Waterstone Financial Advisory LLC

Item 5: Fees and Compensation

A. Fee Schedule
Investment Management Fees
The Investment Management fee is comprised of an Advisory Fee and a Platform Fee as defined below.
Generally, the Advisory Fee is the component paid to WFA for oversight, allocations, risk determination and
strategic direction. The Platform Fee is the component paid to AssetMark and the third-party managers for
specific securities selection, rebalancing, tactical trading, and research. The two fees combined will not
exceed 1.6% of the value of the account annually.

The investment management fee will be deducted from your account by the Custodian per the AssetMark
Client Billing Authorization form on a quarterly basis and will be paid in advance directly to our firm. The
Custodian charges your account at our direction and will not verify the accuracy of the investment advisory
fees deducted.

1. Advisory Fee
A component of the Investment Management Fees - WFA provides advisory services according to the
following tiered fee schedule. These fees are generally negotiable, and the final fee schedule will be
memorialized in the client’s Investment Advisory Agreement. Clients may terminate the agreement without
penalty for a full refund of WFA's fees within five business days of signing the Investment Advisory Contract.
The Total Assets Under Management is calculated by combining all the households’ assets.

 Total Assets Under Management                            Annual Fees
                    $0 - $200,000                                1.15%

                $200,001 - $500,000                              1.05%

               $500,001 - $1,000,000                             0.95%

              $1,000,001 - $2,000,000                            0.85%

              $2,000,001 - $4,000,000                            0.75%

              $4,000,001 - $8,000,000                            0.60%

                $8,000,001 - and Up                              0.45%

2. Platform Fee
A component of the Investment Management Fees - clients are also charged a “platform fee” which will
range from 0.20% to 0.75%, depending on which of AssetMark’s Investment Solutions, and/ or subadvisors
that are utilized to manage your accounts. AssetMark provides full disclosure of the applicable fees for the
various investment options offered by AssetMark.

The platform fees are also described in the AssetMark Platform Disclosure Brochure that may be provided to
the client. The platform fee is charged as a percentage of the client’s assets on the platform and is a wrap
fee which includes transaction costs.

If the client chooses to have a Custom Trading Strategy created by WFA, a portion of the Platform fee will be
paid to WFA for managing that account. This solution is referred to as Advisor as Strategist.

Financial Planning Fees
The negotiated fixed rate for the creation and ongoing monitoring of the client financial plan is between
$300 and $3,000 per year. The complexity of the plan, the type of solutions recommended, and the number
of different registrations may all impact the determination of this fee.

Clients may terminate the agreement without penalty, for a full refund of WFA’s fees, within five business
days of signing the Financial Planning Agreement. Thereafter, clients may terminate the Financial Planning
Agreement generally upon written notice.

B. Payment of Fees
Payment of Portfolio Management Fees
Asset-based portfolio management fees (both advisory fee and platform fee) are withdrawn directly from
the client's accounts with the client's written authorization on a quarterly basis. Fees are paid in advance.

Payment of Financial Planning Fees
Financial planning fees may be paid per an invoice or withdrawn directly from the agreed-upon client
account(s) with the client's written authorization on a quarterly basis. Fees are paid in advance.

C. Client Responsibility for Third-Party Fees

The investment management fees described above include advisory services, platform fees, and transaction
costs associated with the wrap fee structure. Clients will not incur additional trading or transaction fees
beyond what is outlined in the Platform Fee section unless they elect services or investments outside the
scope of the standard platform solutions.

Certain additional fees may apply in specific circumstances, including:

        Custodian Fees: Some custodians may charge account maintenance or wire transfer fees that are
        separate from advisory fees.

        Mutual Fund and ETF Expenses: While we primarily use cost-efficient ETFs and select investment-
        grade mutual funds, these funds have internal expense ratios that are separate from advisory fees.
        We are mindful of these costs and strive to keep them as low as possible in constructing client
        portfolios.

Please refer to Item 12 for details on brokerage and custodial arrangements. Platform fees charged by
AssetMark, Inc. are detailed in the AssetMark Platform Disclosure Brochure.

D. Prepayment of Fees
WFA collects fees in advance. Refunds for fees paid in advance but not yet earned will be refunded on a
prorated basis and returned within fourteen days to the client via check or return deposit back into the
client’s account.

E. Outside Compensation for the Sale of Securities to Clients
Neither WFA nor its supervised persons accept any compensation for the sale of investment products,
including asset-based sales charges or service fees from the sale of mutual funds.

Certain supervised persons of the Firm are also licensed insurance agents and, in that separate non-advisory
capacity, may receive commissions from insurance companies when fixed-insurance products are
purchased. Insurance compensation is not related to securities recommendations and is separate from, and
in addition to, our advisory fees.

This compensation structure creates a potential conflict of interest because supervised persons may have an
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Item 7: Types of Clients
WFA generally provides advisory services to the following types of clients:

        ❖       Individuals
        ❖       High-Net-Worth Individuals

        ❖        401 (k)s
        ❖        LLCs

There is no account minimum for any of WFA’s services.