Wealth Management Resources Inc

Item 5: Fees and Compensation

Additional Fees and Expenses
As part of our investment advisory services to you, we will invest, or recommend that you
invest, in exchange traded funds. The fees that you pay to us for investment advisory services
are separate and distinct from the fees and expenses charged by exchange traded funds or
mutual funds within your account (as described in each fund's prospectus) to their
shareholders. These fees will generally include a management fee and other fund expenses.
With respect to accounts where Schwab is the custodian, we attempt to limit purchases to
funds available through the Schwab OneSource service (including Schwab Funds) as well as
certain other funds that are available without transaction fees. For funds not available through
the Schwab Funds OneSource service you will also incur transaction charges and/or brokerage
fees when purchasing or selling securities. These charges and fees are typically imposed by the
broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees
charged by mutual funds, exchange traded funds, us, and others.

Compensation for the Sale of Securities or Other Investment Products
In addition, we are also licensed as an insurance producer and advisors providing investment
advice on our behalf are also licensed as insurance agents. We will earn commission-based
compensation for selling insurance products, such as life, disability, long-term care insurance,
and annuities to you. Insurance commissions are separate and in addition to our advisory fees.
The sale of insurance products and annuities presents a conflict of interest because advisors
providing investment advice on our behalf who are insurance agents have an incentive to
recommend insurance products to you for the purpose of generating commissions rather than
solely based on your needs. You are under no obligation, contractually or otherwise, to
purchase any insurance product through us or any of our affiliates.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP

IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
Firm. This creates a conflict of interest because it creates a financial incentive for our Firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our Firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to
the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
   3.   cashing out and taking a taxable distribution from the plan; or
   4.   rolling the funds into an IRA rollover account.

Each of these options has positives and negatives. Because of that, along with the importance
of understanding the differences between these types of accounts, we will provide clients with
an explanation of the advantages and disadvantages of both account types and document the
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Item 7: Types of Clients

We offer investment advisory services to individuals, high net worth individuals, pension and
profit-sharing plans, trusts, estates, charitable organizations, corporations, and other business
entities.

In general, we require a minimum of $150,000 to open and maintain an advisory account.
Additionally, we require that any subsequent investment into the Custom Account be in an
amount of $250 or more. At our discretion, we may waive these minimums. For example, we
may waive the minimum account size if you appear to have significant potential for increasing
your assets under our management or are referred by an existing client. We may also combine
account values for you and your minor children, joint accounts with your spouse, and other
types of related accounts to meet the stated minimum size.