A. Firm Information
Melfa Wealth Management, Inc. dba Factor Investing Group (“FIG” or the “Advisor”) is a registered investment
advisor with the U.S. Securities and Exchange Commission (“SEC”). FIG was organized as a Corporation under
the laws of the Commonwealth of Massachusetts in April 2009 and became a Registered Investment Advisor in
July 2021. FIG primarily owned by Victor J. Melfa, Jr. (President and Chief Compliance Officer). This Disclosure
Brochure provides information regarding the qualifications, business practices, and the advisory services
provided by FIG.
B. Advisory Services Offered
FIG offers wealth management services to individuals, high net worth individuals, trusts, estates, charitable
organizations, 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. Our fiduciary commitment is further described in our Code of Ethics. For more information
regarding our Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading.
Wealth Management Services
FIG provides customized wealth management solutions for its Clients. This is achieved through continuous
personal Client contact and interaction while providing discretionary investment management and related
financial planning services. FIG works closely with each Client to identify their investment goals and objectives as
well as risk tolerance and financial situation in order to design a portfolio strategy. FIG will then construct an
investment portfolio, consisting of exchange-traded funds (“ETFs”) and/or mutual funds to achieve the Client’s
investment goals. The Advisor also utilizes individual stocks, closed-end funds, bonds, other types of
investments, as appropriate, to meet the needs of its Clients. The Advisor may retain certain legacy investments
based on portfolio fit and/or tax considerations.
FIG’ investment strategies are primarily long-term focused, but the Advisor may buy, sell or re-allocate positions
that have been held less than one year to meet the objectives of the Client or due to market conditions. FIG 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.
FIG evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. FIG may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. FIG may recommend specific positions to increase sector or asset class weightings. The Advisor may
recommend employing cash positions as a possible hedge against the market movement. FIG 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
to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a
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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 FIG 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.
Financial Planning Services – FIG will typically provide a variety of financial planning and consulting services to
Clients. Financial planning services are typically included in an overall wealth management engagement.
Services are offered in several areas of a Client’s financial situation, depending on their goals, objectives and
financial circumstance. 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, and 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.
FIG 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 may pose a conflict between the interests of the Advisor and
the interests of the Client. For example, a recommendation to engage the Advisor for investment management
services or to increase the level of investment assets with the Advisor would pose a conflict, as it would increase
the 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.
C. Client Account Management
Prior to engaging FIG to provide wealth management 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 – FIG, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
• Asset Allocation – FIG will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation, and tolerance of risk for each Client.
• Portfolio Construction – FIG will develop a portfolio for the Client that is intended to meet the stated goals
and objectives of the Client.
• Investment Management and Supervision – FIG will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
FIG does not manage a wrap fee program.
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E. Assets Under Management
As of December 31, 2023, FIG managed $228,000,000 in assets under management, all of which are on a
discretionary basis. Clients may request more current information at any time by contacting the Advisor.