Kapusta Financial Group, Inc. ("KFG" or "the firm") is a registered investment adviser that was founded
1997 by George M. Kapusta. In May 2022, Bridget K. Loutzenhiser, CFP®, became President
and principal owner of the firm, and the firm's main office is located in Pittsburgh, Pennsylvania.
KFG offers both financial planning and asset management services to its clients for a fee. The services
are offered separately to clients but serve to provide one purpose, the overall well being of a client's
financial situation to achieve his or her financial goals. The following is a description of the services
offered by the firm:
Comprehensive Financial Planning
With its comprehensive financial planning services, KFG prepares a personalized, comprehensive
analysis of a client's current financial situation based upon the information and assumptions provided
by the client. The scope of the analysis will include goals, assets, liabilities, investments, insurance, tax
planning, education funding, retirement planning and estate planning. KFG meets with the client for the
presentation of the initial comprehensive plan and on a periodic basis thereafter, until all areas of the
plan have been fully reviewed. Financial plans are based on a client's financial situation at the time
KFG presents the plan, and on the financial information the client provides. A client should promptly
notify KFG if any financial situation, goals, objectives, or needs change. Clients are under no obligation
to act on the financial planning recommendations made by KFG. Should a client choose to act on any
recommendations, the client is not obligated to implement the financial plan through KFG. A client may
act on KFG's recommendations by placing securities transactions with any brokerage firm.
Investment Management
KFG offers non-discretionary individual portfolio management and investment supervisory services
("Investment Management"). The firm provides individualized investment advice to clients based upon
the client's specific needs. Through personal consultations, KFG gathers specific financial data to
develop a client's personalized profile, which includes a client's investment objectives, current financial
position, risk profile, investment time horizon, tax situation and liquidity needs. KFG reviews the client's
personalized profile and based upon this review, determines an appropriate asset allocation model for
the client. Such model takes into account the client's existing investments, liquidity needs, portfolio
goals, tax objectives and risk tolerance. KFG then recommends any necessary re-positioning of a
client's investments or makes non-discretionary recommendations for new investments to implement
the client's recommended asset allocation model. If a client enters into non-discretionary portfolio
management agreement with KFG, KFG must obtain approval prior to executing any transactions on
behalf of a client's account. A client has an unrestricted right to decline to implement any advice
provided by KFG on a non-discretionary basis.
Retirement Planning
Retirement planning services are offered to those clients who desire a specialized review of retirement
needs. KFG reviews and analyzes all resources available to a client for retirement. Projections are
made for living expenses during retirement. Income taxes, inflation and the client's needs are
compared to the client's sources of retirement funds, including qualified retirement plans, Social
Security, and all other available assets. Working with the client, KFG then identifies long-term savings
and investment requirements. In addition, after a retirement projection is agreed upon between KFG
and the client, the firm will provide an investment analysis and recommended repositioning of assets,
typically using Modern Portfolio Theory, to help the client achieve the agreed upon long-term rate of
return projection identified in the retirement analysis.
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Estate Planning
In the estate planning services offered by the firm, KFG prepares a detailed plan and analysis of a
client's estate as it relates to possible federal and state inheritance tax liability. The written analysis
includes generic investment recommendations dealing with the client's financial concerns relating to
accomplishing the client's estate planning objectives. While KFG renders agreed upon estate planning
advice, the firm does not provide legal or tax advice as it relates to estate planning issues. Clients are
strongly encouraged to consult with their appropriate legal and tax counselors for specific legal and tax
advice relating to their estates.
Investment Consulting
In this more limited service, KFG will review a client's current investments and make non-discretionary
recommendations concerning possible repositioning of the client's assets based on the client's goals,
risk tolerance,
and time horizon. This is a one-time review at the client's request. With this limited
service, KFG is not responsible for providing continuing advice regarding the client's investments, nor
will the firm provide any investment performance reports. A client may or may not choose to implement
KFG's investment recommendations.
Planning by Module
In some cases, it may be appropriate for KFG to offer limited financial planning services to a client,
based on a client's specific area of concern. In these cases, KFG will prepare a personalized analysis
and written recommendation in a specific area of financial planning that is of particular concern to the
client. This will not be a comprehensive plan but will focus on one or more of the following areas at the
client's request:
•Education Funding/Planning
•Employee Benefits Analysis
•Insurance Needs Analysis
•Medicaid/Nursing Home Analysis
•Tax Reduction Strategies
•Retirement Plan Analysis for Businesses
Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you. When we provide investment advice to you regarding your
retirement plan account or individual retirement account, we are 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 governing retirement accounts. The way we make money creates some conflicts with
your interests, so we operate under a special rule that requires us to act in your best interest and not
put our interest ahead of yours. Under this special rule's provisions, 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.
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We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
General Information Regarding Investment Advice
For any of the investment advisory services offered by KFG, the firm does not limit its investment
recommendations to any specific type of product or security. A client's individual needs and objectives
are analyzed to determine appropriate investments and products for the client. Since different types of
investments typically involve different types of risk, the firm conducts a risk analysis of the client and
his/her overall portfolio, before recommending a certain investment. KFG manages assets on a non-
discretionary basis, which means the client is always free to place restrictions on the types of
investments the firm recommends for the client's portfolio. The client may also decline to implement
any of the recommendations made by the firm.
In general, the firm utilizes equity investments in individual stocks, mutual funds, and exchange traded
funds. KFG also provides recommendations on fixed income investments, including individual bond
positions, bond mutual funds, certificates of deposit, and fixed income exchange traded funds. In
addition, KFG provides advice related to real estate, leasing, or oil & gas limited partnerships, and may
also provide advice on other products as appropriate for the specific client. The firm may also offer
advice on non-securities products.
As part of its comprehensive approach to investment advisory services, KFG may refer clients to
unaffiliated third-party service provider for specific areas for which a client may need advice. Examples
of these referrals may include local CPAs or attorneys. KFG offers this referral service as a
convenience to clients only, and any decision to engage a third-party service provider lies solely with
the client. KFG is not responsible or liable for any of the services provided by these unaffiliated third-
parties.
Assets Under Management
As of December 31, 2023, we provide continuous management services for $150,698,559 in client
assets on a non-discretionary basis. We also provide advice on $3,921,230 in client assets on a non-
continuous basis.