Firm Description
LIFETIME WEALTH MANAGEMENT P.C., (herein referred to as “Lifetime
Wealth Management,” “Firm,” “we,” “our,” “us”) was founded in 2007.
LIFETIME WEALTH MANAGEMENT provides personalized confidential
financial planning and investment management to individuals, partnerships,
estates, and small businesses. Advice is provided through consultation with the
Client and may include determination of financial objectives, identification of
financial problems, cash flow management, tax planning, insurance review,
investment management, education funding, retirement planning, estate
planning and general consulting.
LIFETIME WEALTH MANAGEMENT is a financial planning and investment
management firm charging a percentage fee of assets under management,
performance fees, as well as fixed and hourly fees. Investment advice is an
integral part of financial management/planning. In addition, LIFETIME
WEALTH MANAGEMENT advises Clients regarding:
Investment Management - Discretionary
Investment Management - Non-Discretionary
Investment Consulting
Financial Planning & Development
Estate Planning
Retirement Planning
Charitable Giving Planning
Cash Flow Planning
Education Planning
Life Planning
Legacy Planning
Major Purchase Consulting
Employee Benefits Consulting
Executive Benefits Consulting
Business Succession/Planning
Private Investment Review/Placement Assistance
Divorce Consulting
Investment advice/management is provided, either with Client authorized,
discretionary or non-discretionary authority.
Discretionary Authority: The Client authorizes Investment Advisor to
investigate, purchase, and sell on behalf of Client, various securities and
investments. Investment Advisor is authorized to execute purchases and sale
of securities on Client’s behalf without consulting Client regarding each sale or
purchase.
Non-Discretionary Authority: Investment Advisor is authorized to execute
purchases and sales of securities only after consulting with Client regarding
each transaction. The firm does not offer non-discretionary management for
new clients.
LIFETIME WEALTH MANAGEMENT does not act as a Custodian of Client
assets. The Client always maintains asset control. LIFETIME WEALTH
MANAGEMENT places trades for Clients under a limited power of attorney.
LIFETIME WEALTH MANAGEMENT may recommend a mix of mutual funds,
index funds, exchange traded funds, stocks, bonds, options, futures, warrants,
fixed income, debt securities, real estate, hedge funds, REITs, private
placements, and government securities. We may use other securities as well
to help diversify a portfolio when applicable.
A written evaluation of each Client's initial situation is provided to the client,
often in the form of an Investment Policy Statement as part of the Investment
Advisory Contract. Annual reviews are also communicated in a variety of ways
to provide reminders of the specific courses of action that need to be taken.
More frequent reviews occur but are not necessarily communicated to the
Client unless immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the Client on an as-needed basis. Conflicts of interest will
be disclosed to the Client in the event they should occur.
The initial meeting, which may be held by telephone, is free of charge and is
considered an exploratory interview to determine the extent to which financial
planning and investment management may be beneficial to the Client.
Principal Owners
Jason A. Potts is a 100% stockholder.
Types of Advisory Services
LIFETIME WEALTH MANAGEMENT provides investment supervisory
services, also known as asset management services; manages investment
advisory accounts not involving investment supervisory services; furnishes
investment advice through consultations and as mentioned before may advise
Clients in the following areas:
Investment Management - Discretionary
Investment Management - Non-Discretionary
Investment Consulting
Financial Planning & Development
Estate Planning
Retirement Planning
Charitable Giving Planning
Cash Flow Planning
Education Planning
Life Planning
Legacy Planning
Major Purchase Consulting
Employee Benefits Consulting
Executive Benefits Consulting
Business Succession/Planning
Private Investment Review/Placement Assistance
Divorce Consulting
LIFETIME WEALTH MANAGEMENT furnishes advice to Clients on matters not
involving securities.
We do not participate in any wrap fee programs.
Tailored Relationships
The goals and objectives for each Client are documented in our Client
relationship file. Investment policy statements are created that reflect the stated
goals and objective. Clients may impose restrictions on investing in certain
securities or types of securities.
Agreements may not be assigned without Client consent.
Types of Agreements
The following agreements define the typical Client relationship.
Financial Planning Agreement
A financial plan is designed to help the Client with all aspects of financial
planning without ongoing investment management after the financial plan is
completed.
The financial plan may include, but is not limited to: a net worth statement; a
cash flow statement; a review of investment accounts, including reviewing
asset allocation and providing repositioning recommendations; strategic tax
planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning
review and recommendations; and education planning with funding
recommendations.
Detailed investment advice and specific recommendations are provided as part
of a financial plan. Implementation of the recommendations is at the discretion
of the Client.
The fee for a financial plan is predicated upon the facts known at the start of
the engagement. The minimum fee is $3,000.00 and is not negotiable. Since
financial planning is a discovery process, situations occur wherein the Client is
unaware of certain financial exposures or predicaments.
In the event that the Client’s situation is substantially different than disclosed at
the initial meeting, a revised fee will be provided for mutual agreement. The
Client must approve the change of scope in advance of the additional work
being performed when a fee increase is necessary.
After delivery of a financial plan, future face-to-face meetings may be
scheduled as necessary for up to one month. Follow-up implementation work
is billed separately at the rate of $400.00 per hour.
Advisory Service Agreement (Investment Advisory Contract)
Clients engage LIFETIME WEALTH MANAGEMENT to manage their assets in
order to obtain ongoing in-depth financial advice and life planning. All aspects
of the Client’s financial affairs are reviewed, including those of their children
when provided by the client. Realistic and measurable goals are set and
objectives to reach those goals are defined. As goals and objectives change
over time, suggestions are made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to
the Client in writing prior to the start of the relationship. An Advisory Service
Agreement includes cash flow management; insurance review; investment
management (including performance reporting); retirement planning; and basic
estate planning. Assistance with implementation of certain areas may be
offered at the Firm’s hourly rate.
The annual Advisory Service Agreement fee is based on a percentage of the
investable assets according to the following schedule:
1.25% $500,000 - $1,000,000
1.00% $1,000,001 - $2,500,000
0.80% $2,500,001 - $5,000,000
0.65% Above $5,000,001
Clients with assets below the minimum account size may pay a higher
percentage rate on their annual fees than the fees paid by Clients with greater
assets under management.
Some Client contracts may reflect a higher/lower management fee that was
agreed upon prior to the existing fee schedule and prior to the account
minimums being set at $500,000 and/or a minimum net worth of 2 million.
Although the Advisory Service Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the Client is at the
Client’s discretion. The Client or the investment manager may terminate an
Agreement with a 10-day written notice to the other party. At termination, fees
will be billed or refunded on a pro rata basis for the portion of the calendar
quarter completed per the Investment Advisory Contract. The portfolio value at
the completion of the prior full billing quarter is used as the basis for the fee
computation, adjusted for the number of days during the billing quarter prior to
termination.
Performance Agreement (Investment Advisory Contract)
LIFETIME WEALTH MANAGEMENT offers a performance fee arrangement for
certain separately managed accounts. A performance fee arrangement
is a
method of compensating an investment adviser on the basis of a share of the
gains or appreciation of the assets under management of the client. Lifetime
typically requires that clients that participate in performance fee accounts have
a total account aggregate size of $1,000,000. Our fee structure consists of a
minimum base Advisory Fee and a Performance Fee. The typical annual
performance fee will be equal to a percent of the gain that exceeds the
minimum performance clause over a specific period of time, typically 12 months
from executed agreement with annual renewals.
• The minimum Advisory Fee is based on 100-basis point (1%) per annum on
the net asset value of the assets under management. The Advisory Fee is
paid quarterly in advance, and is paid regardless of performance and in
accordance with Lifetime Wealth Management’s AUM billing procedures as
a fixed percentage fee, regardless of account size.
•
The Performance Fee shall be payable annually, in arrears to Adviser by
Client and shall be an amount equal to 10% of the of the Net Excess
Appreciation for the Securities in the Account, on an annual basis (the
“Performance Fee”), provided that the Performance Fee for any Year will be
charged only if the Net Excess Appreciation applicable to the Securities in
the Account exceeds a “hurdle rate” equal to 7% per year. For purposes of
this Agreement, the Net Excess Appreciation is the increase in fair market
value of the portfolio under management (before accrual or deduction of the
Performance Fee, but after payment and accrual of all fees, commissions,
and the Advisory Fee) in excess of the High-Water Mark. The “High-Water
Mark” shall (a) be the original $ dollar value or NAV (Net Asset Value) as of
the Effective Date of this Agreement or the last performance fee calculation
adjusted for deposits and withdrawals over the prior 12-month period.
Notwithstanding the above, for purposes of computing the annual
Performance Fee, the High-Water Mark shall be the gain (or loss) generated
by the portfolio during the prior Year and reflected on the Client invoice
generated at such time. The term “Year” shall refer to the initial period
commencing on the Effective Date of this Agreement and ending on the last
day of the 12th month following the Effective Date, and thereafter, the period
commencing on the day immediately following the close of the preceding
Year and ending on the earlier of (i) the last day of the following 12 month
period, or (ii) the date on which this Agreement is terminated.
Fair market value for purposes of computing Lifetime’s compensation, is
determined by valuing the assets as follows:
• Cash and cash equivalents shall be valued at face amount.
• Notes, bonds and other debt instruments' current market value shall be
determined on the basis of market quotations, or, if such quotations are not
readily available, market value will be determined based on coupon,
maturity, rating, liquidity, industry factors, company factors, and
management.
• Common stock and other equity securities shall have a value equal to their
respective closing prices as quoted by the NYSE or the NASDAQ Stock
Exchange (“NASDAQ”) system on the last business day preceding the day
on which fair market value is being determined.
• Interest and dividends shall be accrued to the last business day preceding
the day on which fair market value is being determined.
In the event that there is any loss carried forward from a previous quarter, this
loss will be carried forward and be added to the HighWater Mark for future
annual periods(s); however, Adviser shall not be required to refund any
Performance Fees. In computing the Performance Fee, the Net Excess
Appreciation will be based on the fair market values reflected on the Client’s
statements from the bank or brokerage firms that custody the Client’s account.
At such time as the Client terminates this Agreement, the Performance Fee
payable for the final period shall be based on the Net Excess Appreciation
which is generated from the prior Years computation of the Performance Fee,
through the month in this Agreement is terminated, regardless of the number
of months included in the final billing periods..
Hourly Planning Engagements
LIFETIME WEALTH MANAGEMENT provides hourly planning services for
Clients who need advice on a limited scope of work. The hourly rate for this
engagement is $400.00 per hour.
Asset Management
Assets are invested primarily in no-load mutual funds and exchange-traded
funds, usually through a Custodian (i.e., Charles Schwab and Interactive
Brokers). Fund companies charge each fund shareholder an investment
management fee that is disclosed in the fund prospectus. Custodians may
charge a transaction fee for the purchase of some funds.
The brokerage/Custodian Firm charges a fee (sales charge) for stock and bond
trades. LIFETIME WEALTH MANAGEMENT does not receive any
compensation, in any form, from fund companies or custodians.
Investments may also include equities (stocks), options, futures, warrants,
corporate debt securities, commercial paper, certificates of deposit, municipal
securities, investment company securities (mutual funds shares and exchange
traded funds), U. S. government securities, interests in partnerships, third party
money managers, REITS, no-load annuities and some alternative investments,
real-estate and in some cases private investments.
Initial public offerings (IPOs) are currently not available through LIFETIME
WEALTH MANAGEMENT
Third Party Money Manager
The firm may utilize a third-party money manager to manage a portion of a
client’s portfolio. In doing so Lifetime Wealth Management may act as a sub-
advisor. Additional fees will be incurred by the client when a third-party money
manager is used. All third-party money managers we refer our clients to, will
be properly registered with the appropriate regulator(s). The third-party money
manager is granted authority by the client to manage and invest the client’s
assets.
Those who are referred to third party money managers will receive full
disclosure, including services rendered and fee schedules at the time of the
referral by delivery of a copy of the relevant third-party manager’s ADV Part 2A
Brochure and privacy policy, prior to placing the assets with the third-party
manager.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by
notifying LIFETIME WEALTH MANAGEMENT in writing and paying the rate for
the time spent on the investment advisory engagement prior to notification of
termination. If the Client made an advance payment, LIFETIME WEALTH
MANAGEMENT will refund any unearned portion of the advance payment.
LIFETIME WEALTH MANAGEMENT may terminate any of the aforementioned
agreements at any time by notifying the Client in writing. If the Client made an
advance payment, LIFETIME WEALTH MANAGEMENT will refund any
unearned portion of the advance payment.
Retirement Accounts – DOL Disclosure
We are fiduciaries within the meaning of Title I of the Employee Retirement
Income Security Act of 1974 (“ERISA”) and/or the Internal Revenue Code
(“Code”), as applicable, when we provide investment advice regarding portfolio
assets held in an IRA, Roth IRA, Archer Medical Savings Account, a Plan
covered by ERISA, or a plan described in Section 4975(e)(1)(A) of the Code
(collectively referred to collectively sometimes herein as (“Retirement
Accounts”).
To ensure that LIFETIME WEALTH MANAGEMENT will adhere to fiduciary
norms and basic standards of fair dealing, we are required to give advice that
is in the "best interest" of the retirement client. The best interest standard has
two chief components, prudence and loyalty. Under the prudence standard, the
advice must meet a professional standard of care and under the loyalty
standard, our advice must be based on the interests of our retirement clients,
rather than the potential competing financial interest of LIFETIME WEALTH
MANAGEMENT.
To address the conflicts of interest with respect to our compensation, we are
required to act in your best interest and not put our interest ahead of yours. To
this end, we must:
• Meet a professional standard of care when making investment
recommendations (give prudent advice);
• Never put our financial interests ahead of yours when making
recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and
investments;
• Follow policies and procedures designed to ensure that we give advice that
is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Assets Under Management
As of 12/31/2023, LIFETIME WEALTH MANAGEMENT P.C. managed
approximately $184,243,260 in assets for approximately 113 Clients. Of that
amount, approximately $183,584,712 is managed on a discretionary basis, and
$658,548 is managed on a non-discretionary basis.