REGULATION BEST INTEREST DISCLOSURES

As with most financial services companies, Balanced Security Planning, Inc. (referred to as “we” “us” “our” or “Firm”) has certain conflicts of interest that we feel is important for you to know. This document provides information about how we and our financial professionals (“Financial Professionals”) are compensated and related conflicts of interest. In particular, the information below describes conflicts of interest associated with compensation received by us and our Financial Professionals. We and our Financial Professionals are either compensated directly by customers, or indirectly from the investments made by customers. We can get paid a commission at the time of the transaction, and/or ongoing compensation, typically called a trail payment, depending on how long a customer holds an investment. If we are paid a commission, it means that the more transactions a customer makes, the more we are paid. The amount we receive varies depending on the particular type of investment a customer makes.

Please note that not all of the conflicts described in this document apply to a particular Financial Professional or his or her services and the products we sell, and the types and amounts of compensation we receive may change over time, so we encourage you to periodically review this disclosure document for material updates. Customers should ask their Financial Professional if they have any questions about compensation and/or conflicts of interest. Additional information can be found at www.balancedsecurityplanning.com/disclosures.

Description of Products Offered

1. Equities, OTC, and Other Exchange Traded Securities – Customers can buy/sell common stocks, preferred stocks, ETFs, and other securities traded in the NYSE and NASDAQ. Typically, this product line is for customers looking for capital appreciation, which occurs when a stock rises in price; dividend payments, which come when the company distributes some of its earnings to stockholders; and the ability to vote shares and influence the company. As agent, we help you to either purchase of sell a limited number of investment types, such as listed and over the counter equities.
2. Mutual Funds – Customers can pool their money with other investors to “mutually” buy stocks, bonds, and other investments. They’re run by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them. As agent, we help you to either purchase or sell a limited number of investment types, such as mutual funds, also known as investment company shares. Mutual Funds may have specific investment minimums. Our firm does not impose our own investment (account opening) minimums, nor do we impose greater investment minimums for Mutual Funds. However, depending upon your investment objectives, we may recommend an investment amount greater than the investment minimum required by the Mutual Fund. We recommend the purchase of new mutual funds, and also seek to accommodate clients with existing mutual fund positions by adding additional investments to existing accounts or by setting up additional accounts with an existing fund family.
3. Variable Annuities – A customer(s) can buy a variable annuity which is a contract between him/her/them and an insurance company. It serves as an investment account that may grow on a tax-deferred basis for non-qualified funds and includes certain insurance features, such as the ability to turn your account into a stream of periodic payments. It also offers a range of investment options such as mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three. As agent, we help you to either purchase or sell a limited number of investment types, such as variable annuities. Variable Annuities may have specific investment minimums. Our firm does not impose our own investment (account opening) minimums, nor do we impose greater investment minimums for Variable Annuities. However, depending upon your investment objectives, we may recommend an investment amount greater than the investment minimum required by the Variable Annuities product. We offer variable insurance products that offer downside protection, guaranteed income, and/or tax deferral.
4. Private Placements – Accredited customers can invest in a private placement which is an offering of unregistered securities to a limited pool of investors. In a private placement, a company sells shares of stock in the company or other interest in the company, such as warrants or bonds, in exchange for cash. Private placements are generally illiquid; thus requiring only accredited investors to participate in such offerings. As agent, we help you to either purchase or sell a limited number of investment types, such as private placements, also known as alternative investments. Private Placements may have specific investment minimums. Our firm does not impose our own investment (account opening) minimums, nor do we impose greater investment minimums for Private Placements. However, depending upon your investment objectives, we may recommend an investment amount greater than the investment minimum required by the Private Placements issuer. As a customer of ours, you may select investments, or we may recommend investments to you. We do not maintain nor offer for sale or purchase any proprietary products. Our firm does not offer products in a principal capacity.   We offer only nondiscretionary services, which means the retail investor makes the ultimate decision regarding the purchase and/or sale of investments.

Commissions and Sales Related Compensation

Commissions and Sales Charges. We receive commissions when we execute transactions that result in the purchase or sale of a security. A commission, which also may be called a sales load, sales charge or placement fee, is typically paid upfront, can reduce the amount available to invest, can be charged directly against an investment and is often based on the amount of assets invested. We receive a portion of the sales charge or commission and share it with our Financial Professional. Commissions vary from product to product. This creates an incentive to sell a higher commission security rather than a lower commission security. For more information about the commissions that apply to a particular transaction, please refer to the applicable prospectus or other offering document and/or transaction statement.

• Equities, OTC, and Other Exchange Traded Securities -The commission we charge in an agency capacity on an exchange-traded securities transaction, such as an equity, ETF, exchange traded note (ETN) or closed end fund (CEF), is 5% or less of the transaction amount. In addition, our Financial Professionals can negotiate and decide to discount the commission amount.
• Mutual Funds –The commission range is typically 3% – 5.75 % or less of the transaction amount, however, the maximum allowable under existing rules is higher.
• Variable Annuities – The commission paid for new sales of annuities typically ranges from 3% – 7% or less of the transaction amount.
• Private Placements – For alternative investment products, such as real estate private placements, or real estate investment trusts (“REITs”), the commission is typically a range of 3% – 8% of the transaction amount.

Third-Party Compensation

We and our Financial Professionals receive compensation from investment sponsors in connection with investments the customers make in securities, such as mutual funds, annuities, and alternative investments. The types of third-party compensation are described below.

Trail Compensation. We and our Financial Professionals receive ongoing compensation from investment products, such as mutual funds, annuities, and alternative investments. This compensation (commonly known as trails or Rule 12b-1 fees) is typically paid from the assets of the investment under a distribution or servicing arrangement with the investment sponsor, is calculated as an annual percentage of invested assets, and is shared between us and our Financial Professional. The more assets you invest in the product, the more we will be paid in these fees. Therefore, we have an incentive to encourage you to increase the size of your investment. The amount of trails received varies from product to product. This creates an incentive to recommend a product that pays a higher trail rather than a lower trail. For more information about trail compensation received with respect to a particular investment, please refer to the prospectus or offering document for the investment. The ongoing annual trail compensation for mutual funds, annuities and alternative investment products typically range between 0-1.5% on an annual basis.

Non-Cash Compensation. We, our employees, and our Financial Professionals can receive compensation from investment sponsors that is not in connection with any customer transaction. Non-Cash Compensation includes reimbursement in connection with educational meetings, customer workshops/events, or marketing/advertising initiatives, including services for identifying prospective customers and gift items such as an occasional meal or ticket to a sporting event valued at no more than the current (future limits may be higher) regulatory limit of $100.

Trade Errors & Corrections

If a trade correction is required as a result of a customer action, we will cancel the trade and any resulting monetary loss will be borne by the customer. In the case of a trade that requires a correction as described above and that resulted in a monetary gain, such gain will be removed from the account and may result in a financial benefit to us.

Share Class Selection

We offer various share classes in products such as mutual funds and variable annuities. As an example, certain mutual fund share classes, often referred to as Class A shares, pay an upfront sales charge and an ongoing trail. For other mutual fund share classes, often titled Class C shares, there is no upfront sale charge paid, however, there is an ongoing trail payment and a contingent deferred sales charge to the investor if there is a redemption within a certain period of time after purchase. Depending on the length of the holding period for the mutual fund, and other factors, one share class may be less expensive to the investor than another, and we and our Financial Professionals may earn more or less in compensation for one share class than another.

Compensation for Other Services

We and our Financial Professionals can offer various types of brokerage programs, platforms, and services and therefore we and our Financial Professionals can earn more or less if a certain type of service, program or platform is recommended.

Outside Business Activities 

Our Financial Professionals are permitted to engage in certain approved business activities other than the provision of brokerage services through us, and in certain cases, our Financial Professionals could receive greater compensation, through the outside business than through our firm. For example, our Financial Professionals could also be an accountant, real estate agent, could provide advisory services through an independent unaffiliated investment advisory firm or sell insurance through a separate business. If you engage with one of our Financial Professionals for services separate from us, you may wish to discuss with him or her any questions you have about the compensation he or she receives from the engagement.

Rollovers 

If a customer decides to roll assets out of a retirement plan, such as a 401(k) plan, into an individual retirement account (“IRA”) with us, we have a financial incentive to recommend that a customer invests those assets with or through us, because we will be paid on those assets, for example, through commissions, fees and/or third-party payments. A customer should be aware that such fees and commissions could be higher than those the customer pays through the plan, and there can be custodial and other maintenance fees. As securities held in a retirement plan are generally not transferred to an IRA, commissions and sales charges may be charged when liquidating such securities prior to the transfer, in addition to commissions and sales charges previously paid on transactions in the plan.

Limitations on Our Investment Recommendations

We and our Financial Professionals offer and recommend investment products only from mutual funds, annuities, and private placement companies with which we have entered into selling and distribution agreements. Other firms may offer products and services not available through us, or the same or similar investment products and services at lower cost. In addition, we may only offer certain products in a brokerage account, even though there is a version of the product that may be lower cost and could be available in an advisory account, and vice versa.

The scope of products and services offered by our individual Financial Professionals may also be more limited than generally available through us, based on their licensing, training, or branch office policy restrictions. You may ask our Financial Professionals about the securities or services he or she is licensed or qualified to sell, and their ability to service investments transferring to us from another firm.

Contact Us

For any questions, please contact your Financial Professional directly or contact us at 888-819-5938 or via email at info@balancedsecurityplanning.com

Revised 03/01/2024