This Disclosure document is being offered to you by Heirloom Wealth Management, LLC
(“HWM” or “Firm”) about the investment advisory services we provide. It discloses
information about our services and the way those services are made available to you, the
client.
We are an investment management firm located in Englewood, Colorado. We specialize
in investment advisory services for individuals, high net worth individuals, employee spon-
sored retirement plans, institutions, charitable organizations, trusts and estates. Our Firm
became a registered investment adviser in February 2018. Michael G. Euston and Richard
“Rick” L. Hurley, Jr. are Managing Members of the Firm.
We are committed to helping clients build, manage, and preserve their wealth, and to
provide assistance that helps clients to achieve their stated financial goals. We will offer an
initial complimentary meeting upon our discretion; however, investment advisory services
are initiated only after you and HWM execute an Investment Management Agreement.
Investment Management Services
We manage advisory accounts on a discretionary basis. For discretionary accounts, once
we have determined a profile and investment plan with a client, we will execute the day to
day transactions without seeking prior client consent. Account supervision is guided by the
written profile and investment plan of the client. We may accept accounts with certain
restrictions if circumstances warrant. We primarily allocate client assets among various
equities, Exchanged Traded Funds (“ETFs”), mutual funds and debt securities in accordance
with their stated investment objectives.
During personal discussions with clients, we determine the client’s objectives, time
horizons, risk tolerance and liquidity needs. As appropriate, we also review a client’s prior
investment history, as well as family composition and background. Based on client needs,
we develop a client’s personal profile and investment plan. We then create and manage
the client’s investments based on that policy and plan. It is the client’s obligation to notify
us immediately if circumstances have changed with respect to their goals.
Once we have determined the types of investments to be included in your portfolio and
allocated them, we will provide ongoing investment review and management services.
This approach requires us to periodically review your portfolio.
With our discretionary relationship, we will make changes to the portfolio, as we deem
appropriate, to meet your financial objectives. We trade these portfolios based on the
combination of our market views and your objectives, using our investment process. We
tailor our advisory services to meet the needs of our clients and seek to ensure that your
portfolio is managed in a manner consistent with those needs and objectives. You will have
the ability to leave standing instructions with us to refrain from investing in particular
industries or invest in limited amounts of securities.
We do have limited authority to direct the Custodian to deduct our investment advisory
fees from your accounts, but only with the appropriate written authorization from you.
Where appropriate, we provide advice about any type of legacy position held in client
portfolios. Typically, these are assets that are ineligible to be custodied at our primary
custodian. Clients will engage us to advise on certain investment products that are not
maintained at their primary custodian, such as annuity contracts and assets held in
employer sponsored retirement plans and qualified tuition plans (i.e., 529 plans).
You are advised and are expected to understand that our past performance is not a
guarantee of future results. Certain market and economic risks exist that adversely affect
an account’s performance. This could result in capital losses in your account.
Financial Planning
Through the financial planning process, our team strives to engage our clients in conversa-
tions around the family’s goals, objectives, priorities, vision, and legacy – both for the near
term as well as for future generations. With the unique goals and circumstances of each
family in mind, our team will offer financial planning ideas and strategies to address the
client’s holistic financial picture, including estate, income tax, charitable, cash flow, wealth
transfer and family legacy objectives. Our team partners with our client’s other advisors
(CPA, estate attorney, insurance broker, etc.) to ensure a coordinated effort of all parties
toward the client’s stated goals. Such services include various reports on specific goals and
objectives or general investment and/or planning recommendations, guidance to outside
assets and periodic updates.
Our specific services in preparing your plan may include:
• Review and clarification of your financial goals;
• Assessment of your overall financial position including cash flow, balance sheet,
investment strategy, risk management and estate planning;
• Creation of a unique plan for each goal you have, including personal and business
real estate, education, retirement or financial independence, charitable giving,
estate planning, business succession and other personal goals;
• Development of a goal-oriented investment plan, with input from various advisors
to our clients around tax suggestions, asset allocation, expenses, risk and liquidity
factors for each goal. This includes IRA and qualified plans, taxable and trust ac-
counts that require special attention;
• Design of a risk management plan including risk tolerance, risk avoidance, mitiga-
tion and transfer, including liquidity as well as various insurance and possible com-
pany benefits; and
• Crafting and implementation of, in conjunction with your estate and/or corporate
attorneys as tax advisor, an estate plan to provide for you
and/or your heirs in the
event of an incapacity or death.
A written evaluation of each client's initial situation or Financial Plan is provided to the
client.
Employer Sponsored Retirement Plan Services
For employer-sponsored retirement plans with participant-directed investments, our firm
provides its advisory services as an investment advisor as defined under Section 3(21) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
When serving as an ERISA 3(21) investment advisor, the Plan Sponsor and HWM share
fiduciary responsibility. The Plan Sponsor retains ultimate decision-making authority for
the investments and may accept or reject the recommendations in accordance with the
terms of a separate ERISA 3(21) Investment Advisor Agreement between HWM and the
Plan Sponsor. HWM provides the following services to the Plan Sponsor:
• Screen investments and make recommendations.
• Monitor the investments regularly and suggests replacement investments when
appropriate.
• Provide an annual investment report.
• Assist the Plan Sponsor in developing an Investment Policy Statement (“IPS”).
We can also be engaged to provide financial education to Plan participants. The scope of
education provided to participants will not constitute “investment advice” within the
meaning of ERISA and participant education will relate to general principles for investing
and information about the investment options currently in the Plan. We may also partic-
ipate in initial enrollment meetings and periodic workshops and enrollment meetings for
new participants.
Donor Advised Fund Services
Our Firm may establish donor advised funds through various third-party charitable pro-
grams including the {Fidelity Charitable Gift Fund Program and the Schwab Charitable
Fund} (each, a “Charitable Platform”), which funds will be managed in accordance with the
specific investment policies and guidelines of the applicable the Charitable Platform. Clients
will establish a donor advised account, transfer funds earmarked for charitable donation
and recognize a tax deduction in the year that funds are transferred into an account opened
on a Charitable Platform. The funds remain in such account until the Client designates a
charity, an amount and a date to donate to such charity. Under independent advisor pro-
grams established within each Charitable Platform, donors nominate an independent in-
vestment adviser, including our Firm, to manage accounts established on the Charitable
Platforms. If nominated, our Firm will manage the donor’s account pursuant to investment
guidelines established by each Charitable Platform.
Tax Planning and Preparation
Our firm recommends various accountants and CPAs to provide tax planning and prepa-
ration for individuals and business owners. These services are provided to the client for a
separate fee and separate agreement directly with the CPA/Accounting Firm(s). Account-
ing services performed by these tax professionals will be separate and distinct from our
investment advisory services. Our Firm is not compensated for the referral of clients to
these accounting firms.
Disclosure Regarding Rollover Recommendations
A client or prospect leaving an employer typically has four options regarding an existing
retirement plan (and may engage in a combination of these options): (i) leave the money
in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s
plan, if one is available and rollovers are permitted, (iii) rollover to an Individual Retirement
Account (“IRA”), or (iv) cash out the account value (which could, depending upon the cli-
ent’s age, result in adverse tax consequences). Our Firm may recommend an investor roll
over plan assets to an IRA for which our Firm provides investment advisory services. As a
result, our Firm and its representatives may earn an asset-based fee. In contrast, a recom-
mendation that a client or prospective client leave their plan assets with their previous
employer or roll over the assets to a plan sponsored by a new employer will generally result
in no compensation to our Firm. Our Firm therefore has an economic incentive to encour-
age a client to roll plan assets into an IRA that our Firm will manage, which presents a con-
flict of interest. To mitigate the conflict of interest, there are various factors that our Firm
will consider before recommending a rollover, including but not limited to: (i) the invest-
ment options available in the plan versus the investment options available in an IRA, (ii)
fees and expenses in the plan versus the fees and expenses in an IRA, (iii) the services and
responsiveness of the plan’s investment professionals versus those of our Firm, (iv) protec-
tion of assets from creditors and legal judgments, (v) required minimum distributions and
age considerations, and (vi) employer stock tax consequences, if any. All rollover recom-
mendations are reviewed by our Firm’s Chief Compliance Officer and remains available to
address any questions that a client or prospective client has regarding the oversight.
We are fiduciaries under the Investment Advisers Act of 1940 and when we provide in-
vestment advice to you regarding your retirement plan account or individual retirement
account, we are also fiduciaries within the meaning of Title I of the Employee Retirement
Income Security Act and/or the Internal Revenue Code, as applicable, which are laws gov-
erning retirement accounts. We have to act in your best interest and not put our interest
ahead of yours. At the same time, the way we make money creates some conflicts with
your interests.
Wrap Fee Program
We do not participate in a Wrap Fee Program.
Assets
As of December 31, 2022, our Firm’s regulatory assets under management total
$352,775,549. We manage $352,775,549 in assets under discretionary management and
$0 in assets under non-discretionary management.