Life Strategies Inc

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

        Total Assets Under Management           Annual Fees
        $0 - $250,000                           1.45%

        $250,001 - $500,000                     1.20%

        $500,001 - $1,000,000                   0.90%

        $1,000,001 - AND UP                     0.65%

LSI uses an average of the daily balance in the client's account throughout the billing
period, after taking into account deposits and withdrawals, for purposes of determining
the market value of the assets upon which the advisory fee is based.

The final fee schedule will be memorialized in the client’s advisory agreement. Clients
may terminate the agreement without penalty for a full refund of LSI's fees within five
business days of signing the Investment Advisory Contract. Thereafter, clients may
terminate the Investment Advisory Contract generally with 5 days' written notice.

Financial Planning Fees

Fixed Fees

The negotiated fixed rate for creating client financial plans is between $500 and $3,000.

Clients may terminate the agreement without penalty, for full refund of LSI’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in arrears.

Payment of Financial Planning Fees

Financial planning fees are paid via check.

Fixed financial planning fees are paid 100% in advance, but never more than six months
in advance.

C. Client Responsibility for Third Party Fees

Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by LSI. Please see Item 12 of this brochure
regarding broker-dealer/custodian.

D. Prepayment of Fees

LSI collects certain fees in advance and certain fees in arrears, as indicated above. Refunds
for fees paid in advance but not yet earned will be refunded on a prorated basis and
returned within fourteen days to the client via check, or return deposit back into the
client’s account.

Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

E. Outside Compensation for the Sale of Securities to Clients

Douglas Scott Anderson is an insurance agent and, in this role, accepts compensation for
the sale of investment products to LSI clients.

1. This is a Conflict of Interest

   Supervised persons may accept compensation for the sale of investment products,
   including asset-based sales charges or service fees from the sale of mutual funds to
   LSI's clients. This presents a conflict of interest and gives the supervised person an
   incentive to recommend products based on the compensation received rather than on
   the client’s needs. When recommending the sale of investment products for which the

           supervised persons receive compensation, LSI will document the conflict of interest in
           the client file and inform the client of the conflict of interest.

       2. Clients Have the Option to Purchase Recommended Products from
       Other Brokers

           Clients always have the option to purchase LSI recommended products through other
           brokers or agents that are not affiliated with LSI.

       3. Commissions are not LSI's primary source of compensation for advisory
       services

           Commissions are not LSI’s primary source of compensation for advisory services.

       4. Advisory Fees in Addition to Commissions or Markups

           Advisory fees that are charged to clients are not reduced to offset the commissions or
           markups on investment products recommended to clients.

Item 7: Types of Clients

LSI generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals

There is no account minimum for any of LSI’s services.