Advisor Financial Services Inc

Item 5: Fees and Compensation

Compensation
The Firm bases its fees on a percentage of assets under management, hourly charges, or fixed fees,
depending on the scope and nature of the engagement. The Firm’s fee schedules are described below.

Compensation – Investment Advisory Services
Applicable fees are charged according to an agreed-upon schedule. For the majority of our clients,
the firm charges a fee based on a percentage of assets under management, with a minimum annual
fee of $100. This investment advisory fee is pro-rated and paid quarterly, in advance, based on the
value of the assets as of 6:00 p.m. Eastern Time on the last business day of the calendar quarter.

Schedule of Management Fees:
Assets Under Management Annual Fee (effective January 1, 2026)
The advisor employs various methods for charging investment advisory fees, including General
Asset Management fees, Equity Asset Management fees, and Hourly fees. Some clients may have
arrangements where their rates differ from the current published rates. These differences reflect
variations in the nature of the services provided or updates to the fee schedule since the client first
engaged the firm’s services.

General Assets include cash, money markets, bonds, mutual funds, and exchange-traded funds
(ETFs). Equity Assets refer to direct investments in publicly traded companies managed on behalf of
the client. Hourly fees apply to financial planning and short-term engagements.
A. Fees for General Asset Management:
        1        Minimum Fee $100/year
        2        $100 to $250,000 - Fee of 1.0%
        3        $250,001 to $500,000- Fee of 0.85%
        4        $500,001 to $1,000,000 - Fee of 0.70%
        5        $1,000,001 and up - Fee of 0.5%
B. Fees for Equity Asset Management:
        1        Minimum Fee $100/year
        2        $100 to $250,000 - Fee of 1.5%
        3        $250,001 to $500,000- Fee of 1.25%
        4        $500,001 to $1,000,000 - Fee of 1.0%
        5        $1,000,001 and up - Fee of 0.75%
C. Percentages in A. and B. above are on an annual basis, billed quarterly in advance. Fees are
based on the value in the account on the last day of the previous quarter. New accounts are billed on
a pro-rata basis and closed accounts will receive an automatic prorated refund of any unearned
prepaid advisory fees, where applicable.

An investment advisory agreement will be provided to each client prior to, or simultaneously with,
the execution of any formal documents required by the custodian, such as Charles Schwab & Co.,
Inc., its successor, American Funds, or other institutions. Both the client and the advisor will sign
and date the investment advisory agreement. A copy will be provided to the client, and the original
will be securely maintained in the Firm’s digital client file system, in accordance with the Firm’s
paperless office policy and the recordkeeping requirements under Rule 204-2 of the Investment
Advisers Act of 1940. All records are retained using secure, encrypted storage and are available for
regulatory inspection.

Advisor Financial Services, Inc.                 Page 7                               Form ADV Part 2

Clients authorize the Firm to directly debit advisory fees only from their investment accounts in
accordance with the Investment Advisory Agreement. Fees for tax preparation, accounting, financial
planning, or any other non-advisory services will be billed directly to the client and will not be
deducted from client investment accounts.

Investment Advice on an Hourly Basis:
After gathering necessary information and with the discretion of the client and consent of the
advisor, the firm may provide investment advice on an hourly basis at a negotiable rate, not
exceeding $325 per hour. The firm may also charge project fees, determined by the scope, depth, and
nature of the specific project. These projects may include investment advice, income tax preparation,
insurance review, and estate planning.

Compensation – Financial Planning Services:
The firm charges a minimum fee of $1,500 for comprehensive financial planning engagements. This
fee may be reduced or waived by mutual agreement between the firm and the client.

Calculation and Payment:
The firm typically calculates fees in advance on a quarterly basis, based on the value of the
account(s) at the close of business on the last day of the calendar quarter. Accounts that are initiated
or terminated during a quarter will be charged a prorated fee. Upon termination of an advisory
account, The Firm will calculate the earned and unearned portion of any prepaid advisory fees. Any
unearned prepaid advisory fees due to the client will be automatically refunded without the need for
a client request, and any earned but unpaid fees will be due and payable.

Minimum Fee:
The Firm charges a minimum advisory fee to compensate for the fixed costs of establishing,
maintaining, administering, and servicing an advisory relationship. These costs include, among other
things, regulatory compliance, technology, portfolio accounting, recordkeeping, reporting, and
ongoing client servicing. The minimum advisory fee is considered earned upon billing. Upon
termination of an advisory relationship, the Firm will calculate any unearned prepaid advisory fees in
excess of the minimum advisory fee and automatically refund any amount due to the client without
the need for a client request.

Agreement Terms:
Either party may terminate the agreement with written notice. In the event of cancellation, the firm
shall complete any outstanding commitments made on behalf of the client. However, the firm shall
not make any further commitments or be responsible for any acts on behalf of the client.

SIMPLE IRA Advisory and Consulting Fees (American Funds F-2 Share Classes)

For certain employer-sponsored SIMPLE IRA plans, the Firm assists employer clients with plan
establishment, administrative coordination, and employee account setup. The Firm may also provide
...

Types of Clients
As described in Item 4, the Firm ‘s clients include individuals, corporations, limited liability
companies (LLCs), pension and profit sharing plans, trusts, estates, and charitable organizations.

Account Minimums
The Firm generally requires a minimum account size of $20,000 for investment advisory services.
However, at the Firm’s sole discretion, this minimum may be reduced or waived for certain clients.
Factors that may influence this decision include the client’s overall relationship with the Firm,
potential for future growth, automatic investment plans, or family aggregation. Regardless of account
size, the Firm’s minimum annual fee of $100 still applies, which may result in a higher effective rate
for smaller accounts.