Strategic Income Group LLC is dedicated to providing individuals and other types of clients with a
wide array of investment advisory services. Our firm is a limited liability company formed in the State
of Arizona. We have been in business as an investment adviser since March 2013 the firm is owned
wholly by the Gauthier Family Trust.
Description of Advisory Services
We specialize in the following types of services: Portfolio Management, Comprehensive Financial
Planning, Estate Planning Referrals, Newsletters, and Educational Seminars.
Strategic Wealth Management (“Portfolio Management”)
As part of our Portfolio Management service, a portfolio is created, consisting of individual stocks,
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 of the previously mentioned securities. Portfolios will be designed to meet a
particular investment goal, determined to be suitable to the client’s circumstances. Once the
appropriate portfolio has been determined, portfolios are continuously and regularly monitored, and
if necessary, rebalanced based upon the client’s individual needs, stated goals and objectives.
Clients engaged in Strategic Wealth Management are required to engage our firm for Financial
Planning services (details below).
Financial Planning:
We provide a variety of financial planning services on a one-time or ongoing basis to individuals,
families and other clients regarding the management of their financial resources based upon an
analysis of the client’s current situation, goals, and objectives. Generally, such financial planning
services will involve preparing a financial plan for clients based on the client’s financial goals and
objectives. Our written financial plans 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. For written financial planning engagements, we provide our clients with
a written summary of their financial situation, observations, and recommendations. Plans are
typically completed within three (3) 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.
SIG Financial Planning Program
Our firm offers an ongoing three (3) phase financial planning program through our proprietary
planning system. Our investment adviser representatives take a proactive and personalized
approach to creating a consistent, cohesive strategy to address our client’s goals. Our financial
planning program is separated into three separately identified phases:
(i) Foundational Phase
We will help you articulate and clearly define what you want to accomplish with your wealth.
Services may include:
• Building Your Financial Foundation comprehensive plan
To include the Budget Review, Comprehensive Life/Disability Review, Comprehensive
Property/Casualty Review, Emergency Fund analysis, Debt pay down analysis, Wealth
Vision personal financial planning tool and Personalized Next Step Recommendations.
• Wealth Vision online financial planning tool
To include access to your personal wealth management webpage (investment monitoring,
net worth monitoring, budgeting tools, financial planning).
• Comprehensive life/disability insurance review
To include Financial Impact of Premature Death, cost analysis, Needs vs. Resources analysis,
Impact on resources, minimum Life Insurance needs, minimum Disability Insurance needed
& Insurance vs. Investing Comparison.
• Comprehensive property/casualty insurance review
To include auto insurance analysis, homeowner insurance analysis, umbrella insurance
analysis, appropriate coverage analysis, cost analysis and liability analysis.
• Budget review
(ii) Accumulation Phase
We will organize and audit your current plan and outline critical issues.
Services may include:
• Accumulating Wealth comprehensive plan
To include all of the Building Your Financial Foundation Comprehensive Plan, Retirement
Needs Analysis, Education Analysis, Quarterly Investment Reviews, additional stress testing
of your personalized financial plan and Personalized Next Step Recommendations.
• Retirement needs analysis
To include Retirement Planning Options, Income vs. Expenses, Asset Spend-Down, Earliest
Retirement, Maximum Retirement Spending, Minimum Additional Savings for Retirement,
Maximum Pre-Retirement Expenses.
• Education needs analysis
To include Education Goal Planning, Funding and Spending details, Funding
Shortfall/Surplus, Basics of Education Planning, Cost of Waiting (monthly), Cost of Waiting
(lump sum), Education Savings options (proper account choice).
• Investment review
To include Investment Asset Allocation, Investment Performance review, Monte Carlo
analysis of allocation, Monte Carlo analysis of risk, Portfolio Reinvestment summary,
Investment Recommendations.
(iii) Strategic Income Phase
We will design a comprehensive, integrated plan and make recommendations to
satisfactorily achieve the goals detailed during the Foundational Phase.
Services may include:
• Strategic Income comprehensive plan
To include all of the Building Your Financial Foundation Comprehensive Plan, Accumulating
Wealth Comprehensive Plan, Long-Term Care Analysis, Estate Plan Review and additional
stress testing of your personalized financial plan and Personalized Next Step
Recommendations.
• Long-term care analysis
To include Needs vs. Resources, Understanding options and types of Long-Term Care
solutions, Impact on Resources, Insurance vs. Investing Comparison, Minimum Long-Term
Care Insurance needed.
• Estate plan review
To include Estate Flow Chart, Liquidity of Insurance & Portfolio Assets, Estate Tax analysis,
Estate Distribution, Gift Tax analysis, Estate Valuations & Transfers, review/discussion on
(Charitable Trusts, Life Insurance Trusts, Grantor Trusts, Qualified Trusts, Family Limited
Partnerships, etc.).
Clients should be aware that a conflict of interest exists between our firm and the client, as some
recommendations may result in the compensation of our representatives. Clients are under no
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 effect the transaction through our firm. In
order to mitigate this conflict of interest, we will fulfill our fiduciary duty by acting in the client’s best
interest.
Estate Planning:
We offer Estate Planning services in conjunction with Encore Estate Plans for our clients to assist
with general information as it applies to reviews of existing plans, gathering information needed to
provide outside firms in the creation of documents, and updating existing plans for clients. The fees
associated with estate planning related services are separate and in addition to your ongoing
financial planning or advisory fees and are disclosed in Item 5.
Strategic Income Fund, LP:
The investment objective of Strategic Income Fund, LP (“SIF”) is to combine an emphasis on creating
a high level of income with capital preservation through varying market conditions, including both
rising and declining rate environments. The General Partner leverages its managerial experience and
strategic partnerships and seeks to invest in short-term, high-quality private loans secured in first
position real estate under the applicable trust deeds. To achieve its objective, SIF seeks diversification
of its assets through investments in loans of varying sizes, asset types, geographic locations and
maturities. SIF will make its investments in loans by purchasing the loans from various private
lending companies. There can be no assurance that SIF will achieve this objective or that substantial
losses will not be incurred.
SIF’s Private Placement Memorandum contains additional information about SIF, including a
discussion of certain significant risks of investing in SIF. Prospective investors should read the SIF
Private Placement Memorandum and Subscription Agreement carefully before investing.
SIG Opportunities Fund, L.P.
The investment objective of SIG Opportunities Fund, LP (“SIGOpps”) is to combine an emphasis on
capital appreciation and total return through varying market conditions, including both rising and
declining interest rate environments. Strategic Income Group LLC intends to leverage its managerial
experience and strategic partnerships and seeks to invest in both public and private securities. To
achieve its objective, SIGOpps seeks diversification of its assets through private real estate, private
equity, publicly traded securities, venture capital investments, and other varying types of investment
opportunities (each a “Portfolio Investment”). SIGOpps may make investments directly or by
investing in other private investment funds (each, an “Underlying Fund” and collectively, the
“Underlying Funds”) managed by independent advisers (each, an “Underlying Manager”). Unless
otherwise indicated, “Underlying Funds” may include pooled investment vehicles managed by the
General Partner or its Affiliates (collectively, the “Affiliated Funds”) and an “Underlying Manager”
may reference the General Partner or its Affiliates, as applicable. Unless otherwise indicated,
references to “Portfolio Investments” shall include any investments in Underlying Funds.
It is anticipated that SIGOpps will co-invest with third-party investors involved in the real-estate
projects and may do so directly or indirectly through one or more companies, corporations,
partnerships, limited liability companies, or other entities sponsored or managed by outside
developers and operators (each such outside developer and operator, an “Outside
Developer/Operator”), through which SIGOpps indirectly makes any such Portfolio Investment (each
such entity, a “Special Purpose Vehicle”). There can be no assurance that SIGOpps will achieve its
objective or that substantial losses will not be incurred.
SIGOpps’s Private Placement Memorandum contains additional information about SIGOpps,
including a discussion of certain significant risks of investing in SIGOpps. Prospective investors
should read the SIGOpps Private Placement Memorandum, the Partnership Agreement and the
Subscription Documents carefully before investing.
Retirement Plan Consulting:
Our firm provides retirement plan consulting services to employer plan sponsors on an ongoing
basis. Generally, such consulting services consist of assisting employer plan sponsors in establishing,
monitoring and reviewing their company's participant-directed retirement plan. As the needs of the
plan sponsor dictate, areas of advising could include: investment options, plan structure and
participant education. Retirement Plan Consulting services typically include:
• Establishing an Investment Policy Statement – Our firm will assist in the development of a
statement that summarizes the investment goals and objectives along with the broad
strategies to be employed to meet the objectives.
• Investment Options – Our firm will work with the Plan Sponsor to evaluate existing
investment options and make recommendations for appropriate changes.
• Asset Allocation and Portfolio Construction – Our firm will develop strategic asset allocation
models to aid Participants in developing strategies to meet their investment objectives, time
horizon, financial situation and tolerance for risk.
• Investment Monitoring – Our firm will monitor the performance of the investments and
notify the client in the event of over/underperformance and in times of market volatility.
In providing services for retirement plan consulting, our firm does not provide any advisory services
with respect to the following types of assets: employer securities, real estate (excluding real estate
funds and publicly traded REITS), participant loans, non-publicly traded securities or assets, other
illiquid investments, or brokerage window programs (collectively, “Excluded Assets”). All retirement
plan consulting services shall be in compliance with the applicable state laws regulating retirement
consulting services. This applies to client accounts that are retirement or other employee benefit
plans (“Plan”) governed by the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). If the client accounts are part of a Plan, and our firm accepts appointment to provide
services to such accounts, our firm acknowledges its fiduciary standard within the meaning of Section
3(21) or 3(38) of ERISA as designated by the Retirement Plan Consulting Agreement with respect to
the provision of services described therein.
Third Party Money Managers:
Our firm utilizes the services of a third party money manager for the management of client accounts.
Investment advice and trading of securities will only be offered by or through the chosen third party
money manager. Our firm will not offer advice on any specific securities or other investments in
connection with this service. Prior to referring clients, our firm will provide initial due diligence on third
party money managers and ongoing reviews of their management of client accounts. In order to assist
in the selection of a third party money manager, our firm will gather client information pertaining to
financial situation, investment objectives, and reasonable restrictions to be imposed upon the
management of the account.
Our firm will periodically review third party money manager reports provided to the client at least
annually. Our firm will contact clients from time to time 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.
Clients will be expected to notify our firm of any changes in their financial situation, investment
objectives, or account restrictions that could affect their financial standing.
Newsletters:
We produce a newsletter providing general information on various topics including, but not limited
to, estate and retirement planning, market trends, etc. No specific investment recommendations are
provided in this newsletter and the information provided does not purport to meet the objectives or
needs of any individual. We provide regular newsletters to our advisory clients free of charge.
Educational Seminars:
We conduct generic educational seminars intended to educate the public regarding investment
related topics. The information contained in the seminar materials do not contain specific investment
advice and is not intended to address the needs of specific individuals or contains. Seminars will be
conducted by representatives of our firm. We do not earn any fees or revenues from the seminars.
Tailoring of Advisory Services
We offer individualized investment advice to clients utilizing our Portfolio Management service.
Additionally, we offer general investment advice to clients utilizing our Financial Planning, education,
and newsletters services.
Each client has the opportunity to place reasonable restrictions on the types of investments to be held
in the portfolio. Restrictions on investments in 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 no longer offer a wrap fee program.
Assets under Management
We manage $$303,099,959 on a discretionary basis and $13,100,718 on a non-discretionary basis as
of December 31st, 2023.