Introduction
Cornerstone Wealth Group, LLC (“Cornerstone Wealth,” the “Firm,” “we,” “us” or “our”) is an SEC Registered
Investment Adviser that is dedicated to providing individuals and other types of clients with a wide array
of investment advisory services.
The oral and written communications we provide to you, including this Brochure, is information that you
may use in your decision to hire us or continue a professional relationship with us. This Brochure provides
information about our qualifications and business practices.
Ownership
FOCUS FINANCIAL PARTNERS
Cornerstone Wealth is part of the Focus Financial Partners, LLC (“Focus LLC”) partnership. Specifically,
Cornerstone Wealth is a wholly-owned indirect subsidiary of Focus LLC. Ferdinand FFP Acquisition, LLC
is the sole managing partner of Focus LLC. Ultimate governance of Focus LLC is conducted through the
board of directors at Ferdinand FFP Ultimate Holdings, LP. Focus LLC is majority owned, indirectly and
collectively, by investment vehicles affiliated with Clayton, Dubilier & Rice, LLC (“CD&R”). Investment
vehicles affiliated with Stone Point Capital LLC (“Stone Point”) are indirect owners of Focus LLC. Because
Cornerstone Wealth is an indirect, wholly-owned subsidiary of Focus LLC, CD&R and Stone Point
investment vehicles are indirect owners of Cornerstone Wealth.
Focus LLC also owns other registered investment advisers, broker-dealers, pension consultants, insurance
firms, business managers and other firms (the “Focus Partners”), most of which provide wealth
management, benefit consulting and investment consulting services to individuals, families, employers, and
institutions. Some Focus Partners also manage or advise limited partnerships, private funds, or investment
companies as disclosed on their respective Form ADVs.
CWG MANAGEMENT GROUP, LLC
Cornerstone Wealth is managed by Craig Rubrecht, Jeffrey Carbone, Clifford Hodge, Jonathan Brown,
Andrew Smith, Joe Sweeney, and Terri Fiessinger (“Cornerstone Wealth Principals”), pursuant to a
management agreement between CWG Management Group, LLC and Cornerstone Wealth. The Cornerstone
Wealth Principals serve as leaders and officers of Cornerstone Wealth and are responsible for the
management, supervision and oversight of Cornerstone Wealth.
Description of the Types of Advisory Services We Offer
Comprehensive Portfolio Management:
We offer clients comprehensive portfolio management and financial planning/financial consulting
services. Our services are designed to assist clients in meeting their financial goals through the use of
financial investments. We conduct at least one, but sometimes more than one meeting (in person, if
possible, otherwise via telephone conference) with clients in order to understand their current
financial situation, existing resources, financial goals, and tolerance for risk. Based on what we learn,
we propose an investment approach to the client. We typically recommend that clients invest in
exchange traded funds, mutual funds, individual stocks or bonds, or other securities. Where we deem
it appropriate, we also recommend that a portion of clients’ portfolios be invested by external managers
of separately managed accounts. Upon the client’s agreement to the proposed investment plan, we work
with the client to establish or transfer investment accounts so that we can manage the client’s portfolio
on a discretionary or non-discretionary basis. We invest client assets in accordance with a range of
models we have designed to meet our clients’ needs and risk tolerance. We usually do not allow clients
to impose restrictions on investing in certain securities or types of securities due to the level of difficulty
this would entail in managing their account. We review the accounts we manage for clients on a regular
basis. We may periodically rebalance or adjust client accounts under our management. If the client
experiences any significant changes to his/her financial or personal circumstances, the client must
notify us so that we can consider such information in managing the client’s investments.
We implement investment advisor on behalf of clients in certain held-away accounts – for example,
401(k) or 529 plan accounts – maintained either at the custodians with whom we have an institutional
relationship or at other independent third-party custodians. We have the capability to review, monitor,
and manage these held-away accounts in a fashion similar to the way in which we review, monitor, and
manage accounts that are not held away.
Managed 529s or Annuities:
We also offer management services to subaccounts of RIA based 529 plans, equity indexed annuities,
fixed annuities, or variable annuities. The investment services we can provide are limited to allowable
products and can be billed separately in accordance with the fee schedule listed below. The client on
these accounts will provide our firm with trading authorization; and, on a discretionary basis we will
reallocate the subaccounts within the client’s plan or annuity pursuant to investment objectives chosen
by the client. Our management fees are explained in the schedule listed below in Item 5, Fees &
Compensation.
Retirement Plan Consulting:
We provide 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: sponsor services, investment services, plan
design, vendor management and/or participant services.
Cornerstone Wealth is a fiduciary under the Employee Retirement Income Security Act of 1974
(“ERISA”), as amended with respect to investment management services and investment advice
provided to ERISA plan client, including ERISA plan participants. Cornerstone Wealth is also a fiduciary
under the Internal Revenue code (“IRC”) with respect to investment management services and
investment advice provided to ERISA plans, ERISA plan participants, IRAs, and IRA owners. As such,
Cornerstone Wealth is subject to specific duties and obligations under ERISA and IRC that include,
among other things, prohibited transaction rules which are intended to prohibit fiduciaries from acting
on conflicts of interest. When
a fiduciary gives advice in which it has a conflict of interest, the fiduciary
must either avoid or eliminate the conflict or rely upon a prohibited transaction exemption.
As a fiduciary, we have duties of care and of loyalty to you and are subject to obligations imposed on us
by the federal and state securities laws. As a result, you have certain rights that you cannot waive or
limit by contract. Nothing in our agreement with you should be interpreted as a limitation of our
obligations under the federal and state securities laws or as a waiver of any non-waivable rights you
possess.
Financial Planning & 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 the 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:
Asset Allocation, Education/College Savings Plans, Investment Planning, Business/Corporate Planning,
Employee Benefit Plan Consulting, Non-securities related Investments, Business Succession, Estate
Planning, Personal Financial Planning, Charitable Planning, Financial Consultation, Real Estate Analysis,
Corporate Structure, Financial Planning, Retirement Planning, Debt/Cash Flow Analysis, and/or
Insurance Analysis/Policy Review.
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 verbal or 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.
Other Types of Services We Offer__________________________________________________________________________
Tax Preparation (and related) Services
We help our clients obtain tax return preparation and consulting services to clients who receive
portfolio management services and/or financial planning services. The fee for tax preparation and
consulting service generally depends on the complexity of the engagement and scope of the work.
Focus Subsidiary Affiliate
We have a business arrangement with SCS Capital Management LLC (“SCS”), who is an indirect, wholly
owned subsidiary of Focus LLC and Focus Inc., under which certain clients of Cornerstone Wealth have the
option of investing in certain private investment vehicles managed by SCS. Cornerstone Wealth is an affiliate
of SCS by virtue of being under common control with it. Please see Items 5 and 10 of this Brochure for further
details.
We have executed a subadvisory agreement with Williams Jones Wealth Management, LLC (“Williams
Jones”), which is an indirect, wholly-owned subsidiary of Focus LLC, and which provides investment
subadvisory services to certain of our clients. We are an affiliate of Williams Jones by virtue of being under
common control with it. Please see Items 5 and 10 of this Brochure for further details.
We have a business arrangement with a subsidiary or subsidiaries of Origin Investments Group, LLC
(“Origin”), who are each an indirect, wholly owned subsidiary of Focus LLC, under which certain clients of
Cornerstone Wealth have the option of investing in certain private investment vehicle managed by Origin.
Cornerstone Wealth is an affiliate of Origin by virtue of being under common control with it. Please see items
5, 10, and 11 of this Brochure for further details.
UPTIQ Treasury & Credit Solutions
We offer clients the option of obtaining certain financial solutions from unaffiliated third-party financial
institutions through UPTIQ Treasury & Credit Solutions, LLC (together with UPTIQ, Inc. and its affiliates,
“UPTIQ”). Please see Items 5 and 10 for a fuller discussion of these services and other important information.
Focus Risk Solutions
We help our clients obtain certain insurance solutions from unaffiliated, third-party insurance brokers
by introducing clients to our affiliate, Focus Risk Solutions, LLC (“FRS”), a wholly owned subsidiary of
our parent company, Focus Financial Partners, LLC. Please see Items 5 and 10 for a fuller discussion of
these services and other important information.
Information Received from Clients
Cornerstone Wealth will not assume any responsibility for the accuracy of the information provided by the
client. We are not obligated to verify any information received from the client or other professionals (e.g.,
attorney, accountant, etc.) designated by client, and Cornerstone Wealth is expressly authorized by the
client to rely on such information provided. Under all circumstances, clients are responsible for promptly
notifying Cornerstone Wealth in writing of any material changes to the client’s financial situation,
investment objectives, time horizon, or risk tolerance. In the event that a client notifies Cornerstone Wealth
of changes in the client’s financial circumstances or investment objectives, we will review such changes and
recommend any necessary revisions to the client’s portfolio.
Assets Under Management
As of December 31, 2023, Cornerstone Wealth has $1,292,570,569 in discretionary assets and
$181,734,854 in assets under advisement. The assets under advisement are not included in the regulatory
assets under management of Cornerstone Wealth.