Shield Wealth Advisors is an investment adviser registered with the United States Securities and
Exchange Commission (“SEC”) and is a limited liability company (LLC) formed under the laws of the State
of New York.
• John W. Haberstro is the Managing Member and 100% owner of Shield Wealth Advisors.
• Shield Wealth Advisors was approved as a registered investment adviser in July 2020.
Introduction
The investment advisory services of Shield Wealth Advisors are provided to you through an appropriately
licensed individual who is an investment adviser representative of Shield Wealth Advisors (referred to as
your investment adviser representative throughout this brochure).
Description of Advisory Services
The following are descriptions of the primary advisory services of Shield Wealth Advisors. Please
understand that a written agreement, which details the exact terms of the service, must be signed by you
and Shield Wealth Advisors before we can provide you the services described below.
Asset Management Services – Shield Wealth Advisors offers asset management services, which
involves Shield Wealth Advisors providing you with continuous and ongoing supervision over your
specified accounts.
You must appoint our firm as your investment adviser of record on specified accounts (collectively, the
“Account”). The Account consists only of separate account(s) held by qualified custodian(s) under your
name. The qualified custodians maintain physical custody of all funds and securities of the Account, and
you retain all rights of ownership (e.g., right to withdraw securities or cash, exercise or delegate proxy
voting and receive transaction confirmations) of the Account.
The Account is managed by us based on your financial situation, investment objectives and risk
tolerance. We actively monitor the Account and provide advice regarding buying, selling, reinvesting or
holding securities, cash or other investments of the Account.
We will need to obtain certain information from you to determine your financial situation and investment
objectives. You will be responsible for notifying us of any updates regarding your financial situation, risk
tolerance or investment objective and whether you wish to impose or modify existing investment
restrictions; however we will contact you at least annually to discuss any changes or updates regarding
your financial situation, risk tolerance or investment objectives. We are always reasonably available to
consult with you relative to the status of your Account. You have the ability to impose reasonable
restrictions on the management of your accounts, including the ability to instruct us not to purchase
certain securities.
It is important that you understand that we manage investments for other clients and may give them
advice or take actions for them or for our personal accounts that is different from the advice we provide to
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you or actions taken for you. We are not obligated to buy, sell or recommend to you any security or other
investment that we may buy, sell or recommend for any other clients or for our own accounts.
Conflicts may arise in the allocation of investment opportunities among accounts that we manage. We
strive to allocate investment opportunities believed to be appropriate for your account(s) and other
accounts advised by our firm among such accounts equitably and consistent with the best interests of all
accounts involved. However, there can be no assurance that a particular investment opportunity that
comes to our attention will be allocated in any particular manner. If we obtain material, non-public
information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no
obligation to disclose the information to any client or use it for any client’s benefit.
Sub Advisor Program - Shield Wealth Advisors also offers programs that allows Shield Wealth Advisors
to select third-party non-affiliated investment managers (“Sub Advisors”) to design and manage model
portfolios for your assets.
We will assist you in completing a client profile questionnaire and review the information you provide. We
will then select a Sub Advisors and corresponding model portfolio that aligns with your disclosed risk
tolerance and investment objectives. Currently we utilize the services of Hudson Capital Advisory, Inc. to
act in the capacity as the exclusive sub advisor for our client managed accounts. As a sub advisor
Hudson Capital Advisory, Inc. will require access to Shield Wealth’s client personal, financial and
investment portfolio information and has agreed to maintain mutual fund focus and buy lists, asset
allocations, participation in client meetings, and assistance in implementing firm trading activities.
These Sub Advisors follow certain parameters when building and managing a model portfolio the sub
advisor will be given discretionary authority to select the specific investments for your account based on
information and/or signals provided by the Sub Advisors; we will not have discretionary authority to select
any specific funds for your account under this program. The sub advisor will implement the model for
your account by acquiring the fund shares that are represented in the selected model portfolios. We will
be available to answer questions that you may have regarding your account and act as the
communication conduit between you and the Sub Advisors. We have the ability to hire and fire the Sub
Advisors as well as the ability to reallocate funds from or to the model portfolio managed by the Sub
Advisors and funds in other accounts over which you have granted us discretionary authority.
You should be aware that there may be other sub advisory programs not recommended by our firm, that
are suitable for you and that may be less costly than arrangements recommended by our firm. No
guarantees can be made that your financial goals or objectives will be achieved through the managed
account program or by a selected Sub Advisor. Further, no guarantees of performance can ever be
offered by our firm (Please refer to Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss
for more details.)
Co-Advisory Program – Shield Wealth Advisors also provides investment consulting services to clients
through a co-advisory arrangement (the “Co-Advisory Services”) with Hudson Capital Advisory, Inc., an
investment adviser registered with the SEC (“Hudson”). Shield Wealth Advisors and Hudson have
entered into a Co-Advisory Agreement that sets forth their respective responsibilities and obligations to
the client (“Joint Client”). Joint Clients will enter into a discretionary co-investment advisory agreement
(the “Co-Investment Advisory Agreement”) with Shield Wealth Advisors and Hudson. Pursuant to the Co-
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Investment Advisory Agreement, Shield Wealth Advisors and Hudson will have the following respective
responsibilities:
• Shield Wealth Advisors will be responsible for providing the Joint Client with the following
investment consulting services: (i) recommending to the Joint Client the qualified custodian/broker-
dealer (the “Custodian”) that will be used to provide custody of Joint Client assets and execute
trades in the Joint Client’s account(s); (ii) providing the Joint Client with administrative assistance
to (a) enter into the Co-Investment Advisory Agreement and (b) supply the Joint Client with all
custodial documentation required for opening and maintaining an account with the Custodian; (iii)
being responsible for executing trades in the Joint Client’s account(s); and (iv) charging, collecting
and distributing investment advisory fees collected pursuant to the Co-Investment Advisory
Agreement.
• Hudson will be responsible for providing the Joint Client with the following investment management
services: (i) preparing the Joint Client’s investment policy statement; (ii) recommending investment
strategies for the Joint Client’s account(s); (iii) providing discretionary investment management
services to the Joint Client’s account(s); (iv) providing advice on asset allocation within the Joint
Client’s account(s); (v) conducting periodic reviews of the Joint Client’s account(s); and (vi)
updating the Joint Client’s investment objectives and profiles as warranted but on no less than an
annual basis. Hudson will make and implement investment decisions without prior consultation with
the Joint Client or Shield Wealth Advisors, except for such restrictions as the Joint Client provides
to Hudson or Shield
Wealth Advisors in writing.
Retirement Plan Rollover Partial Lump Sum Distribution Recommendations
When Shield Wealth Advisors provides investment advice about your retirement plan account or
individual retirement account (“IRA”) including whether to maintain investments and/or proceeds in the
retirement plan account, roll over such investment/proceeds from the retirement plan account to a IRA or
make a distribution from the retirement plan account, we acknowledge that Shield Wealth Advisors is a
“fiduciary” within the meaning of Title I of the Employee Retirement Income Security Act (“ERISA”)
and/or the Internal Revenue Code (“IRC”) as applicable, which are laws governing retirement accounts.
The way Shield Wealth Advisors makes money creates conflicts with your interests so Shield Wealth
Advisors operates under a special rule that requires Shield Wealth Advisors to act in your best interest
and not put our interest ahead of you.
Under this special rule’s provisions, Shield Wealth Advisors must as a fiduciary to a retirement plan
account or IRA under ERISA/IRC:
• Meet a professional standard of care when making investment recommendations (e.g., give
prudent advice);
• Never put the financial interests of Shield Wealth Advisors ahead of you when making
recommendations (e.g., give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that Shield Wealth Advisors gives advice that
is in your best interest;
• Charge no more than is reasonable for the services of Shield Wealth Advisors; and
• Give Client basic information about conflicts of interest.
To the extent We recommend you roll over your account from a current retirement plan account to an
individual retirement account managed by Shield Wealth Advisors, please know that Shield Wealth
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Advisors and our investment adviser representatives have a conflict of interest.
We can earn increased investment advisory fees by recommending that you roll over your account at the
retirement plan to an IRA managed by Shield Wealth Advisors. We will earn fewer investment advisory
fees if you do not roll over the funds in the retirement plan to an IRA managed by Shield Wealth
Advisors.
Thus, our investment adviser representatives have an economic incentive to recommend a rollover of
funds from a retirement plan to an IRA which is a conflict of interest because our recommendation that
you open an IRA account to be managed by our firm can be based on our economic incentive and not
based exclusively on whether or not moving the IRA to our management program is in your overall best
interest.
We have taken steps to manage this conflict of interest. We have adopted an impartial conduct standard
whereby our investment adviser representatives will (i) provide investment advice to a retirement plan
participant regarding a rollover of funds from the retirement plan in accordance with the fiduciary status
described below, (ii) not recommend investments which result in Shield Wealth Advisors receiving
unreasonable compensation related to the rollover of funds from the retirement plan to an IRA, and (iii)
fully disclose compensation received by Shield Wealth Advisors and our supervised persons and any
material conflicts of interest related to recommending the rollover of funds from the retirement plan to an
IRA and refrain from making any materially misleading statements regarding such rollover.
When providing advice to you regarding a retirement plan account or IRA, our investment advisor
representatives will act with the care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims, based on the investment objectives, risk,
tolerance, financial circumstances, and a client’s needs, without regard to the financial or other interests
of Shield Wealth Advisors or our affiliated personnel.
Financial Planning & Consulting Services - Shield Wealth Advisors offers financial planning services,
which involve preparing a written financial plan covering specific or multiple topics. We provide full written
financial plans, which typically address the following topics: Investment Planning, Retirement Planning,
Portfolios Review, Asset Allocation, Risk management, and Estate Planning. When providing financial
planning and consulting services, the role of your investment adviser representative is to find ways to help
you understand your overall financial situation and help you set financial objectives. Written financial
plans prepared by us do not include specific recommendations of individual securities.
We also offer consultations in order to discuss financial planning issues when you do not need a written
financial plan. We offer a one-time consultation, which covers mutually agreed upon areas of concern
related to investments or financial planning. We also offer “as-needed” consultations, which are limited
to consultations in response to a particular investment or financial planning issue raised or request made
by you. Under an “as-needed” consultation, it will be incumbent upon you to identify those particular
issues for which you are seeking our advice or consultation on.
Our financial planning and consulting services do not involve implementing any transaction on your behalf
or the active and ongoing monitoring or management of your investments or accounts. You have the sole
responsibility for determining whether to implement our financial planning and consulting
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recommendations. To the extent that you would like to implement any of our investment
recommendations through Shield Wealth Advisors or retain Shield Wealth Advisors to actively monitor
and manage your investments, you must execute a separate written agreement with Shield Wealth
Advisors for our asset management services.
Limits Advice to Certain Types of Investments
Shield Wealth Advisors provides investment advice on the following types of investments:
• Mutual Funds
• Exchange Traded Funds (ETFs)
• Exchange-listed Securities
• Foreign Issues
• Corporate Debt Securities
• Commercial Paper
• Certificates of Deposit
• Municipal Securities
• Options contracts on securities
• Real Estate Investment Trusts (REITS)
• US Government Securities
Although we generally provide advice only on the products previously listed, we reserve the right to offer
advice on any investment product that may be suitable for each client’s specific circumstances, needs,
goals and objectives.
It is not our typical investment strategy to attempt to time the market, but we may increase cash holdings
as deemed appropriate based on your risk tolerance and our expectations of market behavior. We may
modify our investment strategy to accommodate special situations such as low basis stock, stock options,
legacy holdings, inheritances, closely held businesses, collectibles, or special tax situations.
(Please refer to Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss for more
information.)
Tailor Advisory Services to Individual Needs of Clients
Shield Wealth Advisors’ advisory services are always provided based on your individual needs. This
means, for example, that when we provide asset management services, you are given the ability to
impose restrictions on the accounts we manage for you, including specific investment selections and
sectors. We work with you on a one-on-one basis through interviews and questionnaires to determine
your investment objectives and suitability information. Our financial planning and consulting services are
always provided based on your individual needs. When providing financial planning and consulting
services, we work with you on a one-on-one basis through interviews and questionnaires to determine
your investment objectives and suitability information.
We will not enter into an investment adviser relationship with a prospective client whose investment
objectives may be considered incompatible with our investment philosophy or strategies or where the
prospective client seeks to impose unduly restrictive investment guidelines.
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Client Assets Managed by Shield Wealth Advisors
As of December 31, 2022, Shield Wealth manages $45,688,569.00 in total assets, all on a discretionary
basis.