Certified Financial Strategies Corporation

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 CFS offers direct asset management services to advisory Clients. CFS charges an annual
 investment advisory fee based on the total assets under management as follows:
        Assets Under Management                Annual Fee                 Quarterly Fee
             Up to $500,000                      1.50%                       0.375%
          $500,001 to $750,000                   1.25%                      0.3125%
              Over $750,000                      1.00%                       0.25%
   This is a flat rate/breakpoint fee schedule, the entire portfolio is charged the same asset
   management fee.
 Fees may be charged at inception on a pro rata basis to reflect the number of days
 remaining in the calendar quarter and quarterly thereafter as follows:
    • 1st Qtr invoices are mailed around March 15th and our firm uses the valuation of
       client accounts as of the close of business on the last day of the preceding calendar
       quarter (December 31).

   •   2nd Qtr fees are mailed around June 15th and our firm uses the valuation of client
       accounts as of the close of business on the last day of the preceding calendar quarter
       (March 31).
   •   3rd Qtr fees are mailed around September 15th and our firm uses the valuation of
       client accounts as of the close of business on the last day of the preceding calendar
       quarter (June 30).
   •   4th Qtr fees are mailed around December 15th and our firm uses the valuation of
       client accounts as of the close of business on the last day of the preceding calendar
       quarter (September 30).

Accounts are billed in advance using the actual/average method of billing. The formula for
calculating fees is as follows:
    • Billable Balance = B (account value of last day of prior quarter)
    • Annual Rate%/Flat Fee = agreed upon rate or fee for asset management
    • Billing Days = number of days in current quarter
    • Adjustments = any credits or additional fees if applicable
    • Taxes = NM Gross Receipts Tax (NM Clients Only)
    • Billable Balance x Annual Rate / 4 = Quarterly Fee
    • Quarterly Fee + Adjustments + Other Fees + Taxes = Total Quarterly Fee
Invoices are mailed and clients are given at least 10 days to review them and call with any
questions or concerns, and then fees are deducted from client accounts during the last
week of each quarter.
The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with
Clients, etc.). Fees are billed quarterly in advance based on the amount of assets managed
as of the close of business on the last business day of the previous quarter.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. After the initial five (5) business days,
the agreement may be terminated by CFS with thirty (30) days written notice to Client and
by the Client at any time with written notice to CFS. For accounts opened or closed mid-
billing period, fees will be prorated based on the days services are provided during the
given period. All unpaid earned fees will be due to CFS. Additionally, all unearned fees will
be refunded to the Client. Client shall be given thirty (30) days prior written notice of any
increase in fees. Any increase in fees will be acknowledged in writing by both parties before
any increase in said fees occurs.
FINANCIAL PLANNING AND CONSULTING
CFS charges either an hourly fee or fixed fee for financial planning depending on the service
provided.
       HOURLY FEES
       Financial Planning Services are offered based on an hourly fee of $250 per hour.
       FIXED FEES
       Comprehensive Financial Plans are offered based on a flat fee between $2,500-
       $4,500, based on complexity and unique Client needs.

 Fees for financial plans are billed 50% in advance with the balance due upon plan delivery.
 Services are completed and delivered inside of thirty (30) days contingent upon timely
 delivery of all required documentation. Client may cancel within five (5) business days of
 signing Agreement with no obligation and without penalty. If the Client cancels after five
 (5) business days, any unearned fees will be refunded to the Client, or any unpaid earned
 fees will be due to CFS. CFS reserves the right to waive the fee should the Client implement
 the plan through CFS.
Client Payment of Fees
 Fees for asset management services are:
    •   Deducted from a designated Client account. The Client must consent in advance to
        direct debiting of their investment account.
    •   Check – to be remitted by Client to CFS
    •   Deducted from a non-qualified account managed by CFS
 Fees for financial plans will be billed:
    •   Check – to be remitted by Client to CFS
Additional Client Fees Charged
 Custodians may charge transaction fees and other related costs on the purchases or sales of
 mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
 market funds and exchange-traded funds also charge internal management fees, which are
 disclosed in the fund’s prospectus. CFS does not receive any compensation from these fees.
 All of these fees are in addition to the management fee you pay to CFS. For more details on
 the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
 CFS does not require any prepayment of fees of more than $1,200 per Client and six months
 or more in advance.
 Fees for financial plans are billed 50% in advance with the balance due upon plan delivery
 Investment management fees are billed quarterly in advance.
...

Item 7: Types of Clients
Description
 CFS generally provides investment advice to individuals, high net worth individuals,
 corporations or business entities. Client relationships vary in scope and length of service.
Account Minimums
 CFS requires a minimum of $250,000 to open and maintain an account. In certain instances,
 the minimum account size may be lowered or waived.