Item 5 – Fees and Compensation
In addition to the information provided in Item 4 – Advisory Business, this section provides further detail
regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources. The exact fees and other terms will be outlined in the agreement between you and Tyler-Stone
Wealth Management, LLC.
Tyler-Stone Wealth Management, LLC Page 15 Form ADV Part 2A Disclosure Brochure
Tyler-Stone Wealth Management allows your investment adviser representative to set fees within ranges
set by the firm. As a result, your investment adviser representative may charge more or less for the same
service than another investment adviser representative of Tyler-Stone Wealth Management.
Tyler-Stone Managed Asset Program
The maximum annual fee for asset management services will be 2.50% of the assets held in the account.
Prior to engaging Tyler-Stone Wealth Management to provide investment management services, you are
required to enter into a formal investment advisory agreement with us setting forth the terms and
conditions, including the amount of investment advisory fees, under which we manage your assets and
also a separate custodial/clearing agreement with LPL Financial.
The investment advisory fees will be deducted from your account and paid directly to our firm by LPL
Financial. You will authorize LPL Financial to deduct fees from your account and pay such fees directly
to our firm. You should review your account statements received from LPL Financial and verify that
appropriate investment advisory fees are being deducted. LPL Financial will not verify the accuracy of
the investment advisory fees deducted.
Fees charged for our asset management services are charged based on a percentage of assets under
management, billed in advance (at the start of the billing period) on a quarterly calendar basis and
calculated based on the fair market value of your account as of the last business day of the current billing
period. Fees are prorated (based on the number of days service is provided during the initial billing
period) for your account opened at any time other than the beginning of the billing period. If asset
management services are commenced in the middle of a billing period, the prorated fee for the initial
billing period is billed in arrears at the same time as the next full billing period’s fee is billed.
The asset management services continue in effect until terminated by either party (i.e., Tyler-Stone
Wealth Management or you) by providing written notice of termination to the other party. Any prepaid,
unearned fees will be promptly refunded by LPL Financial to you. Fee refunds will be determined on a
pro rata basis using the number of days services are actually provided during the final period.
Fees charged for our asset management services are negotiable based on the type of client, the
complexity of the client's situation, the composition of the client's account (i.e., equities versus mutual
funds), the potential for additional account deposits, the relationship of the client with the investment
adviser representative, and the total amount of assets under management for the client.
Tyler-Stone Wealth Management believes that its annual fee is reasonable in relation to: (1) services
provided and (2) the fees charged by other investment advisers offering similar services/programs.
However, our annual investment advisory fee may be higher than that charged by other investment
advisers offering similar services/programs. In addition to our compensation, you may also incur charges
imposed at the mutual fund level (i.e. fund expenses such as management, accounting and audit, legal,
etc.).
You can open a Tyler-Stone MAP I or Tyler-Stone MAP II account. A Tyler-Stone MAP I account is a
non-wrap or traditional account. This means in addition to our investment advisory fee, you also pay
certain transaction charges to defray the costs associated with trade execution. These costs are set out
in the LPL Financial Strategic Wealth Management platform brokerage account and application
Tyler-Stone Wealth Management, LLC Page 16 Form ADV Part 2A Disclosure Brochure
agreement. The Tyler-Stone MAP II account is a wrap fee account, meaning you do not pay transaction
charges associated with trade execution, but the Investment Adviser Representative does. This creates a
conflict of interest as there is a disincentive to make trades in client accounts since the Investment
Adviser Representative will be required to pay the transaction charges.
You may incur certain charges imposed by third parties other than Tyler-Stone Wealth Management in
connection with investments made through the account including, but not limited to, 12b-1 fees and
surrender charges, and IRA and qualified retirement plan fees. Our management fees (which include
transaction and execution fees charged by LPL Financial for Tyler-Stone MAP II accounts) are separate
and distinct from the fees and expenses charged by investment company securities that may be
recommended to you. A description of these fees and expenses are available in each investment
company security’s prospectus.
The Tyler-Stone MAP I and Tyler-Stone MAP II may cost you more or less than if the assets were held in
a traditional brokerage account. In a brokerage account, you are charged commissions for each
transaction, and the registered representative assigned to the account, if any, has no duty to provide
ongoing advice with respect to the account. If you plan to follow a buy and hold investment strategy for
the account or do not wish to purchase ongoing investment advice or management services, you should
consider opening a brokerage account rather than a Tyler-Stone MAP I or Tyler-Stone MAP II account.
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