Client Relationship Summary

Prudent Investors charges a fee as compensation for providing investment management services, such as advisory and consulting services, trade entry, and investment supervision. The fees are based on an annual percentage of assets under management and are applied to the account asset value on a pro-rata basis and billed monthly in advance; our maximum annual fee for a managed account is 1.4%. Our recommended custodian may charge custodial fees, transaction fees, redemption fees, retirement plan and administrative fees or commissions.

Some of our financial professionals earn a flat salary. Income for some of our financial professionals is partially dependent on the revenue Prudent Investors earns from the financial professional’s advisory services. Excess revenue can be distributed either as a bonus or dividends to our financial professionals. There could be a conflict of interest in that the more assets there are in your account, the more you pay in fees, and we may therefore have an incentive to encourage you to increase the assets in your account.

Charging an asset-based fee could create a conflict of interest in that more assets being managed by Prudent Investors could result in larger total fees (although an increase in asset value may also result in a lower percentage fee). Note: You will pay fees and costs whether you make or lose money on your investments. Please make sure you understand what fees and costs you are paying.

Our consulting and financial planning services are offered for clients who need advice on a limited scope of work billed on an hourly fee of $425 or a fixed negotiated fee. Expert witness services are billed at an hourly rate of $750 per hour.

The custodian (generally Charles Schwab & Co., Inc.) for an investment account may charge transaction costs (also known as commissions), as well as custodial, redemption, administrative and other fees. Most of our clients only pay transaction costs and occasional administrative fees. Charles Schwab & Co., Inc. also earns fees in other ways including, but not limited to managing money market and proprietary mutual funds, margin loan interest, securities lending, and platform fees paid by fund managers. Our Firm does not share in Custodian Fees charged to your account.

For all our services, fees will be billed as services are rendered. The amount paid to our firm and your financial professional generally does not vary based on the type of investments we select on your behalf. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.