March 23, 2021
Brokerage and advisory services and fees differ. It is important for retail investors to understand the differences. Free and simple tools are available to research firms and financial professionals at http://www.investor.gov/CRS, which also provides educational materials about broker dealers, investment advisers, and investing.
What investment services and advice can you provide me?
We offer investment advisory services, including: Financial Planning, Portfolio Management, Pension Consulting, and Advisor Selection. We also offer a wrap fee program. We provide asset allocation services and/or portfolio monitoring/review services. The frequency of the services provided will be agreed upon by our firm and you and will be detailed in the client agreement. We may advise you on any type of investment that we deem appropriate based on your stated goals and objectives. We may also provide advice on any type of investment held in your portfolio at the inception of our advisory relationship.
In cases where you granted us non-discretionary authority, we do not have the authority to determine, without obtaining your specific consent as our client, the securities to be bought or sold, the amount of the securities to be bought or sold, broker or dealer to be used, or commission rates paid. In these instances, you have the ultimate decision regarding the purchase or sales of investments.
We generally require $25,000 minimum to open an account with us, however, we may waive this minimum amount at our discretion. For more detailed information, please see Items 4 and 7 of the ADV Part 2A.
Questions to ask:
Given my financial situation, should I choose an investment advisory service? Why or Why not?
How will you choose investments to recommend to me?
What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
What fees will I pay?
Item 5 of the Form ADV has a detailed description of the fees and costs we charge you. Your fee for our investment advisory services is an ongoing asset-based fee. Fees are paid quarterly, in advance, based on the end of day account values provided by the custodian on the last day of the previous quarter. We also offer clients a wrap fee program. For participants in our wrap fee program, you pay a single fee and we pay the transaction charges for you. Wrap fees are slightly higher than a typical asset-based advisory fee but no more than 2%. Clients who do not participate in the wrap fee program may also need to pay their custodian or broker dealer transaction fees, commissions, account maintenance fees, etc. Please see Item 5 of the Form ADV for a list of additional expenses. The more assets in your advisory account, the more you will pay in fees, giving us an incentive to encourage you to increase the assets in your account.
For clients that use our third-party advisor selection service, we receive a portion of the advisory fees paid to selected third-party advisors. This creates a conflict as we may select advisors that will pay us a portion of the fees they receive rather than the best third-party advisors available.
Financial Planning Services are provided on either a fixed fee or hourly fee basis. Fixed fees range between $1,000 and $5,000. One-half of the estimated fee is payable at the inception of the advisory relationship with the balance due upon presentation of the written financial plan. Hourly fees range between $150 and $250, dependent on the Associated Person of our firm that is providing the advisory services.
Questions to ask:
1. Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
Our firm and personnel may invest for their own accounts or have a financial interest in the same securities or other investments that we recommend or acquire for your account, and may own or transact in open ended mutual funds that are the same as or different than the funds recommended to or made for your account, however, we have policies and procedures to mitigate this conflict.
We receive economic benefits through participation in a TD Ameritrade program typically not available to individual investors. These benefits include: receipt of duplicate client statements and confirmations; research related products and tools; consulting services; access to a trading desk serving our participants; access to block trading; the ability to have advisory fees deducted directly from client accounts; access to an electronic communications network for client order entry and account information; access to mutual funds with no transaction fees and to certain institutional money managers; and discounts on compliance, marketing, research, technology, and practice management products or services provided to us by third party vendors.
We offer services through affiliates and some employees work for the affiliates in addition to 4Wealth. These affiliates are 4Wealth CPA and 4Wealth Insurance Group. Clients are not required to purchase any recommended insurance through our affiliates.
Questions to ask:
1. How might your conflicts of interest affect me, and how will you address them?
How do your financial professionals make money?
Our financial professionals are paid through the advisory fees we collect. Personnel that work for our affiliate 4Wealth Insurance Group receive commissions directly from the carriers for any insurance policies they sell. 4Wealth and our personnel do not receive compensation for referring clients to our affiliates, including to 4Wealth Insurance.
Do your financial professionals have legal or disciplinary history?
Questions to ask:
1. As a financial professional, do you have any disciplinary history? For what type of conduct?
For additional information on our advisory services, see our Form ADV brochure on IAPD on Investor.gov or on (https://adviserinfo.sec.gov/) and any brochure supplement your financial professional provides. You can also request up-to-date information by calling us at (708) 695-5300 or by emailing us at firstname.lastname@example.org.
Questions to Ask:
1. Who is my primary contact person? Is he or she a representative of an investment adviser or a broker- dealer? Who can I talk to if I have concerns about how this person is treating me?
Addendum of Changes to the ADV Part 3
Date of change: March 23, 2021
Information update: As part of our annual amendment of our ADV disclosures, we reviewed the Part 3 and updated it to remove all references to the wrap fee program since we no longer have clients in the wrap fee program and are not offering it anymore.