Description of Services and Fees We provide discretionary portfolio management services for a single fee that includes our investment advisory fee and custodial transaction fees under the Taylor Financial Group, Inc. Wrap Fee Program. Our investment advice is tailored to meet our clients' needs and investment objectives. If you retain our firm for portfolio management services, we will meet with you to determine your investment objectives, risk tolerance, and other relevant information (the "suitability information") at the beginning of our advisory relationship. We will use the suitability information we gather from our initial meeting to develop a strategy that enables our firm to give you continuous and focused investment advice and/or to make investments on your behalf. As part of our portfolio management services, we may customize an investment portfolio for you in accordance with your risk tolerance and investing objectives. We may also invest your assets using a predefined strategy according to one or more model portfolios developed by our firm. Once we construct an investment portfolio for you, or select a model portfolio, we will monitor your portfolio's performance on an ongoing basis, and will rebalance the portfolio as required by changes in market conditions and in your financial circumstances.
For certain clients, we also utilize the platform of a directly held mutual fund company, Capital Bank & Trust/American Funds Service Company ("AFS") to manage some Simple IRA plans. Through AFS, we have access to a family of mutual funds with varying degrees of risk and investment objective in order to create a customized and diverse portfolio for you.
From time to time, Taylor Financial Group will utilize variable annuity products sold through Ameritas Life Insurance Corp. ("Ameritas"). The following provides important information about the cost structure of variable annuity products.
Variable annuity products have additional costs to the client. These costs include surrender fees if the purchase of the product results from the transfer from another variable product; costs associated with living or death benefits; administrative fees; sub-account management fees; mortality and expense fees; and bonus expenses if the product has a bonus element. Certain variable annuities have surrender fees if the annuity is transferred or liquidated within the stated surrender period. Surrender periods can range from 0 to 10 years depending on the individual product purchased. Additionally, certain variable products often have limitations on the number of transactions that can be conducted among the subaccounts. Exceeding the limitation could result in additional expenses. It is vital clients read the variable annuity prospectus for details on all of the costs associated with the product. Variable annuities managed by Taylor Financial Group where an advisory fee is charged are fee-based variable products and no commissions or trail compensation is earned by Taylor Financial Group or our Advisory Representative. Additionally, the internal expenses of the annuity product are less than if the client purchased the annuity product on a commission basis.
We require you to grant our firm discretionary authority to manage your account. Discretionary authorization will allow our firm to determine the specific securities, and the amount of securities, to be purchased or sold for your account without your approval prior to each transaction. Discretionary authority is typically granted by the investment advisory agreement you sign with our firm, a power of attorney, or trading authorization forms. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased for your account) by providing our firm with your restrictions and guidelines in writing.
Our fee for portfolio management services is based on a percentage of your assets we manage and is set forth in the following fee schedule: 4 Assets Under Management Annual Fee Up to $500,000 1.00% $500,001 to $750,000 0.95% $750,001 to $1,000,000 0.90% $1,000,001 to $1,250,000 0.80% $1,250,001 to $1,500,000 0.75% $1,500,001 to $1,750,000 0.70% $1,750,001 to $2,000,000 0.65% Over $2,000,000 0.50% Our annual portfolio management fee is billed and payable quarterly in arrears based on the value of your account on the last day of the quarter. We absorb your transaction fees under the Wrap Fee Program and you will not be responsible for paying such fees.
If the client agreement is executed at any time other than the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the number of days in the quarter for which you are a client. Our advisory fee is negotiable, depending on individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household to determine the applicable advisory fee. For example, we may combine account values for you and your minor children, joint accounts with your spouse, and other types of related accounts. Combining account values may increase the asset total, which may result in your paying

a reduced advisory fee based on the available breakpoints in our fee schedule stated above.
We will deduct our fee directly from your account through the qualified custodian holding your funds and securities. We will deduct our advisory fee only when you have given our firm written authorization permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an account statement to you at least quarterly. These account statements will show all disbursements from your account. You should review all statements for accuracy.
You may terminate the client agreement upon 30 days' written notice to our firm. You will incur a pro rata charge for services rendered prior to the termination of the agreement, which means you will incur advisory fees only in proportion to the number of days in the quarter for which you are a client.
Types of Investments We primarily offer advice on mutual funds, exchange traded funds, equity securities, corporate debt securities, municipal securities, and US Government securities.
Additionally, we may advise you on other types of investments that we deem appropriate based on your stated goals and objectives. We may also provide advice on other types of investments held in your portfolio at the inception of our advisory relationship.
You may request that we refrain from investing in particular securities or certain types of securities. You must provide these restrictions to our firm in writing.
5 Additional Fees and Expenses As part of our investment advisory services to you, we may invest, or recommend that you invest in mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory services are separate and distinct from the fees and expenses charged by mutual funds or exchange traded funds (described in each fund's prospectus) to their shareholders. These fees will generally include a management fee and other fund expenses. To fully understand the total cost you will incur, you should review all the fees charged by mutual funds, exchange traded funds, our firm, and others. Our mutual fund share class selection process (or, the platform's share class availability) may impact whether our clients will invest in mutual funds that incur higher expense ratio (largely due to 12b-1 fees). Should a client's investments pay 12b-1 fees, we do not benefit directly or indirectly from these payments. For information on our brokerage practices, please refer to the "Brokerage Practices" section of this Brochure. In addition to the aforementioned, there may be other costs assessed, which are not included in the Program Fee, such as national securities exchange fees, costs associated with exchanging currencies; wire transfer fees; or other fees required by law. Fee and Costs Not Included Our wrap fee covers our advisory services and the brokerage services provided by Schwab including custody of assets, equity trades, ETFs, and agency transactions in fixed income securities. As a result, we have an incentive to execute transactions for your account at Schwab.
Our wrap fee does not cover all fees and costs. The fees not included in the wrap fee include charges imposed directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed in the fund's prospectus (i.e., fund management fees and other fund expenses), mark-ups and mark-downs, spreads paid to market makers, fees (such as a commission or markup) for trades executed away from the Custodian at another broker-dealer, wire transfer fees and other fees and taxes on brokerage accounts and securities transactions.
Wrap Fee Program Disclosures
•The Wrap fee Program may create a potential conflict of interest between you and our firm. You should be aware that we may have a disincentive to purchase or sell securities in your account because we pay the transaction costs associated with trades directed to the custodian.
•Participating in a Wrap Fee Program may cost more or less than if you paid separately for investment advice, brokerage or other services. We receive compensation as a result of the client's participation in the Program.
•The benefits under a Wrap Fee Program depend, in part, upon the size of the account, the management fee charged, and the number of transactions likely to be generated in the account. For example, a wrap fee program may not be suitable for accounts with little trading activity. In order to evaluate whether a wrap fee program is suitable for you, you should compare the Program Fee and any other costs of the Program with the amounts that would be charged by other advisers, broker-dealers, and custodians, for advisory fees, brokerage and other execution costs, and custodial services comparable to those provided under the Program.
•In considering the investment programs described in this brochure, you should be aware that participating in a wrap fee program may cost more or less than the cost of purchasing advisory, brokerage, and custodial services separately from other advisers or broker-dealers.
•Our firm and Associated Persons receive compensation as a result of your participation in the Program. This compensation may be more than the amount our firm or the Associated Persons would receive if you paid separately for investment advice, 6 brokerage, and other services. Accordingly, a conflict of interest exists because our firm and our Associated Persons have a financial incentive to recommend the Program.
•Similar advisory services may be available from other registered investment advisers for lower fees.