A. Description of the Firm
1. Formation
Conscious Capital Wealth Management, LLC (Conscious Capital or the Firm) is a limited
liability company that was formed in July 2013 in the state of Connecticut. Conscious
Capital became registered as an investment adviser in the state of Connecticut in June
2015 and will become registered or licensed in any other states in which the Firm’s
activities require it to be so registered or licensed.
2. Ownership
Conscious Capital is wholly-owned by Lawrence W. Ford, who serves as the Chief
Executive Officer and Managing Member. The Firm is the successor to the business Mr.
Ford previously conducted through Ford Financial Group, a firm also wholly-owned by Mr.
Ford and through which he originally conducted his insurance business and subsequently,
his advisory business.
B. Advisory Services
1. Types of Services
a. Financial Planning: Living Plan Services
In connection with providing financial plans (called Living Plans by the Firm), Clients are
advised that:
- a conflict exists between the interests of Conscious Capital and the
interests of the Client, where Conscious Capital may benefit from the
recommendations and the purchase by the Client of the recommended
investments through Conscious Capital;
- the Client is under no obligation to act upon the recommendation
of Conscious Capital, and
- if the Client elects to act on any of the recommendations, the Client always
has the right to decide whether to act on the recommendation and if they
do act to execute transactions through Investment Adviser
Representatives of Conscious Capital who may be duly qualified to execute
those transactions. Conscious Capital will include the above statements in all
advisory agreements for financial plans executed with California clients.
Standard Living Plan
The Firm prepares a standard Living Plan after collecting and based on the
above information. The Living Plan includes a three-step process called:
Connect, Dream, Empower. The Client’s Investment Adviser Representative
works individually with the Client to develop a Living Plan that not only
addresses the Client’s financial needs, goals and objectives, but also seeks to
incorporate the Client’s personal goals with attention to the Client’s financial
assets, use of capital, goals, objectives and risk tolerance, and values.
The Firm uses the third-party software eMoney (a Fidelity company,
www.emoneyadvisor.com), which is called a Living Plan. The Firm uses
eMoney to develop the plan itself but adapted by the proprietary process and
input from the Client. The Living Plan includes a recommended allocation of
assets among asset classes and recommendations as to amounts to invest to
meet any specific goals of the Client, and to align their investment with their
personal values, if so desired. The plan also addresses the Client’s risk
tolerance and any specific investment directives from the Client as well as the
option to consolidate and store critical documents in the vault (an option of
the eMoney service). The Living Plan is part of the Firm’s entire process, but
the client has the option of declining this service and only having their assets
managed.
With the Client’s written consent, the Firm may include the Client’s
unaffiliated professionals, such as insurance agents, accountants and/or
attorneys, in the development and implementation of the Living Plan for the
Client.
Advanced Living Plan-Live WholeTM
An advanced Living Plan provides the standard Living Plan services as
described above upon the request of the Client. The Firm first develops
the standard Living Plan. A comprehensive advanced Living Plan is then
developed specifically for the Client, when requested, based on the level
of complexity of the Client’s needs. Generally only used with clients that
have a significantly more complex situation than would otherwise be
addressed in a standard living plan. For example, this would be the case in
the event of a sale of a business.
b. Portfolio Management
The Firm oversees the investment of Client assets through the following, all of
which the Firm considers Portfolio Management Services:
(1) Model Portfolios managed by others/Selection of
Investment Advisers
Each Model Portfolio is managed by an unaffiliated investment adviser
using differing investment strategies, offering different levels of risk,
providing different investment goals and having varied past performance.
Conscious Capital selects one or more Model Portfolios for each Client
individually, selecting those that Conscious Capital believes best meet the
financial situation and investment goals of the Client as developed through
a Living Plan. As part of the selection of Model Portfolios, in addition to
reviewing each Model Portfolio, Conscious Capital conducts a due diligence
review of the adviser of the Model Portfolio and selects advisers based on
its review of factors such as lack of disciplinary concerns, amount of fees
charged, amount of time in the business, past performance and reputation
of the adviser.
(2) Model Portfolios managed by Conscious Capital
Conscious Capital offers management of Client assets by investing directly
in various types of securities, including mutual funds, equities and fixed
income securities. In selecting all securities, Conscious Capital conducts
research on the security. In selecting mutual funds, Conscious Capital looks
at the same factors as it does for the selection of Model Portfolios managed
by third party advisers. Conscious Capital also conducts a due diligence
review of the adviser of the mutual funds in the same manner as it reviews
the adviser of Model Portfolios and selects the funds based on its review
of both the fund and the adviser of the fund.
c. Financial Consulting Services
The Firm also offers consulting services to Clients relating to other matters, such as:
- the specific needs or requests of a Client, such as estate planning or
retirement planning,
- general information on investing, such as information about different types
of securities or strategies, the markets, asset allocation or economic trends;
- non-securities advice on a variety of topics including insurance; or
- any other financial matter on which the Firm reasonably believes it is
qualified to provide advice or counsel.
For planning clients that do not include clients that we do asset management for,
Conscious Capital occasionally provides general financial consulting. Such as
providing asset allocation and general investment advice on assets not
under
management at Conscious Capital. When necessary, the Firm refers specific issues
to other consultants with experience in the matters on which the Client requests
advice. Consulting services are separate from the asset management services the
Firm offers.
d. Seminars and Workshops
Conscious Capital occasionally offers seminars or workshops on financial or life
value topics. These events are non-product specific and may address various
financial planning strategies and/or various ways to optimize one’s physical,
mental, and spiritual well-being.
e. Newsletters/ Market Letters
The Firm distributes monthly newsletters/market letters through automated
newsletter services, and content they develop on their own or collaborate with
various third party providers and/or subadvisors to Clients that include articles
about the industry, the markets, the Firm and other matters that Conscious
Capital believes would be of interest to Clients.
f. Insurance Services
The Firm and some of its Investment Adviser Representatives are licensed to
recommend Life, Health, and fixed annuity policies, when appropriate.
Investment Adviser Representatives may provide advice about insurance in
connection with developing a Living Plan for Firm Clients. This insurance
activity creates conflicts of interest, please see Item 5 insurance commissions.
g. Participant Account Management (Discretionary) - Pontera
We use a third party platform to facilitate management of held away assets
such as defined contribution plan participant accounts, with discretion. The
platform allows us to avoid being considered to have custody of Client funds
since we do not have direct access to Client log-in credentials to affect trades.
We are not affiliated with the platform in any way and receive no
compensation from them for using their platform. A link will be provided to the
Client allowing them to connect an account(s) to the platform. Once Client
account(s) is connected to the platform, Adviser will review the current
account allocations. When deemed necessary, Adviser will rebalance the
account considering client investment goals and risk tolerance, and any change
in allocations will consider current economic and market trends. The goal is to
improve account performance over time, minimize loss during difficult
markets, and manage internal fees that harm account performance. Client
account(s) will be reviewed at least quarterly and allocation changes will be
made as deemed necessary
2. Implementation of Advice
To implement its advice or Living Plans, the Firm, through its Investment Adviser
Representatives, discusses various alternatives with the Client. Specific investments are
based on the terms of any the Living Plan if applicable, any specific directives of the Client
and any identified needs, objectives, risk tolerance and goals of the Client. Specific
investments also depend on the amount of assets the individual has available to invest.
The Firm currently usually recommends investing using one or more of the following:
- Model Portfolios structured and managed by independent asset managers;
- Model Portfolios structured and managed by Conscious Capital;
- Direct investments in securities and alternative assets such as crypto.
Written Acknowledgement of Fiduciary Status
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.
C. Tailoring Services to Needs of Clients
The Firm provides all advice to its Clients on an individual basis, using the information it obtains about
each Client. Client first retains the services of Conscious Capital. The Firm develops its
recommendations for each Client individually, based on the information it obtains initially, through
development of a personal Living Plan and then incorporating specific requests as well as the Client’s
values and personal goals into the investment strategy. When providing portfolio management
services, the Firm works with the Client to determine how the Client’s assets should be allocated and
which Model Portfolio the Firm recommends for the Client from time to time. The Firm adapts its
recommendations of Model Portfolios and asset allocation to the Client as the needs of the Client
change over time, taking into consideration such matters as the birth of children, caring for elderly
parents, saving for college costs, expected retirement age and goals, changing health needs, changes
in risk tolerance and changing needs for liquidity. The Firm requires that individual Investment Adviser
Representatives update each Client’s financial status and needs regularly, but at least every two years.
The Firm also requires that the Investment Adviser Representative reevaluate the investment plan for
the Clients whenever any material part of the Client’s financial profile changes. Clients may impose
restrictions in investing in certain securities or types of securities in accordance with their values or
beliefs, which restrictions will be documented in the Investment Policy Statement.
D. Wrap Fee Programs
The Firm does not offer wrap fee programs; however, some of the Model Portfolios managed by other
investment advisers and used by the Firm to implement Client Living Plans may charge those Clients
wrap fees. Under a Wrap Fee program, Clients pay a single fee for advisory, brokerage and custodial
services. That fee would be in addition to the fees charged by Conscious Capital.
E. Assets under Management
As of December 2023, Conscious Capital manages approximately $116,649,124 in discretionary and $0
in non-discretionary assets under management. Discretion means that Conscious Capital can direct the
implementation of its advice without first obtaining the consent of the Client.