Zhang Financial LLC

Item 5 – Fees and Compensation

Fee Schedules and Billing

Asset Management

Our annual fees for asset management services are negotiated with each client and are generally
based on a flat percentage of the market value of assets under management. While the specific fee
is finalized at the inception of the relationship, we utilize the following schedule as a guideline for our
negotiations:

           Market Value of Account(s)                     Guideline Annual Flat Fee %

           $1,000,000 - $2,500,000                                     1.00%
           $2,500,000 - $5,000,000                                     0.90%
           $5,000,000 - $10,000,000                                    0.80%
           $10,000,000 and above                                     Negotiable

Our fees are negotiable and may vary based on factors such as account size, related accounts,
anticipated future assets, and scope of services provided. For accounts below $1,000,000, fees are
negotiated and generally will not exceed 1.20%, subject to our $5,000 minimum annual fee. Please
note that we generally do not accept new clients with less than $1,000,000 in assets.

Fee Negotiation and Householding: We reserve the right to charge a fee that may be higher or
lower than the guideline schedule based on a client’s particular circumstances. During the initial
negotiation process, we typically aggregate (or “household”) the values of all related client accounts
to determine the appropriate guideline fee. Once a fee rate is established in the investment advisory
agreement, that rate generally remains static. The percentage does not automatically decrease or
increase based on future market movement, additional deposits or withdrawals, or the addition of
accounts to or removal of accounts from the household. The percentage will never increase without
written notice to and prior consent of the client.

Flat Fee Structure: Unlike "tiered" schedules where different rates apply to portions of an account
balance, we utilize a flat fee structure. Once a negotiated rate is established, that single percentage
is applied to the entire balance of the account.

Billing Cycle: Advisory fees are generally billed quarterly in advance based on the market value of
the account(s) as of the last business day of the prior month. Billing quarters begin on the first
business day of March, June, September, and December. Fees are generally deducted directly from
the client’s custodial accounts. Clients must authorize the custodian to deduct advisory fees pursuant
to the investment advisory agreement.

For new or existing accounts that receive capital or make withdrawals during the middle of the billing
quarter, we prorate the fee based on the number of days the assets were under our management
during that quarter. This is reflected in the following billing cycle. This pro-rata adjustment ensures
that capital is only billed for the actual time it was managed by Zhang Financial.

Management and Billing of Held-Away Assets: As part of our asset management services, we
may provide investment selection and ongoing management for assets held in a client’s employer-
sponsored retirement plan (e.g., 401(k), 403(b)) or other "held-away" accounts. When we lack direct
access to deduct fees from employer-sponsored retirement plans, the advisory fees for these held-
away assets are generally deducted from one of the client's other managed accounts held at our
primary custodians. If no such account exists, we will invoice the client directly for the fee associated
with these managed retirement assets.

Wrap Fee Programs: We primarily offer wrap fee programs that allow clients to pay a specified fee
for investment advisory services and the execution of transactions in their accounts. Under this
arrangement, the advisory fee includes portfolio management services and the costs associated with
executing transactions in the client’s account. The advisory fee is not based directly on the number
of transactions in a client’s account. Because transaction costs are bundled into the wrap fee, the
overall fee paid by a client participating in the wrap fee programs may be higher than the cost of
purchasing advisory services separately and paying brokerage commissions on a per-transaction
basis. We primarily offer wrap fee accounts for individual discretionary accounts. Certain client
accounts may not be eligible to participate in the wrap fee programs due to limitations related to the
account structure maintained by the custodian. In those cases, clients may incur separate brokerage
commissions or transaction charges. For a detailed description of our wrap fee programs, including
the services provided, associated costs, and a comparison to non-wrap fee arrangements, please
refer to our Wrap Fee Program Brochure.

Financial Planning and Consulting

We charge either on an hourly or flat fee basis for financial planning and consulting services. The
total estimated fee, as well as the ultimate fee that we charge, is based on the scope and complexity
of our engagement. Our hourly fees generally range from $100 to $500, while flat fees generally
range from $250 to $10,000. Financial planning may be included as part of the client relationship for
certain clients. We may require a retainer of 50% of the agreed-upon fee, with the remainder directly
billed and due to us within 30 days from the delivery of the financial plan or from the date of the
consultation rendered.

Pension and Retirement Plan Consulting

We provide consulting services to sponsors of pensions and employer-sponsored retirement plans
either as a standalone engagement or as part of our broader asset management services. Fees for
these services are negotiated and may be charged on either a percentage-of-assets basis or a flat-
fee basis. If we charge based on percentage-of-assets basis, the annual fee shall generally not
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Item 7 – Types of Clients

Zhang Financial provides investment advisory services to a variety of clients, including individuals,
high net-worth individuals, trusts, estates, charitable organizations, pension and profit-sharing plans,
corporations, limited liability companies, other business types, and municipal government entities.

We generally require a minimum balance to start or maintain an investment advisory relationship
with us. The minimum balance is $1,000,000 for clients residing in the State of Michigan, and
$2,000,000 for clients residing outside the State of Michigan. This minimum balance is generally
preferred throughout the course of the client’s relationship with us. However, this minimum
requirement may be waived in certain circumstances, at our sole discretion. While we prefer this
minimum, it is negotiable at our sole discretion, and we may waive or lower the minimum for various
reasons, including family members of existing clients, employees and their families, anticipation of
future asset growth or additional deposits, legacy relationships, or other factors we deem relevant.