McCartney Wealth Management LLC (“MWM,” “we” or “us”),
founded in 2010, is an investment adviser registered with the
SEC. MWM is owned 100% by Michael P. McCartney, an
investment adviser representative and licensed attorney in
the State of Missouri.
MWM is a “fee-only” investment adviser. This means that we
do not accept any commissions, finders’ fees, referral fees or
traditional “soft dollar” items such as software or research
reports in exchange for referring clients’ brokerage to a
particular broker-dealer.
With Mike McCartney having advised Fortune 50 executives
for over 20 years, we offer clients tools developed in the
financial and legal worlds. Our strategies use a low cost,
academic approach to investing. The result is simplicity,
organization, and discipline for clients in their investment and
planning affairs.
Our investment approach is based upon academic research as
opposed to Wall Street. Challenging conventional wisdom
that stock picking and market timing are the way to invest, we
incorporate the academic research to provide superior wealth
management advice in a diversified, cost effective and tax
efficient manner. Our fee-only (no commission)
compensation structure assures NO conflicts of interest,
allowing us to do what is best for our clients.
We offer the following investment advisory services:
Financial Planning
The centerpiece of our service is the planning process where
we work closely with clients and their other professional
advisors, such as attorneys, accountants and insurance
providers, to develop detailed strategies in the critical areas
of goals, cash flow, taxes, investments, retirement and estate
planning. We help a client assess the client’s current situation
and set personal and financial goals, help a client develop
strategies and identify the first action steps and then
implement the client’s plan. We then monitor and refine the
client’s plan on a continuous basis to help the client meet new
situations as they arise. MWM is not a law firm and neither
MWM nor Mr. McCartney provide any legal services through
MWM.
Investment Management
Academic research and financial science lead the way in
understanding risk and return in securities markets. We
utilize this research and science in the development of tax
efficient, diversified portfolios for its clients. We help a client
assess their current situation and set investment goals; help a
client develop greater insight about the capital markets,
design a personalized investment strategy and create plan,
and then help implement, maintain and refine the client’s
plan. As part of this process, we design a customized client
portfolio based upon an asset allocation strategy that is
consistent with the client’s investment objectives, risk
tolerance and investment time horizon or liquidity needs. On
an ongoing basis, we monitor the performance of a client’s
portfolio and may suggest rebalancing as necessary to
conform to the recommended allocation. Unless a client elects
to restrict our authority, our investment management
services are performed on a discretionary basis.
We provide performance reports at least semi-annually and
offer to hold review meetings with clients to discuss these
reports at least annually. Our services also include reviewing
a client’s existing portfolio manager and broker-dealer
arrangements for performance and/or cost efficiency,
conducting due diligence on particular investment
opportunities, or providing advice on investments in real
estate or other investment opportunities. Periodically, we
send an electronic newsletter to clients and prospects
summarizing the market and discussing various investment
or planning topics in a general manner, and there is no
additional charge for such newsletter.
We may provide all personal financial information to clients,
including statements, electronically through access to a web
portal or by email, including clients’ quarterly invoice, notices
and other communications and disclosures, including our
annual delivery of this disclosure brochure (“Brochure”).
Upon request, we will provide any client a paper copy of this
Brochure free of charge.
Client typically engage us for both financial planning and
investment management services, as agreed in the agreement
between the client and us (the “Client Agreement”). We do
not participate in any wrap-fee programs whatsoever.
Automated Investment Program
In addition to our financial planning and investment
management services, we offer an automated investment
program (“Program”) through which a small number of
clients (approximately 4) are invested in a range of
investment strategies we have constructed and manage, each
consisting of a portfolio of exchange-traded funds (“ETFs”) or
mutual funds and a cash allocation. The client’s portfolio is
held in a brokerage account opened by the client at Charles
Schwab & Co., Inc. (“CS&Co”). We use the Institutional
Intelligent Portfolios® platform (“Platform”), offered by
Schwab Performance Technologies (“SPT”), a software
provider to independent investment advisors and an affiliate
of CS&Co., to operate the Program. We are independent of and
not owned by, affiliated with, or sponsored or supervised by
SPT, CS&Co., or their affiliates (together, “Schwab”). We, and
not Schwab, are the client’s investment adviser and primary
point of contact with respect to the Program. We are solely
responsible, and Schwab is not
responsible, for determining
the appropriateness of the Program for the client, choosing a
suitable investment strategy and portfolio for the client’s
investment needs and goals, and managing that portfolio on
an ongoing basis. We have contracted with SPT to provide us
with the Platform, which consists of technology and related
trading and account management services for the Program.
The Platform enables us to make the Program available to
clients online and includes a system that automates certain
key parts of our investment process (the “System”). The
System includes an online questionnaire that helps us
determine the client’s investment objectives and risk
tolerance and select an appropriate investment strategy and
portfolio. Clients should note that we will recommend a
portfolio via the System in response to the client’s answers to
the online questionnaire. The client may then indicate an
interest in a portfolio that is one level less or more
conservative or aggressive than the recommended portfolio,
but we then make the final decision and select a portfolio
based on all the information we have about the client. The
System also includes an automated investment engine
through which we manage the client’s portfolio on an ongoing
basis through automatic rebalancing and tax-loss harvesting
if the client is eligible and elects.
We charge clients a fee for our services as described below
under “Fees & Compensation.” Our fees are not set or
supervised by Schwab. Clients do not pay brokerage
commissions or any other fees to CS&Co. as part of the
Program. Schwab does receive other revenues in connection
with the Program.
We do not pay SPT fees for the Platform so long as we
maintain $100 million in client assets in accounts at CS&Co.
that are not enrolled in the Program. If we do not meet this
condition, then we pay SPT an annual licensing fee of 0.10%
on the value of our clients’ assets in the Program.
Before enrolling in the Program, you should carefully review
the Program’s Disclosure Brochure (the “Program
Disclosure Brochure”) to understand the limitations and
risks of the Program. Clients should understand that the
Program is operated by Schwab, and its effectiveness for a
particular client will depend significantly on the System’s
capabilities. Any malfunction by the Program could result in
loss outside of MWM’s control.
As of December 31, 2023, we had approximately
$166,382,874 in assets under management, all of which is on
a discretionary basis.
Fees & Compensation
Financial Planning Fees
We normally charge, subject to negotiation, 15-20 basis
points per year of their assets under management with us for
basic financial planning, including preparing a comprehensive
financial plan, and basic estate and tax planning. Fees for
sophisticated and more complex planning will be discussed
and negotiated on a case by case basis. A client will pay the
annual financial planning fee in quarterly installments in
advance. Investment Management Fees
Our investment management fees are a percentage of client
assets we manage as follows:
Market Value of Assets Annual Fee
On the first $1,000,000 1.0%
On the next $1,000,000 0.75%
On amounts over $2 million 0.50%
When assets reach $3,000,000 or greater, a flat ½ of 1%
(.50%) will be charged on all assets.
Program Fees
Under the Program, clients do not pay fees to SPT or
brokerage commissions or other fees to CS&Co. as part of the
Program. Schwab does receive other revenues in connection
with the Program. Brokerage arrangements are further
described under “Brokerage Practices” below. We charge a
flat 0.50% or 0.60% annual fee for assets under management
in the Program depending upon the selection, which will be
billed as described below.
General Fee Matters
All fees set forth above are billed quarterly in advance. The fee
does not include custodial fees, transaction costs or other
expenses charged by the client’s custodian or broker. Each
mutual fund or ETF in which the client’s assets may be
invested charges its own advisory fee and other expenses.
However, we do not use funds that charge front-end or
ongoing loads or 12(b)-1 fees. Fees do not include travel or
other expenses we incur.
A Client Agreement also may be terminated by either client or
us upon ten days’ prior written notice. Clients who terminate
their Client Agreement will receive a refund of the portion of
any fee paid but not yet earned as of the date such notice is
received, less any expenses we have incurred up to and
including that date.
Fees are negotiable and may be waived in certain
circumstances (e.g., for family members and friends of
McCartney Wealth Management employees).
The specific manner in which our fees are charged is
established in the Client Agreement. We believe that our fees
are reasonable considering the services, but lower fees for
comparable services may be available from other sources.
“Brokerage Practices” below further describes the factors that
we consider in selecting or recommending broker-dealers for
client transactions and determining the reasonableness of
their compensation (e.g., commissions).
Performance-Based Fees & Side-By-Side
Management
We do not charge performance-based fees (fees based on a
share of capital gains on or capital appreciation of the assets
of a client).