Form ADV Part 2A, Item 4
Henson-Edgewater Management, LLC’s is an investment adviser registered with the U.S. Securities and
Exchange Commission. David Allen Szafranski (CRD Number 2284626) is a Member. Mr. Szafranski owns
fifty (50%) percent of the equity of the firm. The other fifty (50%) percent of the firm’s equity is owned by Dan
Henson (CRD Number 497219). Drew Henson (CRD # 5913703) owes 25 % of the firm. The firm is not
publicly owned or traded. There are no indirect owners of the firm or intermediaries who have any ownership
interest in the firm. The firm manages all client cases on an individualized basis. As of March 5, 2024, we
manage $150,966,607 on a discretionary basis and $0.00 on a non-discretionary basis.
We are dedicated to our client's success no matter what their profession is. We utilize a five-phase process
called Life Planning. The process allows us to be an intricate part of our client's success. The process yields
information that will help us assist, evaluate, and create a platform for successful decision making by all parties
involved in the process.
Life Planning Process:
Day or half-day retreat
1. Detailed information gathering
2. Life planning questionnaires completed
3. We begin speaking about the three levels of goals
• Short-term, one to four years
• Intermediate term, five to nine years
• Long-term 10 years and longer
• Goal matching
Evaluation of Current Plan:
1. What have you done to this point?
2. Evaluate current investment strategy, saving strategy, estate planning strategy and all aspects therein.
Recommendations:
1. We will make detailed recommendations of our suggested strategies for the future.
2. All recommendations are provided in writing and are accompanied by supporting documents.
Implementation:
1. All paperwork is completed.
2. Schedule an update, and future meeting times are established.
3. Communication and account access is established.
Update on evaluation:
1. We will meet according to our predetermined meeting times to evaluate what has occurred.
2. We will update current files, trends, and goals.
3. Make the necessary changes and recommendations according to client needs.
Firm shall not engage in asset management activity, as 100% of professional service shall involve fee based
financial planning.
Emphasis shall be placed on charitable and philanthropic techniques. The fee shall be communicated to the
client and agreed to by the client prior to beginning work. A portion of the fee will be due as a retainer with the
balance due upon completion. No fee shall ever be paid more than six months in advance. All unearned or
unapplied fees will be refunded once by firm to client. No fee is ever based on capital gains or capital
appreciation of assets. The professional relationship may be terminated at will by either firm or client. Fees
may be reduced or eliminated, as permitted by law, to the extent that products are sold. All clients are advised
that they are not compelled to purchase any products through associated persons of firm.
Our fees are billed progressively and quoted per phase, based
on the various stages of planning.
1. Analysis - Current analysis of client's wills, trust, business agreements, financial statements,
partnerships, etc. Fee range: $3,000.
2. Family Retreat/Letter of Intent - Usually done with husband and wife to design a letter of intent
(mission statement) for the family. May entail other members of the immediate family. Completed in
written form, usually takes several months to complete the process. Fee range: $5,000 to $10,000
generally.
3. Design and Valuation: Design a business, financial, estate, and/or philanthropic plan based on the
input received in family retreat and the letter of intent. Fee range: $7,500 to $10,000.
4. Implementation: We will work hand in hand with the clients' professionals. We act as the financial
architect to oversee all phases of the plan. Implementation (blue print) may take up to one to three
years depending on the complexity of the clients' needs as well as other professionals' ability to
complete the work. Fee range: Billed progressively.
5. Periodic review: We stay with the planning process annually. Implementation often takes place over a
period of years. Fee range: $1,500 to $3,500.
We will not charge a fee and commission on the same assets at the same time.
Investment Management Services
We are also in the business of managing individually tailored investment portfolios. Our firm provides
continuous advice to a client regarding the investment of client funds based on the individual needs of the
client. Through personal discussions in which goals and objectives based on a client's particular circumstances
are established, we develop a client's personal investment policy or an investment plan with an asset allocation
target and create and manage a portfolio based on that policy and allocation target. During our data-gathering
process, we determine the client’s individual objectives, time horizons, risk tolerance, and liquidity needs. We
may also review and discuss a client’s prior investment history, as well as family composition and background.
Account supervision is guided by the stated objectives of the client (e.g., maximum capital appreciation,
growth, income, or growth and income), as well as tax considerations. Clients may impose reasonable
restrictions on investing in certain securities, types of securities, or industry sectors.
The annual wealth management fee is a flat fee of 1.50%, as agreed upon in the client contract. The annual fees
are negotiable and are pro-rated and paid in advance on a quarterly basis. No increase in the annual fee shall be
effective without agreement from the client by signing a new agreement or amendment to their current advisory
agreement.
Advisory fees are directly debited from client accounts, or the client may choose to pay by check. Accounts
initiated or terminated during a calendar quarter will be charged a pro-rated fee based on the amount of time
remaining in the billing period. An account may be terminated with written notice at least 30 calendar days in
advance. Upon termination of the account, any unearned fee will be refunded to the client on a prorated basis.
2B2B