Michels Family Financial LLC

ITEM 5 – FEES AND COMPENSATION

INVESTMENT MANAGEMENT FEES AND COMPENSATION
Our Firm charges a fee as compensation for providing Investment Management services on your
account. These services include advisory services, trade entry, investment supervision, and other
account maintenance activities. Our recommended Custodian charges transaction costs,
custodial fees, redemption fees, retirement plan and administrative fees or commissions. See
Additional Fees and Expenses below for details.
A calendar monthly investment management fee is billed in arrears based on the average daily
balance of your account during the previous calendar month. Our Tiered Fee Schedule is as
follows:
                       Assets Under Management                                      Annual %
 First                       $250,000 ($0 - $250,000)                                1.35
 Next $250,000               ($250,000 - $500,000)                                   1.30
 Next $500,000               ($500,000 - $1 million)                                 1.25
 Next $1,500,000             ($1 million - $2.5 million)                             1.00
 Next $2,500,000             ($2.5 million - $5 million)                             0.80
 Next $5,000,000             ($5 million - $10 million)                              0.60
 Over $10,000,000                                                                    0.50

Our advisory fees are negotiable. Clients may also opt for a fixed fee rate. The relevant fee and
billing method is defined and agreed to by the firm and the client in the executed Investment
Advisory Agreement. This fee may be debited directly from your investment account, or you may
pay this fee separately. You will need to indicate how you would like to pay this fee in your
Investment Advisory Agreement. Additional fees and expenses you may incur are brokerage
commissions, SEC fees, mutual fund/ETF expense ratios, tax withholding on certain foreign
securities, postage fees, wire fees, bank charges, and other administration fees as authorized by
you. Please refer to Section 12 for information on brokerage fees and services.
Fees may vary based on the size of the account, complexity of the portfolio, extent of activity in
the account, or other reasons agreed upon by our Firm and you as the client. In certain

MICHELS FAMILY FINANCIAL, LLC

circumstances, our fees and the timing of the fee payments may be negotiated. Our employees
and their family related accounts are charged a reduced fee for our services.
Unless otherwise instructed by the Client, we will aggregate related client accounts for the
purposes of determining the account size and annualized fee. The common practice is often
referred to as “house-holding” portfolios for fee purposes and may result in lower fees than if
fees were calculated on portfolios separately. Our method of house-holding accounts for fee
purposes looks at the overall family dynamic and relationship. When applicable, and noted in
Appendix of the Investment Management Agreement, legacy positions will also be excluded from
the fee calculation.
The independent and qualified custodian holding your funds and securities will debit your account
directly for the advisory fee and pay that fee to us. When establishing a relationship with Michels
Family Financial, you provide written authorization permitting the fees to be paid directly from
your account held by the qualified custodian. Further, the qualified Custodian agrees to deliver
an account statement to you on a monthly basis indicating all the amounts deducted from the
account including our advisory fees.
Either Michels Family Financial or you may terminate the management agreement immediately
upon written notice to the other party. The management fee will be pro-rated to the date of
termination, for the month in which the cancellation notice was given and any earned fee will be
billed to you by our Firm.
Upon termination, you are responsible for monitoring the securities in your account, and we will
have no further obligation to act or advise with respect to those assets. In the event of client’s
death or disability, Michels Family Financial will continue management of the account until we
are notified of client’s death or disability and given alternative instructions by an authorized party.
In no case are Michels Family Financial fees based on, or related to, the performance of your funds
or investments.

CONSULTING
Michels Family Financial provides fixed fee consulting services for clients who need advice on a
limited scope of work. Michels Family Financial will negotiate consulting fees with you. Fees may
vary based on the extent and complexity of the consulting project. You will be billed monthly as
services are rendered.
Either party may terminate the agreement. Upon termination, fees will be prorated to the date
of termination and any unearned portion of the fee will be refunded to you as described above.
You should be aware that lower fees for comparable services may be available from other sources.

FINANCIAL PLANNING FEES
For our Investment Management clients, financial planning services are included in the
Investment Management fees described above.

MICHELS FAMILY FINANCIAL, LLC

For stand-alone financial planning arrangements, we will negotiate the planning fees with you
using a fixed fee. Fees may vary based on the extent and complexity of your individual or family
circumstances and the amount of your assets under our management. Michels Family Financial
will determine your fee for the designated financial advisory services based on a fixed fee
arrangement described below.
Under our fixed fee arrangement, any fee will be agreed in advance of services being performed.
The fee will be determined based on factors including the complexity of your financial situation,
agreed upon deliverables, and whether or not you intend to implement any recommendations
...

ITEM 7 - TYPES OF CLIENTS

We provide investment advice to individuals, high net worth individuals, employer sponsored
retirement plans, trusts and estates.
For an asset-based fee, Michels Family Financial may contract directly with third party broker-
dealers to provide advisory consulting services to their clients.
Our Firm does not require a minimum of aggregate investable assets