Watchstone Wealth Management LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
agreements with the Advisor.

A. Fees for Advisory Services
Wealth Management Services
Investment advisory fees are paid monthly in arrears, pursuant to the terms of the investment advisory agreement.
Investment advisory fees are based on the market value of assets under management at the end of each month
and are based on the following schedule:

                      Assets Under Management                  Annual Rate (%)
                     Up to $1,000,000                              1.00%
                     $1,000,001 to $2,000,000                      0.80%
                     $2,000,001 to $3,000,000                      0.70%
                     $3,000,001 to $4,000,000                      0.60%
                     Over $4,000,000                             Negotiable

The investment advisory fee in the first month of service is prorated from the inception date of the account[s] to the
end of the first month. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by Watchstone will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the
Custodian’s valuation to ensure accurate billing.

Financial Planning Services
Watchstone offers financial planning services on an hourly or fixed fee basis. Hourly fees range from $100 to $150
per hour. Fixed fee engagements are based on the estimated hours to complete the engagement at the negotiated
hourly rate. The fees may be negotiable depending on the nature and complexity of each Client’s circumstances.
An estimate for total hours and total costs will be proved to the Client prior to engaging for these services.

B. Fee Billing
Wealth Management Services
Investment advisory fees are calculated by the Advisor and deducted from the Client account[s] at the Custodian.
The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the Client
account[s] at the respective month-end date. The amount due is calculated by applying the monthly rate (annual
rate divided by 12) to the total assets under management with Watchstone at the end of each month. Clients will be
provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory fee.
It is the responsibility of the Client to verify the accuracy of these fees as listed on the Custodian’s brokerage
statement as the Custodian does not assume this responsibility. Clients provide written authorization permitting
advisory fees to be deducted by Watchstone directly from their accounts held by the Custodian as part of the
investment advisory agreement and separate account forms provided by the Custodian.

Financial Planning Services
Financial planning fees may be invoiced 50% of the expected total fee upon execution of the financial planning
agreement and the balance upon completion of the agreed upon deliverable[s]. The Advisor does not accept
advance payment for financial planning engagements that will have an expected duration of six months or more. In
such instances, fees are billed in arrears.
                                           Watchstone Wealth Management LLC
                                      300 Riverside Drive, Apt 13E, New York, NY 10025
                                                   Phone: (347) 993-3558
                                                  www.watchstonewm.com

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties in connection with investments made on behalf
of the Client’s account[s]. Watchstone includes Covered Costs as part of its overall investment advisory fee through
the Watchstone Wrap Fee Program. The Advisor's recommended Custodian does not charge securities transaction
fees for ETF and equity trades in a Client's account, provided that the account meets the terms and conditions of
the Custodian's brokerage requirements. However, the Custodian typically charges for mutual funds and other
types of investments. Securities transaction fees for Client-directed trades may be charged back to the Client.
Please see Item 4.D. above as well as Appendix 1 – Wrap Fee Program Brochure.

In addition, all fees paid to Watchstone for investment advisory services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for
the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Client may be able to invest in these products directly, without the services of
Watchstone, but would not receive the services provided by Watchstone which are designed, among other things,
to assist the Client in determining which products or services are most appropriate for each Client’s financial
situation and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and the fees
charged by Watchstone to fully understand the total fees to be paid. Please see Item 12 – Brokerage Practices for
additional information.

D. Advance Payment of Fees and Termination
Wealth Management Services
Watchstone is compensated for its wealth management services at the end of the month, after investment advisory
services are rendered. Either party may terminate the investment advisory agreement, at any time, by providing
written notice to the other party. The Client may also terminate the investment advisory agreement within five (5)
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Item 7 – Types of Clients
Watchstone offers investment advisory services to individuals, high net worth individuals, trusts, and estates. The
amount of each type of Client is available on the Advisor's Form ADV Part 1A. These amounts may change over
time and are updated at least annually by the Advisor. Watchstone generally does not impose a minimum size
for establishing a relationship.