Prosperity Financial Group, Inc. is dedicated to providing clients with a wide array of investment
advisory services. We specialize in Asset Management, Financial Planning and Consulting, and
Referrals to Third Party Money Managers. Our firm is a corporation formed in the State of California.
We have been conducting business as an investment adviser since 2010, and are owned as follows:
Elliot Kallen – 100% owner
Asset Management:
We emphasize continuous and regular account supervision. As part of our asset management service,
we generally create a portfolio, consisting of individual stocks or bonds, exchange traded funds (“ETFs”),
options, mutual funds and other public and private securities or investments. The client’s individual
investment strategy is tailored to their specific needs and may include some or all the previously
mentioned securities. Each portfolio will be initially designed to meet a particular investment goal,
which we determine to be suitable to the client’s circumstances. Once the appropriate portfolio has been
determined, we review the portfolio at least quarterly and if necessary, rebalance the portfolio based
upon the client’s individual needs, stated goals, and objectives. Each client has the opportunity to place
reasonable restrictions on the types of investments to be held in the portfolio.
Financial Planning and Consulting:
We provide a variety of financial planning and consulting services to individuals, families, and other
clients regarding the management of their financial resources based upon an analysis of client’s
current situation, goals, and objectives. Generally, such financial planning services will involve
preparing a financial plan or rendering a financial consultation for clients based on the client’s
financial goals and objectives. This planning or consulting may encompass one or more of the
following areas: Investment Planning, Retirement Planning, Estate Planning, Charitable Planning,
Education Planning, Corporate and Personal Tax Planning, Cost Segregation Study, Corporate
Structure, Real Estate Analysis, Mortgage/Debt Analysis, Insurance Analysis, Lines of Credit
Evaluation, Business and Personal Financial Planning.
Our written financial plans or financial consultations rendered to clients usually include general
recommendations for a course of activity or specific actions to be taken by the clients. For example,
recommendations may be made that the clients begin or revise investment programs, create or revise
wills or trusts, obtain or revise insurance coverage, commence or alter retirement savings, or
establish education or charitable giving programs. It should also be noted that we refer clients to an
accountant, attorney, or other specialist, as necessary for non-advisory related services. For written
financial planning engagements, we provide our clients with a written summary of their financial
situation, observations, and recommendations. For financial consulting engagements, we usually do
not provide our clients with a written summary of our observations and recommendations as the
process is less formal than our planning service. Plans or consultations are typically completed
within six (6) months of the client signing a contract with us, assuming that all the information and
documents we request from the
client are provided to us promptly. Implementation of the
recommendations will be at the discretion of the client.
Clients should be aware that a conflict of interest may exist between our firm and the client, as some
recommendations may result in the compensation of our representatives. Clients are under no
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obligation to act upon our recommendation and if the client elects to act on any of the
recommendations, the client is under no obligation to affect the transaction through our firm.
Referrals to Third Party Money Managers:
We provide clients with a list of investment advisory services of third-party professional portfolio
management firms for the individual management of client accounts. As part of this process, we assist
clients in identifying an appropriate third-party money manager. Prior to referring clients to third party
money managers, we ensure that third party money managers are properly licensed, or notice filed with
the Department of Corporations. We provide initial due diligence on third party money managers and
ongoing reviews of their management of your account.
To assist clients in the selection of a third-party money manager, we typically gather information
from the client about their financial situation, investment objectives, and reasonable restrictions they
can impose on the management of the account, which are often very limited. It is important to note
that we do not offer advice on any specific securities or other investments in connection with this
service. Investment advice and trading of securities is only offered by or through the third-party
money managers to clients.
We periodically review third party money managers’ reports provided to the client, but no less often
than on an annual basis. Our associates contact the clients from time to time, as agreed to with the
client, in order to review their financial situation and objectives; communicate information to third
party money managers as warranted; and, assist the client in understanding and evaluating the
services provided by the third party money manager. The client will be expected to notify us of any
changes in his/her financial situation, investment objectives, or account restrictions that could affect
their account. The client may also directly contact the third-party money manager managing the
account or sponsoring the program.
Tailoring of Advisory Services
We offer individualized investment advice to clients utilizing our firm’s portfolio management
service offered through our Asset Management offering. We offer general investment advice to
clients utilizing the following services offered by our firm: Financial Planning, and Referrals to Third
Party Money Managers.
Each Asset Management client has the opportunity to place reasonable restrictions on the types of
investments to be held in the portfolio. Restrictions on certain securities or types of securities may
not be possible due to the level of difficulty this would entail in managing the account.
Participation in Wrap Fee Programs
We do not offer any wrap fee programs.
Regulatory Assets Under Management
We manage $261,720,996 on a discretionary basis and $0 on a non-discretionary basis as of
December 31, 2023.
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