Anthony A. Saccaro, ChFC, J.D., President of Providence Financial and Insurance Services, Inc.
(Providence and/or the Firm) is a registered investment advisor and is an S Corporation formed under the
laws of the state of California. Furthermore, Anthony A. Saccaro is an attorney licensed to practice in
California.
• Providence Financial and Insurance Services, Inc. was initially approved as a registered
investment advisor in March 2008.
• Anthony A. Saccaro, President and 100% owner of Providence Financial and Insurance Services,
Inc.
General Description of Primary Advisory Services
Providence provides clients with a broad range of investment management and insurance services,
comprehensive estate and financial planning, and consulting services (including non-investment related
matters). The following briefly outlines the primary advisory services provided by the Firm. A more
detailed description of our services is provided in
Item 5 – Fees and Compensation allowing clients and
prospective clients an opportunity to review our description of services and description of fees in a side-
by-side manner.
Financial Planning & Consulting Services – Providence provides investment advisory services in the
form of financial planning and consulting services. Financial planning and consulting services involves the
active management of client accounts with a focus on a client’s overall financial situation. For Providence,
financial planning and consulting consists of guidi
ng individuals as they determine and set their
long-term
financial goals, throu
gh investments, tax planning, asset allocation, risk management, retirement
planning, and
other areas. Furthermore, Anthony A. Saccaro, in his capacity as an attorney, offers legal
advice in the area of estate planning for which he is qualified to offer such advice. T
he role of a financial
planner is to find ways to assist the client in understanding their
overall financial situation and financial
objectives.
Investment Management Services – We provide advisory services in the form of Investment
Management Services. Investment Management Services involve providing clients with continuous and
on-going supervision over client accounts. This includes monitoring a client’s account and directing
trades, when necessary. Providence places trades on a discretionary basis without the direct consent of
the client.
Referral of Third-Party Money Managers - Providence offers advisory services by referring clients to a
third-party money manager, Sound Income Strategies, LLC, (SIS), which offers asset management and
other investment advisory services. SIS is responsible for continuously monitoring client accounts and
making trades in client accounts on a discretionary basis when they deem necessary.
Under this program, we assist you with identifying your risk tolerance and investment objectives. We then
instruct SIS to invest according to your stated investment objectives and risk tolerance. You must
authorize SIS, who provide your designated account(s) with asset management services, to have trading
authority which you will do either through an agreement directly with them or through a limited power of
attorney.
We are available to answer questions that you may have regarding your account and act as the
communication conduit between you and SIS. SIS may take discretionary authority to determine the
securities to be purchased and sold for your account. However, Providence also has full trading authority.
After reviewing the performance of various third-party investment advisory firms, including various factors
such as the overall fee that they charge us or our clients, Providence has selected SIS as the single third-
party money manager which we recommend to our clients. Therefore, Providence has a conflict of
interest in that it will only recommend SIS as its sole third-party money manager. In addition, in 2023 the
firm’s President, Anthony Saccaro, made a personal investment in Sound Income Group the parent
company of SIS. This small ownership interest further enhances the level of conflict of interest in having
SIS as the sole third party investment advisors utilized by the firm.
Clients are advised that there may be other third-party managed programs not recommended by our firm,
that may be more suitable for the client and that may be more or less costly than arrangements
recommended by our firm. No guarantees can be made that a client’s financial goals or objectives will be
achieved by SIS. Further, no guarantees of performance can ever be offered by our firm
(Please refer to
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss for more details.)
Retirement Plan Rollover Recommendations - When Providence provides investment advice about
your retirement plan account or individual retirement account (“IRA”) including whether to maintain
investments and/or proceeds in the retirement plan account, roll over such investment/proceeds from the
retirement plan account to a IRA or make a distribution from the retirement plan account, we
acknowledge that Providence 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. The way Providence makes money creates conflicts with your interests so
Providence operates under a special rule that requires Providence to act in your best interest and not
put our interest ahead of you.
Under this special rule’s provisions, Providence must as a fiduciary to a retirement plan account or IRA
under ERISA/IRC:
• Meet a professional standard of care when making investment recommendations (give
prudent advice);
• Never put the financial interests of Providence ahead of you when making recommendations
(give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that Providence gives advice that is in
your best interest;
• Charge no more than is reasonable for the services of Providence; and
• Give Client basic information about conflicts of interest.
To the extent we recommend you roll over your account from a current retirement plan account to an
individual retirement account managed by Providence, please know that Providence and we have a
conflict of interest.
We can earn increased investment advisory fees by recommending that you roll over your account at the
retirement plan to an IRA managed by Providence. We will earn fewer investment advisory fees if you do
not roll over the funds in the retirement plan to an IRA managed by Providence.
Thus, our investment adviser representatives have an economic incentive to recommend a rollover of
funds from a retirement plan to an IRA which is a conflict of interest because our recommendation that
you open an IRA account to be managed by our firm can be based on our economic incentive and not
based exclusively on whether or not moving the IRA to our management program is in your overall best
interest.
We have taken steps to manage this conflict of interest. We have adopted an impartial conduct standard
whereby our investment adviser representatives will (i) provide investment advice to a retirement plan
participant regarding a rollover of funds from the retirement plan in accordance with the fiduciary status
described below, (ii) not recommend investments which result in Providence receiving unreasonable
compensation related to the rollover of funds from the retirement plan to an IRA, and (iii) fully disclose
compensation received by Providence and our supervised persons and any material conflicts of interest
related to recommending the rollover of funds from the retirement plan to an IRA and refrain from making
any materially misleading statements regarding such rollover.
When providing advice to a retirement plan account or IRA, we will act with the care, skill, prudence, and
diligence under the circumstances then prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of an enterprise of a like character and with like aims,
based on the investment objectives, risk, tolerance, financial circumstances, and a client’s needs, without
regard to the financial or other interests of Providence or our affiliated personnel.
Limits Advice to Certain Types of Investments
We provide investment advice concerning, but not limited to, the following types of investments:
• Exchange-listed securities (i.e., stocks)
• Securities traded over-the-counter
• Foreign issues
• Warrants
• Corporate debt securities (other than commercial paper)
• Commercial paper
• Certificates of deposit
• Municipal securities
• Variable life insurance
• Variable annuities
• Mutual fund shares
• United States government securities
• Options contracts on securities
• Options contracts on commodities
• Interests in partnerships investing in real estate
• Interests in partnerships investing in oil and gas interests
The Firm does not provide advice on futures contracts on tangibles or intangibles.
When providing Investment Management Services, Providence typically constructs each client’s account
holdings using income producing investments (individual bonds, unit investment trusts, real estate
investment trusts, etc.), along with exchange traded funds (ETFs), mutual funds, and equities, to build
diversified portfolios. It is not the Firm’s typical investment strategy to attempt to time the market, but
Providence may increase cash holdings modestly as deemed appropriate, based on a client’s risk
tolerance and the Firm’s analysis and expectations regarding market behavior. Providence may modify
our investment strategy to accommodate special situations such as low basis stock, stock options, and
legacy holdings, inheritances, closely held businesses, collectibles, or special tax situations. (Please refer
to Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss for more information.)
Tailor Advisory Services to Individual Needs of Clients
Our services are always provided based on the individual needs of each client. For example, a client is
given the ability to impose restrictions on the accounts we manage on behalf of the client, including
specific investment selections and sectors. Providence works with each client on a one-on-one basis
through interviews and questionnaires to determine the client’s investment objectives and suitability
information.
Client Assets Managed by Providence
As of February 6, 2024, the amount of client assets managed by Providence totaled; $153,377,779. All
accounts are managed on a discretionary basis.