American Financial Advisors LLC

Item 5    Fees and Compensation

                                PORTFOLIO MANAGEMENT FEES
The fees for Investment Supervisory Services are charged as a percentage of assets under
management, according to the following schedule:
AFA’s two main fee structures are as follows:
Portfolio and Investment Management fees will be based on the value of those assets under
management on a quarterly basis in arrears. The minimum fee is $300 per year for assets under
management of less than $30,000.

                                      Standard Fee Schedule
                                                              Annual Fees as a % of
                  Portfolio Value                                Assets Under Mgt
               First $500,000                                         1%
               From $500,000.01 to $ 5,000,000                        0.5%
               From $5,000,000.01 to $10,000,000                      0.36%
               Over $10,000,000                                       Negotiable
                       Standard minimum annualized fee is $300.00

American Financial Advisors, LLC, may household certain related client accounts for the purposes of
achieving the minimum account size and determining the annualized fee.
Fees are generally deducted automatically from client’s brokerage accounts, but clients may request
that AFA, LLC send them invoices to be paid by check or credit card.

Special Employee Directed Retirement Assets fee is based on a sliding scale:
                  The initial setup fee is $250.00 per 401k Plan account managed.

Fees will be assessed on an annual basis in arrears. The annual fee of 0.25% is based on the value of assets
under management. Fees are generally deducted automatically from client’s brokerage accounts with prior
consent, but clients may request that AFA, LLC send them invoices to be paid by check or with credit card.

Limited Negotiability of Advisory Fees: Although American Financial Advisors, LLC has established
the aforementioned fee schedule(s), we retain the discretion to negotiate alternative fees on a client-
by-client basis. Client facts, circumstances and needs are considered in determining the fee schedule.
These include the complexity of the client, assets to be placed under management, anticipated future
additional assets; related accounts; portfolio style, account composition, reports, among other factors.
The specific annual fee schedule is identified in the contract between the adviser and each client.
Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm or charitable organizations. Additionally, some clients may
have different fee schedules that have been grandfathered in based on the contract date with
American Financial Advisors, LLC. AFA, in its sole discretion, may waive its minimum fee or account
minimum, charge a lesser investment advisory fee and/or charge a flat fee based upon certain criteria
(i.e. anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, competition, negotiations with client, etc.). As
result of the above, similarly situated clients could pay different fees. In addition, similar advisory
services may be available from other investment advisers for similar or lower fees. If a client is subject
to the minimum fee referenced in Item 5 above, the client could pay a higher percentage quarterly fee
than the annual percentage fee referenced in the fee schedule at Item 5 above. ANY QUESTIONS:
AFA’s Chief Compliance Officer, Andria Williams, remains available to address any questions that a
client or prospective client may have regarding advisory fees

                                      FINANCIAL PLANNING FEES

   -   Clients who have previously entered an Investment Advisory Agreement with AFA, LLC and pay AFA,
       LLC quarterly management fees as a percentage of their assets under management do not incur any
       additional charge for financial planning.
   -   Clients who have previously entered a 401(k) Investment Advisory Agreement with AFA, LLC and pay
       AFA, LLC an annual management fee for 401(k) portfolio management are billed separately for financial
       planning engagements at a flat rate of $500 per engagement invoiced at the beginning of the
       engagement.
   -   Clients who have not entered an Investment Advisory Agreement with AFA, LLC and engage AFA, LLC
       strictly for financial planning services are billed for the engagement at an hourly rate of $150 per hour.
       A minimum fee of $500 will be invoiced at the beginning of the engagement with any remaining fee to
       be invoiced at the conclusion of your initial planning session.

   Should a non-advisory client enter into an Investment Advisory Agreement with AFA, LLC a credit
   towards future management fees will be provided equivalent to any financial planning fees paid by
   the client.

                                      GENERAL INFORMATION

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by
either party, for any reason upon receipt of 30 days written notice. Fees will be assessed up to the
date of termination.
Mutual Fund Fees: All fees paid to American Financial Advisors, LLC for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds and/or ETFs
to their shareholders. These fees and expenses are described in each fund's prospectus. These fees
will generally include a management fee, other fund expenses, and a possible distribution fee. If the
fund also imposes sales charges, a client may pay an initial or deferred sales charge. A client could
invest in a mutual fund directly, without our services. In that case, the client would not receive the
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Item 7   Types of Clients

American Financial Advisors, LLC provides advisory services to the following types of clients:
• Individuals (other than high-net-worth individuals)
• High net worth individuals
• Corporations or other businesses not listed above
As previously disclosed in Item 5, our firm has established certain initial minimum account
requirements, based on the nature of the service(s) being provided. For a more detailed

understanding of those requirements, please review the disclosures provided in each applicable
service. AFA, in its sole discretion, may waive its minimum fee or account minimum, charge a lesser
investment advisory fee and/or charge a flat fee based upon certain criteria (i.e. anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be managed, related
accounts, account composition, competition, negotiations with client, etc.). As result of the above,
similarly situated clients could pay different fees. In addition, similar advisory services may be
available from other investment advisers for similar or lower fees. If a client is subject to the minimum
fee referenced in Item 5 above, the client could pay a higher percentage quarterly fee than the annual
percentage fee referenced in the fee schedule at Item 5 above. ANY QUESTIONS: AFA’s Chief
Compliance Officer, Andria Williams, remains available to address any questions that a client or
prospective client may have regarding advisory fees