Joel Adams and Associates Inc

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more written advisory agreements with the Advisor.
                                                Adams and Associates Inc.
                                          545 Merrimon Avenue, Asheville, NC 28804
                                 Phone: (828) 251-9700 | https://www.joeladamsasheville.com

A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
wealth management agreement. Wealth management fees are based on the market value of assets under
management at the end of the prior calendar quarter. Fees range from 0.75% to 1.25% annually based on several
factors, including: the scope and complexity of the services to be provided; the level of assets to be managed; and
the overall relationship with the Advisor. Relationships with multiple objectives, specific reporting requirements,
portfolio restrictions, inclusion of financial planning, and/or other complexities may be charged a higher fee.

The wealth management fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. In certain circumstances, the
Advisor may charge a fixed annual fee for its services. The Client’s fees will take into consideration the aggregate
assets under management with the Advisor across all accounts, unless otherwise agreed in writing. All securities
held in accounts managed by Adams and Associates will be independently valued by the Custodian. The Advisor
will conduct periodic reviews of the Custodian’s valuation to ensure accurate billing.

Clients may make additions to and withdrawals from their account[s] at any time, subject to Adams and Associates’
right to terminate an account. Additions may be in cash or securities provided that Adams and Associates reserves
the right to liquidate any transferred securities or decline to accept particular securities into a Client’s account[s].
Clients may withdraw account assets on notice to Adams and Associates, subject to the usual and customary
securities settlement procedures. However, Adams and Associates designs its portfolios as long-term investments,
and the withdrawal of assets may impair the achievement of a Client’s investment objectives. Adams and
Associates may consult with its Clients about the options and ramifications of transferring securities. However,
Clients are advised that when transferred securities are liquidated, they may be subject to transaction fees, fees
assessed at the mutual fund level (i.e. contingent deferred sales charge) and/or tax ramifications.

Use of Independent Managers
As noted in Item 4, the Advisor may implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its wealth management fee as described above. If the Client is
required to authorize and enter into a wealth management agreement with an Independent Manage then the
terms of such fee arrangements are included in the Independent Manager’s disclosure brochure and applicable
contract[s] with the Independent Manager.

Financial Planning Services
Financial planning services may be included as part of an overall wealth management engagement and fee or
contracted separately. Adams and Associates offers financial planning services either on an hourly basis or a fixed
engagement fee. Hourly fees range from $200 to $500 per hour. Fixed fee engagements are negotiated based on
the expected number of hours to complete the engagement as the Advisor’s hourly rate. Fees may be negotiable
based on the nature and complexity of the services to be provided and the overall relationship with the Advisor. An
estimate for total hours and/or total costs will be provided to the Client prior to engaging for these services.

Retirement Plan Advisory Services
Adams and Associates provides advisory services for retirement plans including 401(k) Plans all of which are
charged an annual asset-based fee ranging from 0.50% to 1.00% based on the size of the Plan and scope of
services to be provided. The Advisor may also offer its services on a fixed quarterly fee. Fees are typically billed in
advance of each calendar quarter, pursuant to the terms of the retirement plan advisory agreement. Retirement
plan fees are based on the market value of assets under management in the Plan at the end of the prior calendar
quarter. Fees may be negotiable depending on the size and complexity of the Plan.

B. Fee Billing
Wealth Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted

                                                Adams and Associates Inc.
                                          545 Merrimon Avenue, Asheville, NC 28804
                                 Phone: (828) 251-9700 | https://www.joeladamsasheville.com

from the Client’s account[s] in advance of each calendar quarter. The amount due is calculated by applying the
quarterly rate (annual rate divided by 4) to the market value of assets under management as of the end of the prior
calendar quarter. Clients will be provided with a statement, generally monthly, from the Custodian reflecting the
deduction of the wealth management fee. Clients provide written authorization permitting advisory fees to be
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Item 7 – Types of Clients

Adams and Associates offers advisory services to individuals, high net worth individuals, families, trusts, estates,
small businesses, charitable organizations, and retirement plans. Adams and Associates generally requires a
minimum relationship size of $500,000, which may be reduced at is sole discretion.