Financial Security Management Inc

ITEM 5. FEES AND COMPENSATION

Investment Management Fees and Compensation
We charge a fee as compensation for providing investment management services on your account. These services
include advisory and consulting services, trade entry, investment supervision, and other account maintenance
activities. The custodian may charge custodial fees, transaction costs, redemption fees, retirement plan and
administrative fees or commissions. See Additional Fees and Expenses below.
In addition, some mutual fund assets deposited in the account may have been subject to deferred sales charges,
12 (b) (1) fees and other mutual fund annual expenses as described in the fund’s prospectus. These fees are
independent of our fees and should be disclosed by the custodian or contained in each fund’s prospectus. You
should also note that fees for comparable services vary and lower fees for comparable services may be available
from other sources.
FSM will receive a fee for investment supervision and management of the portfolio based on the current market
value of the portfolio (including cash and equivalent items). The specific determination of the percentage rate
charged is based on a combination of the following factors: (a) assets in the account, (b) complexity of the
investment strategy employed, and (c) the estimated time the advisor will spend managing the specific assets in
the account. The maximum annual advisory fee will not exceed 1%. We do not have a minimum account size to
provide investment management services.
Fees are calculated on the total household advisory assets under management and billed quarterly in advance.
Household is defined as any related persons residing at the same physical address. The initial fee will be based
upon the market value of the account on the date the account is accepted for management by execution of the
Investment Management Agreement by FSM and the assets are transferred, and then prorated for the number of
days in the calendar quarter that your account is under management and charged at the next quarterly billing cycle.
Thereafter, the fee will be based on the market value of the household advisory assets on the last day of the
calendar quarter and will cover the period from the first day through the last day of the next calendar quarter. Fees
are assessed on all assets under management, including securities, cash and money market balances. Quarterly fee
adjustments for additional assets received into the account during a quarter or for partial withdrawals will also be
provided on the above pro rata basis. Client authorizes the custodian to deduct from client’s account the advisory
fee as calculated and billed by FSM and remit said fee to FSM. FSM will send to client a quarterly statement showing
the amount of the advisory fee due and the account value on which the fee is based. Client is responsible for
verifying fee computations since custodians are not typically asked to perform this task. The custodian will send
client a quarterly statement showing all amounts paid from the account including all advisory fees remitted by the
Custodian to FSM. There may be a possibility for price or account value discrepancies due to quarter-end
transactions in an account. Dividends or trade date settlements may occur, and our third-party billing software
may report a slight difference in account valuation at quarter end compared to what is reported on your Statement
from the Custodian. You will provide written authorization permitting the fees to be paid directly from your account
held by the qualified custodian. It is also possible for you to send a check for the fee as opposed to having the fee
removed from the account. You are encouraged to review your account statements for accuracy.
Client understands that account assets invested in shares of mutual funds or other investment companies (“funds”)
will be included in calculating the value of the account for purpose of computing FSM’s fees and the same assets
will also be subject to additional advisory and other fees and expenses, as set forth in the prospectuses of those
funds, paid by the funds but ultimately borne by the investor.
The advisory agreement may be terminated by either party at any time. The agreement shall be deemed
terminated at the close of the business day next following the first full business day following our receipt of notice.

FORM ADV PART 2 – BROCHURE                                                                                  PAGE 8 of 22

    Financial Security Management, Inc.                                                      March 7,2026

You will incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated
refund of those fees.

Financial Planning & Consulting Fees
Our firm also provides financial plans consistent with your individual financial and risk/reward objectives and
consulting services. Planning may focus on investments, insurance, taxes and/or estate plans. Our fees for services
are computed at the hourly rate not to exceed $400.00 based on the number of hours expended by our firm. Total
consulting fees depend on the nature and complexity of client's circumstances and upon mutual agreement with
Client. Fees are negotiable.
We may collect a portion of the estimated fee in advance as a retainer and will bill for actual hours in arrears of
the project. The fee for a financial plan is a one-time service. You are encouraged to update financial plans on an
annual basis. Our fee for a financial plan is in addition to commissions, advisory fees and consulting fees to be
received for implementing any recommendations made under the plan. Fees in excess of $1,200 or more are not
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ITEM 7. TYPES OF CLIENTS
We offer investment advisory services to individuals, high-net worth individuals, estates, trusts, and retirement
plans.