Interactive Financial Advisors Inc

Fees and Compensation - Item 5

Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is set
forth in the following fee schedule:

Fee Schedule - Invest With Trust®
              Non 403b Accounts                                        403b Accounts
 • Account Size $0 - $24,999                             • Account Size: $0 - $24,999
   0.95% - 2.45% of Account Value                          1.02% – 2.52% of Account Value

 • Account Size $25,000 - $49,999                        • Account Size: $25,000 - $49,999
   0.90% - 2.40% of Account Value                          0.97% – 2.47% of Account Value

 • Account Size $50,000 - $249,999                       • Account Size: $50,000 - $249,999
   0.80% - 2.30% of Account Value                          0.87% – 2.37% of Account Value

 • Account Size $250,000 - $499,999                      • Account Size: $250,000 - $499,999
   0.71% - 1.91% of Account Value                          0.72% – 1.92% of Account Value

 • Account Size $500,000 - $999,999                      • Account Size: $500,000 - $999,999
   0.62% - 1.82% of Account Value                          0.57% – 1.77% of Account Value

 • Account Size $1,000,000 Plus                          • Account Size: $1,000,000 +
   0.50% - 1.70% of Account Value                          0.42% – 1.62% of Account Value

Sub-advisory strategies are generally based on model portfolios provided by the sponsoring sub-advisor.
Certain model portfolios will only include mutual funds and/or exchange traded products that are
affiliated with the sub-advisor and which pay fees and other compensation to the sub-advisor and its
affiliates. Therefore, the sub-advisor and its affiliates will receive compensation in connection with the
management of the affiliated mutual funds and exchange traded products (Funds) included in these
model portfolios. Because the sub-advisor and its affiliates are compensated through the use of the sub-
advisor’s sponsored Funds, the account level management fee for these model portfolios is waived.
Therefore, we have an incentive to recommend these model portfolios over other model portfolios
where we have a less favorable compensation arrangement. Clients are not required to use the services
of any sub-advisor model portfolio or strategy recommended by us.

Certain strategies will have minimum account size requirements ranging from $2,000 to $25,000.

Interactive Financial Advisors
Form ADV Part 2A

Account Services Fees
An account service fee is charged to each account in the above strategies based on the daily average
balance for the prior quarter. Accounts $24,999.99 and under will be charged $10 per quarter. Accounts
$25,000 or more will be charged $18.75 per quarter. These fees are prorated and charged monthly
Account size may start at $0 when systematic contributions are elected; otherwise, account minimum is
$1,000.

The Legacy Service
The portfolio management fee for the Legacy service is based on a percentage of the assets we manage.
The Legacy fee pertains only to assets managed within the Legacy service and is set forth in the
following fee schedule:

Fee Schedule – The Legacy Service

     • Account Size $1,000 - $24,999*
       1.35% of Account Value

     • Account Size $25,000 - $49,999
       1.30% of Account Value

     • Account Size $50,000 - $249,999
       1.25% of Account Value

     • Account Size $250,000 - $499,999
       1.21% of Account Value

     • Account Size $500,000 +
       1.00% of Account Value

*The Mutual Fund strategies have a minimum account size requirement of $1,000. Each account will be
charged a $12.50 per quarter service fee, which is prorated and charged monthly.

Portfolio Management Terms
Our portfolio management fees are calculated on a monthly basis based on the client’s daily average
account balance for the preceding month at 1/12th of the account’s predetermined annual fee rate.
Portfolio management fees are paid in advance and will be deducted automatically from client's account
monthly until the Agreement is terminated.

For 401K and/or 403b accounts our annual portfolio management fee is billed and payable either
monthly or quarterly in advance or in arrears and based upon either market value of account or the
average daily balance depending upon the agreement you signed with us. The scope of these services,
the fees, and the terms of the agreement for these services will be negotiated on a case-by-case basis
with each Sponsor.

If the Investment Advisory Agreement is executed at any time other than the first day of a calendar
month, our fees will apply on a pro rata basis, which means that the advisory fee is payable in

Interactive Financial Advisors
Form ADV Part 2A

proportion to the number of days in the month for which you are a client. Our advisory fee is negotiable
for the Invest With Trust services, depending on individual client circumstances. The Legacy service fee
is not negotiable.

Householding of Axos Accounts
Our practice is to seek to combine the values of accounts custodied at Axos for 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. Householding is determined by primary account Tax Identification Number and then by
address. Combining account values may increase the asset total, which may result in your paying a
reduced advisory fee based on the available breakpoints in our fee schedule stated above.

As paying agent for our firm, Axos will deduct the investment advisory fee directly from your account.
The fee is deducted only when you have given us written authorization permitting the fees to be paid
directly from your account. If insufficient cash is available to pay such fees, securities in an amount equal
...

Types of Clients - Item 7

We offer investment advisory services to individuals, pension and profit-sharing plans, trusts, estates,
and charitable organizations.

In general, we require a minimum of $1,000 to open and maintain an Invest with Trust or a Legacy
advisory account. At our discretion, we may waive this minimum account size, such as when an account
is set up for systematic contributions. Additionally, we charge an ongoing service fee for accounts
invested in our Invest with Trust service. For accounts with a valuation of $24,999 and under will be
charged $10 per quarter. For accounts with a valuation of $25,000 and higher will be charged $18.75 per
quarter. For each account in our Legacy program a $12.50 quarterly charge will be applied. The service
fee is prorated and collected monthly.

Certain strategies will have minimum account size requirements ranging from $2,000 to $25,000.

                Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

We use a fundamental method of analysis and Modern Portfolio Theory as our core investment
strategies.

Interactive Financial Advisors
Form ADV Part 2A

Modern Portfolio Theory is a sophisticated investment decision approach that theoretically permits an
investor to classify, estimate, and control both the kind and the amount of expected risk and return.

IFA utilizes a computerized analytical tool such as TIFIN Wealth Risk that account for risk in quantitative
analysis and decision making. TIFIN Wealth Risk provide a risk profile for investors and their portfolios,
as well as a range of possible outcomes and the probabilities that may occur for any choice of action. It
shows the extreme possibilities—the outcomes of choosing aggressively and conservatively—along with
all possible consequences for middle-of-the-road decisions.

Our investment strategies and advice may vary depending upon each client's specific financial situation.
As such, we determine investments and allocations based upon your predefined objectives, risk
tolerance, time horizon, financial horizon, financial information, liquidity needs, and other various
suitability factors. Your restrictions and guidelines may affect the composition of your portfolio.

We may use short-term trading (in general, selling securities within 30 days of purchasing the same
securities) as an investment strategy when managing your account(s). Short-term trading is not a
fundamental part of our overall investment strategy, but we may use this strategy occasionally when we
determine that it is suitable given your stated investment objectives and tolerance for risk.

Our strategies and investments may have unique and significant tax implications. However, unless we
specifically agree otherwise, and in writing, tax efficiency is not our primary consideration in the
management of your assets. Regardless of your account size or any other factors, we strongly
recommend that you continuously consult with a tax professional prior to and throughout the investing
of your assets. We do not offer tax advice.

Moreover, as a result of revised IRS regulations, custodians and broker-dealers report the cost basis of
equities acquired in client accounts. Our firm uses the FIFO accounting method for calculating the cost
basis of your investments. You are responsible for contacting your tax advisor to determine if this
accounting method is the right choice for you. If your tax advisor believes another accounting method is
more advantageous, please provide written notice to our firm immediately and we will alert your
account custodian of your individually selected accounting method. Please note that decisions about
cost basis accounting methods will need to be made before trades settle, as the cost basis method
cannot be changed after settlement.

Risk of Loss
Investing in securities involves risk of loss. You should be prepared to bear the risk of financial losses.
We do not represent or guarantee that our services or methods of analysis can or will predict future
results, successfully identify market tops or bottoms, or insulate clients from losses due to market
corrections or declines. We cannot offer any guarantees or promises that your financial goals and
objectives will be met. Past performance is in no way an indication of future performance.

Recommendation of Particular Types of Securities
In our Invest with Trust service we primarily recommend exchange traded funds ("ETFs"). For our Legacy
service we primarily recommend mutual funds. You should be advised of the following risks when
investing in these types of securities:

Interactive Financial Advisors
Form ADV Part 2A

Characterization Risk
ETFs and mutual funds don't always hold the types of stocks or bonds you may expect. For instance,
some sector funds may identify the entire sector yet only represent a portion of the sector. At the same
time, similar sector funds may have very different percentages of components. These characterization
risks can impact overall performance.

Tracking Error Risk
ETFs and mutual funds, do not always track the index they are designed to mimic. Often two funds
tracking the same index may take two different approaches to tracking the same index. One fund may
use full replication, meaning the fund buys every stock in the index in exactly the right weights. Another
fund may use optimization, whereby computer algorithms select a subset of the broader index to track
the index as a whole. In general, funds that optimize have a greater risk of tracking error than funds that
fully replicate their index.

Liquidity Risk
ETFs and mutual funds are not always easily bought and sold. Liquidity risk is the risk stemming from the
lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or
minimize a loss.

Spreads Risk
ETFs are purchased and sold like stocks and, therefore, have bid and ask spreads. The average bid/ask
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