A. Description of the Advisory Firm
Crown Wealth Group LLC (hereinafter “CWG”) is a Limited Liability Company organized
in the State of North Carolina. The firm was formed in April 2018 and has been approved
as an independent Registered Investment Advisory firm since January 2019. The principal
owners are Nicholas Kolbenschlag, Tyler Kolbenschlag and Steven Lindgren.
B. Types of Advisory Services
Portfolio Management Services
CWG offers discretionary and non- discretionary ongoing portfolio management services
based on the individual goals, objectives, time horizon, and risk tolerance of each client.
CWG creates an Investment Policy Statement for each client, which outlines the client’s
current situation (income, tax levels, and risk tolerance levels) and then constructs a plan
to aid in the selection of a portfolio that matches each client's specific situation. Portfolio
management services include, but are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
CWG evaluates the current investments of each client with respect to their risk tolerance
levels and time horizon. Risk tolerance levels are documented in the Investment Policy
Statement, which is given to each client.
CWG seeks to provide that investment decisions are made in accordance with the
fiduciary duties owed to its accounts and without consideration of CWG’s economic,
investment or other financial interests. To meet its fiduciary obligations, CWG attempts
to avoid, among other things, investment or trading practices that systematically
advantage or disadvantage certain client portfolios, and accordingly, CWG’s policy is to
seek fair and equitable allocation of investment opportunities/transactions among its
clients to avoid favoring one client over another over time. It is CWG’s policy to allocate
investment opportunities and transactions it identifies as being appropriate and prudent
among its clients on a fair and equitable basis over time.
Selection of Other Advisers
CWG may direct clients to third-party investment advisers. Before selecting other advisers
for clients, CWG will verify that all recommended advisers are properly licensed, notice
filed, or exempt in the states where CWG is recommending the adviser to clients.
On-going Financial Planning/ Personal CFO (“Chief Financial Officer”)
Services
CWG provides On-going Financial Planning/ Personal CFO Services to clients. The
Financial Planning/ Personal CFO Services will include creating a financial plan and the
on-going monitoring of the plan progress along with factors described below. These
services may include but are not limited to:
Goals-Based Planning & Investing
We believe that each of your goals should be approached independently when it comes
to building an investment plan and allocating resources to that plan. As we continue to
grow your wealth, we will benchmark the performance of each pool of dollars against the
actual goal. This allows us to demonstrate to you how the growth is having a material
impact on your life plan. Our Investment Committee has the experience needed to
navigate all markets and ensure your portfolio goals are met.
Generational Wealth Planning
As your family and wealth grow, it’s important that everyone be on the same page with
how that wealth will transition over time, both during your lifetime and after you have
passed. We have set up family advisory boards to educate the next generation and to get
the entire family involved in the decision-making process. We work with you to set your
family's Mission Statement and the "why" of your wealth. Having a clear strategy for the
family's wealth and a platform for communicating regularly can set up success for many
generations to come.
Real Estate
An area of advice that is typically siloed outside of the wealth management industry is
the management of real estate assets within an overall portfolio. With real estate playing
an integral part of most family wealth pictures, Tyler Kolbenschlag, through his affiliation
with Berkshire Hathaway HomeServices Carolinas Realty, is able to represent our clients
in the acquisition and sale of their primary homes, vacation properties, and investment
holdings.
Lifestyle Services
There are many transactions in life that require careful planning and detailed follow
through to ensure you are making the right decision and that all the important pieces
come together. We quarterback the process from start to finish for major purchases like
boats, cars, homes, and life's other fun toys. Other concierge services include travel
planning, club memberships, and entertainment experiences, just to name a few.
Wealth Transfer
Unfortunately, life can be unpredictable and we want to always be prepared for any
situation that may arise. Our team of advisors will build and implement a wealth transfer
strategy that ensures what you’ve built moves smoothly to the next generation or
generations. We do this in the most tax efficient way possible to ensure you’re making the
greatest impact. This includes properly written Wills, Trusts, and Powers of Attorney,
followed by ensuring your account beneficiaries match those decisions. For business
owners, this can include long-term succession planning often accompanied by Buy/Sell
Agreements, at times, funded by Key-Man life insurance.
Organize & Simply Your Financial Life
Utilizing our industry leading technology, we are able to aggregate all of your assets,
liabilities, income, and expenses in one place, in real time. We then organize and keep up-
to-date your most important documents in your digital vault so you never have to search
for that crucial piece of paper again.
Executive Compensation Planning
Stock option and equity award plans offer a tremendous opportunity to create additional
wealth that, if properly utilized, can speed you to your life/wealth goals. Our team first
educates you on your plan specifics, then builds an on-going strategy to ensure you're
maximizing the benefit you receive, all while being cautious of the potential tax
consequences. We proactively reach out to you when a vesting occurs providing details,
recommendations, and an execution plan.
Business Strategy/Mergers and Acquisitions
A key strength of our team is bringing together your business and personal life into one
congruent picture. We understand that owning and running a business may be your key
wealth creation strategy, like it is ours, and our team can
help you take full advantage of
the opportunity that it presents.
We can help you take your business full cycle, from start-up to exit, all while incorporating
it into your family’s life plan. When ready to make your exit or transition, we ensure our
clients recognize the full value of their business while implementing a proper tax strategy
to keep more of what you make. Our team has run point on a growing number of business
acquisitions to include coordinating contract negotiation, legal, tax, lending, accounting,
and operational transition.
Cash Flow Analysis
Utilizing that same technology, we are able to identify where your dollars are being
utilized and determine the most effective way to prioritize spending vs. saving. Through
our systematized review process, we will collaboratively create the discipline needed to
achieve your most important life goals.
Tax Planning
It’s not about what you make, it’s about what you keep. Our team works with your CPA,
or ours, to build a plan before the year starts to ensure we are executing for 365 days every
year, minimizing your taxes to the largest degree possible. There are many advanced
strategies that can be implemented to lower your tax bill and put more dollars in your
pocket and/or into your investments.
Risk Management
Growing your wealth is a priority, but protecting and preserving that wealth is equally as
important. Our team will analyze multiple areas of risk to ensure you have the proper
coverage and/or asset protection structures in place. This includes advice on life,
disability, health, personal lines and various specialty insurance policies, as well as asset
protection strategies through property entity structuring.
Strategic Giving Strategies
Most families don't have a dedicated strategy for making charitable contributions, and
simply donate cash when asked or are feeling compelled to help. By creating a strategic
gifting strategy, the impact of your dollars can be compounded greatly. While cash is a
good option, donating highly appreciated, non-cash assets like stock or private business
interests can save you even more on taxes, and provide additional dollars for you to save,
invest, or donate. Our team can show you how to properly utilize a Donor Advised Fund,
set up an Employee Assistance or Scholarship Program, and even donate a portion of your
business before you exit, which in return creates massive tax savings and significant
giving impact
Financial Planning
Financial plans and financial planning may include, but are not limited to: cash flow
planning, tax planning, debt/ credit planning, retirement planning, college planning,
investment planning; insurance planning; and estate planning.
As part of the financial planning process, CWG will have a discovery call with client
which generally can range from 60 to 120 minutes. The client then provides CWG with
their documentation and the assessment build generally takes CWG’s team 2 to 3 weeks.
The assessment delivery generally takes 120 to 180 minutes to complete. CWG meets
clients every 3 to 6 months to provide a comprehensive review of the actions completed,
the actions that remain outstanding and to check back in on the client’s major goals as a
part of regularly updating the plan.
For financial planning clients that choose not to execute the recommendations with CWG,
clients can request a financial plan update. A new fee will be charged to the client for an
updated plan. The cost of the updated plan is the same as a new financial plan.
Services Limited to Specific Types of Investments
CWG generally limits its investment advice to ETFs, mutual funds, individual equities,
fixed income securities, options trading, alternative investments and insurance products
including annuities, although CWG primarily recommends low cost, fully diversified ETF
and mutual fund portfolios. CWG may use other securities as well to help diversify a
portfolio when applicable.
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. Client Tailored Services and Client Imposed Restrictions
CWG will tailor a program for each individual client. This will include a discovery session
to get to know the client’s specific needs and requirements as well as a plan that will be
executed by CWG on behalf of the client. CWG’s investment philosophy is built around
goals-based investing. Each client goal is separately analyzed to determine the funding
need, return need, appropriate risk level and investment time horizon. The asset
allocation is determined by these factors. The portfolio holdings are then customized in
this framework. CWG 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 CWG from
properly servicing the client account, or if the restrictions would require CWG to deviate
from its standard suite of services, CWG reserves the right to end the relationship.
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, and certain other administrative fees. CWG
does not participate in wrap fee programs.
E. Assets Under Management
CWG has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$257,221,862 $0.00 December 2023