Interview - Part 1
The following procedure outlines the Fizone philosophy and method used to develop an investment plan.

The first step in developing an investment plan is to develop an investor profile that describes the risk tolerance, objectives, current investment portfolio, cash available to invest, and debt position of the investor. The profile is developed through an interview process. There are many sites on the Internet that provide online interviews in the form of questionnaires. These questionnaires can help you gain insight into your investor profile. The Allocation Profile page provides sample profiles and links to several of these sites.

RISK TOLERANCE
Understanding your tolerance for risk is extremely important. It is also very difficult to determine and is more of an art than a science. It often takes a long time to determine, and it truly is related to how much sleep you lose at night or how much you worry during the day about your investments. The interview process will cover the following risk related topics:

• The importance of avoiding investment fluctuations over a one-year period
• The importance of real growth (over the inflation rate) during a period of five years or more
• Acceptable odds for losing money in any one year
• Determining what action you would take if your investments dropped by 20% or more in value

OBJECTIVES
The reason for having an investment plan is to help you realize many of your life goals. The interview process will cover these related topics:

• Schedule for major withdrawing of funds
• Need for future income
• Expected long-term returns
• How should the investments be disposed in your estate

Interview - Part 2
CURRENT INVESTMENT ALLOCATION
When developing an investment plan, it is important to consider all of your assets. The financial assets include checking accounts, money market accounts, CDs, investment accounts, and retirement accounts. In addition, it is important to consider any real estate investments. This includes your personal residence which has special attributes when considered as an investment.

AVAILABLE TO INVEST
The amount of cash left after all other living expenses are met is what you have available to invest. It is unrealistic to expect to start an investment plan if your budget will not allow it. Important points to consider are:

• Amount of budget allocated to retirement plans
• Do you already have an emergency fund equal to 3 - 6 months income

DEBT
It is also important to consider the amount and interest rate of all debt you currently hold. In many situations the best investment strategy may start with paying off high interest rate debt. You will need to develop a debt schedule that shows the amount, type, and interest rate for each debt.

YOUR INVOLVEMENT IN THE PROCESS
Do you want to make the investment decisions? Only be partially or somewhat involved e.g. mutual fund investing)? Would you rather have a professional make most of the investing decisions with your approval? What is your level of investment experience to support your involvement?

Monitoring the Plan
QUARTERLY REPORTS
If you have elected ongoing services from Fizone, you will receive quarterly reports. They will show how your investments have performed in relation to benchmark indices and detail major developments affecting your investments.

PROACTIVE SUPERVISION
Major events in the market, the economy, an individual company, or your life can dramatically impact your objectives. Periodically we will contact you to touch base and discuss possible investment realignment to meet changing objectives.

Plan Implementation
If the investor decides to use Fizone for ongoing implementation and monitoring of the investment plan as described in the Fizone Advisory Agreement, there will be a sharing of responsibility between Fizone and the client-investor when performing tasks to implement the plan.

INVESTOR RESPONSIBILITIES

• Payoff debts per plan
• Adjust retirement plan contribution
• Approve investment recommendations

SHARED RESPONSIBILITIES

• Open investment or retirement accounts
• Informing each other of changes that may impact the plan, such as a new need to withdraw funds from the portfolio, or news about holdings in the portfolio that may require action.

FIZONE RESPONSIBILITIES

• Make specific investment recommendations
• Notify client of changes in law or economic policy that impact plan.

Proposal
After the interview is complete, the investor will be asked to sign the Fizone Advisory Agreement which will provide a contractual framework for developing an investment plan. The first part of developing the plan will be to create a proposal for the investor. You will pay for up to three hours of work under the advisory agreement for the creation of the proposal. The proposal is yours to keep and consists of four sections:

1. INVESTOR PROFILE

The profile will summarize your risk profile, investment objectives, and other important factors in your investor profile that were discussed during the interview.


2. CURRENT INVESTMENT ALLOCATION

This section will show how your current investments are allocated and consider such factors as security type, industry sector, income production, retirement account, taxable or non-taxable, and domestic or foreign.


3. PROPOSED INVESTMENT ALLOCATION

The proposed investment allocation will consider the same factors as the current investment allocation. It will discuss the rational for making the changes in allocation.


4. IMPLEMENTATION PLAN

This portion of the proposal will describe the potential or possible steps to be taken to implement the proposed investment allocation. It will describe all fees to be paid in relation to executing the plan.