Sound Financial Strategies Group LLC

ITEM 5 – Fees and Compensation
We are compensated in different ways depending on the types of services we provide. In the
case of investment management services, typically clients pay fees quarterly in advance
based on a percentage of the assets managed by us. In some cases, the fees are negotiable,
but generally are based on our standard fee schedule.

Fees Applicable to Investment Management Accounts

       Fee-Based Accounts

       Fee Schedule Applicable to Fee-Based Accounts. The annual investment advisory
       services fee is calculated as a percentage of assets in the account. The standard fee
       schedule is as follows:
                      Client Assets Managed                       Annual Fee
                      The First           $499,999.99               1.44%
                      The Next            $499,999.99               1.38%
                      The Next            $499,999.99               0.40%
                       Above               $1,500,000               0.30%

Fees are negotiable at our discretion, and any negotiated fee arrangement is notated in the
client’s agreement. We also reserve the right to “Grandfather" (not increase or decrease)
fees applicable to accounts acquired from other advisory �irms.

In addition to the fee-based account advisory services, we will enter into certain �ixed fee
agreements for other services. The �ixed fees are negotiable in each case, and the amount of
these fees depends on the breadth and the scope of the project a client has engaged us to
complete.

Financial Planning

Our �irm offers �inancial planning services on a �lat (�ixed) fee basis, depending on the
scope, complexity, and nature of the engagement. The speci�ic fee arrangement will be
agreed to in writing prior to the commencement of services and disclosed in the client’s

�inancial planning agreement. The �lat fee is up to $2,500 per quarter, and is negotiable
depending on the nature of the services provided.

Financial planning fees are separate and distinct from fees charged for ongoing investment
management services. Clients who engage our �irm for both �inancial planning and
investment management will not be charged twice for the same services.

Either party may terminate a �inancial planning engagement at any time by providing
written notice. Upon termination, clients will be responsible only for fees associated with
services actually rendered up to the date of termination, as outlined in the client’s
agreement.

Fee Billing

The initial fee for the �irst calendar quarter in which a client participates in a Program shall
be calculated on a pro-rata basis beginning the day after initial assets are deposited in the
Program, and is debited the following month. Fees are subsequently calculated at the
beginning of each calendar quarter, based on the fair market value of the portfolio on the
last business day of the prior calendar quarter. If an account is opened in the last month of a
calendar quarter, fees will be calculated and debited for the remaining period in that
calendar quarter, along with fees for the next calendar quarter, on the day after initial assets
are deposited. If our relationship with a client terminates and all assets are withdrawn from
the Program prior to the end of a quarter, we will issue a refund for the pro-rata portion of
the fee owed to the client. If a client deposits assets (cash and securities) with a market
value of ten-thousand dollars ($10,000) or more in an account on any given day after the
inception of a calendar quarter, the amount of the deposit will immediately be subject to a
pro-rated fee based on the applicable Fee Schedule. Clients shall be entitled to a fee rebate
calculated in the same manner if account assets are withdrawn in excess of this amount on
any given day.

Fees will be deducted directly from the account. Clients have the option to pay fees for one
account from another of their accounts, as long as both accounts are under the same
ownership. Clients do not have the option of paying fees by check.

Our asset-based fees apply to all assets in the client’s account, including assets invested in
shares of mutual funds, ETFs, other equity, debt securities, and money market mutual funds
(and other cash equivalent investments). Assets invested in mutual funds, ETFs and money
market funds (or other cash equivalent investments) also charge their own management
fees and are subject to additional fees, charges and expenses.

Other Fees and Charges. In addition to the Advisory Fee, Client will incur other fees, charges
and expenses from parties unaf�iliated with Sound Financial (“Third-Party Charges”).
Third-Party Charges will include brokerage commissions, custodial fees, stock transfer fees,

transaction fees, charges imposed directly by mutual, index or exchange-traded funds,
certain deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees and other similar charges incurred in connection with transactions for
the Account. Third-Party Charges will be paid from the assets in the Account and are in
addition to the Advisory Fee. Third-Party Charges are established by the custodian, clearing
broker or introducing broker, mutual fund/ETF, or other Third-party vendor, as applicable,
and are subject to change. See Item 12 – Brokerage Practices for more information.

Additional Compensation. Sound Financial and some of its representatives are registered
representatives of an unaf�iliated broker dealer, APW Capital, Inc., and receive certain fees
and other compensation, which are separate from, and in addition to, the fees charged to
your account for investment management services. You are not required to purchase
securities through Sound that would result in these fees. However, if you engage Sound to
invest on your behalf, Sound’s representatives will do so through the broker dealer with
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ITEM 7 – Types of Clients
We provide services to, among others:

   •   Individuals
   •   High Net Worth Individuals
   •   Small Business Owners
   •   Trusts, estates and charitable organizations
   •   Not-for-profit entities

In the case of investment management accounts, the minimum investment portfolio size is
$50,000, but in some cases a client is permitted to aggregate related accounts, or we may be
willing to accept a lower minimum. However, we have full discretion to allow or not allow
exceptions.

To establish a Fee-Based Account relationship, the Client must designate a third-party
custodian, with which Sound Financial has a working relationship. We will assist you with
the establishment and opening of this relationship.