Account Size Annual Fee Up to $100,000 2% $100,000 to $249,999 1.75% $250,000 to $500,000 1.5% Over $500,000 1%   Questions & Answers About Fees Management fees will be billed in arrears based upon the portfolio valuation on the last market day of the previous calendar quarter. New deposits are prorated from the date they are received. Q: Why does Pinnacle Fund Management manage money on a fee-only basis? A: Because it eliminates any conflict of interest that investors encounter when dealing with commissioned salespersons such as brokers, insurance agents and some financial planners. We are compensated the same regardless of how many times we buy or sell funds within a client’s portfolio. Our compensation is directly related to a client’s account value.  As a result, our interests are in-line with our clients, and our motivating factor is to perform well in all market conditions. Q: How are fees billed? A: Fees are billed every quarter or semi-annually (depending on account type) in arrears and are based on the account value on the last market day of the period. For example, an account worth $10,000 on March 31st would be billed $50 (1/4 of 2%) in April. Q: Can my fee be deducted from the account, even though it is an IRA? A: Yes. Fees can be deducted from accounts such as IRA’s. Fees that are paid directly from an IRA account are not treated as distributions. Most clients prefer the convenience of having the fees deducted directly from the account. However, the option of making payment by a personal check is available. Q: Can my management fee be deducted from my personal 401(k) account? A: Sometimes. Clients may prefer to have their fee automatically deducted from their 401(k) account each quarter or semi-annually, only if the custodian of the plan permits it.  Pinnacle Fund Management will help you determine if this option is available.  If the custodian does not allow fee deductions, you may still make payment using a personal check or we can deduct management fees from another account that we have established for you in addition to your 401(k) account.