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Service & Fees

I provide various levels of comprehensive personal financial planning for a fixed fee or an hourly fee, as well as various specialized analysis billed on a time and disbursements basis. I also provide investment management services which are billed on a percentage of the assets under management and a combination of continuing financial planning services and portfolio management which are billed as a percentage of assets under management. I do not hold personal securities or funds of any kind (take custody), nor do I vote proxies for client securities.

FEE-ONLY FINANCIAL PLANNING

Many consumers are rightfully concerned that a professional advisor render services on a truly objective basis - not influenced by potential commissions. Therefore all my planning is performed on that basis. Each plan concludes with a summary of recommendations and an "Implementation Checklist."

If a client wishes to take action in any area which involves the purchase of additional services or financial products, the client may use the services of others or may use my service to locate these other services and products. In such cases, a new and completely separate relationship is deemed to exist - one which is entirely at the discretion of the client to engage or discontinue.

COMPREHENSIVE FINANCIAL PLANNING

Comprehensive personal financial planning is provided to clients pursuant to a written agreement and fee schedule. In general, the client agrees to complete my questionnaire and provide other relevant information and authorizations. I agree to prepare a written plan which describes the current situation, identifies needs and opportunities and makes recommendations designed to help the client achieve his or her goals. Comprehensive personal financial planning is primarily an analytical process designed to help the client articulate and quantify goals, organize financial data, identify needs and opportunities and evaluate alternative courses of action. It includes an analysis of current net worth, income taxes, cash flow, investments, employee benefits, estate and gift tax planning and risk management.

Attention is directed towards restructuring existing assets to achieve the planning objectives. For example, a plan might recommend that a particular security or securities be sold to realize a tax loss, provide diversification or to change from a growth related investment to an income related investment.

While comprehensive financial planning includes investment advice concerning securities, it also includes investment advice with respect to products that may not constitute "securities," such as certificates of deposit, life insurance and annuities. It also takes into consideration tax and estate planning issues which may not constitute "investment advice."

SPECIALIZED FINANCIAL ANALYSIS

In addition to comprehensive financial planning, I provide specialized services which focus on particular client needs. These services are provided on a time and disbursements basis, pursuant to a written agreement. The kinds of services listed below are representative of those requested by my clients:

* Education Funding Analysis.

* Analysis of life, health and disability coverages.

* Estate liquidity and survivor income analysis.

* Financial planning for closely held businesses.

* Retirement Income Analysis and projection.

* Retirement Plan disbursement option analysis.

* Employee benefit plan analysis.

* Employer sponsored financial planning.

* Analysis of investment portfolios.

* Future Plan development for parents of disabled children.

* Financial Planning for the Seriously Ill

PORTFOLIO MANAGEMENT

Portfolio Management services may result from the implementation of a financial plan or be contracted for separately. This service includes analysis of risk tolerance and investment knowledge, counseling regarding various investments, and discussions of client's financial goals and objectives. Client is given an outline of recommended investment vehicles and their percentage allocation to asset classes needed to achieve appropriate diversification. The analysis and design of the portfolio is based on portfolio optimization models and efficient frontier analysis. Factors used in the analysis include where the U.S. and global economies are in the business cycle, interest rate projections, growth projections and historical data. I select one or more mutual funds in each asset class to use as the specific investment vehicle. These mutual funds may be passively managed (index funds) or actively managed funds. Mutual funds are primarily held for the long term unless one of the analysis factors, a change in client risk tolerance (or circumstances), or a problem in the management of the fund indicates the need to move to another asset class or another fund in the asset class. The client pays investment advisory fees and transaction fees, but not commissions. The client may use any broker or dealer to execute transactions. At least twice annually the portfolio is reviewed and assets are redistributed maintaining the optimum percentage allocation. The client will authorize me to effect switches between mutual funds without prior notice to the client. I may purchase the same mutual funds I recommend to you, however, since I receive no commissions on the sale of any product, no conflict of interest is deemed to exist.

FEES, REFUNDS, CANCELLATION, ARBITRATION

For a comprehensive plan or specialized financial analysis (such as one-time investment advice), one-half of the fee (based on expected effort at $150 per hour) is due upon receipt of the executed engagement letter and the balance upon delivery of the completed plan. A client may cancel any contract at any time and receive a refund of fees paid in advance on a pro rata basis. In the event of a dispute, binding arbitration is used to avoid any litigation. However, the arbitration clause does not constitute a waiver of any rights provided under federal or state securities laws.

In a time and disbursements engagement, I request a deposit based on one-half of my lowest estimate of costs to be incurred. However, if it appears during the course of the engagement that total costs will exceed the top end of the estimate, I will notify the client, and will incur costs above that point only with prior authorization. A client may cancel at any time and be responsible only for expenses incurred to that point.

Advisory fees charged for individual investment management services are:

Assets under Management Percent of Net Assets

$0 - $300,000 1.0% ($500 min)

$300,001 - $500,000 .9%

$500,001 - $900,000 .8%

$900,001 - $1.2 million .7%

$1,200,001 - $1.5 million .6%

$1,500,001 - $1.8 million .55%

$1,800,001 - $2 million .5%

$2,000,001 - $3 million .4%

$3,000,001 - $10 million .3%

The minimum portfolio value required to qualify for portfolio management is $500,000. The amount is negotiable. The fee to establish the program and reposition the assets is .5% of the market value of the assets placed under management or $500 whichever is greater. Thereafter, the fee is one-half the annual asset management fee based upon the portfolio market value semiannually during the asset reallocation process. The establishment fee is due when the portfolio is set-up, and the reoptimization fee is due when the reoptimization analysis is completed. The client may pay management and transaction fees directly or have them paid from the client's account. If the written contract is terminated, any fee due is based on the pro rata share of the semiannual reoptimization percentage times the portfolio market value the day the written termination notice is received.

Some clients prefer to retain my services for both on-going financial planning advice and portfolio management. Advisory fees charged for annual retainer services and portfolio management services are:

Assets under Management Percent of Net Assets

$0 - $200,000 1.6% ($800 min)

$200,001 - $300,000 1.4%

$300,001 - $400,000 1.2%