Our firm provides individuals and other types of clients with a wide array of investment advisory
services. Our firm is a limited liability company formed under the laws of the State of Minnesota in
2008 and has been in business as an investment adviser since 2018. Our firm is owned by Tad Weiss
(75%) and Kari Haanstad (25%).
The purpose of this Brochure is to disclose the conflicts of interest associated with the investment
transactions, compensation and any other matters related to investment decisions made by our firm
or its representatives. As a fiduciary, it is our duty to always act in the client’s best interest. This is
accomplished in part by knowing our client. Our firm has established a service-oriented advisory
practice with open lines of communication for many different types of clients to help meet their
financial goals while remaining sensitive to risk tolerance and time horizons. Working with clients to
understand their investment objectives while educating them about our process, facilitates the kind
of working relationship we value.
Types of Advisory Services Offered
Asset Management:
As part of our Asset 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 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. Our firm may utilize the sub-
advisory services of a third-party investment advisory firm or individual advisor to aid in the
implementation of an investment portfolio designed by our firm. Before selecting a firm or individual,
our firm will ensure that the chosen party is properly licensed or registered.
Comprehensive Portfolio Management:
As part of our Comprehensive Portfolio Management service clients will be provided asset
management and financial planning or consulting services. This service is designed to assist clients
in meeting their financial goals through the use of a financial plan or consultation. Our firm conducts
client meetings to understand their current financial situation, existing resources, financial goals, and
tolerance for risk. Based on what is learned, an investment approach is presented to the client,
consisting of individual stocks, bonds, ETFs, options, mutual funds and other public and private
securities or investments. 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. Upon client request, our firm provides a summary of observations
and recommendations for the planning or consulting aspects of this service. Our firm may utilize the
sub-advisory services of a third-party investment advisory firm or individual advisor to aid in the
implementation of an investment portfolio designed by our firm. Before selecting a firm or individual,
our firm will ensure that the chosen party is properly licensed or registered.
ADV Part 2A – Firm Brochure Page 5 Modus Advisors, LLC
Financial Planning & Consulting:
Our firm provides a variety of standalone financial planning and consulting services to clients for the
management of financial resources based upon an analysis of current situation, goals, and objectives.
Financial planning services will typically 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 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, or Business and Personal Financial Planning.
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.
Implementation of the recommendations will be at the discretion of the client. Our firm provides
clients with a summary of their financial situation, and observations for financial planning
engagements. Financial consultations are not typically accompanied by a written summary of
observations and recommendations, as the process is less formal than the planning service. Assuming
that all the information and documents requested from the client are provided promptly, plans or
consultations are typically completed within 6 months of the client signing a contract with our firm.
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.
• 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.
ADV Part 2A – Firm Brochure Page 6 Modus Advisors, LLC
Separately Managed Account Services (“SMA”):
We participate in the Schwab Managed Account Program and offer separately managed accounts from
the Managed Account Select and Managed Account Access programs. These Schwab programs allow
access to independent money management firms offered by the Schwab Advisor Services division of
Charles Schwab & Co. Inc. (“Schwab”). Our firm performs management searches of various investment
managers. Based on the client's individual circumstances, we determine which selected manager's
portfolio management style is appropriate for that client. Factors considered in making this
determination include account size, risk tolerance, the objectives of each client and the investment
philosophy of the selected manager. Clients should refer to the manager's Firm Brochure or other
disclosure document for a full description of the services offered. We will furnish a copy of the disclosure
brochures for each manager selected. We will recommend one or more managers who will manage the
client's account on a discretionary basis. On an ongoing basis, we monitor the performance of the
manager(s).
• Managed Account Access (“Access”)
Managed Account Access allows clients to work with an array of money managers and
conduct their own research within a bundled fee program. Schwab’s fees are charged in
addition to fees charged by our firm. Access provides money manager services and Schwab’s
brokerage and custody services for a simple, asset-based fee and with streamlined
paperwork. Features include single contract structure, low account minimums, bundled fees,
manager and strategy flexibility and variety, performance reporting and managed account
tools and resource.
Access to managers in this program is offered at the following account levels: $100,000 for
Stock/Equity Managers and $250,000 for Bond/Fixed Income Managers. Some money
managers may have a higher account minimum.
• Managed Account Marketplace (“Marketplace”)
We participate in the Schwab Connection Marketplace program for certain larger clients. The
services provided are “unbundled,” meaning fees for asset management and fees for trading
are charged separately, in addition to the fees charged by our firm. The fees for asset
management with the money management firm are negotiated with the individual manager
by our firm on behalf of the Client and are based on the total assets with that manager
included in the program and the type of management services (equity or fixed income)
provided.
Execution of security transactions may be paid in one of two ways: (1) A percentage of assets
based on pricing schedules set by Schwab that are determined by trade volume for an
individual money manager; or (2) On a transaction basis, where each transaction is charged
a commission as negotiated with Schwab.
It may be possible for a client to use Marketplace and receive the same research services and
benefits (subject to internal restrictions identified earlier) for a lower fee than available
under the Select program. The bundled fees charged for the Select program may be higher
than the “unbundled fees” charged under Marketplace because of the initial and ongoing due
diligence provided by the Schwab Center for Financial Research and pricing set by the money
management firms for each program.
ADV Part 2A – Firm Brochure Page 7 Modus Advisors, LLC
• Schwab Intelligent Portfolios™ (“SIP”)
Schwab Intelligent Portfolios™ is an advisory program sponsored by Schwab Wealth
Investment Advisory, Inc. (“SWIA”). SWIA is registered as an investment advisor under the
Investment Advisers Act of 1940, as amended, and is a wholly owned subsidiary of The
Charles Schwab Corporation (“CSCorp”), which is a Delaware corporation that is publicly
traded and listed on the NASDAQ (symbol: SCHW). Currently SWIA does not provide
investment advisory services outside of SIP.
SIP is an automated investment advisory service. This technology builds, monitors and
rebalances portfolios. SIP offers clients investment strategies that consist of diversified
portfolios of ETFs in a single account that is managed on a discretionary basis. The investment
strategies include an allocation to the SIP Sweep Program (the “Sweep Allocation”). To build
and manage portfolios, SIP uses an advanced algorithm and the professional insight of the
Charles Schwab Investment Advisory, Inc. (“CSIA”) team. Clients will get a diversified
portfolio composed of low-cost ETFs—all handpicked by the CSIA team. Portfolios include up
to 20 asset classes across stocks, fixed income, real estate and commodities, as well as an
FDIC-insured cash component for diversification. After the ETFs are chosen, the CSIA
monitors the performance on an ongoing basis to make sure the ETFs continue to provide
consistency and diversity. SIP monitors client portfolios with daily check-ins and, if clients
maintain a balance of at least $5,000, automatically rebalances across up to 20 asset classes,
to keep investments consistent with the selected risk profile. With a SIP account of $50,000
or more, tax-loss harvesting can be handled automatically once clients enroll in this service.
The cash allocation in SIP will be accomplished through enrollment in the Sweep Allocation.
By enrolling in SIP, clients consent to having the free credit balances in their SIP brokerage
accounts swept to deposit accounts at Charles Schwab Bank through the Sweep Program.
Schwab Bank is an FDIC-insured depository institution affiliated with SWIA, Schwab and
CSIA. Deposit balances held in the Sweep Program at Schwab Bank are eligible for FDIC
insurance up to allowable limits. Schwab acts as the qualified custodian for SIP accounts and
provides trade execution and related services for SIP accounts. CSIA and Schwab are affiliates
of SWIA. SIP is only offered online through an interactive website and mobile application.
Clients can communicate with SWIA and Schwab via electronic channels.
Tailoring of Advisory Services
Our firm offers individualized investment advice to our Asset Management and Comprehensive
Portfolio Management clients. General investment advice will be offered to our Financial Planning &
Consulting and Retirement Plan Consulting clients.
Each Asset Management and Comprehensive Portfolio Management client may 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
Our firm does not offer or sponsor a wrap fee program.
ADV Part 2A – Firm Brochure Page 8 Modus Advisors, LLC
Regulatory Assets Under Management
As of December 31, 2022, our firm manages $337,605,294 on a discretionary basis and $13,709,145
on a non-discretionary basis, which totals $351,314,439 in regulatory assets under management.