Financial Strategies Inc

Item 5 Fees and Compensation
Private Client Service Fee
For our compensation in a PCS engagement, clients are charged the following fees:

Initial Flat Fee: Clients are charged an initial flat fee that is based upon the complexity and scope of
the planning needed, the client’s financial situation, and their financial objectives, based on an
hourly rate of $300. Payment of 50% of the fee is due at the signing of the client agreement. The
remainder of the fee will be billed to you periodically or upon completion of the financial planning
services.

Ongoing Fee: We charge an ongoing fee based on the schedule below (the minimum annual fee
associated with this service is $10,000):

Asset Under Management                 Annual Fee

Assets less than $1,000,000            1.20%
$1,000,001 to $2,000,000               1.00%
$2,000,001 to $4,000,000               0.80%
$4,000,001 to $7,000,000               0.60%
Over $7,000,001                        0.40%

The fee will be charged quarterly, in advance, and will be billed as one quarter of the annual fee
percentage using the value of the client’s assets under management as of the end of the previous
quarter. For new clients or for existing clients transferring in additional assets under management, as
assets are transferred to accounts managed by us, partial time periods will be billed proportionally.
Legacy clients may be subject to a different fee schedule.

Fees incurred due to the services of other professionals, advisors, or salespeople such as, but not
limited to, attorneys, accountants, insurance representatives, etc. will be your responsibility.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in you paying a reduced advisory fee.

We will deduct our fee directly from your account through the qualified custodian holding your funds and
securities.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian, please call our main office number located on the cover page of
this brochure.

You may terminate the portfolio management agreement upon a 30-day written notice to our firm.
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 based on how long services were provided
during the billing cycle.

Financial Planning-Investment Management Services
For clients who do not qualify for Private Client Services, as noted above, and receive our
comprehensive service that offers financial planning and investment management services we
charge the following fees:

Initial Flat Fee:
Clients are charged an initial flat fee that is based upon the complexity and scope of the planning
needed, the client’s financial situation, and their financial objectives, based on an hourly rate of
$300. Payment of 50% of the fee is due at the signing of the client agreement. The remainder of the
fee will be billed to you periodically or upon completion of the financial planning services.

Ongoing Fee: We charge an annual management fee of 1.2% of assets under management. The fee is
billed quarterly, in advance, as one quarter of the annual fee percentage using the value of client’s
assets under management as of the end of the previous quarter.

Regardless of how the fee is charged, for Financial Planning-Investment Management Services, you
authorize us to l deduct our fee directly from your account through the qualified custodian holding
your funds and securities.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian, please call our main office number located on the cover page of
this brochure.

You may terminate the Financial Planning-Investment Management agreement upon a 30-day written
notice to our firm. You will incur a pro rata charge for services rendered prior to the termination of the
portfolio management agreement, which means you will incur 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.

Investment Management Services Fees
Fees for standalone investment management based on the schedule below:

Asset Under Management                  Annual Fee
Less than $1,000,000                    1.20%
$1,000,001 to $2,000,000                1.00%
$2,000,001 to $4,000,000                0.80%
$4,000,001 to $7,000,000                0.60%
Over $7,000,001                         0.40%

The fee will be charged in advance and will be billed as one quarter of the annual fee percentage per
calendar quarter, based on the value of assets under management as of the end of the previous
quarter. For new clients or for existing clients transferring in additional assets under management, as
assets are transferred to accounts managed by us, partial time periods will be billed proportionally.
Legacy clients may be subject to a different fee schedule.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities.

You may terminate the portfolio management agreement upon a 30-day written notice to our firm.
...

Item 7 Types of Clients
We offer investment advisory services to individuals, trusts, estates, and charitable organizations.

We require a minimum of $1,000,000 for investment management services. There are also minimum
fees associated with some of our services. These minimums can be waived in certain circumstances
at the sole discretion of the firm.