ITEM 5. FEES AND COMPENSATION
Asset Management Services
The annualized fee for the Managed Account Platform is based on the amount of assets under
management at Wealth Management. Our current fees are calculated according to the following
schedule:
Family Household AUM WM Fee
Up to $500,000 1.25%
$500,001 to $1,000,000 1.10%
$1,000,001 to $5,000,000 1.00%
$5,000,001 to $10,000,000 0.85%
$10,000,001 to $25,000,000 0.50%
Above $25,000,000 0.40%
Fees are billed quarterly, in advance, at the beginning of each quarter based upon the value (market
value or fair market value in the absence of market value), of the client's account at the end of the
previous billing period. Fees are debited directly from client accounts pursuant to the authorization
provided by the client in the Client Services Agreement.
Although Wealth Management has established the above fee schedule, we retain discretion to
negotiate alternative fee structures or amounts on a client-by-client basis. Individual facts,
circumstances, and needs are considered in determining whether to depart from the standard fee
schedule. These include, among others: complexity of the client; assets to be placed under
management; anticipated future additional assets; related accounts; portfolio style; account
composition. The specific annual fee schedule is identified in the contract between the adviser and
each client.
We may group certain related accounts for the purposes of achieving the minimum account size
requirements and determining the appropriate fee. Discounts, not generally available to our advisory
clients, may be offered to family members, business associates and friends of associated persons of
our firm. We call this process “householding” accounts which do as a consideration to help reduce
the costs for a large group of associated persons.
Third-Party Money Manager Fees. Third-party money manager fees are paid directly to the third-
party manager.
HHWM Direct Fees. Wealth Management charges a maximum fee of .325% per annum, payable
quarterly, in advance to participate in HHWM Direct. Fees are deducted directly from clients’
accounts at Schwab. We retain the discretion to negotiate an alternative fee on a client-by-client
basis as described above. HHWM Direct fees are calculated according to the following tiered fee
schedule:
ADV Part 2A - Brochure
Henry + Horne Wealth Management
Family Household AUM WM Fee
Up to $100,000 0.325%
$100,001 to $250,000 0.30%
$250,001 to $500,000 0.25%
Above $500,000 0.20%
As described in Item 4 - Advisory Business, clients do not pay fees to SWIA or brokerage commissions
or other fees to CS&Co to participate in HHWM Direct. Schwab does receive other revenues in
connection with the Program, as described in the Program Disclosure Brochure. Brokerage
arrangements are further described below in Item 12 Brokerage Practices.
F i n a n c i a l P l a n n i n g Fe e s
Wealth Management financial planning fee is determined based on the nature of the services being
provided and the complexity of the client’s circumstances. All fees are agreed upon prior to entering
a contract with any client.
Our financial planning fees are calculated on an hourly basis, ranging from $250 to $400 per hour.
Although the length of time it will take to provide a financial plan will vary depending on each client's
personal situation, we are typically able to provide a reasonably accurate estimate for the total
expected hours at the outset of the advisory relationship.
Management personnel and other related persons of our firm are licensed as insurance agents or
registered investment advisors. In their capacity as an insurance agent or broker, these individuals
can implement investment recommendations for advisory clients. In doing so, these individuals may
receive separate yet customary compensation (for example, sales commissions or other forms of
transaction-based compensation). This presents a conflict of interest as these individuals could
recommend that a client invest in a security that pays them commissions. Clients are under no
obligation to engage these individuals to implement their recommendations and need not implement
the recommendations at all—the implementation of any or all recommendations is solely at the
discretion of the client.
401(K) Advisory Fees
401(k) Advisory Services fees are based on the market value of retirement plan assets. The specific
fees are mutually agreed upon by both parties at the outset of the relationship. Clients receiving
similar services may pay different fees as all rates are negotiated and vary according to the facts and
circumstances including the scope of services to be provided, the duration of services and the size of
the client.
Our annual advisory fee is typically 0.20% to 0.50% of the plan assets under management, but this
can vary depending on the services selected by the client or the amount of plan assets. Fees are
assessed monthly or quarterly in arrears. Such fees will be automatically deducted from the client’s
account by the provider. Fees are collected by the platform provider and paid directly to Wealth
Management.
Additional Information
Termination of the Advisory Relationship - Either Wealth Management or our clients may terminate
the advisory relationship at any time for any reason by giving the other party advance written notice
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