Advanced Financial Strategies Inc

ITEM 5: FEES AND COMPENSATION
Comprehensive and Modular Financial Planning, Business Planning, Estate Planning
1. We will charge you for all Comprehensive and Modular Financial Planning, Business and Estate Planning
services at the following rates:
    $400.00 per hour for all work performed by Pierre Ngo
    $200.00 per hour for all work performed by a Certified Financial Planner
    $100.00 per hour for all work performed by Registered Paraplanners
    $65.00 per hour for all work performed by Administrative Staff
2. We will provide you with an estimated total cost anticipated to complete the project depending on the
nature and complexity of each client’s circumstances. All outstanding fees shall be due and payable within
thirty (30) days from the date when we present the plan to you. If you do not pay all fees billed within such
thirty (30) days, a late fee of 1% per month (or the maximum legal rate, whichever is less) will be added
to your statement on the unpaid balance. Either party may terminate the advisory and/or investment
management agreement at any time by providing written notice to the other party. However, you will
remain liable for all services rendered through the effective date of the termination.
The AFS asset management fee shall be computed in accordance with the following schedule: Fee Schedule
for Aggressive Growth, Growth, and Moderate Growth Portfolios:

                                               Account Size                Annual Fee       Quarterly Fee
                                               First $250,000              1.000%           0.250%
                                               Next $250,000               0.875%           0.219%
                                               Next $500,000               0.750%           0.188%
                                               Next $1,000,000             0.625%           0.156%
                                               Amount over $2,000,000      0.500%           0.125%
                                              Applicable to the following Portfolio: Conservative Growth

                                               Account Size                Annual Fee       Quarterly Fee
                                               First $250,000              0.625%           0.156%
                                               Next $250,000               0.500%           0.125%
                                               Amount over $500,000        0.375%           0.094%
                                              Applicable to the following Portfolio: Emphasis on Income

                                               Account Size                Annual Fee       Quarterly Fee
                                               First $500,000              0.375%           0.094%
                                               Amount over $500,000        0.250%           0.0625%

As provided in the advisory agreement that you sign with AFS, AFS deducts its advisory fees from your
custodial account. Management fees, which are payable quarterly in arrears, are calculated as a percentage
of each account(s). This fee will be based upon the total value of each account(s) under management,
computed as of the last business day of the calendar quarter. Valuations are provided to AFS from the
underlying custodian by direct download from the custodian and/or client statements. We will usually
deduct those fees from your account(s) in the first week after the preceding billable quarter.
The fees we charge are not calculated on the basis of a share of the capital gains upon, or the capital
appreciation of, the funds, or any portion of the funds, of an advisory client (SEC Rule 205(a)(1)). We will
not make any pro rata adjustments for additions or withdrawals during the quarter, but we will prorate
the fees if the entire account is opened in the middle of the quarter. Our advisory fees may be adjusted by
mutual agreement. With client authorization, we will typically withdraw our management fee automatically
from the client’s account each quarter upon instruction to the client’s independent custodian. As part of the
billing process, the client’s custodian is advised of the amount of the fee to be deducted from that client’s
account. On at least a quarterly basis, the custodian is required to send to the client a statement showing
all transactions within the account including the management fee deducted during the reporting period.
Because the custodian does not calculate the amount of the fee to be deducted, it is important
for clients to carefully review their custodian statements to verify the accuracy of the calculation
among other things. Clients should contact us directly if they believe there may be an error in their
statement. It is ultimately the independent custodian that is responsible for the safe keeping and
reporting of all transactions within the client’s account during the reporting period.

Qualified Plan Consulting Fees
AFS typically receives a service fee of up to 0.50% of the plan asset for its qualified plan consulting services.
The fee agreed upon between the client and AFS and the formula for determining the amount of asset base
service fee and the manner of payment are disclosed in the selected custodian’s Plan Services Agreement.
For a select number of qualified plan clients, AFS also provides a separate service whereby it assists the plan
sponsor/trustee(s) in the collection of year-end reporting data and provides such data to the plan’s third-
party administrator (“TPA”) to enable the TPA to file certain required tax documents on behalf of the plan.
If a client has opted to utilize AFS to assist in the collection of year-end data for the plans TPA, AFS charges
an hourly fee ranging from $65/hour to $400/hour, depending on the AFS individual performing the work.
Such fees are due and payable upon completion of the service.

Client’s Responsibility of Third-Party Fees
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ITEM 7: TYPES OF CLIENTS
AFS provides advisory and asset management services
to a variety of clients. Our clients include highly compensated executives, affluent business owners, as
well high net worth individuals and families, trusts, estates, and qualifying retirement plans. We generally
seek to work with clients having the initial minimum account size of $500,000. We may, however, make
exceptions to the minimum account size on a case-by-case basis.