Shapiro Financial Security Group, Inc. believes its most important job is to help clients efficiently manage
their financial situation, and to work with them in an effort to avoid unnecessary investment mistakes. The
firm focuses on balancing the client’s emotional concerns, with their need to satisfy targeted financial
objectives. Founded by its President, Kenneth B. Shapiro, the firm has been in business since 1982.
The firm registered as an investment advisor with New Jersey in 1988 and transitioned to registration with
the SEC in March 2021 from registration with the State of New Jersey.
The firm provides financial planning, consulting and investment management services to its clients. Prior to
engaging Shapiro Financial to provide any of the foregoing investment advisory services, the client is
required to enter into one or more written agreements with Shapiro Financial setting forth the terms and
conditions under which Shapiro Financial renders its services (collectively the “Agreement”). Shapiro
Financial also offers periodic educational seminars/workshops, at no charge, to its clients as part of the
ongoing investment advisory service. Additional educational seminars are done ad hoc and compensation
for such programs, if any, is determined on an ad hoc basis with the event sponsor on a flat fee basis.
Shapiro Financial does not participate in wrap fee programs.
Shapiro Financial has approximately $122,209,000.00 of assets under management as of December 31,
2023, all of which were managed on a discretionary and a non-discretionary basis.
This Disclosure Brochure describes the business of Shapiro Financial. Certain sections will also describe
the activities of Supervised Persons. Supervised Persons are any of Shapiro Financial’s officers, partners,
directors (or other persons occupying a similar status or performing similar functions), or employees, or any
other person who provides investment advice on Shapiro Financial’s behalf and is subject to Shapiro
Financial’s supervision or control.
Financial Planning and Consulting Services
Shapiro Financial offers its clients a broad range of comprehensive financial planning and consulting services
to select from. These services include insurance, retirement, employee benefits, investments, education,
estate planning, and tax and cash flow needs.
The Financial Planning services are provided pursuant to a separate engagement and for a separate fee,
which fee is agreed upon with the client prior to completing the services.
The firm will also provide tax preparation services to certain of its advisory clients.
Investment Management Services
Clients also engage Shapiro Financial to manage all or a portion of their assets on a discretionary and/or
non-discretionary basis. The firm primarily allocates clients’ investment management assets among mutual
funds and also utilizes exchange-traded funds
(“ETFs”). Individual debt and equity securities are purchased
on occasion for certain clients in accordance with their investment objectives. Shapiro Financial will provide
advice about the investments held in clients' portfolios, as requested by the client.
Shapiro Financial also will render non-discretionary investment management services to clients relative to
variable life/annuity products that they own, their individual employer-sponsored retirement plans, and/or 529
plans or other products that are not be held by the client’s primary custodian. In so doing, Shapiro Financial
either directs or recommends the allocation of client assets among the various investment options that are
available with the product. Client assets are maintained at the specific insurance company or custodian
designated by the product.
As detailed in Item 8, Shapiro Financial tailors its advisory services to the individual needs of clients. Shapiro
Financial consults with clients initially and on an ongoing basis to determine risk tolerance, time horizon and
other factors that may impact the clients’ investment needs. The firm ensures that clients’ investments are
suitable for their investment needs, goals, objectives and risk tolerance.
In performing its services, Shapiro Financial is not required to verify any information received from the client
or from the client’s other professionals (e.g., attorney, accountant, etc.) and is expressly authorized to rely on
such information. Recommendations are presented that often require assistance for implementing, for which
a list of professionals, including Shapiro Financial, to engage is available upon request. Clients are advised
that a conflict of interest exists if Shapiro Financial recommends its own services. The client is under no
obligation to act upon any of the recommendations made by Shapiro Financial under a financial planning or
consulting engagement or to engage the services of any such recommended professional, including Shapiro
Financial itself. The client retains absolute discretion over all such implementation decisions and is free to
accept or reject any of the firm’s recommendations. Clients are advised that it remains their responsibility to
promptly notify Shapiro Financial if there is ever any change in their financial situation or investment objectives
for the purpose of reviewing, evaluating, or revising the firm’s previous recommendations and/or services.
Clients are advised to promptly notify Shapiro Financial if there are changes in their financial situation or
investment objectives or if they wish to impose any reasonable restrictions upon Shapiro Financial’s
management services. Clients are able to impose reasonable restrictions or mandates on the management
of their account if, in Shapiro Financial’s sole discretion, the conditions will not materially impact the
performance of a portfolio strategy or prove overly burdensome to its management efforts.