Every time you buy or sell an investment you will pay a fee called a commission or markup. You may pay other fees and costs related
to services and investments. From a cost perspective, you may prefer a transaction‐based fee if you do not trade often or if you
plan to buy and hold investments for longer periods of time. We believe it is important that you understand the account service fees
and commissions that may be charged with respect to your account. These costs are typically printed on your confirmations or quarterly
statements. Account service fees in your brokerage account are generally charged on a per-transactions basis. Your associated person
may also charge a commission on a per transaction basis.
USA Financial is an introducing broker-dealer with a clearing agreement through Pershing. We rely on Pershing for our execution,
clearing and custody operations. Your broker determines the commission for each trade. Generally, these commissions range from 2-3%.
USA Financial imposes a ticket charge that ranges between $20-49 per position and dependent upon the security traded to cover costs
associated with the trade. The commission and the ticket charge make up the transaction charge. Under no circumstance will the
transaction charge exceed 5%. Pershing may charge additional fees for custody of your account. We encourage you to ask your broker
about those fees, and how, when, and why they are charged.
USA Financial does not have minimum account balance requirements for opening or maintaining accounts, or for establishing a
relationship with the firm. Our custodian, Pershing, charges annual account maintenance fees for qualified accounts that range from
$12 - $125 depending on account type. In addition, Pershing charges transfer fees, subscription fees, redemption fees, registration
fees, and administration fees, depending on the product held in the account. Finally, Pershing charges a $95 termination fee for all
retirement accounts. There are no maintenance fees for non-qualified accounts, however, Pershing charges a $0.75 fee for paper
statements, and a $75.00 transfer fee for full in-kind transfers that close your account.
The fees Pershing charges for maintaining qualified accounts are as follows:
While we take reasonable care in developing and making recommendations to you, securities involve risk, and you may lose money.
There is no guarantee that you will meet your investment goals or that our recommended investment strategy will perform as
anticipated. Our principals supervise all of your broker's investment recommendations. We require our brokers to document the
basis for their recommendation and submit that to the firm for review. In the event that we identify a recommendation that does
not align with your investment profile or strategy, we will contact your broker for clarification.
USA Financial will send you a written report regarding your account upon account opening. The report will document the basic
information you provided on your client profile — such as, net worth, annual income, and investment objective. USA Financial
Securities uses this information to perform its initial and ongoing suitability reviews, therefore, it is important to review this
report and if you see any information that does not appear to be accurate, contact USA Financial Securities immediately.
USA Financial Securities' representatives charge fees for financial planning services. Fees are assessed as either an hourly fee,
a flat fee, or a project-based fee. Hourly fees cannot exceed $350/hour. Flat fees can range from $100 up to $20,000 depending
on the complexity of the financial situation and the estimated hours required to complete the plan. Prior to paying any fees, you
must sign USA Financial Securities' investment advisory agreement. The fee is payable upon signing the agreement. USA Financial
Securities' representatives can request that you provide an initial deposit, but the initial deposit cannot exceed $1200.
USA Financial Securities' refund policy permits you to request a 100% refund of all hourly and/or project fees paid within one
year of signing the agreement. However, this refund policy does not apply to asset under management fees or fees related to the
USA Strategic Portfolio program, referenced in our
USA Strategic Portfolio accounts are charged a monthly fee, in arrears, based on the assets under management. Fees may be negotiated
between you and your investment adviser representative, provided that the negotiated fee is within the appropriate assets under
management fee range.
USA Financial Securities does not utilize portfolio managers — your investment adviser representative will manage your portfolio based
on your stated needs, objectives, and risk tolerance. Your investment adviser representative receives between 70 and 100 percent of the
annualized management fee, which may be an incentive to recommend this wrap-fee program over other programs or services. However, USA
Financial Securities monitors trading frequency, and if we do not believe your account activity warrants the wrap-fee, we will request
that you move your USA Strategic Portfolio account to a Pershing brokerage account.
Because wrap-fee programs charge a single fee for a range of services that could potentially be obtained separately, it is possible
that our wrap fee may be more or less than the cumulative fees you would be charged if you obtained each service separately.
The Annualized Management Fee, above, includes all fees and charges related to Pershing's and USA Financial Securities' services, except
for brokerage charges and termination fees for IRA and qualified retirement plan accounts. Brokerage charges are assessed on each trade,
whether it is a buy or sell. The brokerage charges are, as follows:
Please Note: *There is a $2 confirmation fee on all buys and sells (except for mutual fund systematic withdrawals, as referenced above).
There is also a $10 mutual fund surcharge, assessed by the mutual fund company, on a limited number of mutual funds.
In addition to the Annualized Management Fee and brokerage charges, Pershing also charges a $35 annual maintenance fee and a $75 termination
fee on all IRA and qualified retirement plan accounts. These fees apply to all IRA and qualified retirement plan accounts at Pershing,
not just accounts on the USA Strategic Portfolio program. Therefore, the $35 annual maintenance fee and the $75 termination fee are not
included in the USA Strategic Portfolio management fees, however, these fees will appear on your account statement. Pershing will deduct
administrative charges from the management fee.
USA Financial Formulas serves as a sub-adviser on advisory accounts. You are not obligated to use Formulas as a manager, it is simply an
option available for those clients who would like active management and access to Formulas' strategies through USA Financial Securities.
Accounts using Formulas as the subadviser will receive Formulas' disclosure brochure, and will be subject to the following fee schedule:
Your account value must be at least $15,000 to participate in the USA Strategic Portfolio program. Exceptions may be made, solely at the Firm's
discretion, based on such factors as prior or anticipated investment activity. USA Financial Securities monitors account values and will
remove billing on your account if the account cannot maintain values exceeding $15,000. Billing will be reinstated once your account exceeds
The USA Strategic Portfolio program services individual, corporate, and trust accounts. Because the USA Strategic Portfolio program charges
a quarterly fee, regardless of whether you make trades in your account during a given quarter, the program is designed to accommodate
accounts with moderate to high trading frequency. Therefore, as referenced above, USA Financial Securities monitors trading frequency,
and if we do not believe your account activity warrants the wrap-fee, we will request that you move your USA Strategic Portfolio account
to a Pershing brokerage account.
Formulas requires a minimum account size of $50,000 for those clients utilizing Formulas as a subadviser. Please note that clients
investing directly with Formulas only have a $35,000 minimum account requirement. Exceptions to this requirement may be made, solely
in our discretion, based on a variety of factors, including but not limited to, prior or anticipated investment activity and family
or employment relationships. We may also, in our discretion, aggregate related accounts in the same household in determining whether
the account minimum has been met. Minimums may be negotiated depending on your personal circumstances. Furthermore, Formulas also
requires that clients invest at least $15,000 in each model.
Investing, like other services, comes with a cost. This is true any time you purchase an investment product or hire a financial professional
to manage your investment portfolio. Financial professionals charge for the value of their services, and the fee charged is dependent
upon the specific type of investment you choose. Along with many other factors you think about when choosing either a financial
professional or a particular investment, USA Financial wants to help you understand and compare the fees you might be charged. It
could save you money in the long run.
When you choose an investment or open a new account, your financial professional will provide you with product specific documents for
the investment you select. These documents may include account opening documents, account statements, confirmations, or other types of
documents. Before you chose an investment you should have been provided a prospectus, various disclosure documents, or statement of
additional information. Read these documents. They will disclose to you the types and amounts of fees you will pay. If have questions
about the fees, ask your financial professional, so that you understand what, when, and how you will be charged.
There are various types of fees, but the most common types are transaction fees or ongoing fees. Transaction fees are charged each time you
buy or sell a security, like a stock, bond, or mutual fund. Ongoing fees are charges that you incur regularly, such as an account maintenance
fee or a management fee. Transaction fees reduce the overall value of your investment each time you buy, sell, or exchange an investment.
Ongoing fees can also reduce the value of your investments. Over time, ongoing fees may reduce the value of your investment portfolio as
they are charged on the principal and any additional return earned on the account. In some circumstances, as the investment grows, so does
the total amount of ongoing fee you pay.
We have broken down products to provide a general overview and comparison of fees by product. Transaction fees and ongoing fees for
all investments vary. The fees below are not actual fees but general estimates for illustrative purposes – should you choose one
of these products, your fees could be different and will be reflected on the account opening documents you receive. These fees do not
represent the actual costs associated with any specific product or account. In addition, other expenses, such as brokerage fees and custodial
fees may differ depending upon the custodian where you chose to hold your investment. Please read the prospectus, contract, account opening
documents, or investment advisor contract for fees charged for fees associated with the specific product you purchase.
* Ongoing fees for annuities tend to be higher than other investment vehicles. This is due, in part, to the insurance options offered by
these products that are not offered by other investment vehicles. Most products offer a standard death benefit — often the return of
premium. Other annuities offer optional enhancements called "riders," that are available on your annuity contract at an additional cost.
They allow your financial advisor to tailor your contract and help protect what is most important to you.
A "surrender charge" is a type of sales charge you must pay if you sell or withdraw money from a variable annuity or fixed indexed
annuity during the "surrender period" — a set period of time that typically lasts six to eight years after you purchase the annuity.
Surrender charges will reduce the value of — and the return on — your investment. For more information about surrender
charges and other expenses associated with variable annuities, please read the Securities & Exchange Commission's publication,
Variable Annuities: What You Should Know.
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