Cerda Munoz Advisors, Inc. (CMA) is a Registered Investment Adviser with its principal place of
business located in Downey California and founded on December 24, 2013. Registration does not
imply a certain degree of skill or training. CMA’s principal shareholders are Hilberto Cerda and Aaron
Munoz. CMA offers the following advisory services to clients:
INVESTMENT MANAGEMENT SERVICES:
Clients can engage CMA to provide continues management of investment portfolios on a
Discretionary and Non-Discretionary basis. Based on a client’s goals, objectives, time frame and risk
tolerance, CMA will develop an investment portfolio that will target client’s needs. CMA will
implement the investment portfolio using Mutual Funds, ETF’s, Stocks, Government and Corporate
Bonds, REIT’s and Cash instruments. While there are a limited number of asset classes, clients may
impose restrictions on certain types of asset classes.
CMA may recommend that clients allocate a portion of their assets among unaffiliated investment
managers which shall be responsible for the discretionary management of clients’ allocated assets.
However, CMA shall continue to monitor and review client’s account performance, asset allocation
and investment objectives. We also consider the management style, reputation, financial strength,
reporting capabilities, pricing and other available information to determine the proper investment
manager for clients. CMA will complete the necessary documentation and communicate the
investment allocation.
As of December 2023, CMA had $ 94,366,999.00 on a non-discretionary basis and $ 73,433,792.00
on discretionary assets under management.
CMA will review client accounts as often as needed and consult with clients regarding their asset
allocation and investment performance according to their goals. CMA does not participate in wrap-
fee programs.
FINANCIAL PLANNING AND FINANCIAL ADVICE SERVICES:
CMA provides custom tailored consulting services in connection with personal financial matters.
Areas of service Include:
• General Financial Advice
• Cash Flow Planning
• Tax planning
• Investment Planning
• Retirement Planning
• Insurance Planning
• Long Term Care Planning
• Estate Planning
CMA will request financial documents such as Budget, Paystubs, Personal tax returns, Investment
statements, Pension statements, Life, Disability, Health, Auto and Homeowner’s Insurance Policies,
Trust, Wills and Durable power of attorneys.
Clients are under no obligation to act on the investment adviser’s recommendations. In addition, if
the client elects to act on any of the recommendations, the client is under no obligation to effect the
transactions through the investment adviser.
Retirement
Rollovers- Conflict of Interest:
A Client leaving an employer typically has four options:
1. Leave the money in his former employer’s plan, if permitted.
2. Rollover the assets to his new employer’s plan if one if available and rollovers are permitted.
3. Rollover to an IRA.
4. Cash out the account value (which could have tax consequences).
CMA may recommend an investor to rollover over retirement plan assets to an Individual
retirement Account (IRA) managed by CMA. As a result, CMA and its representatives may earn
assets under management fees. In contrast, a recommendation that a client or prospective client
leave his/her retirement plan assets with his/her old employer or roll the assets to a plan sponsored
by a new employer will generally result in no compensation to CMA. CMA may have an economic
incentive to encourage an investor to rollover the retirement plan assets into an IRA managed by
CMA.
CMA will consider several factors before recommending a rollover including but not limited to:
1. Investment options available in the plan versus the investment options available in the IRA.
2. Fees and Expenses in the plan versus the fees and expense in an IRA.
3. The Services offered by CMA versus the plan’s investment professionals services.
4. Protection of Assets from credits and legal judgments.
5. Requirement Minimum Distributions and age considerations.
6. Employer stock tax consequences, if any.
No client is under any obligation to rollover retirement plan assets to an IRA managed ty CMA or to
engage CMA to monitor and/or manage the account while maintained at the employer. CMA’s
Chief Compliance Office, Aaron Munoz, is available to address any questions that a client or
prospective client may have corresponding the conflict of interest presented by such engagement.
BUSINESS CONTINUITY:
Cerda Munoz Advisors, Inc. believes on its fiduciary obligations and therefore, has taken the
necessary steps to ensure the continuity of the business in the event of an emergency and death or
incapacitation of any of its representatives. We incorporated our firm to make the firm a separate
entity totally independent of its owners with its own bylaws and operating agreements. We have
policy manuals and record keeping activities checklist that anyone can follow in the event of an
emergency. This checklist shows the areas where records are kept and the retrieval mechanisms.
Our business continuity plan includes the names and contact information of the principals and
alternate locations where representatives would meet in case of an emergency. In addition, we back
up our documents daily and we have remote access to any document. Since we don’t hold physical
custody of clients’ assets, each client will continue to have access to their accounts through their
custodian.