A. Professional Financial Strategies, Inc. (the “Advisor”) is a corporation formed February 1993 in the state of New York. Advisor was New York State registered as an investment adviser from March 1993 until it re-registered with the SEC in January 2016. Paul Byron Hill is the principal shareholder and founder of Advisor, and serves as CEO, President, and Chief Compliance Officer. B. Advisor offers individuals and families (including their associ- ated retirement plan accounts, trusts and estates, charitable arrangements, and business entities) investment management services on a discretionary or nondiscretionary basis. Addition- ally, financial planning is provided for families who are either preparing for retirement or already retired and concerned with legacies for surviving spouses, family, and charities.
Financial planning is a collaborative process that helps maximize a client’s potential for meeting life goals through financial advice integrated with relevant elements of their personal and financial circumstances. Client investment accounts are managed around their individual financial situations. Working with Advisor, each client selects their household planning objective(s) based on their financial planning goals, preferences, and values, allow- ing for acceptable restrictions and limitations on investment management services.
Advisor structures investment strategies are framed within a coordinated management process aligned with CFP® practice standards. The Advisor working closely with each client to individually develop a personalized strategy to prioritize their essential financial goals and then put in place a process to attain and maintain those goals, including a legacy for spouses, family, and charities. Advisor collaborates, at the client’s request, with client’s own professionals and also our network of accounting, tax, legal, trusts and insurance specialists, to implement planning recommendations selected.
“Wealth management” broadly describes an integrated arrange- ment of investment management and financial planning, that may include advanced planning related to retirement, taxes, insurance, employee benefits, estate and legacies. Advisor itself is compensated based on fees for service agreed upon with each client (rather than commissions) for investment management, financial planning and consulting services. FINANCIAL PLANNING & CONSULTING Financial planning and consulting services variously include personal financial planning, retirement planning, retirement income planning, legacy planning, and customized incidental management services. CFPs following the Financial Planning Process: (1) understand personal and financial circumstances, (2) identify and help clients select goals, (3) analyze client current situa- tions and suggest alternative approaches, (4) develops and refines individualized recommendations, and (5) then presents suitable recommendations for client approval. With that approval, then (6) the planning process moves on to coordinating implementation and providing management services, if requested.
Finally, (7) Client’s progress is monitored regularly, at least annually, and goals and courses of action are reviewed. Advisor requires a minimum of financial planning completed prior to engagement for specific investment management services. Advisor’s levels of service provided to clients may be: l Standard, Service Level 1: Advisor provides core personal financial planning services for those with modest assets. Investment policies are developed, assets and resources are mapped, progress toward goals is stress-tested based on current circumstances. Beyond periodic investment reporting and asset- mapping, core financial planning is provided once annually at client request. More frequent communication and consultations (other than for incidental account services) requires a premium upgrade or an hourly retainer.
l Preferred, Service Level 2: Advisor provides core personal financial planning services as in Level 1 for clients approaching retirement, transitioning into retirement, or already retired. Periodically, and at least annually, investment policies are maintained, asset maps are maintained, goal strategies are stress-tested based on current circumstances, and planning and investing modified as necessary. Income tax, insurance/ benefits, and estate/legacy consultations are provided solely at client request but limited by planning agreement terms. More communications and/or consultations (other than for incidental account servicing), related to trusts, business interests or real estate interests require one of two levels of Premium upgrade.
l Premier, Service Level 3: Advisor provides Preferred level ser- vices with Premium upgrade available. In lieu of redundant ser- vices, customized services may be negotiated, such as expanded income tax preparation, or frequent contacts with accounting, trust, and legal professionals, or financial planning education for family in preparation for wealth transfer. Depending on the complexity of client services required, a Premium customized upgrades may be negotiated.
l Introductory Envisionment Offer: This encompasses the first two phases of the financial planning process. It may be provided at no charge to prospective clients at the Advisor’s discretion. A preliminary asset map is developed for the client situation. As the prospect goals, concerns, and needs are understood by Advisor, they are stress tested to identify issues for discussion of potential approaches and alternatives. Should Advisor be engaged, this work will be incorporated into their financial planning at the appropriate service level.
Limitations of Financial Planning & Consulting Services. Ad- visor will provide financial planning, retirement planning, and/ or other planning services only to the extent the client requests. Analyzing the client’s Current

Course of Action and Potential Alternative Course(s) of Action Identifying and Selecting Goals Understanding the client’s Personal and Financial Circumstances Monitoring Progress and Updating Implementing the Financial Planning Recommendation(s) Presenting the Financial Planning Recommendation(s) Developing the Financial Planning Recommendation(s) 4 Professional Financial Strategies, Inc. | [email protected] | professionalfinancial.com | (585) 218-9080 Neither Advisor nor its adviser representatives assist clients beyond simply presenting planning recommendations unless both have mutually agreed to do so in writing. The Advisor does not continuously monitor a client’s financial planning even with a coordinated investment management agreement. It continues to be the client’s responsibility to request at least annually formally revisiting financial, retirement, tax, or other personal planning matters concerns. Clients are responsible for requesting additional planning or consulting, as limited by their agreement. Advisor’s investment management fee will remain the same whether the client reviews their planning with Advisor within their yearly contacts limits or not. Advisor remains available to address incidental client inquiries to determine if additional planning is required.
Implementing any financial planning advice is at client’s sole discretion and they may reject any Advisor recommendation.
Limitations of Recommendation of Professional Specialists. Advisor may refer unaffiliated professional specialists for non- investment services. Client has no obligation to engage those professionals. Client retains absolute discretion over the terms of any proposed engagement and is free to accept or reject that professional’s recommendation. Advisor does not serve as an attorney or an accountant, and so no portion of our services should be construed as such. See “Client Obligations” below.
Accordingly, Advisor does not provide formal accounting services or prepare legal documents for clients. A related person of Advisor may be recommended in their individual capacity as a licensed insurance and annuity specialist when, and only if, that is deemed to be in the best interest of client, to the extent a client requests. See Item 10 disclosure. When client engages an unaffiliated professional referred by Advisor (i.e. attorney, accountant, insur- ance agent, trust company, etc.), and if a dispute arises relative to such engagement, client agrees to seek recourse exclusively only against from that self-same professional or their firm. At all times, only the professional(s) that the client engages, and not Advisor, shall be responsible for the quality and competency of the services provided.
Client Obligations. In performing financial planning and consulting services, Advisor shall not be required to verify any information received from client or from client’s professional advisors, and Advisor and is expressly authorized to reasonably rely thereon. Moreover, it is the client’s responsibility to promptly notify Advisor if there is ever any change materially impacting their financial situation or investment objectives related to reviewing, evaluating, or revising previous recommendations and/or services. Notice or memorandum to Advisor of such changes must be provided in writing by mail or email.
INVESTMENT MANAGEMENT SERVICES Investment management is central to Advisor’s wealth manage- ment service. Advisor manages client portfolio accounts eitheron a discretionary or non-discretionary basis, but limited to certain types of securities, primarily institutional-class mutual funds and exchange-traded funds and cash equivalents. Legacy stock and bond holdings transferred into client accounts and requested to be held are also advised. Alternative investments in outside accounts such as hedge funds, private equity, venture capital, cybercurren- cies, NTFs, and SPACs may be coordinated with client’s investment accounts managed by Advisor, however.
Advisor maintains science-based systematic structured strategies based on a broad range of expected returns with corresponding levels of uncertainty. Once clients adopt an investment policy, customized strategies are coordinated in an aggregated manner across all household accounts under Advisor management with a view to tax considerations by location. Policy is NOT repli- cated account by account. Portfolio strategies ordinarily blend institutional-class mutual funds and exchange traded funds (“ETFs”) across a global set of equity, fixed income and hybrid asset classes and funds. In very limited circumstances, Advisor may incorporate individual securities and income annuities. Our investment strategies are not limited by our broker-dealer custodians to particular products or services.
Advisor works only with clients allowing customized strategies coordinated in an aggregated manner across all household accounts with a view to optimizing planning considerations. Portfolio adjustments and portfolio rebalancing will align closely with the client’s investment policy and the asset allocation/ asset class guidelines of the client’s agreed portfolio structure, as updated from time to time. At least annually, or as notified by client, Advisor will consult with client to review their household accounts to determine whether, due to changes in the client’s objectives or financial circumstances, whether their investment policy or portfolio structure should be modified.
Investment management normally is integrated with financial planning and consulting based on one of three service levels: l Standard, Service Level 1. Aggregated accounts are coordi- nated and managed according to clients’ investment policy. Moderately standardized risk-based models are used. Level 1 clients paying at least $1,250 quarterly (per schedules in