resulting from such consultations. The Project
Retainer does not constitute a comprehensive financial planning engagement and follow-up
advice and/or implementation assistance is not provided following completion of the project. If
a client wishes to upgrade to a Financial Plan, they may receive credit toward the Financial
Plan fee for amounts paid under the Project Retainer for the prior six months. The Adviser
charges non-investment management clients on an hourly basis for services such as portfolio
asset allocation consulting and financial planning. Such fees are $250/hour and are negotiable.
In the event that a client’s situation is substantially different than disclosed at the initial meeting,
a revised fee will be provided for mutual agreement. The client must approve the change of
scope in advance of the additional work being performed when a fee increase is necessary.
Investment Consulting Services Fee. The Adviser may charge a client an annual fee to consult
on assets held in employee-sponsored retirement plans. The annual fee is 0.25% of the balance of
a client’s retirement plan, with a minimum fee of $500.00.
Fee Billing
Investment management fees are billed quarterly and in advance. Fees are deducted from the
client account to facilitate billing as authorized by the investment advisory agreement. Fees for
Advisory Services are based on the account’s asset value as of the last business day of the prior
calendar quarter. Fees for a Financial Plan are billed based on half the agreed upon fee upon
signing the Financial Planning Agreement with the balance due upon delivery of the financial
plan. For billing purposes, accounts may be grouped by households. The definition of household
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