Form ADV Part 2A, Item 1

DISCRETIONARY FINANCIAL PLANNING ADVISORY AGREEMENT

Cover Page

Form ADV Part 2A, Item 1

A.D. Financial Planning

344 Stonebridge Court

Gilmer, TX 75645

Phone: 903-309-0758

Web Site:

December 3, 2015

BY APPOINTMENT ONLY

FORM ADV PART 2A. BROCHURE

This brochure provides information about the qualifications and business practices of A.D. Financial Planning. If you have any questions about the contents of this brochure, please contact us at 903-309-0758. The information in this brochure has not been approved or verified by the Securities and Exchange Commission, Texas State Securities Board or by any securities authority.

Additional information about A.D. Financial Planning is also available on the SEC’s website at The searchable IARD/CRD number for A.D. Financial Planning is 171981.

Registration with any securities authority does not imply a certain level of skill or training.

Material Changes

Form ADV Part 2A, Item 2

This section discusses material changes since the last annual update of A.D. Financial Planning’s FORM ADV PART 2A. BROCHURE.

Date of previous brochure:

October 23rd, 2014

Material changes:

Hourly Fee changed from $100/hr to $205/hr

Table of Contents

Cover Page

Material Changes

Advisory Business

4.A. Firm Description

4.B. Services Offered

4.C. Financial Planning Process

4.D. Wrap Fee Programs

4.E. Management of Client Assets

Fees and Compensation

5.A. Compensation for Advisory Services

Investment Management

Hourly Planning

5.B. Payment

5.C. Other types of fees or expenses

5.D. Refunds

5.E. Compensation for the sale of securities or other investment products

Performance-Based Fees and Side-By-Side Management

Types of Clients

Methods of Analysis, Investment Strategies and Risk of Loss

8.A. Methods of analysis

8.B. Material Risks

8.C. Particular Types of Securities

Disciplinary Information

Other Financial Industry Activities and Affiliations

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

Brokerage Practices

Client Referrals and Other Compensation

Custody

Investment Discretion

Voting Client Securities

Financial Information

Page 1 of 30

DISCRETIONARY FINANCIAL PLANNING ADVISORY AGREEMENT

Part 2B of Form ADV: Brochure Supplement

Item 1. Cover Page

Item 2. Educational Background and Business Experience

Item 3. Disciplinary Information

Item 4. Other Business Activities

Item 5. Additional Compensation

Item 6. Supervision

Item 7. Requirements for State-Registered Advisers

Advisory Business

Form ADV Part 2A, Item 4

4.A. Firm Description

A.D. Financial Planning is owned by Sam Neale (CRD Number 5828613). A.D. Financial Planning is named for his wife, Ashley Dawn. A.D. Financial Planning was founded in 2009. A.D. Financial Planning stopped offering financial advice in 2012 when Sam was transferred to Texas from Oklahoma for his employment with AAON,a manufacturer of premium HVAC equipment.

A.D. Financial Planning resumed offering financial advice in 2014. Samuel Joseph Neale is the Owner and Chief Compliance Officer of A.D. Financial Planning. The firm is not publicly owned or traded. There are no indirect owners of the firm or intermediaries, which have any ownership interest in the firm.

4.B. Services Offered

A.D. Financial Planning offers an array of advisory services designed to address the major areas of personal wealth management including, but not limited to, financial goal setting, cash/budgeting management, investment review/planning, retirement planning and education planning. A.D. Financial Planning manages Client portfolios on a discretionary basis. Client is always free to accept or reject any advice or recommendations, in whole or in part.

4.C. Financial Planning Process

The A.D. Financial Planning process begins with an in-depth discussion about your personal goals and objectives. Our understanding of your unique situation assists us in creating a financial plan that addresses your personal desires, needs and values. Clients may impose restrictions on their accounts by providing the restrictions to A.D. Financial Planning in writing.

• Our First Meeting: During our initial, complimentary, meeting we discuss your specific situation and goals. We will also discuss if the financial planning process of A.D. Financial Planning fits your needs.
• Information Gathering and Goal Setting: The information gathering and goal setting stage involves review of the details of your current portfolio, assets, retirement dates, plans for children's education and more. We accomplish this via private and confidential questionnaires, counseling, and an examination of your documents and records.
• Information Analysis: We will carefully analyze your information, identify the strengths and potential areas for development in your present financial circumstances, and assess how these attributes may affect your ability to achieve your financial goals.
• Plan Development: We will design a set of recommended actions tailored to your financial goals.
• Plan Implementation: This is a critical stage. A.D. Financial Planning is your partner, guide and educator in reaching your financial goals but it takes both of us to have a successful plan. You must be diligent in implementing action items resulting from plan development for the plan to be successful.
• Plan Review: At your request, A.D. Financial planning will help you monitor your financial plan and provide updates to the plan on an ongoing, life-stage basis.

4.D. Wrap Fee Programs

The firm does not participate in any wrap fee programs.

4.E. Management of Client Assets

As of December 31, 2013, the firm managed, on a discretionary basis, $423,000 which represented 1accounts. Client assets are managed on an individualized basis.

Fees and Compensation

Form ADV Part 2A, Item 5

5.A. Compensation for Advisory Services

A.D. Financial Planning (ADFP)is a fee-only financial planning firm which means that we accept no commissions, referral fees, or other third-party incentives for anything we recommend to you. Our practice offers transparent and up-front prices for financial planning.

You pay only for the time we work with or for you. As fee-only planners we receive no monetary gain from the implementation of our recommendations; this allows us to independently and objectively advise you. Independent fee-only advisors are not tied to proprietary financial products.

Investment Management

For a personal and in-depth approach, ADFP offers investment advisory services. Under an investment advisory agreement, ADFP works with you on a continuing basis to help you reach your financial goals. ADFP calculates investment advisory fees based upon a percentage of the market value of the assets under management.

Investment Advisory Clients are billed quarterly at the amount determined by the value of the Client’s assets on the last day of the quarter. The fee for all services provided will be 0.50% of all assets under management on assets less than $500,000, 0.40% of all assets under management from $500,000 to $1 million, 0.30% of all assets under management from $1 million to $5 million, and 0.20% for assets over $5 million. The minimum annual fee for retaining a Client is $500 ($125/quarter). ADFP at its sole discretion, may charge a lesser management fee, or reduce the minimum fee, based upon certain criteria. ADFP does not have a minimum on investable assets.

Market Value of Portfolio / Annual Fee
First $500,000 / 0.50%
Next $500,000 / 0.40%
Next $4,000,000 / 0.30%
Above $5,000,000 / 0.20%

Advisory fees are billed quarterly, in arrears, based upon the market value of the portfolio at the end of the previous quarter as valued by the Custodian. Please note that fees paid do not include commissions, or transaction, account maintenance, and custody fees, if any, that may be paid to third parties (none of which are retained in whole or part by ADFP ). This fee schedule is subject to change and negotiation. In certain instances, depending upon the Client’s needs, assets under management and/or the services to be performed by ADFP, a contract may be entered into with a fee different from the fee schedule set forth above.

Hourly Planning

Hourly financial planning fees are based on our estimate of time required for the engagement at a rate of $205 per hour. At our first introductory meeting, we will provide a quote to you for an engagement. It becomes a not-to-exceed fee and you will not be charged any incremental hourly fees as long as we stay within the original scope of the engagement.

With this methodology, you only pay for the time it actually takes and there are no surprises at the end; you know in advance how much our services cost and exactly what you will receive.

Below are some examples of different types of advisory engagements and typical prices associated with them. An engagement can be as comprehensive as a full financial plan or as specific as a particular task, such as creating a budget or spending plan.

Creation of Budget or Spending Plan($100 – $400)

A budget is one of the most important aspects of financial planning. If you are not tracking your money, it just seems to disappear each month and there is never enough left to pay the bills, let alone save for financial freedom! Many people say they've found more money at the end of the month when they created a realistic budget and stuck with it.

ADFP will review your current income and expenses to provide advice to help your money go further each month by offering spending guidelines and advice for prioritizing cash flow.

Retirement Plan Options (401(k), 403(b), 457, Roth etc. or taxable accounts)($400 – $1200)

Provide advice on the appropriate investment options within your retirement planning based upon your retirement age, desired income during retirement and risk tolerance.

Full Financial Plan($1000 – $5000)

A full financial plan consists of a formal and detailed written analysis of your financial situation. We consider it the best way to protect against unforeseen financial consequences and maximize your financial opportunities.Clients often have an idea of what they want to do and some have started a plan, but most need some help in completing their plan and implementing action steps to financial freedom.

A full financial plan consists of cash flow/net worth analysis, a debt-free budget plan, a retirement savings plan, and an educational funding plan (if applicable). A not-to-exceed quote will be provided after the introductory meeting.

Continuous Comprehensive Financial Planning (price depends on need)

Periodic updates to the financial plan and on-call services are available for $205 per hour or as a percentage of assets managed. See schedule at top of page for more information for investment management.

5.B. Payment

Clients are billed for fees incurred. Clients choosing to engage ADFP for on-going planning services will pay a retainer fee. This fee is assessed for the continual supervision/management of the Client situation. This fee is billed quarterly in arrears and is assessed for agreed upon services between ADFP and Client including, but not limited to, ongoing financial planning and investment asset management. The minimum annual fee for retaining a Client is $500 ($125/quarter). Prior to signing the Financial Planning Advisory Agreement the fee schedule is subject to change and negotiation.As part of ADFP's ongoing retainer services, Clients receive monthly statements from Custodian detailing account values, deposit and withdrawal activity. During the first quarter of each year, the Custodian provides 1099's in order to aid in the tax preparation process.

Hourly engagement fees vary based on the amount of time predicted to be spent developing the plan or advisement. One-half of the quoted fee is payable at the commencement of the work. Prior to signing the Financial Planning Advisory Agreement the fee schedule is subject to change and negotiation. The fee for such services will be established in writing by Client and ADFP by executing a Financial Planning Advisory Agreement.

5.C. Other types of fees or expenses

Certain investments recommended for ownership in Client portfolios will have their own internal operating expenses, which are a cost to the Client that comes out of the investment's total return. Such an example would be the annual expense ratio of a mutual fund/exchange-traded fund product. ADFP receives no economic benefit from such expenses and seeks investment products that strive to keep such expenses low relative to similar investments.

The custodian of Client assets will, in most cases, charge fees and/or commissions for their services.

All investment management services and administration services will be provided on a fully disclosed basis. Prior to any engagement, Client will receive, in writing, a schedule of all charges to be assessed.

5.D. Refunds

By giving ADFP written notice of the termination with five business days of execution of Financial Planning Advisory Agreement, any fees that the Client has prepaid will be refunded to the Client in full. After the initial five business day period, fees earned from the first day through the receipt of written notice of termination will be due and payable at ADFP’s regular hourly rate. ADFP will not assign the agreement to any other party without the written consent of the Client.

5.E. Compensation for the sale of securities or other investment products

ADFP accepts no compensation for the sale of securities or other investment products.

Performance-Based Fees and Side-By-Side Management

Form ADV Part 2A, Item 6

None.

Types of Clients

Form ADV Part 2A, Item 7

Individuals. High Net Worth Individuals. ADFP imposes no minimum account size, however, does require a minimum retainer fee per quarter for Investment Advisory Clients.

Methods of Analysis, Investment Strategies and Risk of Loss

Form ADV Part 2A, Item 8

8.A.Methods of analysis

The firm uses fundamental and technical analysis. Investing in securities involves risk of loss that Clients should be prepared to bear.

8.B.Material Risks

There are no guarantees that either, or any, investment strategy will be successful or that Clients will reach their goals.

•Fundamental analysis is a method of evaluating securities by attempting to measure the intrinsic value of a stock. Fundamental analysts study many factoring, including but not limited to, the overall economy and industry conditions to the financial condition and management of companies. Fundamental analysis involves estimating intrinsic value and making asset allocation decisions that attempt to capture any temporary differences between market and intrinsic value.

•Technical analysis is the evaluation of securities by means of studying statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value but instead use stock charts to identify patterns and trends that may suggest what a stock will do in the future.

The primary risk of fundamental analysis is that ADFP’s estimates of intrinsic value might be incorrect. The primary risk of technical analysis is that ADFP’s estimates of patterns and trends might be incorrect. To minimize these risks, ADFP does the following:

• Determines Client risk preferences
• Constructs portfolios that include assets with varying degrees of risk and in different market sectors
• Invests in funds with below average operating expenses
• Diversifies globally
• Rebalances periodically
• Minimizes taxes and transaction costs by limiting trading.

8.C.Particular Types of Securities

None.

Disciplinary Information

Form ADV Part 2A, Item 9

None.

Other Financial Industry Activities and Affiliations

Form ADV Part 2A, Item 10

None.

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

Form ADV Part 2A, Item 11

ADFP has a code of ethics available on its website and willprovide a copy of its code of ethics to any client or prospective client upon request.

As a sole proprietorship, ADFP holds the same funds as its owner, Sam Neale. After review of an investment the owner may determine that an investment is suited for both a Client and Samuel Joseph Neale dba A.D. Financial Planning (ADFP). ADFP receives no compensation or other services for any funds recommended.

ADFP recognizes the personal investment transactions of its owner, Sam Neale, demands the application of a high Code of Ethics and require that all such transactions be carried out in a way that does not endanger the interest of any client. At the same time, ADFP believes that if investment goals are similar for clients and ADFP, it is logical and desirable that there be common ownership of some securities. An investment adviser is considered a fiduciary. As a fiduciary, it is an investment adviser’s responsibility to provide fair and full disclosure of all material facts and to act solely in the best interest of each of ADFP’s clients at all times. ADFP has a fiduciary duty to all clients. ADFP’s fiduciary duty is considered the core underlying principle for our Code of Ethics. ADFP must conduct business in an honest, ethical, and fair manner and avoid all circumstances that might negatively affect or appear to affect our duty of complete loyalty to all clients. This disclosure is provided to give all clients a summary of ADFP’s Code of Ethics. However, if a client or a potential client wishes to review our Code of Ethics in its entirety, a copy will be provided promptly upon request.

Brokerage Practices

Form ADV Part 2A, Item 12

Fidelity, Schwab, T. Rowe Price and Vanguard and other companies offer low cost, no-load, commission-free asset-class index and ETF funds. ADFP recommends Fidelity because its third-party trading authorizationworks well for ADFP’s business model and Fidelity offers low cost, no-load, commission-free asset-class index and ETF funds and a user friendly interface for its customers. Fee and expenses are considered when recommending funds to a Client to be sure that any fees charges by Fidelity are in line with other brokers. ADFP receives no commissions, or transaction, account maintenance or custody fees by recommending Fidelity. The suggestion to use Fidelity is only a suggestion; the Client is under no obligation to follow, either wholly or partially, any recommendation or suggestion provided by ADFP.

The Fidelity Trading Authority grants trading authority to ADFP as an advisor but not an account owner. It also allows both the Client and ADFP to receive statements from the account. It does not permit ADFP to aggregate orders for any accounts managed. If ADFP could aggregate orders among accounts some transaction costs could be reduced for the accounts.