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					                                                                                        EDELMAN FINANCIAL SERVICES LLC




            Edelman Financial Services LLC
            Investment Advisory Services

            This brochure provides information about the qualifications and business practices of Edelman
            Financial Services LLC. If you have any questions about the contents of this brochure, please
            contact us at 888-PLAN-RIC (888-752-6742) or you may email us at info@RicEdelman.com or
            write us at the address below. The information in this brochure has not been approved or
            verified by the United States Securities and Exchange Commission (“SEC”) or any state securities
            authority, nor does registration with the SEC imply a certain level of skill or training.

            Additional information about Edelman Financial Services LLC is also available on the SEC’s
            website at www.adviserinfo.sec.gov.




            4000 Legato Road, 9th Floor
            Fairfax, VA 22033
            EdelmanFinancial.com
            RicEdelman.com
            888-PLAN-RIC (888-752-6742)
            866-742-7222 (fax)
            info@RicEdelman.com


Form ADV Part 2A                                         1                                                June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC




            Item 2: Material Changes
            This brochure follows the SEC’s new rules published in “Amendments for Form ADV” on July 28,
            2010. It follows a new structure and contains much of the information that the old brochure did
            and some that it didn’t. This information is accurate as of June 20, 2012.

            We’re required to tell you about any material changes in this updated brochure. Future
            brochures will contain similar summaries. The following are the material changes made to this
            brochure:

                   1. Joe Bottazzi, a former Hewlett- Packard senior executive, joined the Edelman Financial
                      Services Executive Team as Chief Communications Officer.

                   2. Edelman Financial Services offers discretionary advice to ERISA Plan sponsors.

                   3. Fredric (Ric) M. Edelman has become Chief Executive Officer of The Edelman Financial
                      Group, Inc. (“TEFG”). He was previously Co-CEO with George Ball. Mr. Ball will continue
                      to serve in his position as Chairman of TEFG.

            We used to have to offer you information about our qualifications and business practices
            annually. Under new SEC rules, we’ll give you a new brochure within 120 days of the end of our
            fiscal year. You may also receive updates at other times if information changes. You may request
            a new brochure at any time and at no charge.

            You can request a free brochure by calling us at 888-PLAN-RIC. You can also find out more about
            us and receive our current brochure from the SEC’s website: www.adviserinfo.sec.gov. The site
            can also give you information about people who are registered, or about to be registered, as
            Investment Adviser Representatives of our firm.




Form ADV Part 2A                                           2                                                June 20, 2012
                                                                                                                               EDELMAN FINANCIAL SERVICES LLC




            Item 3: Table of Contents


            Edelman Financial Services LLC Investment Advisory Services....................................................... 1

            Item 2: Material Changes ................................................................................................................. 2

            Item 3: Table of Contents ................................................................................................................ 3

            Item 4: Advisory Business ................................................................................................................ 6

               Background of Edelman Financial Services LLC ........................................................................... 6

               Principal Executive Officers.......................................................................................................... 6

               Advisory Services Offered ............................................................................................................ 8

               Wrap Fee Asset Allocation Program ............................................................................................ 8

               Asset Allocation Program for ERISA Plans ................................................................................... 9

               Financial Planning ...................................................................................................................... 11

               The Financial Education Group .................................................................................................. 12

               Institutional Advisory Services ................................................................................................... 12

               Assets Under Management ....................................................................................................... 13

            Item 5: Fees and Compensation .................................................................................................... 13

               Institutional ................................................................................................................................ 15

               Edelman Retirement Program ................................................................................................... 16

               Other Fees Earned by EFS .......................................................................................................... 17

                   Financial Plans ........................................................................................................................ 17

                   Annual Financial Planning Fee ............................................................................................... 17

                   Seminars................................................................................................................................. 17

                   Speaking Engagements .......................................................................................................... 17

                   Educational Products ............................................................................................................. 18

                   Edelman Gear......................................................................................................................... 18

                   RIC-E Trust® ............................................................................................................................ 18

            Item 6: Performance-Based Fees and Side-by-Side Management ................................................ 18


Form ADV Part 2A                                                                3                                                                         June 20, 2012
                                                                                                                                  EDELMAN FINANCIAL SERVICES LLC



            Item 7: Types of Clients.................................................................................................................. 19

               Minimum Account Size .............................................................................................................. 19

                   EMAP ...................................................................................................................................... 19

                   ERP ......................................................................................................................................... 19

            Item 8: Methods of Analysis, Investment Strategies and Risk of Loss........................................... 19

               Investment Strategy................................................................................................................... 19

               Methods of Analysis and Investment Selection......................................................................... 20

               Risk of Loss ................................................................................................................................. 21

            Item 9: Disciplinary Information .................................................................................................... 22

               Administrative Proceeding......................................................................................................... 22

            Item 10: Other Financial Industry Activities and Affiliations ......................................................... 23

               Related Persons ......................................................................................................................... 23

                   Broker-Dealer ......................................................................................................................... 23

                   Investment Advisors .............................................................................................................. 23

                   Insurance Agency ................................................................................................................... 24

                   Other ...................................................................................................................................... 24

            Item 11: Code of Ethics, Participation of Interest in Client Transactions and Personal Trading ... 25

               Code of Ethics ............................................................................................................................ 25

               Related Person May Invest in the Same Securities.................................................................... 26

               Agency Cross Procedures ........................................................................................................... 26

            Item 12: Brokerage Practices ......................................................................................................... 26

               Brokerage Selection ................................................................................................................... 26

               ERP ............................................................................................................................................. 27

               Soft Dollars ................................................................................................................................. 27

               Brokerage for Client Referrals ................................................................................................... 28

               Trade Aggregation Policy ........................................................................................................... 29

            Item 13: Review of Accounts ......................................................................................................... 29

            Item 14: Client Referrals and Other Compensation ...................................................................... 30


Form ADV Part 2A                                                                 4                                                                           June 20, 2012
                                                                                                                                  EDELMAN FINANCIAL SERVICES LLC



               Other Advisers Offering EMAP................................................................................................... 30

               Client Referrals........................................................................................................................... 30

               Selection of Other Advisors — Edelman Financial Network™ (“EFN”) ...................................... 31

               TD Ameritrade Institutional Program ........................................................................................ 31

               TD Ameritrade Operations Panel ............................................................................................... 32

               Compensation for Other Products and Services ........................................................................ 33

               Indirect Compensation Regarding Television Broadcasts.......................................................... 33

            Item 15: Custody ............................................................................................................................ 34

            Item 16: Investment Discretion ..................................................................................................... 35

               EMAP.......................................................................................................................................... 35

                   Risks ....................................................................................................................................... 35

                   Trading Authorization ............................................................................................................ 35

                   Reallocations .......................................................................................................................... 36

                   Rebalancing ............................................................................................................................ 36

                   Liquidations ............................................................................................................................ 36

                   Contributions ......................................................................................................................... 37

               ERP ............................................................................................................................................. 37

                   Reallocations .......................................................................................................................... 37

                   Rebalancing ............................................................................................................................ 37

            Item 17: Proxy Voting Client Securities.......................................................................................... 38

            Item 18: Financial Information ...................................................................................................... 38




Form ADV Part 2A                                                                 5                                                                           June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC




            Item 4: Advisory Business

            Background of Edelman Financial Services LLC
            Edelman Financial Services LLC (“EFS” or “We”) is an investment advisory firm registered with
            the United States Securities and Exchange Commission under the Investment Advisers Act of
            1940. We are primarily owned by The Edelman Financial Group (Ticker Symbol “EF” referred to
            as “TEFG”), a publicly traded financial services firm with principal offices in Houston, Texas and
            Fairfax, Virginia. EFS shares executive officers with TEFG and its subsidiaries. Ric Edelman is
            Chairman, CEO and a minority owner of EFS. He also serves as President, CEO and Director of
            TEFG. George Ball is a Director of EFS and serves as Chairman of TEFG. He also serves as
            Chairman and CEO of Sanders Morris Harris Inc. (“SMH”), a wholly owned broker-dealer and
            registered investment adviser subsidiary of TEFG.

            EFS provides investment advisory services and financial education to consumers, institutions
            and other entities throughout the country. Our firm was founded nearly 25 years ago by Ric and
            Jean Edelman. Today we are headquartered in Northern Virginia and have branch offices located
            throughout the country.

            Principal Executive Officers
            Fredric (Ric) M. Edelman (Born: 1958). Chairman, Chief Executive Officer and minority owner of
            Edelman Financial Center, LLC (which is the single member owner of Edelman Financial Services
            LLC). President, Chief Executive Officer (CEO) and Director of The Edelman Financial Group.
            Previously, he was sole owner and Chairman of EFS from its founding in 1987 to 2005. For eight
            years in a row, Barron’s has named Ric Edelman one of the nation’s top-ranked financial
            advisors and twice named him the #1 Independent Financial Advisor in the country (2009-2010)
            based on assets under management, revenues the advisors generate for their firm and the
            quality of their practices. For three years in a row (2010-2012), Barron’s ranked Ric as the #1
            advisor in Virginia in their list of top 1,000 advisors by state. Ric was inducted into the Financial
            Advisor Hall of Fame in 2004 by Research magazine. He received an honorary doctorate from
            Rowan University (then known as Glassboro State College) in New Jersey in 1999, where he
            graduated with honors with a B.A. in Communications in 1980. Ric is a registered representative
            and principal with Sanders Morris Harris Inc. He is a Certified Fund Specialist, a Chartered
            Mutual Fund Counselor, a Registered Financial Consultant, a Qualified Financial Planner, a
            Certified Retirement Counselor® and Board Certified in Mutual Funds. He is also licensed to sell
            securities, life and health insurance and variable annuities.




Form ADV Part 2A                                           6                                                  June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            George L. Ball (Born: 1938). Chairman of TEFG and Chairman and CEO of Sanders Morris Harris
            Inc. Director of the Edelman Financial Center, LLC, SMH Capital Advisors Inc., Global Financial
            Services, LLC and Leonetti & Associates, LLC — all registered investment advisors. Mr. Ball was a
            Director of TEFG’s predecessor, Sanders Morris Mundy Inc., and was the nonexecutive Chairman
            from May 1992 to July 1997. He is a former governor of the American Stock Exchange and the
            Chicago Board Options Exchange and served on the Executive Committee of the Securities
            Industry Association. Mr. Ball is a dually registered representative and principal with Sanders
            Morris Harris Inc. and Global Financial Securities, LLC. He received a B.A. from Brown University
            in 1960.

            Bruce R. McMaken (Born: 1959). Executive Vice President of TEFG and Director of the Edelman
            Financial Center, LLC since 2011. Mr. McMaken has been affiliated with SMH since 1992, first as
            Senior Vice President. He also serves as a Manager for the SMH Private Equity Group Funds I and
            II and for the M.D. Anderson Proton Therapy Center. Mr. McMaken is a dually registered
            representative and principal with Sanders Morris Harris Inc. and Global Financial Securities, LLC.
            He received a B.A. from Cornell University in 1981.

            Edward (Ed) P. Moore (Born: 1960). Executive Vice President of TEFG and EFS President and
            Director and minority owner of the Edelman Financial Center, LLC since 2005. Mr. Moore has
            been affiliated with EFS since 1990. He is a CERTIFIED FINANCIAL PLANNER™ and is licensed to
            sell securities, life and health insurance and variable annuities. Mr. Moore is a registered
            representative and principal with Sanders Morris Harris Inc. He received a B.S. in Industrial
            Engineering from Virginia Tech in 1983.

            Lesley V. Roberts (Born: 1966). EFS Chief of Staff (COS) and Director of the Edelman Financial
            Center, LLC since 2010. Ms. Roberts has been affiliated with EFS since 1998, first as the Director
            of Human Resources. Prior to joining our firm, she was employed as a Human Resources
            Manager in the airline industry. Her areas of responsibility cover human resources, information
            technology and facilities.

            Eraine J. Parker (Born: 1960). EFS and TEFG Chief Compliance Officer (CCO). Ms. Parker has been
            affiliated with EFS since 2007. She has over 25 years of compliance and accounting experience
            within the financial services industry, including five years with FINRA. Prior to joining us, Ms.
            Parker was employed by a bank-affiliated broker-dealer and registered investment advisor for
            23 years, where she served as CCO during her tenure. Ms. Parker is a registered representative
            and principal with Sanders Morris Harris Inc. She received a B.A. in Business Administration from
            Georgia State University in 1988.

            Domenico (Dom) Conti (Born: 1966). EFS Chief Financial Officer (CFO) and Director of the
            Edelman Financial Center, LLC since 2011. Mr. Conti has been affiliated with EFS since 2006. Mr.
            Conti is a CPA with active status in Maryland. He has worked in finance and accounting for over
            20 years. Prior to joining us, Mr. Conti was employed by America Online as a Finance Officer. He
            received a B.S. in accounting from the University of Maryland in 1989.


Form ADV Part 2A                                          7                                                June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            William (Bill) Coquelin (Born: 1960). EFS and TEFG Chief Information Officer (CIO). Mr. Coquelin
            joined EFS and SMH in 2011. He has held both CIO and technical leadership roles with several
            financial industry firms in the Washington, DC and Baltimore, Maryland areas, as well as for a
            multinational firm in the financial industry. Prior to joining EFS and TEFG, Mr. Coquelin was one
            of the principals in a technology consulting company that provided IT management and
            oversight to firms in the pharmaceutical and defense contracting markets. He received a B.S. in
            Management from George Mason University in 1982.

            Joseph (Joe) Bottazzi (Born 1958). EFS and TEFG Chief Communications Officer. Mr. Bottazzi
            joined EFS and TEFG in 2011. He was an executive with Hewlett-Packard for 31 years and served
            as Senior Vice President of HP’s Americas Technology Services business unit, responsible for
            approximately one-third of the unit’s $12billion annual revenue and 10,000 employees. Mr.
            Bottazzi received a B.S. in Marketing from Rowan University in 1980 and an MBA from Fordham
            University in 1990.

            Advisory Services Offered
            EFS provides financial planning, investment management and education, and insurance services
            to individuals, trusts, estates, charitable organizations, foundations, pension, retirement and
            profit-sharing plans, institutions, and small businesses. Our wrap fee program is available to
            clients and other affiliated and unaffiliated registered investment advisers and their clients. Our
            investment advice is generally limited to mutual funds, Exchange Traded Funds (“ETFs”),
            annuities, insurance products and 529 College Plans. Advisory personnel are also registered
            representatives of SMH, a registered broker-dealer and registered investment adviser subsidiary
            of TEFG. This allows EFS investment advisory personnel to provide brokerage services to clients.

            Wrap Fee Asset Allocation Program
            The Edelman Managed Asset Program® (“EMAP”) is a wrap fee asset allocation program
            sponsored by EFS. Through EMAP, we create well-diversified asset allocation models for clients.
            The investments in these models include:

                   •   mutual fund shares of no-load, open-end registered investment companies,

                   •   exchange-traded funds (“ETFs”), and

                   •   variable annuities.

            We don’t sponsor, nor are we affiliated with, these investments. Investment Adviser
            Representatives (“Advisors”) meet with clients to discuss their needs. The main factors that help
            us recommend an asset allocation model to clients are their investment objectives and risk
            tolerance. We also consider the client’s personal situation, including age, health, family
            circumstances, income, expenses, assets, debts, liquidity needs, goals, personal objectives,




Form ADV Part 2A                                             8                                             June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



            suitability, time horizon and other relevant factors. If a client’s investment objectives or financial
            situation changes, the client should tell his or her Advisor.

            Clients are allowed to place or change reasonable restrictions on the management of their
            accounts. This includes deciding to sell or not to buy particular securities or types of securities.
            However, a client can’t require us to buy particular securities or types of securities. We reserve
            the right, at our sole discretion, to close an account if unreasonable or overly restrictive
            conditions are requested.

            Either a client or the firm can end the relationship with written notice. We receive a wrap fee for
            our services and we bill clients quarterly, after a quarter closes. If the relationship ends before
            the quarter does, the client will not be billed for the remainder of the quarter.

            Asset Allocation Program for ERISA Plans
            EFS makes the Edelman Retirement Program (“ERP”) available to plan sponsors of 401(k), profit-
            sharing and retirement plans (“Plans”) subject to the Employee Retirement Income Security Act
            of 1974 (“ERISA”), as amended. Many such Plans give participants the ability to individually
            direct the investment of their Plan account balances. Under ERISA, a plan sponsor is generally
            relieved of liability for participant self-directed investment loss if certain investment options are
            offered under the Plan and required informational disclosures are made to participants pursuant
            to the applicable regulations. As part of ERP, EFS may also provide discretionary investment
            services to Plan sponsors. Through ERP, EFS creates and recommends a range of asset allocation
            models, each consisting of a diversified mix of asset classes for Plan sponsors. In addition, we
            recommend the underlying asset classes for the models and recommend at least one
            investment security for each underlying asset class. Usually these asset classes consist of funds
            including, but not limited to, shares of open-end registered investment companies, such as
            mutual funds and ETFs (collectively, the “Underlying Funds”). We don’t sponsor, nor are we
            affiliated with, any of the Underlying Funds.

            EFS may use its discretion to invest the Underlying Funds of each investment option from the
            Plan’s investment menu in a mix of investments corresponding to asset allocation models
            selected in accordance with the investment policy statement (“IPS”) approved by the Plan
            sponsor or fiduciary. Using discretionary authority granted by the Plan sponsor, EFS rebalances
            the mix of investments in the underlying funds for each investment option offered by the Plan
            periodically, in order to maintain the desired mix of investments for each investment option. In
            addition, EFS will occasionally modify the strategic allocations and reallocate the mix of
            investments in the underlying funds for each investment option offered by the Plan based on
            revisions to the asset allocation model(s) in accordance with the Plan’s IPS. EFS does not have
            any discretion over any participant self-directed option within any Plan.

            Generally, our Advisor holds an initial meeting with the Plan sponsor to explain EFS services and
            fees and to collect detailed financial data about the Plan. Emphasis is placed on identifying the


Form ADV Part 2A                                           9                                                  June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



            Plan sponsor’s investment objectives and determining the financial situation of the Plan. With
            respect to the asset allocation models and Underlying Funds recommended to each Plan
            sponsor client, we consider the Plan’s investment objectives, financial situation, suitability and
            other relevant factors.

            After the Plan sponsor reviews and approves our recommendations, the asset allocation models
            are offered to Plan participants as investment options (the “Investment Options”). Participants
            will select an Investment Option for their Plan accounts. The Underlying Funds may also be
            available to Plan participants who do not select an Investment Option, if the Plan sponsor
            permits it. With the Plan sponsor’s permission, we make general educational information
            regarding saving for retirement and asset allocation models and the Investment Options
            available to the Plan’s participants. We are not responsible for reviewing or changing any
            participant’s decision to invest in a particular Investment Option.

            On an ongoing basis, we work with the Plan sponsor’s Third Party Administrator (“TPA”) to
            ensure that the selected investment options are properly implemented. With the Plan sponsor’s
            permission, we give instructions to the TPA to do the following:

                   •   Invest the underlying assets of each Investment Option in a mix of investments in the
                       Underlying Fund

                   •   Periodically rebalance the mix of investments in the Underlying Funds for each
                       Investment Option

                   •   Strategically modify the allocations for the Investment Option so as to reallocate the mix
                       of investments

            Plan sponsors are permitted to impose reasonable restrictions on the underlying assets of
            Investment Options managed on behalf of the Plan. With respect to such restrictions, a Plan
            sponsor may request that particular securities or types of securities not be purchased, or that
            such securities be sold. Plan sponsors should know that we are generally unable to influence or
            change the mix of securities held by any Underlying Fund in which the Plan may be invested. We
            reserve the right, at our sole discretion, to reject any Plan sponsor account where unreasonable
            or overly restrictive conditions are requested. Plan sponsors are reminded to inform their
            Advisor if their investment objectives or financial situation changes. The professional
            relationship between the Plan sponsor client and EFS may be terminated at will by either party
            upon written notice.

            Plan sponsors may be introduced to ERP through SMH, an affiliated registered investment
            adviser or through other unaffiliated registered investment advisers. In that case, SMH or the
            unaffiliated registered investment adviser initiates and maintains the relationship with the Plan
            sponsor on behalf of EFS. Specifically, the Advisor:

                   •   Collects detailed financial data about the Plan

Form ADV Part 2A                                            10                                                 June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



                   •   Provides educational guidance to Plan Participants regarding saving for retirement and
                       asset allocation models

                   •   Meets with the Plan sponsor on our behalf on a periodic basis to discuss suitability and
                       any reasonable restrictions

            The Advisor assists the client with the completion of the new account documentation, including
            the ERP Investment Management Agreement. After the ERP models and Underlying Funds have
            been approved by the Plan sponsor, the Advisor promptly communicates the information to us.
            The Advisor remains responsible for assessing initial and ongoing suitability of ERP and
            introducing the appropriate models and Underlying Funds to the Plan sponsor. The Advisor may
            offer ERP or any other financial planning product(s) that meets the needs and goals of a
            prospective Plan sponsor.

            Advisors will share in the advisory fee generated from any client assets that are invested in ERP.
            We receive no compensation or economic benefit from products or services offered by the
            Advisor to Plan clients, other than ERP. The Plan client does not pay any additional fees as a
            result of this arrangement. None of the Underlying Funds recommended to the Plan sponsor will
            be sponsored by or affiliated with either entity. In addition, neither will receive any additional
            compensation related to the Underlying Funds other than a share of the advisory fee, which is
            generated through ERP.

            EFS is the sub-advisor to the TDATC Edelman Collective Investment Trusts created and
            administered by TD Ameritrade Trust Company. The TDATC Edelman Collective Investment
            Trusts are a series of risk- based collective investment funds comprised of assets from various
            qualified retirement plans of unrelated companies. The Collective Investment Trusts are
            designed to provide retirement plan participants extensive diversification, access to no-load
            institutional funds, exchange traded funds and provide qualified plan participants the same
            investment strategies offered to EFS wealth management clients. EFS is not affiliated with TD
            Ameritrade Trust Company. We also provide educational guidance to assist the Plan sponsor in
            its review of these models.

            Financial Planning
            EFS Advisors may provide financial planning services to clients. The Advisor prepares a
            comprehensive financial plan for clients based on their financial and personal circumstances. We
            do not provide legal or tax advice. Clients are charged a one-time fee that can be waived at the
            Advisor’s discretion. Each financial planning client has a choice of selecting us to invest on
            his/her behalf on a limited discretionary basis (meaning we can carry out some financial
            transactions without first consulting the client) by establishing an Edelman Managed Asset
            Program® (“EMAP”) account, or the client can implement an EFS financial plan on their own.

            Legacy financial planning clients who are ineligible for or who elect not to participate in EMAP
            may choose annual financial planning services. This gives them the benefits of ongoing

Form ADV Part 2A                                           11                                                June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            investment advice and recommendations from our Advisor. There is an annual planning fee for
            this service, which may be waived at the sole discretion of the Advisor. The Advisor may also, at
            his/her sole discretion, decline to assist clients with the implementation of investment strategies
            or choices that have not been recommended or that the Advisor deems not to be in the client’s
            best interest.

            Clients who are not eligible for EMAP may implement the recommendations set forth in their
            financial plans through our firm. They open SMH or fund-direct accounts and receive
            nondiscretionary recommendations (meaning we have to receive instructions from the client
            before a financial transaction can be carried out) from their Advisor. Advisors are compensated
            for such advice through annual planning fees and transaction-related compensation, such as
            commissions or trail fees from the purchase or sale of securities. In such cases, our Advisors,
            who are also registered representatives of SMH, receive brokerage commissions when
            implementing investments for their financial planning clients. Clients are under no obligation to
            implement their financial plans through our firm. Clients who choose to implement their
            financial plans elsewhere will not receive ongoing investment advice from us.

            EFS does not serve as an ERISA fiduciary to any account subject to the Employee Retirement
            Income Security Act of 1974, as amended, which seeks only financial planning services.

            The Financial Education Group
            EFS is a strong advocate of consumer education and financial literacy. The Edelman Financial
            Education Group is a team of financial educators who provide seminars to corporations,
            associations, non-profit organizations, community and religious groups on a variety of personal
            finance topics, often as a community service. Presentations are created by and based on the
            teachings of Ric Edelman. They are designed to explain complex financial concepts in plain
            English in a way that is educational, informational and entertaining. Groups may qualify to
            receive presentations free of charge, as part of our community services program.

            Ric Edelman is a public speaker and financial educator and offers seminars on a variety of
            financial topics. See Item 5 for a discussion of fees.

            Institutional Advisory Services
            EFS provides a broad range of institutional investment management services to a variety of
            small and midsize organizations, endowments and associations. The services offered include:

                   •   Investment Policy Statement Assistance — EFS assists in creating, rewriting and/or
                       reviewing an effective Investment Policy Statement that reflects the investment needs
                       of the entity.




Form ADV Part 2A                                          12                                               June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



                   •   Asset Allocation Model — EFS assists in developing a diversified asset allocation strategy
                       in accordance with the investment objectives, goals, need for liquidity and risk tolerance
                       of the entity.

                   •   Financial Profile — EFS performs a detailed review of the entity’s investment objectives
                       and financial situation in order to provide an accurate assessment of the appropriate
                       level of acceptable risk in accordance with the stated time horizon and goals.

                   •   Investment Management — EFS provides ongoing, continuous management of assets,
                       including strategic rebalancing and daily account review.

                   •   Record keeping — EFS provides statements and online functions designed to ease the
                       administrative needs and burdens associated with record keeping and reporting.

            Assets Under Management
            EFS has the following assets under management as of February 28, 2012:

                                                           Accounts      Assets
                                  Discretionary            37,535        $7,106,100,000
                                  Non-discretionary        0             0
                                  Total                    37,535        $ 7,106,100,000




            Item 5: Fees and Compensation

                       EMAP Client Fee Schedule
                       Portion of the Account That Is
                       at Least                       But Less Than Fee at This Tier
                                                   --     $ 150,000 2.00%
                                           $ 150,000      $ 400,000 1.65%
                                           $ 400,000      $ 750,000 1.25%
                                           $ 750,000    $ 1,000,000 1.00%
                                         $ 1,000,000    $ 3,000,000 0.75%
                                         $ 3,000,000 $ 10,000,000 0.60%
                                        $ 10,000,000 $ 25,000,000 0.50%
                                        $ 25,000,000    and greater negotiable




Form ADV Part 2A                                           13                                                June 20, 2012
                                                                                        EDELMAN FINANCIAL SERVICES LLC



            The EMAP fee includes periodic access to an Advisor and discretionary management, including
            periodic review of all investments in the EMAP asset allocation model. The fee also includes all
            model transaction costs, custody of assets and a subscription to Ric Edelman’s Inside Personal
            Finance newsletter.

            Clients pay a wrap fee, which includes all brokerage execution costs, without regard to the
            number of transactions executed during the billing period. EFS has negotiated fees with
            clearing/custodying firms, and the costs do not affect the wrap fee paid by the client.
            Transaction costs imposed by the brokerage firms are covered by the wrap fee. The wrap fee
            does not include certain account and securities-related costs, including the fees embedded in
            the mutual funds, ETFs or annuities in which wrap fee accounts invest. In addition, the fee does
            not include debit balances, related margin interest, IRA and retirement plan fees, transfer fees,
            SEC fees, 12b-1 fees for certain money market funds, wire transfer fees, overnight check fees,
            account closing fees, expenses charged by the mutual funds (including management fees,
            transaction charges incurred for fund-level asset allocation model trades, custody of fund assets
            and other fund expenses), expenses charged by the variable annuities and exchange-traded
            funds, or other fees or taxes that are required by law.

            Transactions executed on behalf of EMAP clients are executed for a single wrap fee, which
            reduces the potential conflict of interest associated with executing a large number of orders for
            client accounts and earning transaction-based compensation following each order. In addition,
            EMAP invests client assets in no-load shares of unaffiliated open-end registered investment
            companies (such as mutual funds), ETFs and no-commission variable annuities. Thus, neither our
            firm nor the Advisors earn any additional revenue from EMAP accounts beyond the wrap fee.
            However, EFS and its Advisors may have a financial incentive to recommend EMAP over other
            products.

            When calculating advisory fees, we aggregate household accounts to determine the lowest
            percentage if all accounts were managed as one relationship. Fees are not negotiable, other
            than as disclosed in the fee schedule above. Accounts with less than $50,000 may effectively pay
            a fee that is greater than 2.00% due to our minimum annual fee. Full fee details are discussed in
            Item 7 and also in the Client Services Agreement that is signed by the client. Clients should be
            aware that lower fees for comparable services may be available from other sources.

            Clients authorize the custodian firm, on behalf of EFS, to deduct the EMAP fee from their
            accounts. The fee is based on the average daily balance of the client assets including money
            market funds, interest and reinvested dividends. The first payment is calculated based on the
            number of days assets are placed in the account during a calendar quarter. Subsequent fees are
            determined based on the average daily balance for the quarter ending on the last day of each
            calendar quarter. Generally, fees are deducted from the client’s account no later than the
            fifteenth (15th) day after the end of each quarter, in arrears. For margined accounts, the fee
            may be added to the margin balance unless the client elects to deposit cash or liquidate



Form ADV Part 2A                                         14                                               June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC



            securities. If an account is terminated prior to the end of a calendar quarter, the terminating
            client will pay fees due up to the termination date.

            EFS and the Advisors who are authorized to recommend EMAP receive compensation based on
            the amount of money the client invests in the program. The amount of such compensation may
            be more or less than what our Advisors might earn from non-discretionary annual financial
            planning advice. Therefore, our firm and Advisors may have a financial incentive to recommend
            EMAP over other programs or services. However, the compensation paid from the EMAP fee
            does not vary depending upon the number of trades made in EMAP client accounts. We do not
            earn more of the fee if fewer trades are placed. This arrangement gives us no economic
            incentive to place more or fewer trades through clearing broker-dealers for EMAP accounts.

            Clients will pay the same fee, regardless of whether the client selects an EMAP asset allocation
            model through an EFS Advisor or another affiliated or unaffiliated registered investment
            advisory firm that is authorized to offer EMAP. Our firm will pay a negotiated percentage, up to
            60% of the annual account fee, to registered investment advisory firms on accounts initiated
            and serviced by their Advisors. Also, at no additional cost to the client, EFS may occasionally pay
            additional basis points to the registered investment advisory firm.

            Institutional

                    EMAP Institutional Fee Schedule                        Fee
                    Up to $999,999                                         1.40%
                    $1 million to $1,999,999                               1.00%
                    $2 million to $4,999,999                               0.75%
                    $5 million to $9,999,999                               0.60%
                    $10 million to $24,999,999                             0.50%
                    $25 million +………………..                                  negotiable


            The fee includes periodic access to an Advisor and the services described above in Item 4.

            The fee does not include debit balances, related margin interest, transfer fees, SEC fees, 12b-1
            fees for certain money market funds, expenses charged by the mutual funds (including
            management fees, transaction charges incurred for fund-level asset allocation model trades,
            custody of fund assets and other fund expenses) andETFs, or other fees or taxes that are
            required by law.

            Institutional clients authorize the custodian firm, on behalf of EFS, to deduct the EMAP fee from
            their accounts. The fee is based on the average daily balance of the client asset allocation
            model. The first payment is calculated based on the number of days assets are placed in the
            account during a calendar quarter. Subsequent fees are determined based on the average daily
            balance for the quarter ending on the last day of each calendar quarter. Fees are deducted from

Form ADV Part 2A                                         15                                                   June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC



            the account no later than the fifteenth (15th) day after the end of each quarter, in arrears. If an
            account is terminated prior to the end of a calendar quarter, the terminating client will pay fees
            due up to the termination date.

            EFS and the Advisors who are authorized to recommend EMAP receive compensation based on
            the amount of money invested in the program. The compensation paid from the EMAP fee does
            not vary depending upon the number of trades made in EMAP client accounts. EFS does not
            earn more of the fee if it places fewer trades. As a result of the wrap nature of the fee, EFS has
            no economic incentive to place more or fewer trades through clearing broker-dealers for EMAP
            accounts.

            Edelman Retirement Program

                    ERP Plan Assets                                         Fee
                    $0 to $2 million                                        1.00%
                    $2 million to $5 million                                0.85%
                    $5 million to $10 million                               0.70%
                    $10 million to $15 million                              0.60%
                    $15 million to $20 million                              0.50%
                    $20 million +………………..                                   negotiable


            The fee includes periodic access to an Advisor and the services provided on behalf of the Plan
            sponsor client as described above. The ERP fee is payable quarterly in arrears, no later than the
            thirtieth (30th) day after the end of the quarter. Except as may be otherwise agreed to by the
            Plan sponsor and EFS, the Plan sponsor agrees for the Plan’s recordkeeper, custodian or other
            service provider to deduct the ERP fee from Plan accounts and to remit such amounts to
            EFSprior to the due date as provided under the ERP Investment Management Agreement, which
            is the standard ERP client contract. The fee is based on the balance of the total assets of the Plan
            accounts invested in the Investment Options as of the end of each calendar quarter. The first
            payment is prorated for assets that are placed in Plan accounts during a calendar quarter.
            Subsequent fees will be determined based on the last day of each quarter. The fee schedule
            above shows the annual percentages.

            The ERP fee does not cover any fees or expenses charged by any of the Underlying Funds,
            including but not limited to any brokerage commissions, other transaction costs, redemption
            fees or any other charges or expenses imposed by the Underlying Funds. The Plan’s
            recordkeeper, custodian or other service provider may charge a separate fee to cover the
            administrative and other record keeping costs associated with Plan accounts invested in the
            Investment Options.




Form ADV Part 2A                                         16                                                 June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



            Other Fees Earned by EFS

            Financial Plans
            EFS may charge a one-time initial fee of $800 for financial plan development and presentation.
            Clients who pay for a plan are under no obligation to implement the plan with our firm. The
            financial planning fee is waived for employees of the firm and for pro bono cases at the
            discretion of the Advisor.

            Annual Financial Planning Fee
            EFS charges an annual financial planning fee of $400 beginning in the second year after the
            creation of a plan for non-EMAP accounts. This fee is not charged for EMAP accounts. The fee
            includes periodic review of recommended investments by EFS Advisors. Included in the annual
            financial planning fee is a subscription to Ric Edelman’s Inside Personal Finance newsletter.

            Fees are billed annually at the quarter-end following the client’s anniversary date and are
            charged at the discretion of the Advisor. The fee is waived for an ERISA-only client. If
            termination occurs prior to the end of the client’s anniversary date, the client will receive a pro
            rata refund of any unearned fee. Clients may contact us utilizing the information on the cover
            page if they have questions regarding their refund.

            EFS Advisors are also SMH registered representatives and receive commissions and other
            transaction-related fees on products sold outside of EMAP as part of an implemented financial
            plan. Lower fees for financial planning and securities transactions may be available from other
            sources. EFS Advisors may have a financial incentive to recommend products that may result in
            commission revenue. However, financial planning clients are under no obligation to implement
            their financial plans through us and are informed of this at the time plans are presented.

            Seminars
            Seminars are offered to the public on a variety of financial topics. Fees range from $10 to $495,
            with satisfaction guaranteed or 100% of the registration fee is refunded. The fee is due prior to
            the event.

            Speaking Engagements
            Ric Edelman is a public speaker, radio show host, and host of a television show about investing
            and financial education. Fees for his speaking engagements range from free to $30,000 plus
            first-class travel expenses, depending on sponsor, date, location and program requested. For all
            speeches, 50% of the fee is required prior to the event, with the balance due at the conclusion
            of the event. Speaker fees are nonrefundable.




Form ADV Part 2A                                          17                                                 June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            Educational Products
            EFS publishes and sells the newsletter, Ric Edelman’s Inside Personal Finance , on a subscription
            basis for $39.95 annually. Subscribers may cancel at any time and receive a full refund. The
            complete first season of The Truth About Money with Ric Edelman, a weekly Public Television
            series, is available on DVD for $9.99. Ric Edelman’s books include: The Truth About Money (4th
            ed.); The New Rules of Money; Ordinary People, Extraordinary Wealth; Discover the Wealth
            Within You; What You Need to Do Now; The Lies About Money; and Rescue Your Money. Books
            are available for sale through booksellers, with prices ranging from $9.95 to $28. EFS may
            provide books at a discount or for no cost to organizations, individual clients or prospective
            clients.

            Edelman Gear
            Edelman-branded apparel and merchandise is available through our online store,
            EdelmanGear.com. Clients can save 10% by using the promo code ‘clientsuccess’ at check out.
            Branded merchandise includes shirts, jackets, hats, backpacks, pad folios, water bottles,
            umbrellas, golf balls, Frisbees, piggy banks, etc. Items may be periodically added or removed.
            100% of proceeds from branded-merchandise benefit the Boys & Girls Clubs of America.

            For all products except the newsletter, there is a fee for shipping and handling.

            RIC-E Trust®
            Edelman Business Services LLC (“EBS”),a wholly owned subsidiary of Edelman Financial Center
            LLC, markets the Retirement InCome for Everyone Trust® (RIC-E Trust®), which is an individual
            grantor trust enabling the Grantor to set aside assets for a child’s retirement. Because the assets
            of each trust are invested in a variable annuity, assets grow tax-deferred. The trustee is named
            by the Grantor. First SunAmerica Life Insurance Company, the issuer of the tax-deferred
            investment, is a subsidiary of AIG. EBS receives an administrative fee of $400 for each RIC-E
            Trust® established. This fee is not associated with investment advisory services offered by EFS.
            Commissions from the underlying variable annuity are received by the EFS Advisor.



            Item 6: Performance-Based Fees and Side-by-Side
            Management
            EFS does not charge any performance-based fees (fees based on a share of capital gains on or
            capital appreciation of the assets of a client). We do not engage in side-by-side management.
            See Item 5: Fees and Compensation for further details on advisory services offered.




Form ADV Part 2A                                         18                                                June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC




            Item 7: Types of Clients
            EFS provides financial planning, investment management, advice and insurance services to
            individuals, trusts, estates, charitable organizations, foundations, pensions, retirement and
            profit-sharing plans, institutions, and small businesses.

            Minimum Account Size

            EMAP
                   •   Client household minimum account size is $50,000. We may waive the minimum
                       account size at our sole discretion.

                   •   Minimum annual fee is $1,000. We may waive the minimum annual fee at our sole
                       discretion.

                   •   Employee and Advisor minimum account size is $3,000.

                   •   Institutional minimum account size is $500,000. We may waive the minimum account
                       size at our sole discretion.

            ERP
            We may require a minimum dollar value of Plan assets of $500,000, at our sole discretion, as a
            condition of providing our services to Plan sponsors. Minimum account size depends on the
            number of total assets in the Plan’s trust, the current number of participants, the expected
            number of participants in future periods and other factors EFS deems relevant, including the
            Plan sponsor’s financial requirements, economic circumstances and investment objectives.



            Item 8: Methods of Analysis, Investment Strategies and
            Risk of Loss

            Investment Strategy
            EMAP relies on an investment philosophy that is based on the latest academic research, such as
            the Modern Portfolio Theory and the Fama-French Three-Factor Model, and the latest
            discoveries in behavioral finance. The Modern Portfolio Theory says that it is not enough to look
            at the expected risk and return of one particular asset class. By investing in more than one asset
            class, an investor can reap the benefits of diversification, chief among them being a reduction in
            the risk level of the portfolio. The Modern Portfolio Theory quantifies the benefits of
            diversification, also known as “not putting all your eggs in one basket.” The Fama-French Three-


Form ADV Part 2A                                         19                                                 June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



            Factor Model, through research, found that over long periods of time, value stocks outperform
            growth stocks and, similarly, small cap stocks tend to outperform large cap stocks. Therefore, by
            analyzing these factors it becomes easier to evaluate the potential portfolio performance. EMAP
            is founded on the premise that solid science, backed by decades of academic research, offers
            one of the smartest approaches to investing.

            The EFS investment philosophy is based on the following basic principles:

                   •   Develop highly diversified portfolios that feature a broad range of asset classes and
                       market sectors.

                   •   Use market-based investments, not manager-based investments.

                   •   Hold the investments for long periods of time.

                   •   Periodically reallocate investments as conditions warrant.

                   •   Strategically rebalance as needed.

            EMAP is highly diversified, invests in mutual funds and ETFs, and features as many as nineteen
            (19) asset classes and market sectors. This approach is very effective, but of course cannot
            ensure investment success or prevent loss in a declining market. Past performance is no
            guarantee of future results.

            Methods of Analysis and Investment Selection
            Based on the written EMAP agreement that clients execute, EFS is granted limited discretionary
            authority to implement client-approved investment strategies. Investments are selected based
            on past performance (as applicable), manager tenure, portfolio turnover, fees and a variety of
            academic statistics including beta, standard deviation, R-Squared and Sharpe Ratio. These
            statistics are provided by third-party vendors and the investment sponsors and are evaluated by
            the asset allocation model manager as well as the EFS Investment Committee, on both an
            absolute and relative basis, relying on standards set by the firm.

            We may obtain and utilize information and data from a wide variety of public and private
            sources. Neither EFS nor our Advisors will independently verify or guarantee such information
            and data. In categorizing the asset classes of investments, we will rely on prospectuses and
            information obtained from the issuer or its agents, or through publicly available sources. Neither
            EFS nor our Advisors shall be liable for any misstatement or omission contained in the
            information from these sources, or any loss, liability, claim, damage or expense incurred, arising
            out of, or attributable to such misstatement or omission.

            Transactions for different account(s) or for other clients’ accounts may not be made at the same
            time, may be made on different days, and may be made over multiple days. In handling


Form ADV Part 2A                                            20                                                 June 20, 2012
                                                                                              EDELMAN FINANCIAL SERVICES LLC



            purchases and liquidations, we will execute transactions without regard to pending dividend or
            capital gains distributions, stock splits, mergers, or other corporate or financial events.

            The client may impose reasonable restrictions on the management of the account. When
            imposing restrictions, the client may request that particular securities or types of securities not
            be purchased, or that such securities be sold if held in the account. However, the client cannot
            request that particular securities be purchased for the account. Moreover, the client should
            note that it is impossible for us to influence or change the mix of securities held by any mutual
            fund or ETF included in the client’s account. We reserve the right, at our sole discretion, to
            reject any account should the client request unreasonable or overly restrictive conditions.

            Risk of Loss
            EMAP consists of a combination of no-load mutual funds, exchange-traded funds (ETFs) and,
            rarely, variable annuities, all of which are subject to some or all of the following risk factors:

                   •   Market Risk — Even a long-term investment approach cannot guarantee a profit.
                       Economic, political and issuer-specific events will cause the value of securities to rise or
                       fall. Because the value of investment portfolios will fluctuate, there is the risk that you
                       will lose money and your investment may be worth more or less upon liquidation.

                   •   Foreign Securities and Currency Risk — Investments in international and emerging-
                       market securities include exposure to risks including currency fluctuations, foreign taxes
                       and regulations, and the potential for illiquid markets and political instability.

                   •   Capitalization Risk — Small cap and mid cap companies may be hindered as a result of
                       limited resources or less diverse products or services and have historically been more
                       volatile than the stocks of larger, more established companies.

                   •   Interest Rate Risk — In a rising rate environment, the value of fixed-income securities
                       generally declines.

                   •   Credit Risk — Credit risk is the risk that the issuer of a security may be unable to make
                       interest payments and/or repay principal when due. A downgrade to an issuer’s credit
                       rating or a perceived change in an issuer’s financial strength may affect a security’s
                       value and, thus, impact the fund’s performance.

                   •   Securities Lending Risk — Securities lending involves the risk that the fund loses money
                       because the borrower fails to return the securities in a timely manner or at all. The fund
                       could also lose money if the value of the collateral provided for loaned securities, or the
                       value of the investments made with the cash collateral, falls. These events could also
                       trigger adverse tax consequences for the fund.

                   •   Derivatives — Derivatives are securities, such as futures contracts, whose value is
                       derived from that of other securities or indices. Derivatives can be used for hedging

Form ADV Part 2A                                             21                                                  June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



                       (attempting to reduce risk by offsetting one investment position with another) or non-
                       hedging purposes. Hedging with derivatives may increase expenses, and there is no
                       guarantee that a hedging strategy will work. Changes in the value of the derivative may
                       not correlate perfectly with the underlying asset, rate or index, and the fund could lose
                       more than the principal amount.

                   •   While hedging can reduce or eliminate losses, it can also reduce or eliminate gains.
                       Derivative securities are subject to a number of risks, including:

                           o   Liquidity

                           o   Interest rate risk

                           o   Market risk

                           o   Credit and management risks

                           o   Risk of improper valuation

                   •   Exchange-Traded Funds –ETFs face market-trading risks, including the potential lack of
                       an active market for shares, losses from trading in the secondary markets and disruption
                       in the creation/redemption process of the ETF. Any of these factors may lead to the
                       fund’s shares trading at a premium or discount to its “net asset value.”

                   •   Performance of Underlying Managers-We select mutual funds and ETFs. We depend on
                       the manager of such funds to select individual investments in accordance with their
                       stated investment strategy.



            Item 9: Disciplinary Information
            Registered investment advisers are required to disclose all legal or disciplinary events that are
            material in a client’s evaluation of EFS or the integrity of EFS’ management. The following is the
            only disciplinary item we have to report since inception:

            Administrative Proceeding
            On July 17, 2006, EFS entered into an administrative proceeding with the State of Illinois for a
            registration matter. EFS paid a $4,200 fine to the State of Illinois for exceeding its de minimis
            registration standard. Basically, EFS had six clients who resided in Illinois and the limit where no
            registration was required was five. EFS also agreed to pay the state $1,500 for the cost of its
            investigation.




Form ADV Part 2A                                            22                                                June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC




            Item 10: Other Financial Industry Activities
            and Affiliations

            Related Persons

            Broker/Dealer
            TEFG, which is the majority owner of EFS, also owns Sanders Morris Harris Inc. (“SMH”), a firm
            that is dually registered as a broker-dealer and an investment adviser. As such, we are affiliated
            with a registered broker-dealer and investment adviser. Certain EFS employees are also
            registered representatives of SMH. Our advisory personnel, solely in their capacity as registered
            representatives of SMH and not as Advisors of EFS, accept orders for SMH accounts from
            brokerage clients who may or may not be financial planning clients. When acting as registered
            representatives for clients, our advisory personnel execute transactions for clients through SMH
            and receive brokerage commissions from SMH on any products sold in this capacity. Thus, a
            potential conflict of interest exists between the interests of our advisory personnel and
            brokerage clients. Clients are advised that they are under no obligation to effect securities
            transactions with SMH or through their EFS registered representative and that similar services
            may be less expensive elsewhere.

            As previously mentioned, Ric Edelman serves as President, CEO and Director of TEFG, as well as
            Chairman and CEO of EFS. In addition, he is a registered representative and principal with SMH.
            As such, there is a potential inherent conflict of interest arising out of his obligations to the
            shareholders of TEFG and his fiduciary duties to the clients of EFS.

            SMH Advisors may offer EMAP and ERP to their clients. In those situations, SMH and EFS would
            share in the program fees. A potential conflict of interest may exist due to the affiliation
            between the two companies. However, clients who purchase EMAP or ERP through SMH pay no
            more than other clients of EFS making similar purchases.

            Finally, we provide various administrative, back-office and trading services to SMH to assist with
            its advisory product offerings. Generally, EFS and SMH will share in the advisory fees generated
            from the assets in the wrap fee program to compensate EFS for its services.

            Investment Advisors
            EFS is affiliated with the following wholly owned subsidiaries of TEFG, which are also registered
            investment advisors:

                   •   Sanders Morris Harris Inc. (“SMH”) — See discussion above

                   •   SMH Capital Advisors Inc. (“SMHCA”) — No material relationship with EFS



Form ADV Part 2A                                         23                                                June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            The following registered investment advisors and/or broker-dealers are wholly or partially
            owned subsidiaries of TEFG but have no material relationship with EFS:

                   •   SOF Management, LLC

                   •   Rikoon Group LLC

                   •   Leonetti & Associates LLC

                   •   Investor Financial Solutions, LLC

                   •   Silverbay Capital Management, LLC

                   •   Miller-Green Financial Services Inc.

                   •   GFS Advisors LLC

                   •   Global Financial Services, L.L.C. (broker-dealer)

            Insurance Agency
            HWG Insurance Agency, Inc., is a wholly owned subsidiary of TEFG. EFS Advisors may also be
            insurance agents of HWG. They are licensed to sell variable and fixed insurance products and
            receive insurance commissions from client transactions through this agency.

            EFS is also a licensed insurance agency and is licensed in most states. Our advisory personnel
            generally refer clients who wish to buy insurance products such as life, long-term disability and
            long-term care insurance to AccuQuote, an unaffiliated insurance agency that specializes in
            insurance brokerage and providing affordable insurance to clients. EFS and its insurance agents
            are compensated a percentage of the revenues generated on the sale of such insurance
            products. As such, our firm and our insurance agents have a conflict of interest because of the
            economic incentive to sell policies that result in commissions or other sales revenue. Clients are
            advised that they are under no obligation to purchase any insurance products through us or our
            personnel and those products may be less expensive elsewhere.

            Other
            Edelman Business Services LLC (“EBS”), a wholly owned subsidiary of EFC, markets the
            Retirement InCome for Everyone Trust® (RIC-E Trust®), which is an individual grantor trust
            enabling the Grantor to set aside assets for a child’s retirement. Because the assets of each such
            trust are invested in a variable annuity, assets grow tax-deferred. The trustee is named by the
            Grantor. First SunAmerica Life Insurance Company, the issuer of the tax-deferred investment, is
            a subsidiary of AIG. EBS receives an administrative fee of $400 for each RIC-E Trust® established.
            This fee is not associated with investment advisory services offered by EFS, although
            commissions are generated from the underlying annuity through SMH.




Form ADV Part 2A                                              24                                           June 20, 2012
                                                                                             EDELMAN FINANCIAL SERVICES LLC




            Item 11: Code of Ethics, Participation of Interest in
            Client Transactions and Personal Trading

            Code of Ethics
            EFS has adopted a Code of Ethics (“The Code”) that is designed to ensure that all employees
            adhere to the highest standards of ethical conduct. The Code states that all of our employees
            must act in the best interest of the client at all times. It also states that employees should avoid
            any practice that creates or appears to create a material conflict of interest that could
            potentially harm a client.

            In addition, the EFS Code of Ethics requires, among other things, that employees:

                   •   Submit their personal and related trading accounts to the Compliance Department for
                       review

                   •   Refrain from purchasing Initial Public Offerings (“IPOs”)

                   •   Refrain from trading on insider information

                   •   Get approval prior to purchasing a private placement

                   •   Comply with ethical restraints including restrictions on giving and receiving gifts

                   •   Report any conduct that could potentially harm a client

            EFS has also adopted supervisory procedures that are designed to detect the following abusive
            behavior:

                   •   Front-running, trading ahead or opposite clients

                   •   Trading in securities on the SMH Restricted or Watch List

                   •   Trading that appears to be based on insider information

                   •   Short-term or day trading

                   •   Trading during designated SMH blackout periods

            Any officer or employee of the firm who fails to observe the EFS Code of Ethics risks serious
            sanctions, including personal liability and/or termination of employment.

            A copy of the EFS Code of Ethics is available upon request by contacting us using the information
            on the cover page of this brochure.



Form ADV Part 2A                                            25                                                 June 20, 2012
                                                                                             EDELMAN FINANCIAL SERVICES LLC



            Related Person May Invest in the Same Securities
            EFS investment advisory personnel may invest their personal funds and establish an EMAP
            account for themselves. Our advisory personnel may also participate in the EFS Employee 401(k)
            Plan that may use abbreviated EMAP asset allocation models. In that regard, employees may
            buy and sell for themselves the same underlying securities as clients and will have interests in
            securities owned by or recommended to our clients, including mutual funds, ETFs or insurance
            products. Although all employees get the benefit of a fee reduction on EMAP accounts, those
            accounts are not given preferential trading treatment. Employee accounts are monitored and
            rebalanced on the same basis as all other unrestricted client accounts invested in accordance
            with the same EMAP asset allocation model strategy. We have adopted procedures relating to
            personal securities transactions, insider trading and internal trading that are designed to
            prevent client harm resulting from this conflict of interest.

            Agency Cross Procedures
            In order to comply with the agency cross provisions of the Investment Advisers Act, EFS relies on
            SMH policies and procedures. SMH has policies and procedures in place to ensure that
            transactions introduced on behalf of EMAP clients are not crossed with transactions introduced
            to the clearing firm on behalf of SMH brokerage customers. As a general matter, the nature of
            the securities acquired for EMAP and financial planning clients are not likely to cross
            transactions since shares of mutual funds and variable annuities are purchased from their
            issuers and are not exchange-traded. Although ETFs are exchange-traded, EFS would not, acting
            as investment adviser, generally recommend that such shares be crossed from one advisory
            client account to another and would never act as a broker with respect to any such potential
            cross transaction.



            Item 12: Brokerage Practices

            Brokerage Selection
            Clients who establish a wrap fee account with EFS must consent to a clearing/custodying broker-
            dealer that we have a clearing arrangement with. We have selected the following unaffiliated
            registered broker-dealers, which are members of FINRA and SIPC, to execute and clear
            transactions and provide custody services for EMAP wrap fee clients:

                   •   TD Ameritrade Institutional (as cleared through TD Ameritrade Clearing, Inc.), a division
                       of TD Ameritrade, Inc. (“TD Ameritrade”)

                   •   Fidelity Institutional Wealth Services (“Fidelity”) (as cleared through National Financial
                       Services LLC)



Form ADV Part 2A                                            26                                                 June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC



                   •   Pershing Advisor Solutions (“PAS”) (as cleared through Pershing LLC)

            EFS places all transactions associated with wrap fee accounts for execution through these
            executing broker-dealers. Most client accounts are established with TD Ameritrade although
            each clearing broker-dealer offers services that include custody of securities, trade execution,
            clearance and settlement of transactions. Each also provides services that are typically made
            available to institutional investment managers and generally are not offered to retail customers.
            These services include duplicate client statements and confirmations, access to block trading —
            which provides the ability to aggregate securities transactions for execution and then allocate
            the appropriate shares to client accounts — the ability to have advisory fees deducted directly
            from client accounts and access to mutual funds with no transaction fees. All clearing firms
            receive a fixed percentage as compensation for their services. That percentage is based on all
            EMAP account assets that are maintained in the custody of their firm.

            In selecting clearing firms, we evaluate all the services offered, the quality of those services and
            the cost indirectly borne by clients to determine if the clearing firm provides overall quality of
            services for the price. While we have attempted to negotiate favorable commission rates for
            transactions and believe that each clearing firm offers competitive commission rates, we do not
            otherwise seek to obtain the best combination of price and execution with respect to wrap fee
            account asset allocation model transactions. We will periodically compare clearing firm services
            and prices against other broker-dealers qualified to provide comparable services. While another
            broker-dealer may offer these services at a lower overall cost, EFS is not required to move all
            accounts to that broker-dealer.

            Non-EMAP clients may establish accounts to place brokerage transactions. Client brokerage
            transactions are introduced through SMH, an affiliated broker-dealer, and cleared through
            Pershing LLC. SMH is an introducing broker and clears and settles transactions made in SMH
            brokerage accounts through Pershing, which performs the clearance, settlement, execution of
            transactions and custody functions.

            ERP
            Plan sponsors select the clearing and custodian broker-dealer of their choice. Neither EFS nor
            any of our affiliates provide brokerage services in connection with the investment advisory
            services provided by us to Plan sponsor clients through ERP.

            Soft Dollars
            EFS has no formal soft dollar arrangements and does not use soft dollars to acquire any research
            services. Custodian firms offer services to EFS including custody of client securities; trade
            execution; clearance and settlement of transactions; access to platform systems; duplicate client
            statements; research-related products and tools; access to a trading desk; access to block
            trading, which provides the ability to aggregate securities transactions for execution and then
            allocate the appropriate shares to client accounts; the ability to have advisory fees deducted

Form ADV Part 2A                                           27                                                June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC



            directly from client accounts; access to an electronic communications network for client order
            entry and account information; access to mutual funds with no transaction fees and to certain
            institutional money managers; and discounts on compliance, marketing, research, technology,
            and practice management products or services. See further discussion in Item 14.

            Brokerage for Client Referrals
            EFS participates in the TD Ameritrade Institutional program known as AdvisorDirect. TD
            Ameritrade Institutional is a division of TD Ameritrade, Inc. (“TD Ameritrade”), member
            FINRA/SIPC/NFA. TD Ameritrade is an independent and unaffiliated SEC-registered broker-
            dealer. There is no employee or agency relationship between TD Ameritrade and EFS. The
            AdvisorDirect program allows TD Ameritrade to refer its brokerage customers and other
            investors seeking fee-based personal investment management or financial planning services to
            other advisers such as EFS. TD Ameritrade has established the referral program as a means of
            retaining brokerage customers. TD Ameritrade does not supervise EFS and has no responsibility
            for our management of client asset allocation models or other advice or services. EFS was
            chosen by TD Ameritrade to participate in this program based on the number of client accounts
            maintained with TD Ameritrade, amount of the assets, profitability and the volume of trades
            placed, along with other relevant factors.

            We receive client referrals from TD Ameritrade through participation in the AdvisorDirect
            program that may result in economic benefit to EFS. We pay TD Ameritrade an ongoing referral
            fee for each successful client referral. This fee is usually a percentage (not to exceed 25%) of the
            annual advisory fee that the client pays us. We will also pay TD Ameritrade the referral fee on
            any advisory fees we received from any of a referred client’s family members, including a
            spouse, child or any other family member who resides with the referred client and also becomes
            an EFS client. Clients who are referred through this program do not pay higher fees or costs than
            other EFS clients. For more information, please refer to the TD Ameritrade AdvisorDirect
            Disclosure and Acknowledgment Form.

            EFS participation in the AdvisorDirect program poses potential conflicts of interest. TD
            Ameritrade will most likely refer clients through AdvisorDirect to EFS to encourage clients to
            custody their assets at TD Ameritrade and maintain client accounts that are profitable to TD
            Ameritrade. Consequently, in order to obtain client referrals from TD Ameritrade, we may have
            an incentive to recommend to clients that assets under management be held in custody with TD
            Ameritrade and to place transactions for client accounts with TD Ameritrade. We have agreed
            not to solicit clients referred through AdvisorDirect to transfer their accounts from TD
            Ameritrade or to establish brokerage or custody accounts at other custodians, except when its
            fiduciary duties require doing so. EFS participation in AdvisorDirect does not diminish our duty
            to seek best execution of trades for client accounts.




Form ADV Part 2A                                         28                                                 June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            Trade Aggregation Policy
            Whenever appropriate and when the price or execution of a security can be impacted favorably
            by aggregating orders among accounts, EFS aggregates transactions on behalf of all EMAP
            accounts, including accounts of Advisors and employees. It is our policy that such transactions
            will be allocated to all participating client accounts in a fair and equitable manner. There is no
            preferential treatment given to any account. Transactions may be traded together to ensure
            best execution and to avoid price differential. There is seldom, if ever, a problem finding
            sufficient mutual fund shares to purchase for EMAP accounts. These shares are purchased from
            the issuer and sold at the net asset value next determined after an order is received. Shares of
            mutual funds are sold back to the issuer and since we buy open-end funds, each issuing mutual
            fund must stand ready to buy the shares back at the shares’ net asset value, as determined after
            the redemption order is received. Similarly, we buy and sell highly liquid ETF interests or shares
            and there is seldom any difficulty finding a sufficient supply of ETFs in the market. Variable
            annuities and 529 College Saving Plans are purchased directly from the issuer, and no
            aggregation of these transactions occurs.



            Item 13: Review of Accounts
            EFS client accounts are reviewed by advisory personnel of EFS. EMAP accounts are monitored on
            an ongoing basis. Accounts are rebalanced or assets reallocated based on market or other
            conditions as warranted. Securities we buy or sell for accounts are subject to our limited
            discretionary authority. Changes in the asset allocation models, which include adding, removing
            or replacing securities at the recommendation of the EFS Investment Committee, are made
            infrequently, based on significant changes in the economic, financial or political climate;
            changes in the tax code; and the management of the securities used by the asset allocation
            model. Changes may also be made based on the client’s personal circumstances, including
            health, employment and family status, or restrictions that the client may place on the
            investments in the account.

            EFS Advisors generally meet weekly to review economic, tax, financial, political, social and other
            relevant issues and to determine if any changes in strategy are warranted and, if so, to
            implement such changes. Based on these meetings, each Advisor independently reviews clients’
            situations on a periodic basis and makes recommendations as needed.

            On at least an annual basis, the Advisor contacts EMAP clients to update their personal and
            financial information, including health, employment, marital and family status, time horizon,
            goals and objectives, and risk tolerance. The Advisor uses the information to determine if there
            are any changes that could impact the ongoing suitability of the account. Clients may request a
            review at any time as well.



Form ADV Part 2A                                         29                                                June 20, 2012
                                                                                        EDELMAN FINANCIAL SERVICES LLC



            Non-EMAP accounts and financial planning client brokerage accounts at SMH are monitored
            periodically where consistent with the EFS financial plan and client instructions.

            ERP Plan assets are monitored on an ongoing basis. Plan assets are rebalanced or reallocated
            based on market or other conditions as warranted. Changes in the asset allocation models,
            which include adding, removing or replacing securities at the recommendation of the EFS
            Investment Committee, are made infrequently based on significant changes in the economic,
            financial or political climate; changes in the tax code; and the management of the securities
            used by the Investment Option. Changes may be made based on the Plan sponsor’s
            circumstances or restrictions that they may place on the investments in the account.



            Item 14: Client Referrals and Other Compensation

            Other Advisers Offering EMAP
            EFS sponsors EMAP as discussed above and makes the asset allocation models available to
            clients of other unaffiliated registered investment advisers (“RIAs”), including Sanders Morris
            Harris Inc., which is an affiliated firm. We provide systems, services and back-office support to
            those RIAs. The RIA is responsible for the supervision of its Advisors and the selection of the
            EMAP asset allocation model recommendations made to clients. The RIA initiates the
            relationship with the client and is the ongoing client relationship manager. The RIA, through its
            Advisors, compiles personal and financial information about the client, maintains the
            appropriate books and records, makes an asset allocation model recommendation that will
            meet the client’s goals and objectives, maintains the ongoing client relationship, and meets with
            the client on a periodic basis to discuss suitability and any reasonable restrictions the client
            would like to impose on their account. EFS reviews and approves the recommendation. The
            EMAP fee is shared between the two entities on a negotiated basis. The client does not pay an
            increased fee as a result of this arrangement.

            Client Referrals
            From time to time, EFS may enter into agreements to pay other investment advisers for client
            referrals in accordance with the requirements of Rule 206(4)-3 of the Investment Advisers Act,
            the respective federal and state laws governing the same, and ERISA, if applicable. In such cases,
            wrap fees will be shared between the two entities. EMAP or ERP fees are based on a percentage
            of client assets invested in the wrap fee program. Any such referral fee shall be paid solely from
            the investment advisory fee. The client does not pay an increased fee as a result of these
            arrangements.

            Compensation to other investment advisory firms who refer clients to EFS (“Solicitor”) is on a
            negotiated basis. The Solicitor provides the client with a copy of the EFS ADV and a copy of the


Form ADV Part 2A                                         30                                                 June 20, 2012
                                                                                         EDELMAN FINANCIAL SERVICES LLC



            EFS written disclosure document, which describes the arrangement between EFS and the
            solicitor including the terms, conditions and compensation.

            Selection of Other Advisors — Edelman Financial Network™ (“EFN”)
            EFN is a network of Advisors created by EFS to refer prospective clients who are interested in
            working with a local advisor in cities where we do not have a branch office. We may refer
            prospective clients to these Advisors of other affiliated or unaffiliated registered investment
            advisory firms for advisory service in accordance with the requirements of Rule 206(4)-3 of the
            Investment Advisers Act and the respective federal and state laws governing the same. With the
            exception of Sanders Morris Harris Inc., an affiliated advisory firm, Advisors are not affiliated
            with EFS in any manner and they are not our employees.

            In selecting Advisors, EFS takes into consideration the Advisor’s investment philosophy,
            regulatory status and overall credibility. The Advisor’s philosophies must be aligned to a large
            extent with those of Ric Edelman and EFS. We complete due diligence on each investment
            advisory firm and Advisor prior to referring a prospective client. Advisors do not pay any fee to
            join EFN other than a nominal reimbursement to cover the costs of all necessary background
            checks. We may also provide marketing support and practice management training to the
            Advisor.

            The selected Advisor may offer EMAP or any other financial planning product(s) that meets the
            prospective client’s needs and goals. We receive no compensation or economic benefit from
            products or services offered by the EFN Advisor other than EMAP. Advisors and EFS share in the
            EMAP fee. There are no additional costs to the client and, accordingly, the client does not pay a
            higher fee as a result of this arrangement.

            Participation in the Edelman Financial Network™ raises potential conflicts of interest as the
            Advisor may have an economic incentive to offer EMAP. A potential conflict of interest may arise
            from the Advisor’s inclination to offer EMAP to clients over other investment products due to
            the economic benefits of the referral from EFS.

            TD Ameritrade Institutional Program
            EFS participates in the TD Ameritrade Institutional Program. TD Ameritrade is an unaffiliated
            registered broker-dealer and a member of FINRA, SIPC and NFA. TD Ameritrade Institutional is a
            division of TD Ameritrade, Inc. We receive services that include custody of client securities,
            trade execution, clearance and settlement of transactions. The Institutional Program provides
            additional significant economic benefits to EFS that are not typically available to TD Ameritrade
            retail investors. EFS may make these additional services available to its affiliates without cost.
            There is no direct link between EFS’s participation in the program and the investment advice it
            gives to its clients.




Form ADV Part 2A                                         31                                                June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



            The economic benefits include the following products and services, which are provided without
            cost or at a discount:

                   •   Receipt of duplicate client statements and confirmations

                   •   Research-related products and tools

                   •   Consulting services

                   •   Access to a trading desk serving EFS

                   •   Access to block trading (which provides the ability to aggregate securities transactions
                       for execution and then allocate the appropriate shares to client accounts)

                   •   The ability to have advisory fees deducted directly from client accounts

                   •   Access to an electronic communications network for client order entry and account
                       information

                   •   Access to mutual funds with no transaction fees and to certain institutional money
                       managers

                   •   Discounts on compliance, marketing, research and technology

                   •   Practice management products or services provided to EFS by third-party vendors

                   •   TD Ameritrade may also pay for business consulting and professional services received
                       by EFS related persons

            Some of the products and services made available by TD Ameritrade through the Institutional
            Program may benefit us but may not benefit client accounts. These products or services may
            assist us in managing and administering client accounts, including accounts not maintained at
            TD Ameritrade. Other services made available by TD Ameritrade are intended to help us manage
            and further develop our business enterprise. Receiving these economic benefits creates a
            potential conflict of interest and may indirectly influence EFS to recommend TD Ameritrade to
            clients for custody and brokerage services.

            TD Ameritrade Operations Panel
            EFS employees may serve on a TD Ameritrade Institutional Operations Panel from time to time.
            The panel is sponsored by TD Ameritrade and consists of approximately 24 independent
            advisors who advise TD Ameritrade on issues relevant to its service, technology and products
            provided. In-person meetings are held three to four times a year. Panel members are not
            compensated for their participation; however, TD Ameritrade pays or reimburses EFS for the
            travel, lodging and meal expenses incurred when attending panel meetings.



Form ADV Part 2A                                              32                                              June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



            Panel members are selected by TD Ameritrade and appointed to serve for a three-year term.
            Longer service is permitted at the discretion of TD Ameritrade Institutional sales, service and
            senior management. At times, panel members are provided with confidential information about
            TD Ameritrade initiatives. Therefore, panel members are required to sign a confidentiality
            agreement. The benefits received by EFS do not depend on the number of brokerage
            transactions directed to TD Ameritrade. However, receiving economic benefit creates a
            potential conflict of interest and may indirectly influence us to recommend TD Ameritrade to
            clients for custody and brokerage services.

            Compensation for Other Products and Services
            EFS Advisors receive commissions on insurance and/or securities products purchased by
            financial planning clients who choose to implement their financial plan through us. Advisory
            personnel may also receive 12b-1 fees as a result of placing clients with retail mutual funds.
            EMAP clients do not incur sales charges, commissions or 12b-1 fees when purchasing or owning
            variable annuities or mutual funds.

            As a financial planning firm, EFS makes the following statements:

                   (1) Our Advisors are also licensed to sell insurance policies from several insurance
                       companies and may receive sales or referral compensation from any such transactions.

                   (2) Clients are under no obligation to have us or our advisory personnel implement any
                       suggestions made in the financial plan.

                   (3) If asked to implement the suggestions of the financial plan, we intend to implement
                       such financial planning, in whole or in part, through products selected by us and to clear
                       securities transactions through Pershing, TD Ameritrade or Fidelity, as described in Item
                       12.

                   (4) To the extent EFS or our Advisors implement recommendations through SMH,

                           a. we are acting as agents for SMH;

                           b. we will use only products offered by SMH; and

                           c. we will earn commissions.

                   (5) Clients have total freedom to execute securities and/or insurance transactions with any
                       company of their choice other than with respect to participation in EMAP or the receipt
                       of ongoing, annual financial planning recommendations.

            Indirect Compensation Regarding Television Broadcasts
            Ric Edelman is the host of a syndicated television program, “The Truth About Money with Ric
            Edelman, airing on public television stations. The program covers all aspects of financial

Form ADV Part 2A                                            33                                                June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



            education. He does not give specific securities advice and does not reveal any of the EMAP asset
            allocation model holdings or recommendations. A portion of the television show is filmed before
            a studio audience where participants can ask questions. An audience participant may discuss a
            specific mutual fund, ETF or insurance product that may be held in the accounts of certain EMAP
            clients or under consideration at the time of the question. Mr. Edelman does not give specific
            legal, tax or investment advice, and he may give advice that is the same as or different from the
            advice EFS has taken or may take for its clients.

            From time to time, TD Ameritrade provides a significant economic benefit to EFS by directly
            sponsoring the foregoing television show. This economic benefit may or may not be offered to
            other independent investment advisors participating in the TD Ameritrade Institutional
            Program. TD Ameritrade provides this economic benefit to us indirectly at its sole discretion and
            its own expense. The benefit we receive does not depend on the number of brokerage
            transactions directed to TD Ameritrade. As part of our fiduciary duties to clients, we endeavor at
            all times to put the interests of our clients first. Receiving this significant economic benefit
            creates a potential conflict of interest and may directly or indirectly influence our choice of TD
            Ameritrade for client account custody and brokerage services.

            From time to time, iShares, the exchange-traded fund business of BlackRock and one of the
            industry’s leading exchange-traded funds platforms, provides a significant economic benefit to
            EFS by directly sponsoring the foregoing television show. This economic benefit may or may not
            be offered to other independent investment advisors doing business with iShares. iShares
            provides this economic benefit to us indirectly at its sole discretion and its own expense. The
            benefits we receive do not depend on any reciprocal services or trades directed to BlackRock or
            iShares. As part of our fiduciary duties to clients, we endeavor at all times to put the interests of
            our clients first. Receiving this significant economic benefit creates a potential conflict of
            interest and may directly or indirectly influence our use of BlackRock or iShares to provide more
            exchange traded funds in EMAP portfolios.



            Item 15: Custody
            EFS does not maintain custody of client funds or securities. We establish relationships with
            various nonaffiliated third-party clearing/custodying broker-dealers who are responsible for
            taking custody of and maintaining all client funds and securities, as discussed in Item 12. The
            custodian sends confirmations and account statements directly to clients. Account statements
            are sent directly to the client by the custodian on at least a quarterly basis. These confirmations
            and account statements should be reviewed carefully by the client.




Form ADV Part 2A                                          34                                                  June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC




            Item 16: Investment Discretion

            EMAP
            Based on a written, signed agreement, EMAP clients give EFS limited discretionary authority to
            execute client-approved investment strategies in their accounts. We are granted limited
            discretionary authority that allows us to place orders through one of several custodying firms
            mentioned in Item 12. Clients give us the ability to make the following determinations in
            accordance with the client’s specified investment objectives without client consultation or
            consent before a transaction is effected:

                   •   Invest client assets into a diversified mix of asset classes and investment securities
                       primarily in the form of shares of open-end registered investment companies, exchange-
                       traded funds and variable annuities.

                   •   Modify or change the mix of asset classes and investment securities within the account.

                   •   Rebalance the account periodically.

            Clients are permitted to impose reasonable restrictions on the management of their accounts.
            When imposing restrictions, clients may request that particular securities or types of securities
            not be purchased, or that such securities be sold if held in the account. Clients, however, cannot
            request that particular securities be purchased for their accounts. Additionally, EFS has no
            influence or control over the mix of securities held by any mutual fund, variable annuity or ETF
            in which client accounts may be invested. We reserve the right, at our sole discretion, to reject
            any account for which unreasonable or overly restrictive conditions are requested.

            Risks
            EFS does not assume market risk on behalf of the client. EFS does not guarantee the
            performance of the client’s account or any specific level of performance. Market values of the
            securities within the account will fluctuate with market conditions. When the account is
            liquidated, it may be worth more or less than the original amount invested.

            Trading Authorization
            Once an asset allocation model has been selected, we have limited discretionary authority to
            invest the assets in the account. EMAP clients must establish brokerage accounts with one of
            the custodians mentioned in Item 12 so that we can place securities transactions and maintain
            assets with a qualified custodian. Transaction costs imposed by any of the clearing/custodying
            firms are covered by the EMAP fee, except as noted in Item 4 and in the client agreement. We
            have negotiated fixed fees with the clearing/custodying firms that are based on a percentage of
            the value of EMAP assets maintained in client accounts. The clearing/custodying firms perform
            all the necessary brokerage services for accounts maintained with them and provide custody


Form ADV Part 2A                                             35                                             June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



            services of client assets. In choosing which brokerage firm to use for EMAP, we generally select
            TD Ameritrade, who in turn provides certain economic benefits to EFS, as discussed in Items 12
            and 14.

            Reallocations
            EFS has the limited discretionary authority to reallocate assets in client accounts. In a
            reallocation, we change the target percentages of some or all of the asset classes or types of
            assets relative to the total account. Accounts are monitored on an ongoing basis and assets
            reallocated based on market or other conditions, as warranted. Changes in the asset allocation
            model, which include adding, removing or replacing securities at the discretion of EFS, are made
            based on significant changes in the economic, financial or political climate; changes in the tax
            code; the management of the securities used by the asset allocation model; and/or the client’s
            personal circumstances, including health, employment and family status. EFS may replace a
            particular security (or securities), if it significantly diverges from its relevant index in terms of
            risk or return, with a security that is more in line with the risk/return profile of the relevant
            index or if there is a different security that, in our opinion, would be better suited. Reallocations
            occur with less frequency than rebalancing. When EFS reallocates accounts, it generally does so
            in anticipation of the impact that expected long-term market volatility could have on specific
            asset classes or types. Clients are notified of reallocations after the transactions are executed.

            Rebalancing
            Each client’s account is invested in accordance with the client’s asset allocation strategy. At the
            inception of an account, EMAP assets are invested in specific asset types, including mutual funds
            (including funds that are used as funding vehicles for variable annuity contracts) or ETFs that
            invest in a variety of equity securities, fixed income or cash instruments. Amounts invested in
            each asset type are determined in accordance with set target percentages of total assets in the
            account. Afterwards, as markets fluctuate and values change, amounts originally allocated to an
            asset type will either exceed or fall below the original target allocations. We periodically adjust
            account holdings back to the original asset targets, or “rebalance” the account. We do not
            rebalance accounts constantly, and asset allocations may drift away from their original target
            percentages before EFS, within our authority and judgment, brings those allocations back in line
            to the original percentages. In a sense, when we rebalance an account, we sell holdings that are
            appreciating in value to buy other holdings that may be declining in value. However, the
            investment philosophy of an asset allocation strategy is to be positioned in various asset types
            so that when the asset type becomes profitable, the account is positioned to take advantage of
            the upturn.

            Liquidations
            EFS will accept and follow all liquidation instructions given by clients and seek to execute client
            orders in a timely manner on a best efforts basis. Occasionally, due to market conditions and
            time constraints imposed by custodying firms, trades may be executed the following business


Form ADV Part 2A                                          36                                                  June 20, 2012
                                                                                           EDELMAN FINANCIAL SERVICES LLC



            day. In handling liquidations and purchases, we will execute transactions without regard to
            pending dividend or capital gains distributions, stock splits, mergers or other corporate or
            financial events.

            Contributions
            Contributed cash or money market fund shares in client accounts may remain uninvested in
            securities for a period of time. EFS invests liquid assets in an orderly manner and believes it is to
            each client’s benefit to invest in an aggregated fashion rather than piecemeal. For this reason, a
            period of time may elapse between the deposit of cash or liquid assets to the account and the
            account reaching a fully invested position. Although clients may deposit freely tradable
            securities in their accounts to meet the EMAP minimum account size, we will liquidate those
            securities positions and invest the proceeds in securities matching the client’s selected
            investment strategy. Tax consequences associated with this liquidation and reinvestment
            process will likely occur, and clients should consult with their tax professionals before depositing
            securities in their EMAP accounts.

            EFS does not provide legal or tax advice to clients. Clients are advised to discuss the possible
            legal or tax consequences of their investment decisions with their legal or tax advisors prior to
            effecting any transaction.

            ERP

            Reallocations
            Under the ERP Investment Management Agreement, EFS has the limited discretionary authority
            to change the asset allocation model for each Investment Option and its Underlying
            Investments. Investment Options are monitored on an ongoing basis and reallocations are made
            based on market or other conditions, as warranted. Changes in the model are made based on
            significant changes in the economic, financial or political climate; the management of the
            securities used by the asset allocation model; and/or the Plan client’s circumstances. We will
            recommend that the Plan sponsor replace an Underlying Fund from the Plan’s investment
            menu, if it significantly diverges from its relevant index in terms of risk or return, with another
            Underlying Fund that is more in line with the risk/return profile of the relevant index.
            Reallocations occur with less frequency than rebalancing. When we make reallocations, we
            generally do it in anticipation of the impact that expected long-term market volatility could have
            on specific asset classes or types. Plan sponsors are notified of reallocations after the
            transactions are made.

            Rebalancing
            Each Investment Option is invested in a mix of Underlying Funds in accordance with the
            corresponding asset allocation model approved by the Plan sponsor and the target allocation
            percentages determined by that model. As markets fluctuate and values change, the actual


Form ADV Part 2A                                          37                                                 June 20, 2012
                                                                                            EDELMAN FINANCIAL SERVICES LLC



            percentage allocations of some or all of the Underlying Funds for the Investment Option will
            either exceed or fall below the original target percentage allocations. At our discretion, we may
            periodically rebalance an Investment Option’s holdings in Underlying Funds to return the
            Investment Option to its original target percentage allocations. However, we do not rebalance
            Investment Options constantly. Actual percentage allocations may drift away from their original
            target percentage allocations before EFS, within our authority and judgment based on market or
            other conditions as warranted, brings those allocations back in line to the original target
            percentage allocations. In a sense, when we rebalance an Investment Option, we sell interests in
            Underlying Funds that are appreciating in value to buy interests in other Underlying Funds that
            may be declining in value.



            Item 17: Proxy Voting Client Securities
            EFS does not accept proxy voting responsibility for client accounts. Therefore, we have no
            obligation or authority to take action or render any advice with respect to the voting of proxies
            solicited by or with respect to issuers of securities held by client accounts. We expect clients to
            expressly retain the authority and responsibility for proxy voting. With respect to ERISA
            accounts, we generally expect the fund sponsor to expressly retain the authority and
            responsibility for proxy voting and to specify, in writing, who has voting authority. All clients will
            receive proxies directly from the custodian firm. Clients may direct any questions to their
            Advisor should the need arise.



            Item 18: Financial Information
            Registered investment advisers are required to provide clients with financial information or
            disclosures about their financial condition under certain circumstances. EFS is financially sound
            and does not have any financial condition that would impair the ability to meet contractual or
            fiduciary commitments to clients. We have not been the subject of any bankruptcy proceeding.
            Therefore, we are not required to provide any additional financial statements under this item.




Form ADV Part 2A                                           38                                                  June 20, 2012
Edelman Managed Asset Program® (EMAP)
Wrap Fee Brochure

This wrap fee brochure provides information about the qualifications and business practices of
Edelman Financial Services LLC. If you have any questions about the contents of this brochure,
please contact us at 888-PLAN-RIC (888-752-6742), or you may email us at
info@RicEdelman.com or write to us at the address below. The information in this brochure has
not been approved or verified by the United States Securities and Exchange Commission or by
any state securities authority, nor does registration with the SEC imply a certain level of skill or
training.

Additional information about Edelman Financial Services LLC is also available on the SEC’s
website at www.adviserinfo.sec.gov.




4000 Legato Road, 9th Floor
Fairfax, VA 22033
EdelmanFinancial.com
RicEdelman.com
888-PLAN-RIC (888-752-6742)
866-742-7222 (fax)
info@RicEdelman.com



                                                                                      June 20, 2012
                                                                                          EDELMAN FINANCIAL SERVICES LLC



            Item 2: Material Changes
            This wrap fee brochure follows the SEC’s new rules published in “Amendments for Form ADV”
            on July 28, 2010. It follows a new structure and contains much of the information that the old
            brochure did and some that it didn’t. This information is accurate as of June 20, 2012.

            We’re required to tell you about any significant changes in this updated wrap fee brochure.
            Future wrap fee brochures will contain similar summaries. The following are the material
            changes made to this brochure:

                    1. Fredric (Ric) M. Edelman has become Chief Executive Officer of The Edelman Financial
                       Group, Inc. (“TEFG”). He was previously Co-CEO with George Ball. Mr. Ball will continue
                       to serve in his position as Chairman of TEFG.

            We used to have to offer you information about our qualifications and business practices
            annually. Under new SEC rules, we’ll give you a new wrap fee brochure within 120 days of the
            end of our fiscal year. You may also receive updates at other times if information changes. You
            can also request a new wrap fee brochure at any time and at no charge.

            You may request a free brochure by calling us at 888-PLAN-RIC (888-752-6742). You can also find
            out more about us and receive our current brochure from the SEC’s website,
            www.adviserinfo.sec.gov. The site can also give you information about people who are
            registered or about to be registered as Advisors of our firm.




Wrap Fee Brochure                                           2                                               June 20, 2012
                                                                                                                                 EDELMAN FINANCIAL SERVICES LLC




            Item 3: Table of Contents
            Edelman Managed Asset Program® (EMAP) Wrap Fee Brochure .................................................. 1
            Item 2: Material Changes ................................................................................................................. 2
            Item 3: Table of Contents ................................................................................................................ 3
            Item 4: Service, Fees and Compensation ......................................................................................... 5
               Services ........................................................................................................................................ 5
               Trading Authorization and Reallocation ...................................................................................... 5
               Rebalancing .................................................................................................................................. 6
               Institutional Service ..................................................................................................................... 6
               Fees and Compensation............................................................................................................... 7
                    Advisory Fee ............................................................................................................................. 7
                    Payment Method ..................................................................................................................... 8
                    Changes to Fees ....................................................................................................................... 8
                    Other Fees and Expenses ......................................................................................................... 9
            Item 5: Account Requirements and Types of Clients ....................................................................... 9
               Account Requirements ................................................................................................................ 9
               Types of Clients .......................................................................................................................... 10
            Item 6: Portfolio Manager Selection and Evaluation ..................................................................... 10
               Performance Calculation ........................................................................................................... 10
               Investment Strategy................................................................................................................... 11
                    Rebalancing ............................................................................................................................ 12
                    Reallocations .......................................................................................................................... 12
                    Trade Aggregation.................................................................................................................. 12
                    Trade Allocation Policy........................................................................................................... 13
               Methods of Analysis and Investment Selection......................................................................... 13
               Risk of Loss ................................................................................................................................. 14
               Performance-Based Fees and Side-by-Side Management ......................................................... 15
               Voting Client Securities .............................................................................................................. 16
            Item 7: Client Information Provided to Portfolio Manager ........................................................... 16



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            Item 8: Client Contact with Portfolio Managers ............................................................................ 16
            Item 9: Additional Information ...................................................................................................... 16
               Disciplinary Information ............................................................................................................ 16
               Administrative Proceeding......................................................................................................... 16
               Other Financial Industry Activities and Affiliations.................................................................... 17
               Related Persons ......................................................................................................................... 17
                    Broker-Dealer – Sanders Morris Harris Inc. CRD No. 20580 .................................................. 17
                    Investment Advisers and Other Broker-Dealer...................................................................... 18
                    Insurance Agency ................................................................................................................... 18
                    Other ...................................................................................................................................... 18
               Code of Ethics ............................................................................................................................ 19
               Related Person May Invest in the Same Securities.................................................................... 20
               Agency Cross Procedures ........................................................................................................... 20
               Review of Accounts .................................................................................................................... 20
               Nature and Frequency of Client Reports ................................................................................... 21
               Client Referrals and Other Compensation ................................................................................. 21
                    Other Advisers Offering EMAP............................................................................................... 21
                    Client Referrals....................................................................................................................... 21
                    Selection of Other Advisors – Edelman Financial Network™ (“EFN”).................................... 22
                    TD Ameritrade Institutional Program .................................................................................... 22
                    TD Ameritrade Operations Panel ........................................................................................... 23
                    TD Ameritrade AdvisorDirect Program .................................................................................. 24
                    Compensation for Other Products and Services .................................................................... 25
                    Indirect Compensation Regarding Television Broadcasts...................................................... 25
               Financial Information ................................................................................................................. 26




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            Item 4: Services, Fees and Compensation
            Services
            Edelman Managed Asset Program® (“EMAP”) is a wrap fee asset allocation program sponsored
            by Edelman Financial Services LLC (“EFS” or “We”). The client retains EFS and an Investment
            Adviser Representative (“Advisor”) for the purpose of opening an investment advisory account
            (“Account”) and participating in EMAP. We will invest participating client assets in one or more
            diversified asset allocation models consisting of open-end investment companies (commonly
            referred to as mutual funds) and closed-end investment companies (commonly referred to as
            exchange-traded funds or ETFs) and variable annuities, in exchange for an all-inclusive asset-
            based advisory fee (“Advisory Fee”).

            We offer EMAP asset allocation models which consist of no-load mutual funds and ETFs in a
            broad range of asset classes and market sectors, including domestic stocks, international stocks,
            global bonds, and alternative investments. Neither EFS nor any of its affiliates serve as
            investment adviser to any of the investment company products included in portfolio assets.
            EMAP portfolios range from conservative to aggressive. The client’s Advisor assists the client in
            selecting the asset allocation model that best meets the client’s needs. The Advisor considers
            the client’s financial situation, goals and investment objectives, risk tolerance, time horizon,
            liquidity needs, and other relevant factors, as described by the client, in selecting the client’s
            asset allocation model. EFS does not provide tax or legal advice. The client is instructed to seek
            advice from a tax or legal adviser before making an investment decision. The client should
            inform his or her Advisor if changes occur in investment objectives or financial situation.

            Trading Authorization and Reallocation
            Once an asset allocation model portfolio has been selected, the client grants EFS limited
            discretionary authority to:

                    •   Invest the assets in the EMAP account(“Account”) in a diversified asset mix;

                    •   Reallocate assets in the Account; and

                    •   Rebalance the assets when needed.

            When reallocating, EFS changes the target percentages of some or all of the asset classes or
            types relative to the total Account. The Account is monitored on an ongoing basis and assets are
            reallocated based on market or other conditions, as warranted. Changes in the asset allocation
            model, which include adding, removing or replacing securities at the discretion of EFS and the
            Investment Committee, are made based on significant changes in the economic, financial or
            political climate; changes in the tax code, the management of the securities used by the asset



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            allocation model; and/or the client’s personal circumstances. We may replace a particular
            security, if it significantly diverges from its relevant index in terms of risk or return, with a
            security that is more in line with the risk/return profile of the relevant index. Reallocations occur
            with less frequency than rebalancing, and when we reallocate Accounts, it generally is in
            anticipation of the impact that expected long-term market volatility could have on specific asset
            classes or types. Clients are notified of reallocations after the transactions are effected.

            Rebalancing
            Each client’s Account is invested in accordance with the client’s investment objectives, risk
            tolerance and goals. At the inception of an Account, EMAP assets are invested in specific asset
            types including mutual funds and/or ETFs and annuities. Amounts invested in each asset type
            are determined in accordance with set target percentages of total assets in the Account.
            Thereafter, as markets fluctuate and values change, amounts originally allocated to an asset
            type will either exceed or fall below the original target allocations. We periodically adjust
            Account holdings back to the original asset targets, or “rebalance” the Account. However, we do
            not rebalance Accounts constantly, and asset allocations may drift away from their original
            target percentages before EFS, within its authority and judgment, brings those allocations back
            in line to the original percentages. In a sense, when we rebalance an Account, we sell holdings
            that are appreciating in value to buy other holdings that may be declining in value. However, the
            investment philosophy of an asset allocation strategy is to be positioned in various asset types
            so that when the asset type becomes profitable, the Account is positioned to take advantage of
            the upturn.

            The client may impose reasonable restrictions on the Account(s) that are not fundamentally
            inconsistent with the client’s investment objective or the nature or operation of EMAP. We will
            notify the client quarterly, as a reminder, to contact us regarding any changes in the client’s
            financial situation or investment objectives. In addition, the Advisor will contact the client at
            least annually to determine whether any such changes have occurred and to verify the ongoing
            suitability of EMAP.

            Institutional Services
            EFS provides a broad range of institutional investment management services to a variety of
            small and mid-size organizations, endowments and associations. The services offered include:

                    •   Investment Policy Statement Assistance – EFS assists in creating, rewriting and/or
                        reviewing an effective Investment Policy Statement that reflects the investment needs
                        of the entity;

                    •   Asset Allocation Model – EFS assists in developing a diversified asset allocation strategy
                        in accordance with the investment objectives, goals, need for liquidity, and risk
                        tolerance of the entity;




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                    •   Financial Profile – EFS performs a detailed review of the entity’s investment objectives
                        and financial situation in order to provide an accurate assessment of the appropriate
                        level of acceptable risk in accordance with the stated time horizon and goals;

                    •   Investment Management – As a fiduciary, EFS provides ongoing, continuous
                        management of assets including strategic rebalancing and daily Account review; and

                    •   Recordkeeping – EFS provides statements and online functions designed to ease the
                        administrative needs and burden associated with recordkeeping and reporting.

            Fees and Compensation

            Advisory Fee
            The Advisory Fee includes discretionary management and periodic review of all investments in
            the EMAP Account. The fee also covers administrative services, transaction costs, and clearance
            and custody of assets, and a subscription to Ric Edelman’s Inside Personal Finance newsletter. In
            addition, the Advisory Fee covers consultation with an Advisor who receives compensation as a
            result of the client’s participation in EMAP.

            The Advisory Fee is based on the average daily balance of the assets including money market
            funds, interest and reinvested dividends in the Account, calculated following the last day of each
            calendar quarter. The Advisory Fee is payable quarterly, in arrears. The first payment is prorated
            for assets that are placed in the Account during a calendar quarter. Fees are payable to EFS no
            later than the fifteenth (15th) day after the end of each quarter, in arrears.

                        EMAP Client Fee Schedule
                        Portion of the Account That Is
                        At Least                            But Less Than     Fee at This Tier
                        --                                  $ 150,000         2.00%
                        $ 150,000                           $ 400,000         1.65%
                        $ 400,000                           $ 750,000         1.25%
                        $ 750,000                           $ 1,000,000       1.00%
                        $ 1,000,000                         $ 3,000,000       0.75%
                        $ 3,000,000                         $ 10,000,000      0.60%
                        $ 10,000,000                        $ 25,000,000      0.50%
                        $ 25,000,000                        and greater       negotiable


            When calculating advisory fees, we aggregate household accounts to determine the lowest
            percentage if all accounts were managed as one relationship. Fees are not negotiable, other
            than as disclosed in the fee schedule above. Accounts with less than $50,000 may effectively pay
            a fee that is greater than 2.00% due to our minimum annual fee discussed in Item 5. Clients
            should be aware that lower fees for comparable services may be available from other sources.



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                    EMAP Institutional Fee Schedule                       Fee
                    Up to $999,999                                        1.40%
                    $1 million to $1,999,999                              1.00%
                    $2 million to $4,999,999                              0.75%
                    $5 million to $9,999,999                              0.60%
                    $10 million to $24,999,999                            0.50%
                    $25 million +                                         negotiable


            The above Advisory Fee Schedules are based on the amount of money the client invests in the
            program, and are not dependent on the amount of trading in the Account or the advice given in
            any particular time period. The client should be aware that lower fees for comparable services
            may be available from other sources.

            Transactions executed on behalf of EMAP clients are executed for a single wrap fee, which
            reduces the potential conflict of interest associated with executing a large number of orders for
            client accounts and earning transaction-based compensation following each order. In addition,
            EMAP invests client assets in no-load shares of unaffiliated open-end registered investment
            companies (such as mutual funds), ETFs and no-commission variable annuities. Thus, neither our
            firm nor the Advisors earn any additional revenue from EMAP accounts beyond the wrap fee.

            A portion of the Advisory Fee is paid to the Advisor. The Advisory Fee earned may be more or
            less than what EFS or its Advisors might earn from other programs available in the financial
            services industry or if the services were purchased separately. Therefore, EFS and its Advisors
            may have a financial incentive to recommend the EMAP program over other products or
            services.

            EFS has entered into an agreement with other affiliated and unaffiliated Investment Advisory
            Firms to offer EMAP to its clients. EFS and the other Investment Advisory Firms will share in the
            Advisory Fee. Therefore, affiliated and unaffiliated advisors may have a financial incentive to
            recommend EMAP. The client will not pay additional fees as a result of this arrangement.

            Payment Method
            The client authorizes EFS to collect the Advisory Fee and authorizes the Custodian(s) to deduct
            the Advisory Fee from the Account under the Client Services Agreement. All fees will be noted
            on the client’s custodial Account statements. If the Account does not hold cash or money
            market balances sufficient to cover the Advisory Fee, the client may deposit additional funds by
            the due date. If no such deposit is made, we will liquidate securities in the Account in amounts
            sufficient to cover such fees. Liquidation may cause the client to incur taxes and other costs.

            Changes to Fees
            EFS may change the fee schedule at any time by giving 30 days prior written notice to the client.
            Following the 30-day notice period, the new fee schedule will become effective unless the client


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            terminates the Client Services Agreement. The client’s continued acceptance of the services will
            constitute consent to changes in the Advisory Fee, including an increase in the amount charged.

            Other Fees and Expenses
            Clients pay a wrap fee, which includes all brokerage execution costs without regard to the
            number of transactions executed during the billing period. EFS has negotiated fixed fees with
            clearing/custodying firms, and the costs do not affect the wrap fee paid by the client.
            Transaction costs imposed by the brokerage firms are covered by the wrap fee. The wrap fee
            does not include certain Account and securities-related costs, including the fees embedded in
            the mutual funds, ETFs or annuities in which wrap fee accounts invest. In addition, the fee does
            not include debit balances, related margin interest, IRA and retirement plan fees, transfer fees,
            SEC fees, 12b-1 fees for certain money market funds, wire transfer fees, overnight check fees,
            expenses charged by the mutual funds (including management fees, transaction charges
            incurred for fund-level asset allocation model trades, custody of fund assets and other fund
            expenses), expenses charged by the variable annuities and exchange-traded funds, account
            closing fees charged by the custodian or other fees or taxes that are required by law.



            Item 5: Account Requirements and Types of Clients
            Account Requirements
            The minimum Account size for non-institutional Accounts is $50,000 and the minimum annual
            fee is $1,000. The minimum account size for institutional Accounts is $500,000. Employee and
            Advisor minimum account size is $3,000. We may waive the minimum account size and annual
            fee at our sole discretion.

            The client may make additions to or withdrawals from the Account at any time. EMAP is
            designed as a long-term investment vehicle and asset withdrawals may impair the ability to
            achieve the client’s investment objectives. Withdrawals that cause material reductions in the
            value of the Account could cause EFS to terminate the Account.

            We have entered into an agreement with the following unaffiliated broker-dealers
            (“Custodian(s)”) to provide clearing and custody services to EMAP clients. The client must agree
            to the opening of an Account with one of the following Custodians as a condition to participate
            in EMAP.

                    •   TD Ameritrade Institutional (as cleared through TD Ameritrade Clearing, Inc.), a division
                        of TD Ameritrade, Inc. (“TD Ameritrade”)

                    •   Fidelity Institutional Wealth Services (“Fidelity”) (as cleared through National Financial
                        Services LLC)




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                    •   Pershing Advisor Solutions (“PAS”) (as cleared through Pershing LLC)

            Each unaffiliated Custodian provides the following services to EMAP clients:

                    1. Maintain custody of Account assets;

                    2. Execute and perform clearance of all purchase and sale orders as directed by EFS;

                    3. Perform all custodial functions customarily performed with respect to the Account,
                       including but not limited to the crediting of interest and dividends on Account assets;

                    4. Forward to client and to EFS purchase and sale confirmations and Account statements;

                    5. Act as general administrator of the EMAP Account(s);

                    6. Charge and collect advisory fees on EFS’s behalf; and

                    7. Accept deposits to and withdrawals from the Account pursuant to our instructions.

            Clients will pay no commissions for EMAP brokerage services and we will not enter into any
            principal transactions in EMAP Accounts. Except for the TD Ameritrade AdvisorDirect Program
            (discussed in Item 9)The Custodian does not assist the client in selecting EFS or any investment
            or in determining the suitability of investments.

            The Custodian will send a monthly statement to the client detailing all Account activity,
            including deduction of the Advisory Fee. The client may elect to receive custodial Account
            statements and confirmations electronically in lieu of paper confirmations and statements.

            Types of Clients
            EMAP asset allocation models are offered to individuals, trusts, estates, charitable
            organizations, foundations, pension plans, retirement plans , profit sharing plans, institutions,
            and small businesses.



            Item 6: Portfolio Manager Selection and Evaluation
            We do not select or utilize the services of any third-party portfolio manager in EMAP. The EFS
            Investment Committee and the Advisors oversee the management of the assets for EMAP
            Accounts.

            Performance Calculation
            EFS, as a matter of policy, prepares information relating to investment performance of the
            EMAP asset allocation models. Firm-wide methods as well as policies and procedures used in
            calculating and presenting EMAP performance figures are prepared in compliance with the



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            Global Investment Performance Standards (GIPS®) and independently verified by Ashland
            Partners & Company LLP, an independent third-party GIPS® verification company. Ashland
            Partners also serves as an ongoing consultant to EFS in order to maintain compliance with GIPS®
            standards, which includes, but is not limited to, reviewing methods of performance calculation,
            composite construction, and the presentation of performance information.

            Investment performance figures are determined by utilizing internal portfolio accounting
            software, which calculates investment performance according to globally accepted industry
            standards. Performance calculations are based on actual EMAP Accounts under management,
            including those Accounts that have been closed. Investment performance is presented net of
            actual management fees and expenses.

            Investment Strategy
            EMAP relies on an investment philosophy that is based on the latest academic research such as
            Modern Portfolio Theory and the Fama-French Three-Factor Model, and the latest discoveries in
            behavioral finance. Modern Portfolio Theory says that it is not enough to look at the expected
            risk and return of one particular asset class. By investing in more than one asset class, an
            investor can reap the benefits of diversification, chief among them a reduction in the risk level
            of the portfolio. Modern Portfolio Theory quantifies the benefits of diversification, also known
            as “not putting all of your eggs in one basket.” The Fama-French Three-Factor Model is based on
            research showing that over long periods of time, value stocks outperform growth stocks, and
            similarly, small cap stocks tend to outperform large cap stocks. Therefore, with analysis of these
            factors, it becomes easier to evaluate the potential portfolio performance. EMAP is founded on
            the premise that solid science, backed by decades of academic research, offers one of the
            smartest approaches to investing.

            The EFS investment philosophy is based on the following basic principles:

                    •   Develop highly diversified portfolios that feature a broad range of asset classes and
                        market sectors;

                    •   Use market-based investments, not manager-based investments;

                    •   Hold the investments for long periods of time;

                    •   Periodically reallocate investments as conditions warrant;

                    •   Strategically rebalance as needed.

            EMAP is highly diversified, invests in no-load mutual funds and ETFs, and features as many as
            nineteen (19) asset classes and market sectors. This approach is very effective, but of course
            cannot ensure investment success or prevent loss in a declining market. Past performance is no
            guarantee of future results.



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            Rebalancing
            Each client’s Account is invested in accordance with the client’s asset allocation strategy. At the
            inception of an Account, EMAP assets are invested in specific asset types including mutual funds
            (including funds that are used as funding vehicles for variable annuity contracts) or ETFs that
            invest in a variety of equity securities, fixed income or cash instruments. Amounts invested in
            each asset type are determined in accordance with set target percentages of total assets in the
            Account. Thereafter, as markets fluctuate and values change, amounts originally allocated to an
            asset type will either exceed or fall below the original target allocations. We periodically adjust
            Account holdings back to the original asset targets, or “rebalance” the Account. However, we do
            not rebalance Accounts constantly and asset allocations may drift away from their original
            target percentages before EFS, within its authority and judgment, brings those allocations back
            in line to the original percentages. In a sense, when we rebalance an Account, we sell holdings
            that are appreciating in value to buy other holdings that may be declining in value. However, the
            investment philosophy of an asset allocation strategy is to be positioned in various asset types
            so that when the asset type becomes profitable, the Account can take advantage of the upturn.

            Reallocations
            EFS has the limited discretionary authority to reallocate assets in client Accounts. In a
            reallocation, we change the target percentages of some or all of the asset classes or types of
            assets relative to the total Account. Accounts are monitored on an ongoing basis and assets are
            reallocated based on market or other conditions, as warranted. Changes in the asset allocation
            model, which include adding, removing or replacing securities at the discretion of EFS, are made
            based on significant changes in the economic, financial or political climate; changes in the tax
            code; the management of the securities used by the asset allocation model; and/or the client’s
            personal circumstances, including health, employment and family status. We may replace a
            particular security (or securities), if it significantly diverges from its relevant index in terms of
            risk or return, with a security that is more in line with the risk/return profile of the relevant
            index or if there is a different security that, in our opinion, would be better suited. Reallocations
            occur with less frequency than rebalancing, and when we reallocate Accounts, we generally do
            so in anticipation of the impact that expected long-term market volatility could have on specific
            asset classes or types. Clients are notified of reallocations after the transactions are effected.

            Trade Aggregation
            Whenever appropriate and when the price or execution of a security can be impacted favorably
            by aggregating orders among Accounts, EFS aggregates transactions on behalf of all EMAP
            Accounts, including Accounts of Advisors and employees. It is the policy of EFS that such
            transactions will be allocated to all participating client Accounts in a fair and equitable manner.
            There is no preferential treatment given to any Account. Transactions may be traded together to
            ensure best execution and to avoid price differential. There is seldom, if ever, a problem finding
            sufficient mutual fund shares to purchase for EMAP Accounts. These shares are purchased from
            the issuer and sold at the net asset value next determined after an order is received. Shares of



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            mutual funds are sold back to the issuer, and since we buy open-end funds, each issuing mutual
            fund must stand ready to buy the shares back at the share’s net asset value, as determined after
            the redemption order is received. Similarly, we buy and sell highly liquid ETF interests or shares
            and there is seldom any difficulty finding a sufficient supply of ETFs in the market. Variable
            annuities and 529 College Saving Plans are purchased directly from the issuer and no
            aggregation of these transactions occurs.

            Trade Allocation Policy
            In an effort to seek best execution for clients and treat all clients fairly and equitably over time,
            EFS utilizes a rotation procedure for executing trades. All client, employee and Advisor Accounts
            are included in the rotation. All EMAP equity trades are executed at their respective Custodian
            on a block basis. The order of the Custodians’ trades will be rotated on a daily basis and in
            sequential fashion. For example, if there are three Custodians and Custodian 1 goes first on a
            particular day, Custodian 2 will go first the following day, and Custodian 3 will go first on the
            third day.

            One exception to this rotation procedure will be when a Custodian has a large block order of
            30,000 shares or greater. To avoid having an order of this size unfavorably impact the market
            and the orders that follow, such Custodian will be the last to trade on that particular day. The
            normal rotational schedule will continue the following day.

            In the limited circumstances when sufficient quantities of a particular security are not
            obtainable, a pro rata allocation may be used when a batch order in the security cannot be fully
            executed in a single day. The partial order fill is generally allocated among the participating
            client Accounts based on the size of each Account’s original order, subject to rounding in order
            to achieve “round lots.” Unexecuted orders will continue until the block order is completed or
            until all component orders have been cancelled. New orders for the same security will be
            aggregated with any remaining unexecuted orders and will continue in the same manner. As
            previously mentioned, orders for all EMAP wrap fee clients, including employees and
            Representatives, generally will be aggregated to ensure equal pricing for all clients.

            Methods of Analysis and Investment Selection
            Based on the written EMAP agreement that clients execute, EFS is granted limited discretionary
            authority to implement client-approved investment strategies. Investments are selected based
            on past performance (as applicable), manager tenure, portfolio turnover, fees, and a variety of
            academic statistics including beta, standard deviation, R-Squared, and Sharpe Ratio. These
            statistics are provided by third-party vendors and the investment sponsors, and are evaluated
            by the asset allocation model manager as well as the EFS Investment Committee on both an
            absolute and relative basis, relying on standards set by EFS.

            We may obtain and utilize information and data from a wide variety of public and private
            sources. Neither EFS nor our Advisors will independently verify or guarantee such information



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            and data. In categorizing the asset classes of investments, we will rely on prospectuses and
            information obtained from the issuer or its agents, or through publicly available sources. Neither
            EFS nor our Advisors shall be liable for any misstatement or omission contained in the
            information from these sources, or any loss, liability, claim, damage or expense incurred arising
            out of, or attributable to, such misstatement or omission.

            Transactions for different Account(s) or for other clients’ accounts may not be made at the same
            time, may be made on different days, and may be made over multiple days. In handling
            purchases and liquidations, we will execute transactions without regard to pending dividend or
            capital gains distributions, stock splits, mergers or other corporate or financial events.

            The client may impose reasonable restrictions on the management of the account. When
            imposing restrictions, the client may request that particular securities or types of securities not
            be purchased, or that such securities are to be sold if held in the account. The client, however,
            cannot request that particular securities be purchased for the account. Moreover, the client
            should note that it is impossible for us to influence or change the mix of securities held by any
            mutual fund or ETF included in the client’s account. We reserve the right, at our sole discretion,
            to reject or close any account should the client request unreasonable or overly restrictive
            conditions.

            Risk of Loss
            EMAP consists of a combination of institutional or no-load mutual funds, ETF’s and variable
            annuities that are subject to market risk. There is no guarantee that the underlying investment
            will reach its objectives. Investments in EMAP will fluctuate with market conditions. Upon
            liquidation, the investment may be worth more or less than the original investment and
            subsequent contributions. Past performance is no guarantee of future results.

            Mutual funds and ETFs may also be subject to the following risks:

                    •   Market Risk – Even a long-term investment approach cannot guarantee a profit.
                        Economic, political and issuer-specific events will cause the value of securities to rise or
                        fall. Because the value of investment portfolios will fluctuate, there is the risk that you
                        will lose money and your investment may be worth more or less upon liquidation.

                    •   Foreign Securities & Currency Risk – Investments in international and emerging market
                        securities include exposure to risks including currency fluctuations, foreign taxes and
                        regulations, and the potential for illiquid markets and political instability.

                    •   Capitalization Risk – Small and mid-cap companies may be hindered as a result of
                        limited resources or less diverse products or services and have therefore historically
                        been more volatile than the stocks of larger, more established companies.

                    •   Interest Rate Risk – In a rising rate environment, the value of fixed-income securities
                        generally declines.


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                    •   Credit Risk – Credit risk is the risk that the issuer of a security may be unable to make
                        interest payments and or repay principal when due. A downgrade to an issuer’s credit
                        rating or a perceived change in an issuer’s financial strength may affect a security’s
                        value, and thus impact the Fund’s performance.

                    •   Securities Lending Risk – Securities lending involves the risk that the fund loses money
                        because the borrower fails to return the securities in a timely manner or at all. The fund
                        could also lose money if the value of the collateral provided for loaned securities or the
                        value of the investments made with the cash collateral falls. These events could also
                        trigger adverse tax consequences for the fund.

                    •   Derivatives – Derivatives are securities, such as futures contracts, whose value is
                        derived from that of other securities or indices. Derivatives can be used for hedging
                        (attempting to reduce risk by offsetting one investment position with another) or non-
                        hedging purposes. Hedging with derivatives may increase expense, and there is no
                        guarantee that a hedging strategy will work. While hedging can reduce or eliminate
                        losses, it can also reduce or eliminate gains. Derivative securities are subject to a
                        number of risks including:

                            o   Liquidity;

                            o   Interest rate risk;

                            o   Market;

                            o   Credit & management risks; and

                            o   Risk of improper valuation.

                        Changes in the value of the derivative may not correlate perfectly with the underlying
                        asset, rate or index, and the Fund could lose more than the principal amount.

                    •   Exchange-Traded Funds- ETF’s face market trading risks, including the potential lack of
                        an active market for fund shares, losses from trading in the secondary markets, and
                        disruption in the creation and redemption process of the ETF. Any of these factors may
                        lead to the fund’s shares trading at a premium or discount to its “net asset value.”

                    •   Performance of Underlying Managers-We select mutual funds and ETF’s. We depend
                        on the manager of such funds to select individual investments in accordance with their
                        stated investment strategy.

            Performance-Based Fees and Side-by-Side Management
            EFS does not charge any performance-based fees (fees based on a share of capital gains on or
            capital appreciation of the assets of a client). We do not engage in side-by-side management.




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                                                                                          EDELMAN FINANCIAL SERVICES LLC



            Voting Client Securities
            EFS has no obligation or authority to take action or render advice with respect to the voting of
            proxies solicited by or with respect to issuers of securities held in EMAP Accounts. The client
            expressly retains the authority and the responsibility for the voting of proxies.



            Item 7: Client Information Provided to Portfolio
            Manager
            The Advisor obtains information, prior to opening an Account, regarding the client’s financial
            situation, goals and investment objectives, risk tolerance, time horizon and other relevant
            factors, as described by the client, and assists the client in selecting an asset allocation model.
            The Advisor will also inquire as to the client’s interest in imposing any reasonable restrictions on
            the management of the Account. The Advisor will contact the client at least annually to
            determine if any changes have occurred that may affect the ongoing suitability of the portfolio
            selected and to determine if any new restrictions should be imposed on the Account.



            Item 8: Client Contact with Portfolio Managers
            Clients are generally free to contact EFS and their Advisor at any time during normal business
            hours via telephone, facsimile, mail or email. In-person meetings should be scheduled in
            advance to ensure that the Advisor is available. Generally, clearing/custodying broker-dealers
            and the issuers or sponsors of investments used by the program are not available to answer
            questions or discuss specific investment issues. However, if a client has a specific need, we will
            reasonably attempt to arrange the discussion.



            Item 9: Additional Information
            Disciplinary Information
            Registered investment advisers are required to disclose all legal or disciplinary events that are
            material in a client’s evaluation of EFS or the integrity of EFS management. The following is the
            only disciplinary item we have to report since inception:

            Administrative Proceeding
            On July 17, 2006, EFS entered into an administrative proceeding with the State of Illinois for a
            registration matter. EFS paid a $4,200 fine to the State of Illinois for exceeding its de minimis



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                                                                                            EDELMAN FINANCIAL SERVICES LLC



            registration standard. Basically, EFS had six clients who resided in Illinois, and the limit for no
            registration was five. EFS also agreed to pay the state $1,500 for the cost of its investigation.

            Other Financial Industry Activities and Affiliations
            EFS is a majority owned subsidiary of The Edelman Financial Group (“TEFG”), which is a publicly
            traded financial services firm headquartered in Houston, Texas. TEFG owns several other
            registered investment advisers and broker-dealers, and one insurance agency. As such, we are
            affiliated with several other registered investment advisers, broker-dealers, and other entities.
            EFS offers broker-dealer related services to its clients as well.

            Related Persons

            Broker-Dealer – Sanders Morris Harris Inc. CRD No. 20580
            TEFG, which is the majority-owner of EFS, also owns Sanders Morris Harris Inc. (“SMH”), a firm
            that is dually registered as a broker-dealer and an investment adviser. As such, we are affiliated
            with a registered broker-dealer and investment adviser. Ric Edelman is a registered
            representative and principal of SMH. Certain EFS employees are also registered representatives
            of SMH. Our advisory personnel, solely in their capacity as registered representatives of SMH
            and not as Advisors of EFS, accept orders for SMH brokerage accounts from brokerage clients
            who may or may not be financial planning clients. When acting as registered representatives for
            clients, our advisory personnel execute transactions for clients through SMH and receive
            brokerage commissions from SMH on any products sold in this capacity. Thus, a potential
            conflict of interest exists between the interests of our advisory personnel and brokerage clients.
            Clients are advised that they are under no obligation to effect securities transactions with SMH
            or through their EFS registered representative, and similar services may be less expensive
            elsewhere.

            Ric Edelman serves as President, Director and Chief Executive Officer of TEFG as well as
            Chairman and CEO of EFS (see EFS ADV Item 2). In addition, he is a registered representative and
            principal with SMH. As such, there is a potential inherent conflict of interest arising out of his
            obligations to the shareholders of TEFG and his fiduciary duties to the clients of EFS.

            SMH Representatives may offer EMAP to their clients. In those situations, SMH and EFS would
            share in the program fees. A potential conflict of interest may exist due to the affiliation
            between the two companies. However, clients who purchase EMAP through SMH pay no more
            than do other clients of EFS making similar purchases.

            Finally, we provide various administrative and trading services to SMH to assist with its advisory
            product offerings.




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            Investment Advisers and Other Broker-Dealers
            EFS is affiliated with the following wholly owned subsidiaries of TEFG, which are also registered
            investment advisers and a broker-dealer:

                    •   Sanders Morris Harris Inc. (“SMH”) – See discussion above

                    •   SMH Capital Advisors Inc. (“SMHCA”) – No material relationship with EFS

            The following registered investment advisers and/or broker-dealers are wholly or partially
            owned subsidiaries of TEFG but have no material relationship with EFS:

                           o   SOF Management, LLC

                           o   Rikoon Group LLC

                           o   Leonetti & Associates LLC

                           o   Investor Solutions Group, LLC

                           o   Silverbay Capital Management, LLC

                           o   Miller-Green Financial Services Inc.

                           o   GFS Advisors LLC

                           o   Global Financial Services, L.L.C. (Broker-Dealer)

            Insurance Agency
            HWG Insurance Agency, Inc., is a wholly owned subsidiary of TEFG. Our Investment Advisor
            Representatives may also be insurance agents of HWG. They are licensed to sell variable and
            fixed insurance products and receive insurance commissions from client transactions through
            this agency.

            EFS is also a licensed insurance agency in several states. Our advisory personnel generally refer
            clients who wish to buy products such as life, long-term disability and long-term care insurance
            to Accuquote, an unaffiliated insurance agency that specializes in insurance brokerage and
            providing affordable insurance to clients. EFS and its insurance agents are compensated a
            percentage of the revenues generated on the sale of such insurance products. Therefore, EFS
            and its insurance agents have a conflict of interest because of the economic incentive to sell
            policies that result in commissions or other sales revenue. Clients are advised that they are
            under no obligation to purchase any insurance products through EFS or its personnel and those
            products may be less expensive elsewhere.

            Other
            Edelman Business Services LLC (“EBS”), a wholly owned subsidiary of Edelman Financial Center
            LLC (which is the single member owner of EFS), markets the Retirement InCome for Everyone
            Trust® (“RIC-E Trust”®), which is an individual grantor trust enabling the Grantor to set aside



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            assets for a child’s retirement. Because the assets of each such trust are invested in a variable
            annuity, assets grow tax-deferred. The trustee is named by the Grantor. First SunAmerica Life
            Insurance Company, the issuer of the tax-deferred investment, is a subsidiary of AIG. EBS
            receives an administrative fee of $400 for each RIC-E Trust® established. This fee is not
            associated with investment advisory services offered by EFS although commissions are
            generated from the underlying annuity through SMH.

            Code of Ethics
            EFS has adopted a Code of Ethics (“The Code”) that is designed to ensure that all employees
            adhere to the highest standards of ethical conduct. The Code states that all of our employees
            must act in the best interest of the client at all times. It also states that employees should avoid
            any practice that creates or appears to create a material conflict of interest that could
            potentially harm a client.

            In addition, the EFS Code of Ethics requires, among other things, that employees:

                    •   Submit their personal and related trading Accounts to the Compliance Department for
                        Review;

                    •   Refrain from purchasing Initial Public Offerings (“IPOs”);

                    •   Refrain from trading on inside information;

                    •   Get approval prior to purchasing a private placement;

                    •   Comply with ethical restraints including restrictions on giving and receiving gifts; and

                    •   Report any conduct that could potentially harm a client.

            EFS has also adopted supervisory procedures that are designed to detect the following abusive
            behavior:

                    •   Front-running, trading ahead or opposite clients;

                    •   Trading in securities on the SMH Restricted or Watch List;

                    •   Trading that appears to be based on inside information;

                    •   Short-term or day trading; and

                    •   Trading during designated SMH blackout periods.

            Any officer or employee of EFS who fails to observe the EFS Code of Ethics risks serious
            sanctions, including personal liability and/or termination of employment.




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            A copy of our Code of Ethics is available upon request by contacting us using the information on
            the cover page.

            Related Persons May Invest in the Same Securities
            EFS investment advisory personnel may invest their personal funds and establish an EMAP
            Account for themselves. Our advisory personnel may also participate in the EFS Employee 401(k)
            Plan, which uses abbreviated EMAP asset allocation models that do not include exchange-traded
            funds. In that regard, employees may buy and sell for themselves the same underlying securities
            as clients, and will have interests in securities owned by or recommended to EFS clients,
            including mutual funds, ETFs, and insurance products. Although all employees get the benefit of
            a fee reduction on EMAP Accounts, those Accounts are not given preferential trading treatment.
            Employee Accounts are monitored and rebalanced on the same basis as all other unrestricted
            client Accounts invested, in accordance with the same EMAP asset allocation model strategy.
            We have adopted procedures relating to personal securities transactions, insider trading, and
            internal trading that are designed to prevent client harm as a result of this conflict of interest.

            Agency Cross Procedures
            In order to comply with the agency cross provisions of the Advisers Act, EFS relies on SMH
            policies and procedures. SMH has policies and procedures in place to ensure that transactions
            introduced on behalf of EMAP clients are not crossed with transactions introduced to the
            clearing firm on behalf of SMH brokerage customers. As a general matter, the nature of the
            securities acquired for EMAP and financial planning clients is not conducive to cross
            transactions, since shares of mutual funds and variable annuities are purchased from their
            issuers and are not exchange-traded. Although ETFs are exchange-traded, we would not, acting
            as investment adviser, generally recommend that such shares be crossed from one advisory
            client Account to another, and would never act as a broker with respect to any such potential
            cross transaction.

            Review of Accounts
            EFS client Accounts are reviewed by our advisory personnel. EMAP Accounts are monitored on
            an ongoing basis and are rebalanced or assets reallocated based on market or other conditions
            as warranted. Securities for Accounts are bought or sold by EFS subject to its limited
            discretionary authority. Changes in the asset allocation models, which include adding, removing
            or replacing securities at the recommendation of the EFS Investment Committee, are made
            infrequently. Those changes are based on significant changes in the economic, financial or
            political climate; changes in the tax code; or the management of the securities used by the asset
            allocation model. Changes may also be made based on the client’s personal circumstances,
            including health, employment and family status or restrictions that the client may place on the
            investments in the Account.




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            Our Advisors generally meet weekly to review economic, tax, financial, political, social and other
            relevant issues and to determine if any changes in strategy are warranted and, if so, to
            implement such changes. Based on these meetings, each Advisor independently reviews his or
            her client’s situation on a periodic basis and makes recommendations as needed.

            On at least an annual basis, the Advisor contacts the client to update personal and financial
            information including financial, health, employment, marital and family status; time horizon,
            goals and objectives; and risk tolerance. The Advisor uses the information to determine if there
            are any changes that could impact the ongoing suitability of the Account. The client may request
            a review at any time as well.

            Nature and Frequency of Client Reports
            Clients participating in EMAP receive Account statements at least quarterly and confirmations
            (unless otherwise requested to be suppressed by the client) from the clearing broker-dealer,
            and generally have unlimited and continuous access to their Account information through
            websites offered and maintained by the Account Custodian and EFS.

            Client Referrals and Other Compensation

            Other Advisers Offering EMAP
            EFS sponsors EMAP as discussed above, and makes the asset allocation models available to
            clients of other unaffiliated registered investment advisers (“RIAs”), including Sanders Morris
            Harris Inc., which is an affiliated firm. We provide systems, services and back office support to
            those RIAs. The RIA is responsible for the supervision of its Investment Advisor Representatives
            and the selection of the EMAP asset allocation model recommendations made to clients. The
            RIA initiates the relationship with the client and is the ongoing client relationship manager. The
            RIA, through his or her Advisors, compiles personal and financial information about the client,
            maintains the appropriate books and records, makes an asset allocation model recommendation
            that will meet the client’s goals and objectives, maintains the ongoing client relationship, and
            meets with the client on a periodic basis to discuss suitability and any reasonable restrictions
            the client would like to impose on the Account. EFS reviews and approves the recommendation.
            The EMAP fee is shared between the two entities on a negotiated basis. The client does not pay
            an increased fee as a result of this arrangement.

            Client Referrals
            From time to time, EFS may enter into agreements to pay other investment advisers for client
            referrals in accordance with the requirements of Rule 206(4)-3 of the Investment Advisers Act,
            the respective federal and state laws governing the same, and ERISA, as may be applicable. In
            such cases, wrap fees will be shared between the two entities. EMAP fees are based on a
            percentage of client assets invested in the wrap fee program. Any such referral fee shall be paid
            solely from the investment advisory fee. The client does not pay an increased fee as a result of
            these arrangements.


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            Compensation to other investment advisory firms (“Solicitor”) who refer clients to EFS is on a
            negotiated basis. The Solicitor provides the client with a copy of the EFS ADV, and a copy of the
            EFS written disclosure document, which describes the arrangement between EFS and the
            solicitor, including the terms, conditions and compensation.

            Selection of Other Advisors – Edelman Financial Network™ (“EFN”)
            EFN is a network of Advisors created by EFS to refer prospective clients who are interested in
            working with a local advisor in cities where we do not have a branch office. We may refer
            prospective clients to these Representatives of other affiliated or unaffiliated registered
            investment advisory firms for advisory services in accordance with the requirements of Rule
            206(4)-3 of the Investment Advisers Act, and the respective federal and state laws governing the
            same. With the exception of Sanders Morris Harris Inc., an affiliated advisory firm,
            Representatives are not affiliated with EFS in any manner and they are not our employees.

            In selecting Advisors, EFS takes into consideration the Advisor’s investment philosophy,
            regulatory status, and overall credibility. The Advisor’s philosophies must be aligned to a large
            extent with those of Ric Edelman and EFS. We complete due diligence on each investment
            advisory firm and Advisor prior to referring a prospective client. Representatives do not pay any
            fee to join EFN other than a nominal expense reimbursement to cover the costs of all necessary
            background checks. We may also provide marketing support and practice management training
            to the Representative.

            The selected Advisor may offer EMAP or any other financial planning product(s) that meets the
            prospective client’s needs and goals. We receive no compensation or economic benefit from
            products or services offered by the EFN Advisor other than EMAP. Representatives and EFS
            share in the EMAP fee. Therefore, there are no additional costs to the client; the client does not
            pay a higher fee as a result of this arrangement.

            Participation in the Edelman Financial Network raises potential conflicts of interest for Advisors
            since they may have an economic incentive to offer EMAP. A potential conflict of interest may
            arise from Advisors’ inclination to offer EMAP to clients over other investment products they
            offer due to the economic benefits of the referral from EFS.

            TD Ameritrade Institutional Program
            EFS participates in the TD Ameritrade Institutional Program. TD Ameritrade is an unaffiliated
            registered broker-dealer and a member of FINRA, SIPC, and NFA. TD Ameritrade Institutional is a
            division of TD Ameritrade, Inc. We receive services that include custody of client securities,
            trade execution, clearance and settlement of transactions. The Institutional Program provides
            additional significant economic benefit to EFS that is not typically available to TD Ameritrade
            retail investors. EFS may make these additional services available to its affiliates without cost.
            There is no direct link between EFS participation in the programs and the investment advice it
            gives to its clients.



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                                                                                             EDELMAN FINANCIAL SERVICES LLC



            The economic benefits include the following products and services, which are provided without
            cost or at a discount:

                    •   Receipt of duplicate client statements and confirmations;

                    •   Research-related products and tools;

                    •   Consulting services;

                    •   Access to a trading desk serving EFS;

                    •   Access to block trading (which provides the ability to aggregate securities transactions
                        for execution and then allocate the appropriate shares to client Accounts);

                    •   The ability to have advisory fees deducted directly from client Accounts;

                    •   Access to an electronic communications network for client order entry and Account
                        information;

                    •   Access to mutual funds with no transaction fees and to certain institutional money
                        managers;

                    •   Discounts on compliance, marketing, research and technology; and

                    •   Practice management products or services provided to EFS by third-party vendors.

                    •   TD Ameritrade may also pay for business consulting and professional services received
                        by EFS related persons.

            Some of the products and services made available by TD Ameritrade through the Institutional
            Program may benefit us but may not benefit client Accounts. These products or services may
            assist us in managing and administering client Accounts, including Accounts not maintained at
            TD Ameritrade. Other services made available by TD Ameritrade are intended to help us manage
            and further develop our business enterprise. Receiving these economic benefits creates a
            potential conflict of interest and may indirectly influence us to recommend TD Ameritrade to
            clients for custody and brokerage services.

            TD Ameritrade Operations Panel
            Our employee(s) may serve on a TD Ameritrade Institutional Operations Panel from time to
            time. The panel is sponsored by TD Ameritrade and consists of approximately 24 independent
            advisers that advise TD Ameritrade on issues relevant to its service, technology and products
            provided. In-person meetings are held three to four times a year. Panel members are not
            compensated for their participation. However, TD Ameritrade pays or reimburses EFS for the
            travel, lodging and meal expenses incurred when attending panel meetings.




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                                                                                          EDELMAN FINANCIAL SERVICES LLC



            Panel members are selected by TD Ameritrade and appointed to serve for a three-year term.
            Longer service is permitted at the discretion of TD Ameritrade Institutional Sales, Service and
            Senior Management. At times, panel members are provided with confidential information about
            TD Ameritrade initiatives. Therefore, panel members are required to sign a confidentiality
            agreement. The benefits received by EFS do not depend on the amount of brokerage
            transactions directed to TD Ameritrade. However, the receipt of economic benefit by EFS
            creates a potential conflict of interest and may indirectly influence our recommendation of TD
            Ameritrade to clients for custody and brokerage services.

            TD Ameritrade AdvisorDirect Program
            EFS participates in the TD Ameritrade Institutional program known as AdvisorDirect. TD
            Ameritrade Institutional is a division of TD Ameritrade, Inc. (“TD Ameritrade”), member
            FINRA/SIPC/NFA. TD Ameritrade is an independent and unaffiliated SEC-registered broker-
            dealer. There is no employee or agency relationship between TD Ameritrade and EFS. The
            AdvisorDirect program allows TD Ameritrade to refer its brokerage customers and other
            investors seeking fee-based personal investment management or financial planning services to
            other advisers such as EFS. TD Ameritrade has established the referral program as a means of
            retaining brokerage customers. TD Ameritrade does not supervise EFS and has no responsibility
            for the management of our client asset allocation models or other advice or services. EFS was
            chosen by TD Ameritrade to participate in this program based on the number of client Accounts
            maintained with TD Ameritrade, amount of the assets, profitability, and the volume of trades
            placed, along with other relevant factors.

            We receive client referrals from TD Ameritrade through our participation in the AdvisorDirect
            program that may result in economic benefit to EFS. We pay TD Ameritrade an ongoing referral
            fee for each successful client referral. This fee is usually a percentage (not to exceed 25%) of the
            annual advisory fee that the client pays to EFS. We will also pay TD Ameritrade the referral fee
            on any advisory fees we receive from any of a referred client’s family members, including a
            spouse, child, or any other family member who resides with the referred client and also
            becomes an EFS client. Clients who are referred through this program do not pay any higher fees
            or costs than do other EFS clients. More informationis available on the TD Ameritrade
            AdvisorDirect Disclosure and Acknowledgement Form. Please contact us utilizing the
            information on the cover page if you would like a copy.

            Our participation in the AdvisorDirect program poses potential conflicts of interest. TD
            Ameritrade will most likely refer clients through AdvisorDirect to us to encourage clients to
            custody their assets at TD Ameritrade and maintain client Accounts that are profitable to TD
            Ameritrade. Consequently, in order to obtain client referrals from TD Ameritrade, we may have
            an incentive to recommend to clients that the assets under management by EFS be held in
            custody with TD Ameritrade and that transactions for client Accounts be placed with TD
            Ameritrade. In accordance, we have agreed not to solicit clients referred through AdvisorDirect
            to transfer their Accounts from TD Ameritrade or to establish brokerage or custody Accounts at



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                                                                                             EDELMAN FINANCIAL SERVICES LLC



            other custodians, except when our fiduciary duties require doing so. Our participation in
            AdvisorDirect does not diminish our duty to seek best execution of trades for client Accounts.

            Compensation for Other Products and Services
            Our Advisors receive commissions on insurance and/or securities products purchased by
            financial planning clients who choose to implement their financial plan through us. Advisory
            personnel may also receive 12b-1 fees as a result of placing clients with retail mutual funds.
            EMAP clients do not incur sales charges, commissions, or 12b-1 fees when purchasing or owning
            variable annuities or mutual funds and ETFs.

            As a financial planning firm, we make the following statements:

                    (1) Our Advisors are also licensed to sell insurance policies from several insurance
                        companies and may receive sales or referral compensation from any such transactions;

                    (2) Clients are under no obligation to have EFS or our advisory personnel implement any
                        suggestions made in the financial plan;

                    (3) If asked to implement the suggestions of the financial plan, we intend to implement
                        such financial planning, in whole or in part, through products selected by us and to clear
                        securities transactions through Pershing, TD Ameritrade, or Fidelity as described in Item
                        12 of EFS Form ADV;

                    (4) To the extent EFS or our Advisors implement recommendations through SMH;

                            a.   They are acting as agents for SMH.

                            b.   They will use only products offered by SMH.

                            c. They will earn commissions.

                    (5) Clients have total freedom to execute securities and/or insurance transactions with any
                        company of their choice other than with respect to participation in EMAP or the receipt
                        of ongoing, annual financial planning recommendations.

            Indirect Compensation Regarding Television Broadcasts
            Ric Edelman is the host of a syndicated television program, “The Truth About Money with Ric
            Edelman,” airing on public television stations. The program covers all aspects of financial
            education. He does not give specific securities advice and does not reveal any of the EMAP asset
            allocation model holdings or recommendations. A portion of the television show is filmed before
            a studio audience where participants can ask questions; an audience participant may discuss a
            specific mutual fund, ETF or insurance product that may be held in the accounts of certain EMAP
            clients or under consideration at the time of the question. Mr. Edelman does not give specific
            legal, tax or investment advice, and he may give advice that is the same as or different from the
            advice EFS has taken or may take for its clients.


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            From time to time, TD Ameritrade provides a significant economic benefit to EFS by directly
            sponsoring the foregoing television show. This economic benefit may or may not be offered to
            other independent investment advisors participating in the TD Ameritrade Institutional
            Program. TD Ameritrade provides this economic benefit to us indirectly at its sole discretion and
            its own expense. The benefit we receive does not depend on the number of brokerage
            transactions directed to TD Ameritrade. As part of our fiduciary duties to clients, we endeavor at
            all times to put the interests of our clients first. Receiving this significant economic benefit
            creates a potential conflict of interest and may directly or indirectly influence our choice of TD
            Ameritrade for client account custody and brokerage services.

            From time to time, iShares, the exchange-traded fund business of BlackRock and one of the
            industry’s leading exchange-traded funds platforms, provides a significant economic benefit to
            EFS by directly sponsoring the foregoing television show. This economic benefit may or may not
            be offered to other independent investment advisors doing business with iShares. iShares
            provides this economic benefit to us indirectly at its sole discretion and its own expense. The
            benefits we receive do not depend on any reciprocal services or trades directed to BlackRock or
            iShares. As part of our fiduciary duties to clients, we endeavor at all times to put the interests of
            our clients first. Receiving this significant economic benefit creates a potential conflict of
            interest and may directly or indirectly influence our use of BlackRock or iShares to provide more
            exchange traded funds in EMAP portfolios.

            Financial Information
            Registered investment advisers are required to provide clients with financial information or
            disclosures about its financial condition under certain circumstances. EFS is financially sound
            and does not have any financial condition that would impair its ability to meet contractual or
            fiduciary commitments to clients. We have not been the subject of any bankruptcy proceeding.
            Therefore, we are not required to provide any additional financial statements under this item.




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                                                                                    EDELMAN FINANCIAL SERVICES LLC




            Edelman Financial Services LLC
            Investment Committee
            This brochure provides information about the members of the Edelman Financial Services LLC
            Investment Committee and is a supplement to the Edelman Financial Services LLC brochure
            which is attached. If you have any questions about the contents of either brochure, please
            contact us at 888-PLAN-RIC (888-752-6742) or you may email us at info@RicEdelman.com or
            write us at the address below. The information in this brochure has not been approved or
            verified by the United States Securities and Exchange Commission or any state securities
            authority, nor does registration with the SEC imply a certain level of skill or training.




            4000 Legato Road, 9th Floor
            Fairfax, VA 22033
            EdelmanFinancial.com
            RicEdelman.com
            888-PLAN-RIC (888-752-6742)
            866-742-7222 (fax)
            info@RicEdelman.com



Form ADV Part 2B                                       1                                              June 20, 2012
                                                                                        EDELMAN FINANCIAL SERVICES LLC




            EFS Investment Committee
            Summary
            EFS has an Investment Committee which consists of twelve (12) voting members, two (2) ex-
            officio members, and five (5) non-voting members. The committee uses its fiduciary obligations
            to research, evaluate, construct and monitor the best asset allocation and security selection for
            each EMAP® model. Each Advisor then uses his or her fiduciary duty to determine which model
            or combination of models (if any) is in the best interest of each client. The committee meets on
            a regular basis to discuss and vote on changes to asset allocation models such as
            recommendations to replace, reduce or add investments as deemed appropriate.

            Andrew Massaro, Director, Financial Planning, serves as Chairman of the Investment
            Committee. Robert Bowman, EMAP Portfolio Manager and Associate Director, Financial
            Planning, is responsible for implementing and monitoring the EMAP Investment Selection Policy.
            Voting members of the committee consist of EFS Investment Advisors and senior staff members
            who are appointed by the President of EFS. Non-voting members, with the exception of Robert
            Bowman, provide no investment advice to the committee and consist of managers from the
            operations, trading and compliance areas; they provide operational and compliance guidance to
            the committee’s voting members and assist with the implementation of decisions.

            Ex-Officio Committee Members:
            Ric Edelman           Chairman and CEO
            Ed Moore              President

            Voting Committee Members:
            Al Burgos           Associate Director, Financial Planning
            Scott Butera        Director, Financial Planning
            Mary Davis          Director, Financial Planning
            Patrick Day         Director, Financial Planning
            Paul Jordan         VP, Financial Planning
            Jan Kowal           Director, Financial Planning
            J.B. Liebstein      Director, Financial Planning
            Andrew Massaro      Director, Financial Planning
            Betty O’Lear        Director, Financial Planning
            R.J. Reibel         Manager, Retirement Plans Division
            Ed Schweitzer       Manager, TAMP Division
            Tom Wood            Director, Financial Planning

            Non-Voting Members:
            Mike Attiliis          Director, Business Systems Group
            Robert Bowman          EMAP Portfolio Manager and Associate Director, Financial Planning
            Darren Norwood         Manager, Regulatory Compliance
            Eric Olsen             EMAP Trading & Risk Management Analyst
            Dave Sheehan           Operations Manager and Associate Director, Financial Planning


Form ADV Part 2B                                         2                                                June 20, 2012
                              Fredric (Ric) Mark Edelman 
                              Chairman and CEO 
                              Voting Member of Investment Committee 

                             4000 Legato Road                                                      
                             9th Floor 
                             Fairfax, VA 22033 
                             888‐752‐6742 

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888‐752‐6742 
if you have any questions about our brochure or this supplement. 

Educational Background and Business Experience 
Year of Birth:  1958 
Formal Education: Bachelor of Arts in Communications, Rowan University 
                            Honorary Doctorate, Rowan University 
 
Business Background: Ric Edelman has been an investment advisor for 26 years, and has been with 
Edelman Financial Services that entire time. 
 
Employment History:  1986 ‐ Present; CEO and Founder of Edelman Financial Services LLC  
                                              
Professional Designation(s)*:  Board Certified in Mutual Funds 
                                            Certified Fund Specialist® 
                                            Certified Retirement Counselor® 
                                            Chartered Mutual Fund Counselor℠ 
                                            Qualified Financial Planner 
                                            Registered Financial Consultant 
 
Disciplinary Information 
Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal 
or disciplinary events that could materially influence your evaluation of your advisor.  

Ric has no legal or disciplinary events to report. 

Other Business Related Activities 
In addition to serving as Chairman and CEO of Edelman Financial Services, Ric is the President, CEO and a 
Director of its parent company, The Edelman Financial Group (NASDAQ: EF).  He is responsible for the 
leadership and strategic direction of both companies. Due to his role with TEFG, Ric may spend a 
considerable amount of time serving the interests of EF shareholders. 

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit, 
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Ric can 
accommodate his clients because he holds the appropriate securities licenses as a Registered 
Representative with Sanders Morris Harris Inc., a broker‐dealer that is owned by The Edelman Financial 
Group.  




                                              th
CORPORATE HEADQUARTERS    4000 Legato Rd., 9  Fl., Fairfax, VA 22033  |  RicEdelman.com   |  888‐752‐6742         Updated June 6, 2012 
In accordance with our firm’s policy, Ric generally does not recommend the purchase of securities 
products that generate brokerage commissions. However, purchasing or selling securities may be 
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this 
occurs, the firm may offer discount brokerage rates as an accommodation to our clients. 

Ric also holds insurance licenses. As such, he may recommend the purchase of life, health, long‐term 
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict 
of interest if such recommendation were to generate a commission. 

Additional Compensation  
Ric is a financial educator and spends a significant amount of time, usually outside of regular business 
hours, engaged in that activity. This activity is unrelated to his position with the firm. 

Supervision 
Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and 
correct any actual or potential violations by the firm or its supervised persons of the Investment 
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act. 

Ric’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, 
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The Team supervises all 
advisory‐related activities using both technological and physical analysis to review and approve new 
accounts, transactions and other advisory‐related activities. The Team is a division of the firm’s 
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be 
reached at eparker@ricedelman.com or by calling (703) 251‐0167. 

 
*Important Information About the Board Certified in Mutual Funds (BCM®) Designation: The BCM® designation is one of the most comprehensive mutual fund designations in the financial 
service industry.  BCM® professionals are educated in all aspects of mutual funds: selection, regulation, management, fees and strategies.  Prerequisites include a letter of recommendation 
from a client and superior; Certified Fund Specialist® designation;  and completion of a graded case study.  There is no continuing education requirement and this designation is no longer open 
to new individuals. 


Important Information About the Certified Fund Specialist® (CFS®) Designation: A Certified Funds Specialist® learns criteria such as alpha, beta, correlation coefficient, first‐auto correlation, R‐
squared, and standard deviation that should be incorporated in the selection process. With mutual funds training, a Certified Fund Specialist® is able to evaluate and compare financial 
measurements and benchmarks when constructing a portfolio. Candidates of the CFS® must meet one of the following requirements: (1) a bachelor's degree or (2) one year of financial 
services work experience. In addition, CFS® candidates must complete 30 hours of continuing education every two years. 


InFRE's Certified Retirement Counselor® (CRC) was created to advance recognition among retirement planning professionals of the need for a retirement specific certification program that 
demonstrates a mastery of subject matter, a commitment to the retirement planning profession, and adherence to a code of ethics and continuing education requirements. CRC candidates 
must have a bachelor's degree or equivalent with two years relevant professional experience (within the past five years) or high school diploma or equivalent with five years relevant 
professional experience (within the past seven years) and pass a background check. In addition, Certified Retirement Counselors must complete 15 hours of continuing education per year. 


Important Information About the Chartered Mutual Fund Counselor℠ (CMFC®) Designation: The Chartered Mutual Fund Counselor℠ provides candidates with a thorough knowledge of mutual 
funds and their various uses as investment vehicles. The case studies used throughout the course—presenting client scenarios and pointing out opportunities for candidates to make the most 
of these popular investments—provide insight into effective use of these investment vehicles. There is no prerequisites/experience required for this designation. Candidates must pass a final 
designation exam which is online, closed‐book and proctored. In addition, a Chartered Mutual Fund Counselor℠ must complete 16 hours of continuing education every two years. 


Important Information About the Qualified Financial Planner (QFP) Designation: Candidates must have a minimum of three years experience in the field of Financial Planning and hold one or 
more of the following designations: Chartered Financial Consultant® (ChFC®), CERTIFIED FINANCIAL PLANNER™ (CFP®), Master of Science with a Financial Planning concentration (MS), Master 
of Science in Financial Services with a Financial Planning concentration (MSFS) or Personal Financial Specialist (PFS). Examination type varies according to the designations listed above. In 
addition, a Qualified Financial Planner must complete 30 hours of continuing education every two years, or 15 hours annually.  


Important Information About the Registered Financial Consultant (RFC) Designation:  Registered Financial Consultant is a professional designation awarded by the International Association of 
Registered Financial Consultants (IARFC) to those financial advisors who meet high standards or education, experience and integrity. Candidates must meet all of the following requirements: 
(1) undergraduate or graduate financial planning degree, or have earned one of the following designations: AAMS, AEP, CEP, CFA, CFP, ChFC, CLU, CPA, EA, LUTC, MS, MBA, JD, Ph.D, or 
completed a CFP equivalent, IARFC‐approved college curriculum, (2) if operating on a commission basis, must meet licensing requirements for securities and life and health insurance; if 
operating strictly as fee‐only and not licensed, then must be registered as an investment adviser, and (3) four years full‐time experience as a financial planning practitioner. Candidates are 
required to pass the IARFC self‐study course: final certification exam. In addition, candidates must complete 40 hours of continuing education per year. 




Ric Edelman                                                                                                                                                           Updated June 6, 2012 
                           Edward (Ed) Philip Moore
                           President
                           Voting Member of Investment Committee

                           4000 Legato Road
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1960

Formal Education: Bachelor of Science in Industrial Engineering and Operations Research, Virginia
                  Polytechnic Institute and State University

Business Background: Ed Moore has been an investment advisor since 1986, and has been with
Edelman Financial Services since 1990.

Employment History: 1990 Present; President of Edelman Financial Services

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Ed has no legal or disciplinary events to report.

Other Business Related Activities

In addition to serving as President of Edelman Financial Services, Ed is Executive Vice President of
Wealth Management with our parent company, The Edelman Financial Group (NASDAQ: EF). In that
role, he oversees a division of related Registered Investment Advisors and Registered Representatives.
He devotes a fair amount of time to those activities.

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Ed can
accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
In accordance with our firm’s policy, Ed generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Ed also holds insurance licenses. As such, he may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Ed is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Ed’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




* Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Ed Moore                                                                                                                 Updated April 1, 2012
                           Alfonso (Al) Burgos
                           Associate Director, Financial Planning
                           Voting Member of Investment Committee

                           6550 Rock Spring Drive
                           Suite 510
                           Bethesda, MD 20817
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience
Year of Birth: 1973
Formal Education: Bachelor of Arts in English, The State University of New York, Geneseo

Business Background: Al Burgos has been an investment advisor for 16 years, and has been with
Edelman Financial Services since 2006.

Employment History:

    x    2006 Present; Associate Director, Financial Planning for Edelman Financial Services. Provides
         financial advice to clients.
    x    1999 2006; Financial Advisor at Brookstreet Securities. Provided financial advice to individuals
         and small businesses.
    x    1999 1999; Financial Advisor at MultiFinancial Securities. Provided financial advice to
         individuals and small businesses.
    x    1998 1999; Financial Advisor at Pacific Cortez. Provided financial advice to individuals and small
         businesses.
    x    1997 1998; Financial Advisor at Tasin & Co. Provided provided financial advice to individuals
         and small businesses.

Professional Designation(s)*: Accredited Asset Management Specialist
                              Chartered Mutual Fund Counselor
                              Chartered Retirement Planning Counselor

Disciplinary Information
Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Al has no legal or disciplinary events to report.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Other Business Related Activities
Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Al can
accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.

In accordance with our firm’s policy, Al generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Al also holds insurance licenses. As such, he may recommend the purchase of life, health, long term care
and disability insurance products, as well as fixed and variable annuities. There could be a conflict of
interest if such recommendation were to generate a commission.

Additional Compensation
Al is not engaged in any other business activity for compensation.

Supervision
Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Al’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, which
is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all advisory
related activities using both technological and physical analysis to review and approve new accounts,
transactions and other advisory related activities. The team is a division of the firm’s Compliance
Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be reached at
eparker@ricedelman.com or by calling (703) 251 016



*Important Information About the Accredited Asset Management Specialist        (AAMS®) Designation: The Accredited Asset Management Specialist or AAMS®
provides the advisor with a logical progression of topics, enabling them to think in terms of clients’ total financial situations, not just their investments. At the
conclusion of the studies, the candidate’s ability to identify opportunities and employ strategies is enhanced not only with regard to investments, but also related to
planning for insurance, tax, retirement, and estate issues. There is no prerequisite. The candidate must complete a self study course consisting of 12 modules,
requiring 100 120 hours. The candidate must also pass a final exam (online, closed book, proctored). The candidate is required to complete 16 hours of continuing
education every 2 years.

Important Information About the Chartered Mutual Fund Counselor (CMFC®) Designation: The Chartered Mutual Fund Counselor provides candidates with a
thorough knowledge of mutual funds and their various uses as investment vehicles. The case studies used throughout the course—presenting client scenarios and
pointing out opportunities for candidates to make the most of these popular investments—provide insight into effective use of these investment vehicles. There is
no prerequisites/experience required for this designation. Candidates must pass a final designation exam which is online, closed book and proctored. In addition, a
Chartered Mutual Fund Counselor must complete 16 hours of continuing education every two years.



Important Information About the Chartered Retirement Planning Counselor (CRPC®) Designation: The Chartered Retirement Planning Counselor (CRPC®)
program is issued by the College for Financial Planning and focuses on a course of study encompassing pre and post retirement needs and issues related to asset
management and estate planning. Although the CRPC® program requires no prerequisites, Candidates must complete a final designation exam that is online, closed
book and proctored. Additionally, Candidates much complete 16 hours of continuing education every two years.




Alfonso Burgos                                                                                                                            Updated April 1, 2012
                           Scott Christopher Butera
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           6550 Rock Spring Drive
                           Suite 510
                           Bethesda, MD 20817
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1975

Formal Education: Bachelor of Arts in Economics, University of Maryland

Business Background: Scott Butera has been an investment advisor for 15 years, and has been with
Edelman Financial Services since 2006.

Employment History:

    x    2006 Present; Director of Financial Planning for Edelman Financial Services. Provides financial
         advice to clients.
    x    2001 2006; Vice President / Senior Account Executive at Fidelity Investments. Provided
         financial advice to clients.
    x    2000 2001; Investment Advisor at Charles Schwab. Provided financial advice to clients.
    x    1997 2000; Financial Advisor for American Express. Provided financial advice to clients.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Scott has no legal or disciplinary events to report.

Other Business Related Activities

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Scott
can accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.



                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
In accordance with our firm’s policy, Scott generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Scott also holds insurance licenses. As such, he may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Scott is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Scott’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Scott Butera                                                                                                             Updated April 1, 2012
                           Mary Stone Davis
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           4000 Legato Rd
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1959

Formal Education: Bachelor of Business Administration, Southern Methodist University

Business Background: Mary Davis has been an investment advisor for 31 years, and has been with
Edelman Financial Services since 1994.

Recent Employment History:

1994 Present; Director of Financial Planning for Edelman Financial Services. Provides financial advice
for clients.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Mary has no legal or disciplinary events to report.

Other Business Related Activities

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Mary
can accommodate her clients because she holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.

In accordance with our firm’s policy, Mary generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Mary also holds insurance licenses. As such, she may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Mary is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Mary’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




_____________________________________________________________________________________
*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Mary Davis                                                                                                               Updated April 1, 2012
                           Patrick (Pat) Ward Day
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           4000 Legato Road
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1959

Formal Education: Bachelor of Science in Finance, University of Maryland

Business Background: Pat Day has been an investment advisor for 27 years, and has been with Edelman
Financial Services since 1992.

Employment History:

    x    1992 Present; Director, Financial Planning for Edelman Financial Services. Provides financial
         advice to clients.
    x    1985 1992; Financial Advisor at Capital Analysts Inc. Provided financial advice to business
         owners.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Pat has no legal or disciplinary events to report.

Other Business Related Activities

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Pat can
accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
In accordance with our firm’s policy, Pat generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Pat also holds insurance licenses. As such, he may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Pat is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Pat’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Patrick Day                                                                                                              Updated April 1, 2012
                           Paul Jason Jordan
                           Vice President, Financial Planning
                           Voting Member of Investment Committee

                           4000 Legato Road
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1964

Formal Education: Bachelor of Arts in Communication, Virginia Polytechnic Institute and State University

Business Background: Paul Jordan has been an investment advisor for 19 years, and has been with
Edelman Financial Services since 2007.

Employment History:

    x    2007 Present; Vice President of Financial Planning for Edelman Financial Services. Manages the
         staff of financial planners.
    x    2001 2007; Financial Advisor at SunTrust Investment Services. Managed a staff of financial
         advisors.
    x    1995 2001; Financial Advisor and Branch Manager at Quick and Reilly. Managed brokerage
         office and provided financial advice to clients.
    x    1993 1995; Financial Advisor at Merrill Lynch. Provided financial planning and advice.

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Paul has no legal or disciplinary events to report.

Other Business Related Activities

Sometimes, when an appropriate situation arises and is in the client’s best interest, we may deposit,
transfer, purchase or liquidate securities in their account that they maintain with our firm. Paul can
accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   April 1, 2012
In accordance with our firm’s policy, Paul generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Paul also holds insurance licenses. As such, he may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Paul is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Paul’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




Paul Jordan                                                                              Updated April 1, 2012
 

                              Jan Eric Kowal 
                              Director, Financial Planning  
                              Voting Member of Investment Committee 

                             4000 Legato Road                                                      
                             9th Floor 
                             Fairfax, VA 22033 
                             888‐752‐6742 

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888‐752‐6742 
if you have any questions about our brochure or this supplement. 

Educational Background and Business Experience 
 
Year of Birth:  1958 
 
Formal Education: Bachelor of Business Administration in Accounting, George Washington University 
                            Masters of Business Administration in Finance and Investments, George Washington  
                            University 
 
Business Background: Jan Kowal has been an investment advisor for 28 years, and has been with 
Edelman Financial Services since 1993. 
 
Employment History:  

         1993 ‐ Present; Director, Financial Planning for Edelman Financial Services. Provides financial 
          advice to clients. 
         1986 ‐ 1993; Financial Planner for Tax Qualified Trusts. Provided financial advice to individuals 
          and small businesses. 

Professional Designation(s)*:  CERTIFIED FINANCIAL PLANNER™ 
                                    Certified Public Accountant 

Disciplinary Information 

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal 
or disciplinary events that could materially influence your evaluation of your advisor.  

Jan has no legal or disciplinary events to report. 

Other Business Related Activities 

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit, 
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Jan can 
accommodate his clients because he holds the appropriate securities licenses as a Registered 




                                              th
CORPORATE HEADQUARTERS    4000 Legato Rd., 9  Fl., Fairfax, VA 22033  |  RicEdelman.com   |  888‐752‐6742         Updated April 1, 2012 
 
Representative with Sanders Morris Harris Inc., a broker‐dealer that is owned by The Edelman Financial 
Group.  

In accordance with our firm’s policy, Jan generally does not recommend the purchase of securities 
products that generate brokerage commissions. However, purchasing or selling securities may be 
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this 
occurs, the firm may offer discount brokerage rates as an accommodation to our clients. 

Jan also holds insurance licenses. As such, he may recommend the purchase of life, health, long‐term 
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict 
of interest if such recommendation were to generate a commission. 

Additional Compensation 

Jan is not engaged in any other business activity for compensation.  

Supervision 

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and 
correct any actual or potential violations by the firm or its supervised persons of the Investment 
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act. 

Jan’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, 
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all 
advisory‐related activities using both technological and physical analysis to review and approve new 
accounts, transactions and other advisory‐related activities. The team is a division of the firm’s 
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be 
reached at eparker@ricedelman.com or by calling (703) 251‐0167. 

 

 

 

 

 

*The CERTIFIED FINANCIAL PLANNER™ (CFP®) certification represents proven expertise within the financial planning profession. Those with the 
CFP® designation have demonstrated competency in all areas of finance related to financial planning. Candidates for the CFP® designation must 
pass a certification exam administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to 
the financial planning field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates 
must also complete qualifying work experience (three years full‐time or equivalent part‐time experience in the financial planning field) and 
agree to adhere to the CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® candidates 
must complete 30 hours of continuing education every two years. 

Important Information About the Certified Public Accountant (CPA) Designation: All CPA candidates must pass the Uniform CPA Examination to 
qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. While the exam is the same no matter where it's 
taken, every state/jurisdiction has its own set of education and experience requirements that individuals must meet. 




Jan Kowal                                                                                                                  Updated April 1, 2012 
                           Jerome Bruce (JB) Liebstein
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           6550 Rock Spring Drive
                           Suite 510
                           Bethesda, MD 20817
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1961

Formal Education: University of Maryland, College Park, MD, 1983 1986
                  Tel Aviv University, Israel, 1982 1983
                  West Virginia University, Morgantown, West Virginia, 1981 1982

Business Background: JB Liebstein has been an investment advisor for 16 years, and has been with
Edelman Financial Services since 2006.

Employment History:

    x    2006 Present; Director of Financial Planning at Edelman Financial Services. Provides financial
         advice to clients.
    x    2000 2006; Registered Representative for Next Financial Group. Provided financial planning to
         clients.
    x    1997 2000; Registered Representative at Lincoln Financial Group. Provided financial planning
         to clients.
    x    1996 1997; Registered Representative at Cigna Financial Group. Provided financial planning to
         clients.


Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™
                              Chartered Financial Consultant®

Disciplinary Information
Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

JB has no legal or disciplinary events to report.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Other Business Related Activities
Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. JB can
accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.

In accordance with our firm’s policy, JB generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

JB also holds insurance licenses. As such, he may recommend the purchase of life, health, long term care
and disability insurance products, as well as fixed and variable annuities. There could be a conflict of
interest if such recommendation were to generate a commission.

Additional Compensation
JB is not engaged in any other business activity for compensation.

Supervision
Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

JB’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, which
is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all advisory
related activities using both technological and physical analysis to review and approve new accounts,
transactions and other advisory related activities. The team is a division of the firm’s Compliance
Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be reached at
eparker@ricedelman.com or by calling (703) 251 0167.




*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.

Important Information About the Chartered Financial Consultant® (ChFC®) Designation: The Chartered Financial Consultant® (ChFC®) program
prepares candidates to meet the advanced financial planning needs of individuals, professionals and small business owners. Candidates gain a
sustainable advantage in this competitive field with in depth coverage of the key financial planning disciplines, including insurance, income
taxation, retirement planning, investments and estate planning. Candidates are required to have three years of full time business experience
within the five years preceding the awarding of the designation and pass a final proctored exam for each course. In addition, the Charter
Financial Consultant® must complete 30 hours of continuing education every two years.




Jerome Liebstein                                                                                                         Updated April 1, 2012
 

                              Andrew Charles Massaro 
                              Director, Financial Planning  
                              Chairman of Investment Committee 

                             4000 Legato Road                                                      
                             9th Floor 
                             Fairfax, VA 22033 
                             888‐752‐6742 

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888‐752‐6742 
if you have any questions about our brochure or this supplement. 

Educational Background and Business Experience 
 
Year of Birth:  1967 
 
Formal Education:  Bachelor of Science in Business Administration, Georgetown University  
 
Business Background: Andrew Massaro has been an investment advisor for 24 years, and has been with 
Edelman Financial Services since 1994.              

 


Employment History:  

         1994 ‐ Present; Director of Financial Planning for Edelman Finanical Services. Provides financial 
          advice to clients.  
         1991 ‐ 1994; Senior New Business Specialist at Schoenke & Associates. Provided executive 
          benefits consulting to corporations. 
         1989 ‐ 1991; Registered Representative at Capital Analysts Inc. Provided estate planning and 
          investment management to business owners. 

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™ 
                                   Certified Fund Specialist® 

Disciplinary Information 

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal 
or disciplinary events that could materially influence your evaluation of your advisor.  

Andrew has no legal or disciplinary events to report. 

Other Business Related Activities 

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit, 
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Andrew 
can accommodate his clients because he holds the appropriate securities licenses as a Registered 
Representative with Sanders Morris Harris Inc., a broker‐dealer that is owned by The Edelman Financial 
Group.  



                                              th
CORPORATE HEADQUARTERS    4000 Legato Rd., 9  Fl., Fairfax, VA 22033  |  RicEdelman.com   |  888‐752‐6742         Updated April 1, 2012 
 
In accordance with our firm’s policy, Andrew generally does not recommend the purchase of securities 
products that generate brokerage commissions. However, purchasing or selling securities may be 
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this 
occurs, the firm may offer discount brokerage rates as an accommodation to our clients. 

Andrew also holds insurance licenses. As such, he may recommend the purchase of life, health, long‐
term care and disability insurance products, as well as fixed and variable annuities. There could be a 
conflict of interest if such recommendation were to generate a commission. 

Additional Compensation 

Andrew is not engaged in any other business activity for compensation.  

Supervision 

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and 
correct any actual or potential violations by the firm or its supervised persons of the Investment 
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act. 

Andrew’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, 
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all 
advisory‐related activities using both technological and physical analysis to review and approve new 
accounts, transactions and other advisory‐related activities. The team is a division of the firm’s 
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be 
reached at eparker@ricedelman.com or by calling (703) 251‐0167. 

 

 

 

 

* Important Information About the CERTIFIED FINANCIAL PLANNER ™  (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™  (CFP®) 
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated 
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam 
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning 
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete 
qualifying work experience (three years full‐time or equivalent part‐time experience in the financial planning field) and agree to adhere to the 
CFP Board's code of ethics and professional responsibility and financial planning standards.  In addition, CFP® must complete 30 hours of 
continuing education every two years. 

Important Information About the Certified Fund Specialist® (CFS®) Designation: A Certified Funds Specialist® learns criteria such as alpha, beta, 
correlation coefficient, first‐auto correlation, R‐squared, and standard deviation that should be incorporated in the selection process. With 
mutual funds training, a Certified Fund Specialist® is able to evaluate and compare financial measurements and benchmarks when constructing 
a portfolio. Candidates of the CFS® must meet one of the following requirements: (1) a bachelor's degree or (2) one year of financial services 
work experience. In addition, CFS® candidates must complete 30 hours of continuing education every two years. 




Andrew Massaro                                                                                                           Updated April 1, 2012 
                           Betty Jean O'Lear
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           4000 Legato Road
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1939

Formal Education: Bachelor of Science in English, Texas Tech University
                  Master of Arts in English, Trinity University of Texas
                  Master in Business Administration, University of California at San Bernardino

Business Background: Betty O’Lear has been an investment advisor for 29 years, and has been with
Edelman Financial Services since 1994.

Employment History:

         x   1994 Present; Director of Financial Planning for Edelman Financial Services. Provides
             financial advice to clients.
         x   1992 1994; Rental Agent at Charles E Smith. Agent for 900 unit apartment complex.
         x   1988 1991; Not employed due to military assignment abroad.
         x   1987; Registered Representative at Invest Corporation. Provided investment advice to bank
             customers.
         x   1986; Registered Representative at Barnett Banks of Florida. Advised and executed
             purchases and sales of securities for clients.
         x   1979 1985; Registered Representative at Merrill Lynch. Advised and executed purchases and
             sales of securities for clients.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Betty has no legal or disciplinary events to report.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Other Business Related Activities

Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Betty
can accommodate her clients because she holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.

In accordance with our firm’s policy, Betty generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Betty also holds insurance licenses. As such, she may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation

Betty is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Betty’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Betty O’Lear                                                                                                             Updated April 1, 2012
                           Raymond James (R.J.) Reibel, II
                           Manager, Retirement Plans Division
                           Voting Member of Investment Committee

                           200 Westgate Parkway
                           Suite 202
                           Henrico, VA 23233
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1977

Formal Education: Bachelor of Arts in Public Policy, College of William & Mary
                  Master of Science in Business Finance, Virginia Commonwealth University

Business Background: R.J. Reibel has been an investment advisor for 9 years, and has been with
Edelman Financial Services since 2008.

Employment History:

    x    2008 Present; Manager of Retirement Plans Division for Edelman Financial Services.
         Investment Advisor to corporate retirement plans.
    x    2004 2008; Planning Specialist at Financeware Inc. Designed and reviewed financial plans for
         advisors and retirement plans for companies.
    x    2001 2003; Financial Analyst at Marsh USA. Provided budgeting and forecasting analysis to
         office manager.
    x    2000 2000; Registered Representative at Mass Mutual. Sold life Insurance and mutual funds.

Professional Designation(s)*: Chartered Retirement Plan Specialist

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

R.J. has no legal or disciplinary events to report.

Other Business Related Activities

R.J. is not involved in any other business related activities.




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CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Additional Compensation

R.J. is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

R.J.’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




*Important Information About the Chartered Retirement Plan Specialist (CRPS®) Designation: The Chartered Retirement Plans Specialist
designation provides the advisor with the unique skills needed to implement and oversee internal retirement plans. As retirement plan options
evolve and tax complexities increase, many companies seek professional plan administrators to design, install, and maintain their company
retirement plans. There is no prerequisite/experience required to obtain the CRPS® designation. Candidates must pass a final designation exam
which is online, closed book and proctored. In addition, the candidate must complete 16 hours of continuing education every two years.




Raymond Reibel                                                                                                       Updated April 1, 2012
                           Edward (Ed) Newton Schweitzer
                           Manager, TAMP Division
                           Voting Member of Investment Committee

                           200 Westgate Parkway
                           Suite 202
                           Henrico, VA 23233
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1962

Formal Education: Bachelor of Science in Aeronautical Administration, Parks College of
                  Saint Louis University

Business Background: Ed Schweitzer has been an investment advisor for 7 years, and has been with
Edelman Financial Services since 2007.

Employment History:

    x    2007 Present; Manager of TAMP Division for Edelman Financial Services. Serves institutional
         clients and oversees 100 non affiliated advisors.
    x    2006 2007; Investment Counselor at Euro Pacific Capital. Broker specializing in foreign
         securities.
    x    2005 2006; Financial Representative at AXA Equitable. Offered retirement benefits products to
         school teachers.
    x    1988 2005; Pilot at USAirways. First officer on several aircraft types.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™

Disciplinary Information

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Ed has no legal or disciplinary events to report.

Other Business Related Activities

Ed is not involved in any other business related activities.




                                         th
CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
Additional Compensation

Ed is not engaged in any other business activity for compensation.

Supervision

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the firm or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Ed’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




* Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.




Edward Schweitzer                                                                                                        Updated April 1, 2012
                           Thomas (Tom) Walker Wood
                           Director, Financial Planning
                           Voting Member of Investment Committee

                           4000 Legato Road
                           9th Floor
                           Fairfax, VA 22033
                           888 752 6742

This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888 752 6742
if you have any questions about our brochure or this supplement.

Educational Background and Business Experience

Year of Birth: 1950
Formal Education: Bachelor of Science in Commerce, University of Virginia

Business Background: Tom Wood has been an investment advisor for 22 years, and has been with
Edelman Financial Services since 1999.

Employment History:

    x    1999 Present; Director of Financial Planning for Edelman Financial Services. Provides financial
         advice for clients.
    x    1990 1999; Insurance Agent/Investment Adviser for MassMutual. Insurance and investment
         planning and sales.

Professional Designation(s)*: CERTIFIED FINANCIAL PLANNER™
                              Chartered Financial Consultant®
                              Chartered Life Underwriter®

Disciplinary Information
Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal
or disciplinary events that could materially influence your evaluation of your advisor.

Tom has no legal or disciplinary events to report.

Other Business Related Activities
Sometimes, when an appropriate situation arises and is in the client’s best interests, we may deposit,
transfer, purchase or liquidate securities in the client’s account that is maintained with our firm. Tom
can accommodate his clients because he holds the appropriate securities licenses as a Registered
Representative with Sanders Morris Harris Inc., a broker dealer that is owned by The Edelman Financial
Group.




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CORPORATE HEADQUARTERS 4000 Legato Rd., 9 Fl., Fairfax, VA 22033 | RicEdelman.com | 888 752 6742   Updated April 1, 2012
In accordance with our firm’s policy, Tom generally does not recommend the purchase of securities
products that generate brokerage commissions. However, purchasing or selling securities may be
appropriate at times, and in such cases the firm might charge the client a transaction fee. When this
occurs, the firm may offer discount brokerage rates as an accommodation to our clients.

Tom also holds insurance licenses. As such, he may recommend the purchase of life, health, long term
care and disability insurance products, as well as fixed and variable annuities. There could be a conflict
of interest if such recommendation were to generate a commission.

Additional Compensation
Tom is not engaged in any other business activity for compensation.

Supervision
Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and
correct any actual or potential violations by the adviser or its supervised persons of the Investment
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act.

Tom's investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team,
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all
advisory related activities using both technological and physical analysis to review and approve new
accounts, transactions and other advisory related activities. The team is a division of the firm’s
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be
reached at eparker@ricedelman.com or by calling (703) 251 0167.




_______________________________________________________________________________________________________

*Important Information About the CERTIFIED FINANCIAL PLANNER ™ (CFP®) Designation: The CERTIFIED FINANCIAL PLANNER ™ (CFP®)
certification represents proven expertise within the financial planning profession. Those with the CFP® designation have demonstrated
competency in all areas of finance related to financial planning. Candidates for the CFP® designation must pass a certification exam
administered by the Certified Financial Planner Board of Standards Inc. that focuses on over 100 topics of concern to the financial planning
field, such as retirement, estate, and investment planning. In addition to passing the CFP® certification exam, candidates must also complete
qualifying work experience (three years full time or equivalent part time experience in the financial planning field) and agree to adhere to the
CFP Board's code of ethics and professional responsibility and financial planning standards. In addition, CFP® must complete 30 hours of
continuing education every two years.

Important Information About the Chartered Financial Consultant® (ChFC®) Designation: The Chartered Financial Consultant® (ChFC®) program
prepares candidates to meet the advanced financial planning needs of individuals, professionals and small business owners. Candidates gain a
sustainable advantage in this competitive field with in depth coverage of the key financial planning disciplines, including insurance, income
taxation, retirement planning, investments and estate planning. Candidates are required to have three years of full time business experience
within the five years preceding the awarding of the designation and pass a final proctored exam for each course. In addition, the Charter
Financial Consultant® must complete 30 hours of continuing education every two years.

Important Information About the Chartered Life Underwriter® (CLU®) Designation: The Chartered Life Underwriter® designation provides
candidates with in depth knowledge on the insurance needs of individuals, business owners and professional clients. Candidates are required to
have three years of full time business experience within the five years preceding the awarding of the designation and successfully pass a final
proctored exam for each course. In addition, a Chartered Life Underwriter® must complete 30 hours of continuing education every two years.




Thomas Wood                                                                                                               Updated April 1, 2012
                              Robert Scott Bowman 
                        Portfolio Manager 
                        Associate Director, Financial Planning                   
                        Member of Investment Committee 
                        200 Westgate Parkway                                       
                        Suite 202 
                       Henrico, VA 23233 
                        888‐752‐6742 
                         
This is a supplement to the Edelman Financial Services LLC brochure. Please contact us at 888‐752‐6742 
if you have any questions about our brochure or this supplement. 

Educational Background and Business Experience 
 
Year of Birth:  1968 
 
Formal Education:  Bachelor of Business Administration Finance and Insurance, Radford University 
                       College of Business and Economics                     




 




Business Background: Robert has been in investment management for 21 years, and has been with 
Edelman Financial Services since 2008. 
 

Employment History:   

         2008 ‐ Present; Portfolio Manager and Associate Director, Financial Planning for Edelman 
          Financial Services. Directs portfolio and risk management for EMAP. Provides financial advice to 
          clients. 
         2000 ‐ 2007; Managing Director at Trusco Capital Management. Directed portfolio and risk 
          management.  
         1994 ‐ 2000; Portfolio Manager at Crestar Asset Management. Directed portfolio and risk 
          management.  
         1990 ‐ 1994; Equity Trader at Capitoline Investment Advisory.   

Professional Designation(s)*:  Chartered Financial Analyst  
                                   Chartered Alternative Investment Analyst 

Disciplinary Information 

Like all Registered Investment Advisors, we are required to disclose all material facts regarding any legal 
or disciplinary events that could materially influence your evaluation of your advisor.  

Robert has no legal or disciplinary events to report. 

Other Business Related Activities 

In addition to serving as Portfolio Manager for Edelman Financial Services, Robert serves on the Sanders 
Morris Harris Inc. Due Diligence Committee and the Investment Committee. In those roles, he provides 




                                              th
CORPORATE HEADQUARTERS    4000 Legato Rd., 9  Fl., Fairfax, VA 22033  |  RicEdelman.com   |  888‐752‐6742         Updated June 1, 2012 
input and guidance to both committees when making decisions. Sanders Morris Harris Inc. is part of The 
Edelman Financial Group (NASDAQ:EF) and an affiliated broker/dealer and registered investment 
adviser.  

Additional Compensation 

Robert is not engaged in any other business activity for compensation.  

Supervision 

Edelman Financial Services has adopted a formal compliance program designed to prevent, detect and 
correct any actual or potential violations by the firm or its supervised persons of the Investment 
Advisers Act of 1940, and other federal securities laws and rules adopted under the Advisers Act. 

Robert’s investment advisory activity is supervised by the firm’s Compliance Supervisory Review Team, 
which is located at the firm’s Corporate Headquarters in Fairfax, Virginia. The team supervises all 
advisory‐related activities using both technological and physical analysis to review and approve new 
accounts, transactions and other advisory‐related activities. The team is a division of the firm’s 
Compliance Department, which is managed by Eraine Parker, Chief Compliance Officer. She can be 
reached at eparker@ricedelman.com or by calling (703) 251‐0167. 

 

 

 

 

 

 

 

 

 

*Important Information About the Chartered Financial Analyst (CFA) Designation: The CFA designation is highly revered in investment management field 
and those who have the credential are expected to have an in‐depth knowledge of the investment industry, with many going on to careers as portfolio 
managers or research analysts at hedge funds and private equity firms.  Obtaining the qualification requires; a self‐study program which takes several 
years to complete and participants must pass three six‐hour exams, as well as agree to abide by a strict code of ethics and standards of conduct.  
Candidate must also meet one of the following requirements: Undergraduate degree and four years of professional experience involving investment 
decision‐making, or Four years qualified work experience (full time, but not necessarily investment related).   
•Undergraduate degree and four years of professional experience involving investment decision‐making, or  
•Four years qualified work experience (full time, but not necessarily investment related).   

*Important Information About the Chartered Alternative Investment Analyst (CAIA) Designation: The Chartered Alternative Investment Analyst program 
provides individuals with the core competencies required to create, manage, and monitor an institutional‐quality portfolio consisting of both traditional 
and alternative investments.  Candidates must hold a U.S. bachelor's degree or the equivalent, and have more than one year of professional experience, 
or alternatively have at least four years of professional experience.  The candidate must pass a Level I and Level II exam, pay an annual membership fee 
and agree on an annual basis to abide by the Member Agreement which includes adhering to a Professional Conduct Standard. 




Robert Bowman                                                                                                                   Updated June 1, 2012 
                      WHAT DOES EDELMAN FINANCIAL SERVICES LLC
 FACTS                DO WITH YOUR PERSONAL INFORMATION?

                      Financial companies choose how they share your personal information. Federal law gives consumers the
  Why?                right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and
                      protect your personal information. Please read this notice carefully to understand what we do.


                     The types of personal information we collect and share depend on the product or service you have with
                     us. This information can include:

                     ƒ     Social Security number and income
  What?              ƒ     Assets and investment experience
                     ƒ     Account transactions and risk tolerance
                     ƒ     Income and employment information

                     When you are no longer our customer, we continue to share your information as described in this notice.


                      All financial companies need to share clients’ personal information to run their everyday business. In
  How?                the section below, we list the reasons financial companies can share their clients’ personal information,
                      the reasons Edelman Financial Services chooses to share and whether you can limit this sharing.


                                                                         Does Edelman Financial               Can you limit
Reasons we can share your personal information
                                                                         Services share?                      this sharing?
For our everyday business purposes —
such as to process your transactions, maintain your account(s),
respond to court orders and legal investigations, or report to credit                   Yes                           No
bureaus
For our marketing purposes —
                                                                                        Yes                           No
to offer our products and services to you
For joint marketing with other financial companies                                      No                     We do not share
For our affiliates’ everyday business purposes —
                                                                                        Yes                           No
information about your transactions and experiences
For our affiliates’ everyday business purposes —
                                                                                        No                     We do not share
information about your creditworthiness
For our affiliates to market to you                                                     No                     We do not share

For nonaffiliates to market to you                                                      No                     We do not share


Questions?               Contact us through RicEdelman.com or call us at 888-752-6742.
Who we are
Who is providing this
                                 Edelman Financial Services LLC
notice?

What we do

How does Edelman                 To protect your personal information from unauthorized access and use, we use security
Financial Services protect       measures that comply with federal law. These measures include computer safeguards and
my personal information?         secured files and buildings, as well as:

                                 ƒ   information access controls
                                 ƒ   service provider oversight and confidentiality agreements
                                 ƒ   proper disposal of customer information
                                 ƒ   periodic security training for personnel


How does Edelman                 We collect your personal information, for example, when you:
Financial Services collect
my personal information?         ƒ   open an account or seek advice about your investments
                                 ƒ   direct us to buy securities or direct us to sell securities
                                 ƒ   enter into an investment advisory contract or tell us about your investment or
                                     retirement portfolio or earnings

                                 We also collect your personal information from other sources, such as credit bureaus,
                                 affiliates or other companies.


Why can’t I limit all sharing?   Federal law gives you the right to limit only:

                                 ƒ   sharing for affiliates’ everyday business purposes — information about your
                                     creditworthiness
                                 ƒ   affiliates from using your information to market to you

                                 State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates                       Companies related by common ownership or control. They can be financial and
                                 nonfinancial companies.
                                 ƒ Our affiliates include financial advisors such as SMH Capital Advisors, Inc. and GFS
                                   Advisors, LLC; broker dealers such as Sanders Morris Harris Inc. and Global
                                   Financial Services, Inc., and insurance agencies such as HWG Insurance Agency, Inc.

Nonaffiliates                    Companies not related by common ownership or control. They can be financial and
                                 nonfinancial companies.
                                 ƒ We do not share with nonaffiliates so they can market to you.

Joint marketing                  A formal agreement between nonaffiliated financial companies that together market
                                 financial products or services to you.
                                 ƒ We do not jointly market with nonaffiliated companies.


                                                                                                                Revised 3/2012

                                                            2

				
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