A. Firm Information
StoneCrest Wealth Management, Inc. (“StoneCrest” or the “Advisor”) is a registered investment advisor with the
U.S. Securities and Exchange Commission (“SEC”). The Advisor is organized as a Corporation under the laws of
the State of Arizona. StoneCrest was founded in May 1987 and became a registered investment advisor in
December 2020. StoneCrest is owned by K. Casey Mahan (President, Managing Principal, and Chief Compliance
Officer).
This Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory
services provided by StoneCrest. For information regarding this Disclosure Brochure, please contact Mr. Mahan at
(602) 258-9400.
B. Advisory Services Offered
StoneCrest offers investment advisory services to individuals, high net worth individuals, trusts, estates, small
businesses, and retirement plans (each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. StoneCrest's fiduciary commitment is further described in the Advisor’s Code of Ethics. For
more information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in
Client Transactions and Personal Trading.
Wealth Management Services
StoneCrest provides customized investment advisory solutions for its Clients. This is achieved through continuous
personal Client contact and interaction while providing discretionary investment management and related advisory
services. StoneCrest works closely with each Client to identify their investment goals and objectives as well as risk
tolerance and financial situation in order to create a portfolio strategy. StoneCrest will then construct an investment
portfolio, consisting primarily of exchange-traded funds (“ETFs”) and mutual funds to achieve the Client’s
investment goals. The Advisor may also utilize individual stocks, individual bonds and/or other types of
investments, as appropriate, to meet the needs of the Client. The Advisor may retain certain legacy investments
based on portfolio fit and/or tax considerations.
StoneCrest’s investment strategies are primarily long-term focused, but the Advisor may buy, sell or re-allocate
positions that have been held for less than one year to meet the objectives of the Client or due to market
conditions. StoneCrest will construct, implement and monitor the portfolio to ensure it meets the goals, objectives,
circumstances, and risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable
restrictions on the types of investments to be held in their respective portfolio, subject to acceptance by the Advisor.
StoneCrest evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. StoneCrest may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. StoneCrest may recommend specific positions to increase sector or asset class weightings. The Advisor
may recommend employing cash positions as a possible hedge against market movement. StoneCrest may
recommend selling positions for reasons that include, but are not limited to, harvesting capital gains or losses,
business or sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the
position[s] in the portfolio, change in risk tolerance of the Client, generating cash to meet Client needs, or any risk
deemed unacceptable for the Client’s risk tolerance.
Retirement Accounts – When the Advisor provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), the Advisor 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. When deemed to be in the Client’s best interest, the Advisor will
provide investment advice to a Client regarding a distribution from an ERISA retirement account or to roll over the
assets to an IRA, or recommend a similar transaction including rollovers from one ERISA sponsored Plan to
another, one IRA to another IRA, or from one type of account to another account (e.g. commission-based account
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to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a new (or
increase its current) advisory fee as a result of the transaction. No client is under any obligation to roll over a
retirement account to an account managed by the Advisor.
At no time will StoneCrest accept or maintain custody of a Client’s funds or securities, except for the limited
authority as outlined in Item 15 – Custody. All Client assets will be managed within the designated account[s] at the
Custodian, pursuant to the terms of the advisory agreement. Please see Item 12 – Brokerage Practices.
Participant Account Management: As part of the Advisor’s Wealth Management Services, when appropriate, the
Advisor will 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.
Financial Planning Services
StoneCrest will typically provide a variety of financial planning and consulting services to Clients. Financial planning
services may be included with the Advisor’s investment advisory services as fee or engaged separately through a
written financial planning agreement. Services are offered in several areas of a Client’s financial situation,
depending on their goals and objectives. Generally, such financial planning services involve preparing a formal
financial plan or rendering a specific financial consultation based on the Client’s financial goals and objectives. This
planning or consulting may encompass one or more areas of need, including but not limited to, investment
planning, retirement planning, personal savings, education savings, insurance needs, and/or other areas of a
Client’s financial situation.
A financial plan developed for, or financial consultation rendered to the Client will usually include general
recommendations for a course of activity or specific actions to be taken by the Client. For example,
recommendations may be made that the Client start or revise their investment programs, commence or alter
retirement savings, establish education savings and/or charitable giving programs.
StoneCrest may also refer Clients to an accountant, attorney or other specialists, as appropriate for their unique
situation. For certain financial planning engagements, the Advisor will provide a written summary of the Client’s
financial situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may
not provide a written summary. Plans or consultations are typically completed within six (6) months of contract date,
assuming all information and documents requested are provided promptly.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor for
investment management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of advisory fees paid to the Advisor. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects to
act on any of the recommendations made by the Advisor, the Client is under no obligation to implement the
transaction through the Advisor.
Retirement Plan Advisory Services
StoneCrest provides retirement plan advisory services on behalf of the retirement plans (each a “Plan”) and the
company (the “Plan Sponsor”). The Advisor’s retirement plan advisory services are designed to assist the Plan
Sponsor in meeting its fiduciary obligations to the Plan. Each engagement is customized to the needs of the Plan
and Plan Sponsor. Services generally include:
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• Ongoing Investment Recommendation and Assistance
• ERISA 404(c) assistance
These services are provided by StoneCrest serving in the capacity as a fiduciary under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). In accordance with ERISA Section 408(b)(2), the Plan
Sponsor is provided with a written description of StoneCrest’s fiduciary status, the specific services to be rendered
and all direct and indirect compensation the Advisor reasonably expects under the engagement.
C. Client Account Management
Prior to engaging StoneCrest to provide investment advisory services, each Client is required to enter into one or
more agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor
and the Client. These services may include:
• Establishing an Investment Strategy – StoneCrest, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
• Asset Allocation – StoneCrest will develop a strategic asset allocation that is targeted to meet the
investment objectives, time horizon, financial situation and tolerance for risk for each Client.
• Portfolio Construction – StoneCrest will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
• Investment Management and Supervision – StoneCrest will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
StoneCrest does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by StoneCrest.
E. Assets Under Management
As of December 31, 2022, StoneCrest manages $193,805,951 in Client assets, $172,867,728 of which are
managed on a discretionary basis and $20,938,223 on a non-discretionary basis. Clients may request more current
information at any time by contacting the Advisor.