FINANCIAL PLANNING DISCLOSURE (FPD) D. Philosophy, theory and/or principles of financial planning which will be utilized:

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1 FINANCIAL PLANNING DISCLOSURE (FPD) Part I: Contact Information A. Client s Name and Contact Information: B. Certificant and Employer s (if applicable) Contact Information: J. Russell Armstrong, CFP, AIS Financial, 1311 Live Oak Street, Commerce, Texas Office Phone: Office Fax: J. Russell Armstrong, CFP is an Investment Representative and Investment Advisor Representative (IAR) for LPL Financial. LPL Financial is a registered investment advisor (RIA) and broker/dealer. C. Basic philosophy of the CFP Certificant (or firm) in working with clients: My approach to personal financial planning is to obtain from you significant financial and other information including your attitudes, goals, and objectives; to analyze the information obtained in order to develop alternatives for your consideration; to educate you about the implications of selecting a particular alternative. It is my goal to become your chief financial adviser and to coordinate the efforts of your other advisors in your best interests. I want you to be educated about your own financial affairs and to take an active role in managing them. D. Philosophy, theory and/or principles of financial planning which will be utilized: My philosophy of financial planning is to gather adequate reliable information about a client s personal financial situation; to determine the client s goals and objectives, time horizon, and risk tolerance; to analyze all of the foregoing information in an objective manner and to develop recommendations for my clients based upon this thorough analysis and in their best interest. In a personal financial planning engagement, I endeavor to consistently act in the interest of my client and to place his or her interest ahead of my own. Moreover, I believe that a client should be both informed and proactively involved in his or her personal financial affairs. Accordingly, I believe in holding frequent meetings with my clients to educate them about the financial planning process and their own financial situation. Copyright 2008, Certified Financial Planner Board of Standards, Inc. All Rights Reserved

2 Page 2 E. Summarized in the space provided below, are résumés of principals and employees of the CFP Certificant s firm who are expected to provide financial planning services: Resume of J. Russell Armstrong, CFP 1. Educational background: Diploma, Bonham High School, Bonham, Texas 1978 Bachelor of Business degree in Finance from East Texas State University (now Texas A&M University - Commerce) Commerce, Texas, 1981 Diploma, The Southwestern Graduate School of Banking, Southern Methodist University, Dallas, Texas 1990 Diploma, College for Financial Planning, Denver, Colorado, Professional / employment history: Following college, I was employed by various banks for over 12 years, primarily in the capacity of a lending officer. I became an Investment Representative for BSC Securities, L.C. in April of In December of 1998, I opened AIS Financial Services. I am currently registered with LPL Financial, Member FINRA/SIPC. 3. Professional designations and licenses held: FINRA Series 63 (State Law Exam) 1995 FINRA Series 7 (General Securities) license Group 01 insurance agents license, 1995 Group 04 variable contract agents license, 1995 Certified Financial Planner TM Certification, 1998 FINRA Series 24 (General Securities Principal) Investment Advisor Representative of LPL Financial 1999 FINRA registrations held through LPL Financial. 4. Areas of competence and specialization: Investments & Analysis, Retirement Planning for both individuals and companies, Retirement Distribution Planning, College Planning, Goal Planning, Personal & Business Financial Planning, Insurance analysis, and Estate Planning.

3 Page 3 5. Affiliations: The First National Bank of Emory, Emory, Texas - Chairman of the Board Texas A&M University - Commerce Foundation - Board Member The Financial Planning Association - Member Commerce Chamber of Commerce - Member Commerce Rotary Club Member Financial Services Institute - Member Part II: Services to be Provided A. Describe the obligations and responsibilities of each party with respect to: The Certificant and Client will work together on each of the following 6 items and come to an agreement that will inure to the benefit of the client relationship. 1. Defining goals, needs and objectives 2. Gathering and providing appropriate data 3. Determining the results if no changes are made to the client/prospect s current course of action 4. Determining recommendations and possible changes to the current course of action 5. Determining implementation responsibilities 6. Determining monitoring responsibilities B. Description of other professionals and/or firms the Certificant may work with to provide the necessary services listed above Part III: Material Information Relevant to the Relationship A. Sources of Compensation 1. Describe how the Certificant and/or Certificant s employer are compensated for the services provided. Commissions: The compensation paid to the Certificant depends what type of investment product is used to meet the Client s needs. Compensation can come in the form of a commission (stock), sales concession (mutual fund), third-party compensation (Fixed or Variable Annuity, Untraded REIT, Life Insurance, Longterm Care Insurance, etc...), mark-up (or spread) if purchasing a fixed-income product (Corporate or Municipal Bond) or through other sources. Some products will compensate the Certificant on an on-going basis after the initial transaction

4 Page 4 (Mutual Fund or Annuity 12b-1 fees). Advisory Fees: The Certificant will be paid on-going advisory fees for investment accounts held in one of LPL Financial s Fee-Based Advisory Platforms (eg. SAM-Strategic Asset Management, OMP- Optimum Market Portfolio, or MWP-Model Wealth Portfolio) 2. Describe costs incurred that may be charged separately to the client None 3. Describe other sources of [direct or indirect] compensation received but not yet listed. Include source(s) and terms for receipt of compensation (i.e., Other fees, soft dollars; etc.) None. 4. Include compensation that any affiliate or affiliated entity to the Certificant or Certificant s employer may receive for the services provided. None. B. Conflicts of Interest 1. Describe the conflicts of interest the Certificant or Certificant s employers (including affiliates and affiliated entities) may have. None. 2. Describe the limitations placed on products, services and/or solutions the Certificant may recommend under this agreement. These limitations may be caused by the relationship the Certificant has with his/her employer or a limitation on products the Certificant may offer, as examples. None C. Describe other material information relevant to the professional relationship that the client should know before making an informed decision. None Part IV: Additional Information You, the client, are encouraged to review the information contained in this disclosure form and ask the Certificant any questions you may have. Should any material changes occur to this information, updated information will be provided to you in a reasonable time frame. As a CFP Certificant, I acknowledge my responsibility to adhere to the standards established in CFP Board s Standards of Professional Conduct, including the duty of care of a fiduciary, as defined by the CFP Board. If you become aware that my conduct may violate the Standards, you may file a complaint with CFP Board at

5 Page 5 Delivered to client on,. CFP Certificant Initials: Note. Per LPL Financial Compliance Department, LPL Representatives are not to create their own documents and therefore will not permit clients to sign CFP Disclosures acknowledging their receipt of this Disclosure. AIS Financial J. Russell Armstrong, CFP 1311 Live Oak Commerce, TX (office) (fax) russell@jrussellarmstrong.com