IFS Advisors LLC

Item 5 Fees and Compensation
Portfolio Management Fees
Our advisory fee is negotiable, depending on individual client circumstances. Your advisory
agreement will designate a flat, blended, and/or fixed fee structure to be charged to your household’s
assets under management. The flat fee schedule applies a single, uniform rate to all accounts in
your household. The blended fee schedule applies different fee rates to different tiers of your
household’s account assets. The fixed fee schedule applies a predetermined, set annual dollar
amount that is independent of your household’s total account asset value, divided into quarterly
payments. Flat and blended fee schedules charge an annual portfolio management fee of up to 1.5%
of assets under management, billed and payable quarterly in advance based on the value of your
account on the last business day of the month proceeding the relevant billing period. The first billing
will occur in the month following the month in which the account is initially funded, and at the
beginning of each fiscal quarter thereafter (January, April, July, and October).

Additional deposits received into accounts subject to the flat or blended fee schedules during the
quarter will be billed and payable in the month following the month in which the additional deposit
was received. Withdrawals taken during the quarter will receive fee refunds in the month following
the month in which the withdrawal was taken out of the account. For the ease of recordkeeping, we
do not charge a mid-quarter fee on or issue a mid-quarter fee refund for fee amounts of less than
$25. This limitation is at the account level, not the client level. You may have multiple accounts with
fees or refunds of less than $25 which would not be charged or refunded. Also, this limitation does
not apply for the regular quarterly billing.

When using the flat or blended fee schedules, our annual fee for portfolio management services
varies depending upon the market value of your assets under our management, the type and
complexity of the asset management services provided, as well as the level of administration
requested either directly or assumed by the client.

Some accounts within the same household may be charged differing fee rates. If this is the case, an
addendum to the agreement will be signed for each account fee that differs from the advisory
agreement.

We will deduct our fee directly from your account through the qualified custodian or mutual fund
transfer agent holding your funds and securities. We will deduct our advisory fee based upon your
written authorization permitting the fees to be paid directly from your account. Further, the qualified
custodian or mutual fund transfer agent will deliver an account statement to you at least quarterly.
These account statements will show all disbursements from your account. You should review all
statements for accuracy. Fees for certain annuity accounts may be deducted from another
household account at a different custodian. If this is the case, this authorization will be listed in an
addendum to the advisory agreement.

In most circumstances, there will not be a separate financial planning fee charged for modular
financial planning services provided to portfolio management clients.

The portfolio management agreement can be terminated by either the client or IFS upon written
notice by the other party. 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.

We do not charge you a separate fee for the selection of other advisers. We will share in the
advisory fee you pay directly to the TPAM. The advisory fee you pay to the TPAM is established and
payable in accordance with the brochure provided by each TPAM to whom you are referred. These
fees may or may not be negotiable. Our compensation may differ depending upon the individual
agreement we have with each TPAM. As such, a conflict of interest may exist where our firm or
persons associated with our firm has an incentive to recommend one TPAM over another TPAM with
whom we have more favorable compensation arrangements or other advisory programs offered by
TPAMs with whom we have less or no compensation arrangements.

You may be required to sign an agreement directly with the recommended TPAM(s). You may
terminate your advisory relationship with the TPAM according to the terms of your agreement with
the TPAM. You should review each TPAM's brochure for specific information on how you may
terminate your advisory relationship with the TPAM and how you may receive a refund, if applicable.
You should contact the TPAM directly for questions regarding your advisory agreement with the
TPAM.

We are not compensated with commissions as a result of your purchase of an annuity that we may
recommend, however we will manage the subaccounts under our portfolio management program
and be compensated with advisory fees according to your advisory agreement and addendum if
applicable.

Financial Planning Fees
We charge a fixed fee for broad-based financial planning services provided to clients who do not use
our portfolio management services. The fee is negotiable depending upon the complexity and scope
of the plan, your financial situation, and your objectives. We require that you pay 50% of the fee in
advance and the remaining portion upon the completion of the services rendered. We will not require
prepayment of a fee more than six months in advance and in excess of $500.

If you only require advice on a single aspect of your finances, we offer modular financial
planning/general consulting services on an hourly basis. Our rate for such services is $250 per hour
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Item 7 Types of Clients
We offer investment advisory services to individuals, pension and profit-sharing plans, trusts,
estates, charitable organizations, corporations, and other business entities.

In general, we require a minimum of $100,000 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size. For example, we may waive the minimum if
you appear to have significant potential for increasing your assets under our management. We may
also combine account values for you and your minor children, joint accounts with your spouse, and
other types of related accounts to meet the stated minimum.