Business Focus
Saltmarsh Financial Advisors, LLC, hereinafter referred to as “the Company”, is a “fee-only” registered
investment advisor1, established in 1995, that is engaged in the business of providing investment
management and counsel through the development of personalized investment strategies. Such
strategies are directed to individuals and their families, fiduciaries, pension plans, corporations and
small businesses that desire objective investment advice tailored to suit their individual goals and
objectives.
Mission Statement
The Company’s mission is to assist clients in reaching their financial goals by following an investment
strategy that begins with a review of the client’s goals, assets, time horizons and risk tolerance then
developing an investment policy specifically for the client. This policy is designed to provide the
client the best return with the least possible risk.
In accomplishing this objective, the Company will: (i) author comprehensive financial plans; (ii) develop
tailored investment solutions; (iii) implement the designed investment approach; and, (iv) monitor and
report the investment performance of such management strategies and/or Portfolio Managers.
Preparation & Development of Investment Parameters
The Company will meet with new clients in pre-advisory consultations to gain better insight into their
individual needs and objectives. Through these consultations, the Company will begin its evaluation
of the client’s investment personality by discussing issues, such as, the client’s risk tolerances, liquidity
needs, return expectations, economic outlook, prior investment experience, goals and objectives,
and preferred approach for meeting such goals and objectives.
These pre-advisory consultations, along with profile questionnaires2 that the Company will have the
client complete, help define for the Company the client’s investment parameters. Once defined, the
investment parameters lead to the development of a tailored investment strategy. However, if the
client has difficulty defining their investment parameters or does not truly have a grasp of his or her
overall personal finances, a comprehensive financial plan3 may be suggested to the client before
proceeding with any investment management services.
1 The term “Registered Investment Advisor” is not intended to imply that Saltmarsh Financial Advisors, LLC has attained
a certain level of skill or training. It is used strictly to reference the fact the Company is “Registered” as an “Investment
Advisor” with the Securities and Exchange Commission - and with such other regulatory agencies that may have regulatory
jurisdiction over their business practices. In 2017, the firm’s assets under management required that it re-register with the
Securities and Exchange Commission.
2 The profile questionnaires used by the Company are important tools in gathering information about the client’s invest-
ment methodology, risk tolerance, income/tax bracket, liquidity, time horizons, etc. If the client elects not to answer the
questionnaires or chooses to respond with limited input, the Company will operate in a handicapped capacity. Therefore,
if the client desires the most effective and accurate recommendations reguarding their managed accounts, they will make
every effort to provide the Company with detailed personal needs and objectives, along with detailed financial and tax
information.
3 Some aspects of the comprehensive financial plan may be performed by Saltmarsh, Cleaveland & Gund, P.A., a CPA firm,
which is a sister company to Saltmarsh Financial Advisors, LLC. Clients are advised to thoroughly review the “Conflicts of
Interest” section of this Brochure Document before pursuing any investment related activities.
Suitable investment management can be difficult to achieve if the client cannot project a clear
picture of their investment parameters; and with today’s global markets this can be very critical.
The pre-advisory consultations, profile questionnaires and, if necessary, a financial plan, help the
company eliminate much of the guesswork in achieving financial security and independence the
client desires by simplifying these financial alternatives. For the client, such quality time invested by
the Company on the front-end solves problems, eliminates future concerns and cultivates peace of
mind. In addition, front-end investment planning helps:
• Define and narrow the client’s objectives and investment options;
• Stimulate creative thinking;
• Identify areas of greatest concern;
• Create a unique picture of the client’s overall financial personality; and,
• Provide an effective and efficient way for the Company to address each client’s
unique financial needs and objectives.
Whether or not a client elects to initiate a comprehensive financial plan, the Company will
prepare an Investment Policy Statement. This Investment Policy Statement will serve the
Company in managing a client’s account(s). In addition the Investment Policy Statement will
be used as a guideline and as a standard against which to measure future results and to make
modifications where necessary.
Investment Services
The Company provides investment management services on a discretionary and nondiscretionary
basis for respective clients by structuring tailored investment solutions designed to achieve positive
long-term investment results. As of December 31, 2023, the company managed approximately
$278,965,000 in client assets on a discretionary basis and $0 on a non-discretionary basis.
Based on the Investment Policy Statement developed from the pre-advisory consultations, profile
questionnaires and financial plans, a tailored investment strategy will be presented. Investment services
are offered to clients under separate management arrangements depending on their investment needs
and qualifications. The Company’s investment services are described along with their fee schedule,
management requirements, and refund and
termination provisions as follows:
Managed Accounts
The Company’s general approach to investing is known as “asset allocation.” This disciplined
approach focuses primarily on wealth accumulation and capital preservation with longterm
investment strategies generally requiring a minimum of a five (5) to ten (10) year time
horizon. In addition, the asset allocation model used by the Company is based on five (5)
premises, derived from “Modern Portfolio Theory,” which advocates that investment risk can
be measured and therefore, managed by proper diversification.
1. Clients are inherently risk-averse.
2. The markets are basically efficient.
3. The focus of attention is shifted away from individual securities analysis to consideration of
portfolios as a whole, based on explicit risk-reward parameters.
4. For any level of risk that the client is willing to accept, there is a rate of return that should be
expected.
5. Portfolio diversification is not so much a function of how many issues are involved, but also a
function of the relationships and proportions of each asset to its correlating asset class.
Therefore, the Company’s asset allocation models are disciplined and risk-averse. Investment
positions in client portfolios are diversified into several different asset classes and into different
investment styles within these asset classes. Proper diversification in the asset allocation
models reduces volatility in a portfolio because some asset classes react differently than others
to the same circumstances and events. Each client’s asset allocation is unique and is based on
their individual needs, goals and objectives.
A typical portfolio generally will utilize passively managed mutual funds and other actively
managed mutual funds to fulfill the asset mix designed for the client. The Company may
also use the following investment vehicles to achieve this objective: stocks, bonds, mutual
funds, exchange traded products and closed-ended
funds. In addition, clients may impose reasonable
restrictions on the investments used in their accounts.
Termination Provisions for Managed Accounts
Client has five (5) full business days after entering into an advisor agreement, whether oral or in
writing, in which to cancel and obtain a full refund of advisory fees.
Either party at anytime upon receipt of 30 days written notice may terminate services. This allows
the Company sufficient time to finalize transactions and enable the delivery of final statements and
release of documents. Upon termination, the Company and/or Portfolio Manager(s) shall be paid
their fee through the date of termination and any balance of the management fee not used shall be
refunded on a pro-rata basis.
Financial Planning
Should the initial one-on-one consultation reveal the need for financial planning, the Company can
provide such services for respective clients depending on their needs and/or desires.
Financial planning is an evaluation of the investing and financial options available to a client based
upon their defined economic criteria. Planning includes: (i) attempting to make optimal decisions;
(ii) projecting the consequences of these decisions for the client in the form of a financial plan - a
working blueprint; (iii) implementing the protocol to achieve the objectives of the plan; and then, (iv)
comparing future performance against the working blueprint.
A financial plan can be all-inclusive - reviewing every aspect of a client’s financial holdings - or
targeted - review, analytics and evaluation of a core area of financial need. In general,
financial planning encompasses one or more of the following areas of concern:
• Personal: Family records, budgeting, personal liability, estate information and financial goals.
• Education: Education IRAs, financial aid, state savings plans, grants and general assistance
in preparing to meet dependents continuing educational needs through development of an
education plan.
• Taxes & Cash Flow: Income tax and spending analysis for current and future years.
• Death & Disability: Cash needs at death, income need of surviving dependents, estate
planning and income analysis.
• Estate: Living trusts, wills, review estate tax, powers of attorney, asset protection plans,
nursing homes, Medicaid, and elder law.
• Retirement: Analysis of current strategies and investment plans to help clients achieve their
retirement goals.
• Investments: Analysis of investment alternatives and their effect on client’s portfolio(s).
• Insurance: Review of existing policies to ensure proper coverage for life, health, disability,
and long-term care, liability, home and automobile.
Preparing the Financial Plan
The Company prepares the financial plan in four phases. These phases are defined as follows:
Phase I - Detail Evaluation
Through the detail evaluation process, the Company learns about the client and what the client
wants to achieve. This is accomplished through personal interviews and questionnaires, which
are designed to address all of the financial planning disciplines discussed above. The Company
approaches the process assuming that the engagement will be comprehensive, in order to ensure
that the client is aware of all aspects of the financial planning process. The client has the opportunity
to prioritize their objectives and to remove from the process any areas that are not applicable to
their circumstances. After completion of the interviews and questionnaires, the Company prepares
an agenda and conducts a meeting with the client to begin formally documenting their goals and
objectives. After this meeting, the Company drafts a report documenting the financial planning
process disciplines, which the client wishes to address, and detailing the specific objectives under
each discipline. Redrafting and meeting can be repeated until the client is completely satisfied
with the report. This report is the basis for the three subsequent phases, helping to ensure the
appropriateness and relevance of the remainder of the planning process.
Phase II - Integrated Solutions
Once the client’s objectives have been documented, the Company works with the client to gather the
relevant financial information needed to proceed with the planning process. Information requested
could include insurance policies, spending history, investment statements, pay stubs, details on
other assets, details on other liabilities, etc. Depending upon the engagement, different levels of
financial reporting will be undertaken. At a minimum, a statement of financial position, designed
for financial planning use only, will be prepared. The statement of financial position and a written
summary of the relevant aspects of any other financial information, e.g., a summary of homeowner’s
insurance coverage, is the end result of this phase. Now that the first two phases are complete, the
Company, knowing what the client wants to accomplish and what the client’s financial realities are,
is in a position to prepare an actual financial plan.
Phase III - Personal Action Plan
The Company defines the financial plan itself as a road map designed to take the client from where
they currently are financially, to where they want to be financially. This is the creative portion of the
process. There are usually many different ways to accomplish a given goal.The objective, however,
is to formulate a plan that the client will be comfortable executing. In some cases, the drafting
of the plan reveals the need for the Company to help the client reconcile the gap between their
expectations and their financial realities. Once a viable plan has been drafted, it is presented to and
reviewed with the client. The draft and review process is repeated until the client is satisfied with
the financial plan.
Phase IV - Targeted Reviews
A financial plan is of limited value if it is not put into action. Accordingly, the Company places a
premium on implementation and monitoring of the plan. The implementation schedule provides the
client with a list of tasks and deadlines designed to ensure that the plan is put into action. The following
are some examples of implementation: (i) drafting of appropriate estate documents (performed by
an estate attorney); (ii) purchase of various insurance policies; (iii) investment advisory services,
including preparation of an Investment Policy Statement and asset allocation strategy (performed
by the Company, or another investment advisor/brokerdealer of the client’s choice); (iv) adoption
and monitoring of a personal budget; and, (v) ongoing income tax planning. The Company strongly
suggests that the overall financial plan be reviewed on not less than an annual basis. Investment
advisory services are performed in accordance with the disclosures contained under “Investment
Services” above.
NOTE: All information provided by and to the client will be kept entirely confidential. Such
information will be disclosed to third parties only with mutual written consent or as may be
permitted by law.
Termination Provisions for Financial Planning
Clients have five (5) full business days to terminate the Agreement. Should a client wish to terminate
the Agreement after such time period and before presentation of the financial plan, the Company
will be compensated through the date of termination for time spent in design of the financial plan
at the hourly rate agreed to by both parties in the Agreement. After the financial plan has been
completed and presented to the client, termination of the Agreement is no longer an option. Hourly
Consultations can be terminated at any time. The Company will bill the client for any services
rendered from the date of the last bill up to the date of termination at the agreed upon hourly rate.