Disclosures

WHY?

Financial companies choose how they share your personal information. Federal law
gives consumers the right to limit some but not all sharing. Federal law also requires
us to tell you how we collect, share, and protect your personal information. Please
read this notice carefully to understand what we do.

WHAT?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

  • Social security number and income
  • Assets, account balances and transaction history
  • Investment experience and risk tolerance

When you are no longer our customer, we continue to share your information as described in this notice.

HOW?

All financial companies need to share customers' personal information to run their
everyday business. In the section below, we list the reasons financial companies can
share their customers' personal information; the reasons FDA chooses to share; and
whether you can limit this sharing.

Reasons we can share your personal information
Does FDA share?
Can you limit this sharing?
For our everyday business purpose - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations or report to credit bureaus
YES
NO
For our marketing purposes - to offer our products and services to you
YES
NO
For joint marketing with other financial companies
NO
WE DON'T SHARE
For our affiliates' everyday business purposes - information about your transactions and experiences
NO
NO
For our affiliates' everyday business purposes - information about your credit worthiness
NO
WE DON'T SHARE
For nonaffiliates to market to you
NO
WE DON'T SHARE
Who we are?
Who is providing this notice?
FAMILY DYNASTY ADVISORS LLC (referred to as "FDA")
What we do?
How does FDA protect my information?

To protect your personal information from unauthorized access and use,
we use security measures that comply with federal law. These measures
include computer safeguards and secured files and buildings.

How does FDA collect my personal information?

We collect your personal information, for example, when you:

Open an account and enter into an investment advisory contract;
Give us your income, employment and contact information; Tell us about your investment or retirement portfolio; or Seek advice about your investments.

Why can't I limit all sharing?

Federal law gives you the right to limit only

sharing for affiliates' everyday business purposes- information about your credit worthiness affiliates from using your information to market to you sharing for nonaffiliates to market to you

State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates

Companies related by common ownership or control. They can be
financial and nonfinancial companies.

FDA does not have any affiliates.

Nonaffiliates

Companies not related by common ownership or control. They can
be financial and nonfinancial companies.

FDA does not share with nonaffiliates so they can market to you.

Joint Marketing

A formal agreement between nonaffiliated financial companies that
together market financial products or services to you.

FDA doesn't jointly market.

Form ADV: Part 2A

January 10, 2022

This brochure provides information about the qualifications and business practices of Family Dynasty Advisors LLC. If you have any questions about the contents of this brochure, please contact us at 806-993-7023 or mike@familydynastyadvisors.com.

The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Family Dynasty Advisors LLC is also available on the SEC’s website at www.adviserinfo.sec.gov.

Family Dynasty Advisors LLC is a registered investment advisor. Registration of an Investment Adviser does not imply any level of skill or training.

Item 2 – Material Changes

 

Item 3 -Table of Contents

Item 4 – Advisory Business

Family Dynasty Advisors LLC was founded in 2018 with its principal business located in Lubbock, Texas. The managing member and sole owner of the firm is Michael Caffey.

4.B Types of Services Offered

Family Dynasty Advisors LLC manages investment portfolios for individuals and businesses on a discretionary basis. The firm’s investment approach primarily focuses on investing through the use of open-end mutual funds, exchange traded funds, individual stocks and bonds, certificates of deposit, and treasury securities. The firm does not provide market timing advice.

4.C Tailoring Services

The firms’ services are tailored to the unique needs of each individual client. The firm will work with each client to determine their risk profile, goals and objectives. With this information, the firm will design an appropriate investment strategy that may be modified from time to time as circumstances change. The firm will continuously monitor the client’s portfolio holdings and the overall asset allocation strategy and will plan to hold periodic review meetings (via telephone, email, web based or in person) with the client regarding the account as necessary, and as the client desires. Clients may impose restrictions on investing in certain securities or types of securities.

4.D Wrap Fee Programs

The firm does not offer any wrap program fees.

4.E Assets Under Management

The firm had approximately $44,700,000 under management as of 12/31/2021.

Item 5 – Fees and Compensation

5.A Fee Schedule

For our investment management services, the firm will charge a blended annual fee based on a percentage of assets under management, in accordance with the following schedule:

Assets Under Management ($)

Annual Rate (%)

First $500,000
1.00%
$500,001 - $2,000,000
0.80%
$2,000,001 – $5,000,000
0.70%
$5,000,001 – $10,000,000
0.60%
$10,000,001 – Above
0.50%

Fee are collected in advance and determined by multiplying the blended annual rate by the account’s month-end market value which is then divided by 365 to determine a daily fee rate. This daily fee rate is then multiplied by the number of days in the applicable month. For example, if a client had an account value of $1,500,000, the formula would be as follows: ($500,000*.010)/365 + ($1,000,000*.008)/365 which results in a daily rate of $35.62. For a month with 30 days, that months fee would be $1,068.60 ($35.62*30 = $1,068.60).

The account market values of related client’s may be combined for the purposes of calculating a client’s applicable blended investment management fee. Fees may be negotiated if there are unique circumstances.

Each client relationship will be assessed a minimum annual fee of $500 if the firms applicable blended annual investment management fee, for the entire client portfolio of accounts, does not exceed the $500 annual minimum.

5.B How fees are charged

Fees are calculated on the account market value, including any cash or money market funds, as of the last business day of each month as determined by the account custodian. The custodian will debit the monthly fee directly from the account.

5.C Other fees or expenses

Fees paid to Family Dynasty Advisors LLC for investment management services are separate and distinct from any transaction or custodian fees, bid/ask spreads and other related costs and expenses which may be incurred by the client.

If Advisor buys shares of mutual funds, ETFs or other investment companies (such as closed-end funds) for Client, Client understands that these same assets may also be subject to additional embedded advisory or other fees and expenses, which are described in the prospectuses of those funds, paid by the funds but ultimately borne by the investor. Advisor will not receive fees from such mutual funds or other investment companies in connection with the services described in this Agreement.

5.D

When a client terminates an advisory agreement, the un-earned advisory fee for the month will be refunded on a pro-rata per diem basis. For example, if the management fee for the month of July was $100, the per diem calculation would be $3.23 ($100/31 days in July). If the clients’ account closed on July 15th, then the client would receive a refund of $51.68 ($3.23 * 16 days remaining in the month of July)

5.E

Family Dynasty Advisors LLC does not accept any compensation or commission for the purchase or sale of securities or other investment products.

Item 6 – Performance-Based Fees and Side-By-Side Management

Family Dynasty Advisors LLC does not charge any performance-based fees.

Item 7 – Types of Clients

Family Dynasty Advisors LLC will provide investment management services to individuals, businesses and high net worth individuals and families. Minimum account size will be at the discretion of the advisor.

Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss

8.A Methods of Analysis

The firms’ analysis focuses on the belief that by minimizing the volatility of a diversified investment portfolio, we can maximize the positive impact that is attainable from compounding investment returns over the long-term. The firm utilizes technical & statistical analytics along with macro-economic factors to construct a client’s portfolio. This information is primarily obtained from information available to the public. Even with an abundance of analytical data, Clients need to understand that investing in securities can result in a significant decline of their market value as well as the risk of losing their entire principle investment.

8.B Investment Strategy

The firms’ portfolio management services are structed to maximize investment performance will mitigating market volatility. The firm embraces both short-term and long-term investment strategies. Portfolios are normally diversified but depending on market conditions, a clients’ portfolio may experience a lack of diversification from time to time. We utilize a combination of both passively and actively managed mutual funds, exchange-traded funds, individual stocks, bonds, CD’s and treasuries to achieve the most appropriate, risk adjusted return, for our clients.

8.C Risk of Loss

Advisor cannot guarantee the future performance of the Account, promise any specific level of performance or promise that Advisor’s investment decisions, strategies or overall management of the Account will be successful. The investment decisions Advisor will make for Client are subject to various market, currency, economic, political and business risks, and will not necessarily be profitable. Below are several, but not an all-inclusive list, of the risks a client may be exposed to as a result of owning various investment assets.
  • Financial Risk: which is the risk that the companies we recommend to you perform poorly, which affect the price of your investment.
  • Market Risk: which is the risk that the Stock Market will decline, decreasing the value of the securities we recommend to you with it.
  • Inflation Risk: which is the risk that the rate of price increases in the economy deteriorates the returns associated with the stock.
  • Political and Governmental Risk: which is the risk that the value of your investment will be affected by the introduction of new laws or regulations.
  • Interest Rate Risk: which is the risk that the value of the bond investments we recommend to you will fall if interest rates rise.
  • Default Risk: which is the risk that a bond issuer is unable to pay the contractual interest or principal on the bond in a timely manner or at all.
  • Manager Risk: which is the risk that an actively managed mutual fund’s investment adviser will fail to execute the fund’s stated investment strategy.
  • Industry Risk: which is the risk that a group of stocks in a single industry will decline in price due to adverse developments in that industry, decreasing the value of mutual funds that are significantly invested in that industry. The Advisor shall not be liable for any loss incurred with respect to the Account, except where such loss directly results from such party’s gross negligence, willful misconduct or fraud or as otherwise provided for by federal or state law. It is specifically agreed that Advisor is not responsible for any errors, omissions, acts or failures to act by any unaffiliated third-party providing services to Client with respect to the Account.

Item 9 – Disciplinary Information

9.A Criminal or Civil Actions

There are no criminal or civil actions to report.

9.B Administrative Proceedings

There are no administrative proceedings to report.

9.C Self-regulatory Organization (SRO) Proceedings

There are no self-regulatory organization proceedings to report.

Item 10 – Other Financial Industry Activities and Affiliations

10.A Registration as a Broker/Dealer or Broker/Dealer Representative

The firm is not registered as, or have pending applications to become, a broker/dealer or a representative of a broker/dealer.

10.B Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor

The firm is not registered as or have pending applications to become either a Futures Commission Merchant, Commodity Pool Operator, or Commodity Trading Advisor or an associated person of the foregoing entities.

10.C Registration Relationships and Possible Conflicts of Interests

The firm does not have any registration relationship activities that would be or result in a conflict of interest.

10.D Selection of Other Advisers or Managers

The firm does not utilize the services of other advisers and/or managers.

Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading

11.A Code of Ethics

We strive to comply with applicable laws and regulations governing our practices. Our goal is to protect our clients’ interests and to demonstrate our commitment to our fiduciary duties of honesty, good faith, and fair dealing. All persons associated with our firm are expected to adhere strictly to these guidelines. Persons associated with our firm are also required to report any violations of our Code of Ethics. Additionally, we maintain and enforce written policies reasonably designed to prevent the misuse or dissemination of material, non-public information about you or your account holdings by persons associated with our firm.

Clients or prospective clients may obtain a copy of our Code of Ethics by contacting us at the telephone number on the cover page of this brochure.

11.B Recommendations Involving Material Financial Interests

Neither the firm nor any person associated with our firm has a material financial interest in client transactions beyond the provision of investment services as disclosed in this brochure.

11.C Investing Personal Money in the Same Securities as Clients

From time to time, representatives of the firm may buy or sell securities for themselves that they also recommend to clients. If and/or when this should occur, the client’s interest will take precedence.

11.D Trading Securities At/Around the Same Time as Clients’ Securities

The firm monitors trading to ensure the firm prevents conflicts of interest between the firm and our clients.

Item 12 – Brokerage Practices

12.A.1 Research and Other Soft Dollar Benefits

We maintain a formal business relationship with a single custodian (Charles Schwab) which provides the firm and its clients with services such as: custody of assets, trading platform, research, access to client accounts, the ability to directly debit client fees, the ability to effect other transactions, and other services. As a matter of policy and practice, we do not have any formal “hard” dollar arrangements with any broker-dealer. The firm is provided access to research and other investment analytics that may be considered “soft” dollar benefits, but these are the same benefits that any client utilizing the broker-dealer website could obtain. As such, these soft dollar benefits create no conflict-of-interest situation.

12.A.2 Brokerage for Client Referrals

The firm receives no referrals from a broker-dealer or third party in exchange for using that broker-dealer or third party.

12.A.3 Directed Brokerage

We maintain a formal custodial and brokerage relationship with one specific broker-dealer and in most instances require that clients utilize this specific broker-dealer (“direct brokerage”). Not all advisors require their clients to direct brokerage like this. By directing brokerage, we may be unable to achieve most favorable execution of client transactions, and this practice may cost clients more money. The firm has no economic relationship with the broker-dealer, so no conflict of interest exists.

12.B Aggregate Purchases or Sales

If the firm buys or sells the same securities on behalf of more than one client, the firm may, but would be under no obligation to aggregate or bundle the trade to the extent permitted by applicable law and regulations. If the firm can bundle a trade while maintaining its fiduciary responsibility to each client, then the firm will do so. Our client’s benefit with every instance the firm can bundle its trades because the fees and expenses, related to its trading activity, can be allocated across multiple accounts on a pro rata allocation based on capital investment of each participating client portfolio.

Item 13 – Review of Accounts

13.A Portfolio Reviews

Accounts are monitored by Michael Caffey, firm Principal. Annual reviews include, but are not limited to, updating the client’s goals, objectives, risk tolerances, tax implications and changes in life circumstances.

13.B Review Triggers

Reviews may also be triggered, at any time, by a clients’ request, changes in a clients’ goals, objectives, risk tolerance, market, or economic conditions.

13.C Written Statements

All client statements are provided directly from the Custodian at least quarterly. These statements may be provided in either paper or electronic format. These statements do provide clients with their account values, portfolio composition and a summary of all account activity during the specified statement period.

Item 14 – Economic Benefit and Other Compensation

14.A Economic Benefit

We do not receive economic benefits (such as sales awards or other prizes) from third parties for providing investment advice or other advisory services to clients.

14.B Compensation

We do not provide compensation for client referrals.

Item 15 – Custody

We do not maintain custody of client funds or securities, but the firm is deemed to have custody because we debit our investment management fee from our clients’ accounts per regulatory standards. Clients will receive statements at least quarterly from the custodian that holds and maintains client’s investment assets. The custodian statements will include, but not limited to, a detail listing of all activity and transactions for the period noted on the statement. Family Dynasty Advisors urges clients to carefully review such statements.

Item 16 – Investment Discretion

Family Dynasty Advisors provides discretionary services to clients. The Investment Advisory Agreement established with each client outlines the discretionary authority for trading. Where investment discretion has been granted, the firms’ advisors will manage the client’s account and make investment decisions without consultation with the client as to what securities to buy or sell, when the securities are to be bought or sold for the account, the total amount of the securities to be bought/sold, or the price per share.

Item 17 – Voting Client Securities

Family Dynasty Advisors does not vote proxies on behalf of advisory clients. Clients retain the responsibility for receiving and voting proxies (that are received directly from the account custodian or transfer agent) for all securities maintained in client portfolios. We may provide advice to clients regarding the clients’ voting of proxies.

Item 18 – Financial Information

18.A Balance Sheet

Family Dynasty Advisors LLC neither requires nor solicits prepayment of more than $500 in fees per client, six months or more in advance.

18.B Financial Conditions Reasonably

Neither Family Dynasty Advisors nor its management has any financial condition that is likely to impair the firm’s ability to meet contractual commitments to clients.

18.C Bankruptcy Petitions

Family Dynasty Advisors has not been the subject of a bankruptcy petition.

Item 19 – Requirements for State-Registered Advisers

19.A Principal Executive Officers

Refer to Form ADV Part 2B for background information about our principal executive officers, management personnel and those giving advice on behalf of our firm.

19.B Other Businesses

Refer to Form ADV Part 2B.

19.C How Performance-based Fees are Calculated

Family Dynasty Advisors does not accept performance-based fees.

19.D Material Disciplinary Disclosures

No person at Family Dynasty Advisors has been found liable in an arbitration claim or been found liable in a civil, self-regulatory organization, or administrative proceeding that is material to the client’s evaluation of the firm or its management.

19.E Material Relationships

None

Form ADV: Part 2B

Brochure Supplements - January 10, 2022
This Brochure Supplement provides information about Michael Caffey that supplements the Family Dynasty Advisors LLC Brochure. You should have received a copy of that Brochure. Please contact Michael Caffey if you did not receive that Brochure or if you have any questions about the contents of this supplement. Additional information about Family Dynasty Advisors LLC is also available on the SEC’s website at www.adviserinfo.sec.gov.

Item 2- Educational Background and Business Experience

Michael Caffey: Born 1971
Formal Education: MBA in Finance from Texas State University in 2002
BBS in Economics from Tarleton State University in 1997
BBA in Business from Tarleton State University in 1997
Industry Certification: Certified Private Wealth Advisor (CPWA) is administered by the Investment & Wealth Institute and is an advanced professional certification for advisors who serve high-net-worth clients. It’s designed for seasoned professionals who take a holistic and multidisciplinary approach to address the sophisticated needs of clients with a minimum net worth of $5 million. This certification requires 40 hours of continuing education to be completed every two years.
Employment History: Family Dynasty Advisors, LLC – Managing Member 2018-present
PlainsCapital Wealth Management – Wealth Strategist 2009-2018
First Financial Asset Management – Employee Benefits Administrator 2005-2009

Item 3- Disciplinary Information

No information is applicable to this Item.

Item 4- Other Business Activities

Mr. Caffey is the sole managing member of Atlas Property LLC. This company operates a residential rental property business. Mr. Caffey spends approximately 10 hours per month on activities associated with Atlas Property LLC. No time is devoted to this company’s operations during securities trading hours.

Item 5- Additional Compensation

Mr. Caffey does not receive economic benefits (such as sales awards or other prizes) from third parties for providing investment advice or other advisory services to clients.

Item 6 - Supervision

Michael Caffey, is the managing member and sole owner of Family Dynasty Advisors LLC which is a single advisor firm. Family Dynasty Advisors has policies and procedures in place to ensure regulatory policies and requirements are met. Mr. Caffey’s phone number is (806) 993-7023.

Item 7 – Requirements for State-Registered Advisers

Mr. Caffey has no information to disclose.