A. Description of the Advisory Firm
Montz Harcus Wealth Management (hereinafter “MHWM”) is a Limited Liability
Company organized in the State of Louisiana. The firm was formed in April 2019, and the
principal owner is Christine Champagne Montz.
B. Types of Advisory Services
Before MHWM enters into an advisor-client relationship, we offer a complimentary
general consultation to discuss services available, give a prospective client time to review
our services, and determine whether the client might benefit from a relationship with the
Advisor. Our services begin only after we, together with the client, formalize the
relationship with a properly executed agreement. We offer the following services to our
clients:
Investment Supervisory and Management
MHWM offers ongoing investment supervisory and management services based on the
individual goals, objectives, time horizons, and risk tolerance of each client. Once
established, an Investment Policy Statement is created for each client, which outlines the
client’s current financial situation (age, income, tax levels, and risk tolerance). MHWM
evaluates the current investments of each client, and then constructs an investment plan
and recommended portfolio that matches each client’s specific situation. MHWM will
request discretionary authority from clients in order to select securities and execute
transactions without permission from the client prior to each transaction.
Clients may engage MHWM to manage and/or offer investment advice on certain
investments that are not maintained at their primary custodian, such as assets held in
employer sponsored retirement plans, and/or assets held in qualified tuition plans (e.g.,
401(k)’s, 529 plans). In these situations, MHWM directs or recommends the allocation of
client assets among the various investment options available in each plan/custodian.
MHWM’s recommended portfolios generally consist of exchange-listed securities,
securities traded over the counter, corporate debt securities, commercial paper, certificates
of deposit, municipal securities, variable annuities, mutual funds, United States
government securities, options contracts on securities, interests in partnerships investing
in real estate or oil and gas interests. Investing in these types of securities helps to diversify
an investment portfolio.
Adviser’s Use of Third-Party Managers
MHWM has chosen to offer certain services through third-party managers. These
managers will have the authority to trade within a separately managed account held at
our custodian. There will be an additional fee for these services, paid to the third-party
manager, disclosed in the managers advisory agreement, along with MHWM fees as fully
disclosed within the Advisory Contract.
MHWM Comprehensive Financial Planning
MHWM offers clients a broad range of financial planning services on a one-time basis,
and financial planning updates as a client’s situation may change after the initial plan is
prepared. Each plan will be subject to a fee. (See Item 5: Fees and Compensation) In
general, financial planning will address any or all of the following areas of
interest/concern. With the initial planning fee, the client is offered access to the MHWM
team for unlimited questions for one full year from plan completion. The client and
advisor will work together to select the specific areas to cover. These areas may include,
but are not limited to, the following services:
• Monthly Cash Flow Management MHWM believes that what gets measured gets
managed, and that personal financial management all begins with a basic
understanding of your everyday spending habits. To gain this understanding, we
will review your income and expenses and determine your current monthly
savings, or deficits, along with advice on prioritizing how any savings should be
leveraged, or how expenses could be reduced if they are exceeding your income.
We may also recommend an appropriate cash reserve that should be considered
for emergencies such as a loss of job, or an unexpected large repair, along with a
review and recommendation of bank accounts (including higher interest paying
money market funds) for these reserves, and strategies to meet these goals.
• Debt/Loan Management: We will provide advice on which loans to pay off first,
or possibly refinance, based on factors such as your credit score, interest rates,
maturity dates, and any income tax ramifications. MHWM believes that debt with
favorable low interest rates can at times be advantageous and leveraged to your
advantage. Together we will review all outstanding loans, including but not
limited to, credit cards, student loans, home mortgages, auto loans, and personal
loans, and then create a prioritized debt management plan best suited for your
situation.
• Investment Analysis: We will review your current portfolio, developing an asset
allocation strategy that aligns with your financial goals and risk tolerance,
providing information and strategies on investing in stocks, bonds and mutual
funds, reviewing employee retirement plans and equity compensation plans, as
well as assisting you in establishing your own investment account at a selected
broker/dealer or custodian. The strategies and types of investments we may
recommend are further discussed in Item 8 of this brochure.
• Employee Benefits Optimization: We will provide a review and analysis as to
whether you, as an employee, are taking maximum advantage of the employee
benefits offered to you by your employer. If you are a business owner, we will
consider and/or recommend the various benefit programs that can be structured
to meet both business and personal retirement goals.
• Executive Compensation Review: We will help with reviewing your total
compensation package, including but not limited to; base salary, bonus incentives,
retirement plan benefits, deferred compensation arrangements, equity
compensation plans (e.g., stock options, restricted stock programs), employment
agreements and severance arrangements, health/dental/short-term/long-term
disability insurances, paid time off, HSA/FSA options, as well as
discussing/recommending salary negotiation options, strategies and techniques.
• Financial Goals: We will help you identify specific financial goals and develop
plans to attain each of them. Goals could include, but are not limited to, saving for
a down payment for a home, paying off student debt, buying a new car, funding
a child’s education, saving for an upcoming vacation, making charitable
contributions, or long-term wealth accumulation. We will identify what you wish
to accomplish, create a budget/plan for each goal, determine how much to fund
the plan and how often, and then track your progress and adjust accordingly if
anything may change the timing, need or desire to achieve each goal.
• College Savings: We will provide analysis projecting the amount of funding that
will be needed to pay for a child’s public/private college or post-secondary
education. Recommendations as to tax advantages savings plans and investing
strategies are included, and, if needed, we will review your financial picture as it
relates to eligibility for financial aid and/or the best way to contribute to a
grandchild’s education (if appropriate).
• Insurance Review: We will review existing policies to ensure proper coverage for
life, health, disability, liability,
home, and automobile, as well as an
analysis/recommendation for any savings opportunities. Existing life insurance
policies will be reviewed to evaluate cash value and policy performance relative
to benchmark, as well as interpretation of the life insurer’s illustrated projections.
If your policy is not performing in line with expectations, advice may be given
regarding strategies (such as increasing the premium, extending the payment
duration, or reducing the death benefit.
• Retirement Planning: MHWM’s retirement planning services typically include
projections of the likelihood that you will have enough money to comfortably
retire at a desired age. For situations where projections show less than optimal
results, we may make recommendations that present improved possible outcomes
by adjusting certain variables (i.e., working longer, saving more, spending less,
taking more risk with investments). If you are near retirement or already retired,
advice may be given on appropriate investment and distribution strategies to
minimize the likelihood of running out of money or having to adversely alter
spending during your retirement years.
• Tax Planning Strategies: MHWM’s advice may include ways to minimize your
current and future income taxes as a part of your overall financial planning
strategy. For example, we may make recommendations on which type of
account(s) or specific investments to be owned based in part on their “tax
efficiency,” or “tax deferred status,” with consideration that there is always a
possibility of future changes to federal, state and local tax laws and rates that may
impact your situation.
We recommend that you consult with a qualified tax professional before initiating
any tax planning strategy, and we may provide you with contact information for
accountants or attorneys who specialize in this area if you wish to hire someone
for such purposes. From time-to-time, we will participate in meetings or phone
calls between you and your tax professional with your approval or request.
• Estate Planning: We will help you with reviewing elements of your estate plan,
which typically includes an analysis of your exposure to estate taxes and
establishing or reviewing your current estate plan, which may include whether
you have a will, designated beneficiaries on your accounts, powers of attorney,
trusts and other related documents/plans. Our advice also may include ways for
you to minimize, or avoid, estate taxes through implementing appropriate estate
planning strategies, such as the use of applicable trusts.
We always recommend that you consult with a qualified attorney when you
initiate, update, or complete estate planning activities. We may provide you with
contact information for attorneys who specialize in estate planning when you wish
to hire an attorney for such purposes. From time-to-time, we will participate in
meetings or phone calls between you and your attorney with your approval or
request.
Clients have full discretion whether to implement the financial plan prepared by MHWM.
Clients who elect to engage MHWM to initiate the financial plan and have investable
assets of $250,000 or more, the comprehensive financial planning fee will be waived. See
Item 5A&B for all fees.
Project Consulting Services
Consulting services are intended to serve as a periodic process to review and inform a
client regarding specific issues or concerns regarding the client’s existing investment
account or financial planning needs. Our consulting services will include, but not be
limited to, a consultation with the client to discuss the client’s financial goals and
objectives, discuss recommendations such as an investment portfolio, retirement needs,
taxes, insurance needs, estate planning, business planning, executive compensation
arrangements and other relevant topics with the client.
MHWM may direct clients to third-party investment advisers to manage all or a portion
of the client's assets. Before selecting other advisers for clients, MHWM will always ensure
those other advisers are properly licensed or registered as an investment adviser. MHWM
conducts due diligence on any third-party investment adviser, which may involve one or
more of the following: phone calls, meetings and review of the third-party adviser's
performance and investment strategy. MHWM then makes investments with a third-
party investment adviser by referring the client to the third-party adviser. MHWM may
also allocate among one or more private equity funds or private equity fund advisers.
MHWM will review the ongoing performance of the third-party adviser as a portion of
the client's portfolio.
Educational Seminars
MHWM offers educational seminars on occasion to help educate young professionals on
the basics of financial planning including how to pay off student debt, insure their
interests and how to save for retirement. These seminars may result in new business for
MHWM but is not a requirement for attendance. Attendees are in no way required to
implement a financial plan through any representative of MHWM. Insurance products
may be introduced at these educational sessions as part of a comprehensive financial and
life plan for those in attendance. Educational materials will have proper disclosures
required by all regulated industries. (See Item 10 (C) for other conflicts of interests in
commissionable sales).
MHWM does not charge fees for these seminars.
Services Limited to Specific Types of Investments
MHWM generally limits its investment advice to mutual funds, fixed income securities,
real estate funds, insurance products including annuities, equities, private equity funds,
ETFs (including ETFs in the gold and precious metal sectors), treasury inflation
protected/inflation linked bonds and private placements, although MHWM primarily
recommends registered investment companies. MHWM may use other securities as well
to help diversify a portfolio when applicable.
C. Client Tailored Services and Client Imposed Restrictions
MHWM will tailor a program for each individual client. This will include an interview
session to get to know the client’s specific needs and requirements as well as a plan that
will be executed by MHWM on behalf of the client. MHWM may use model allocations
together with a specific set of recommendations for each client based on their personal
restrictions, needs, and targets. Clients may impose restrictions in investing in certain
securities or types of securities in accordance with their values or beliefs. However, if the
restrictions prevent MHWM from properly servicing the client account, or if the
restrictions would require MHWM to deviate from its standard suite of services, MHWM
reserves the right to end the relationship.
MHWM takes into consideration clients' age, income, tax bracket, financial profile, and
any additional information the client may provide that would impact the firm's
recommendation to the client.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and other administrative
fees. MHWM does not participate in any wrap fee programs.
E. Assets Under Management
MHWM has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$ 518,912,956.00 $ 44,918,226.00 December 31, 2023