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● Employee Benefits Optimization: We will provide a review and analysis as to whether you,
as an employee, are taking maximum advantage of the employee benefits offered to you by
your employer. If you are a business owner, we will consider and/or recommend the various
benefit programs that can be structured to meet both business and personal retirement
goals.
● Financial Goals: We will help you identify specific financial goals and develop plans to attain
each of them. Goals could include, but are not limited to, saving for a down payment for a
home, paying off student debt, buying a new car, funding a child’s education, or saving for an
upcoming vacation. We will identify what you wish to accomplish, create a budget/plan for
each goal, determine how much to fund the plan and how often, and then track your
progress and adjust accordingly if anything may change the timing, need or desire to achieve
each goal.
● College Savings: Includes projecting the amount of funding that will be needed to pay for a
child’s public/private college or post-secondary education. Recommendations as to tax
advantages, savings plans and investing strategies are included, and, if needed, we will
review your financial picture as it relates to eligibility for financial aid and/or the best way to
contribute to a grandchild’s education (if appropriate).
● Insurance Review: Review of existing policies to ensure proper coverage for life, health,
disability, liability, home and automobile, as well as an analysis/recommendation for any
savings opportunities. We recommend that you consult with a licensed insurance
professional before initiating any insurance policy changes.
● Retirement Planning: The Advisor’s retirement planning services typically include
projections of the likelihood that you will have enough money to comfortably retire at a
desired age. For situations where projections show less than optimal results, we may make
recommendations that present improved possible outcomes by adjusting certain variables
(i.e., working longer, saving more, spending less, taking more risk with investments). If you
are near retirement or already retired, advice may be given on appropriate investment and
distribution strategies to minimize the likelihood of running out of money or having to
adversely alter spending during your retirement years.
● Tax Planning Strategies: Advice may include ways to minimize your current and future
income taxes as a part of your overall financial planning strategy. For example, we may make
recommendations on which type of account(s) or specific investments to be owned based in
part on their “tax efficiency,” or “tax deferred status,” with consideration that there is always
a possibility of future changes to federal, state and local tax laws and rates that may impact
your situation.
We recommend that you consult with a qualified tax professional before initiating any tax
planning strategy, and we may provide you with contact information for accountants or
attorneys who specialize in this area if you wish to hire someone for such purposes. From
time-to-time, we will participate in meetings or phone calls between you and your tax
professional with your approval or request.
● Estate Planning: This typically includes an analysis of your exposure to estate taxes and
establishing or reviewing your current estate plan, which may include whether you have a
will, designated beneficiaries on your accounts, powers of attorney, trusts and other related
documents/plans. Our advice also may include ways for you to minimize, or avoid, estate
taxes through implementing appropriate estate planning strategies, such as the use of
applicable trusts. We always recommend that you consult with a qualified attorney when you
initiate, update, or complete estate planning activities. We may provide you with contact
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information for attorneys who specialize in estate planning when you wish to hire an
attorney for such purposes. From time-to-time, we will participate in meetings or phone calls
between you and your attorney with your approval or request.
Investment Supervisory and Management Services
Should the client elect to engage the Advisor for the implementation of the financial plan, the
Advisor offers investment supervisory and management services based on the individual goals,
objectives, time horizons, and risk tolerance of each client. Once established, an Investment Policy
Statement is created for each client, which outlines the client’s current financial situation (age,
income, tax levels, and risk tolerance). The Advisor evaluates the current investments of each client,
and then constructs an investment plan and recommended portfolio that matches each client’s
specific situation. The Advisor requires discretionary authority from clients in order to select
securities and the custodian will execute transactions without permission from the client prior to
each transaction.
Clients may engage the Advisor to manage and/or offer investment advice on certain investments
that are not maintained at their primary custodian, such as assets held in employer sponsored
retirement plans, and/or assets held in qualified tuition plans (e.g., 401(k)’s, 529 plans). In these
situations, the Advisor directs or recommends the allocation of client assets among the various
investment options available in each plan/custodian.
The Advisor’s recommended portfolios generally consist of exchange-listed securities, securities
traded over the counter, foreign issuers, warrants, corporate debt securities, certificate of deposit,
municipal securities, Exchange Traded Funds (ETFs), mutual funds, United States government
securities, variable life insurance, variable annuities, options contracts on securities and
commodities, and interests in partnerships investing in real estate. Investing in these types of
securities helps to diversify an investment portfolio.
Advisor Agreements
Investment supervisory and management services are provided under the terms of a written advisor
agreement executed by the Advisor and the client.
Selection of Other Advisors
The Advisor periodically recommends and refers clients to either an unaffiliated third-party money
manager/investment advisor or alternatively, to our affiliate,
Financial Gravity Asset Management,
Inc. a registered investment advisor through their Managed Account programs. (“referred to as
sub-advisors”). In these arrangements, the client will enter into a program and investment advisory
agreement with the sub-advisor. The Advisor will assist and advise the client in establishing
investment objectives for the sub-advisor and continue to provide oversight of the client account
and ongoing monitoring of the activities of the sub-advisor. The sub-advisor will develop an
investment strategy to meet those objectives by identifying appropriate investments and monitoring
such investments. In consideration for such services, the sub-advisor will charge a program fee that
includes the investment advisory fee of the sub-advisor, the administration of the program and
trading, clearance, and settlement costs. The sub-advisor will add the Advisor's investment advisory
fee (described below in Item 5) and will deduct the overall fee from the client account monthly in
arrears based on the market value of the assets in the client account at the end of the preceding
month.
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Clients need to be aware that FGFOS Investment Advisor Representatives referring Clients to
Financial Gravity Asset Management, Inc. (“FGAM”) our affiliated company, presents a conflict of
interest. Investment Advisor Representatives have an incentive to direct clients to FGAM and will be
compensated by the Advisor and by the affiliated company either for the referral or as an owner of
the affiliated entity. The Advisor will always act as a fiduciary and in the best interest of the client
when determining which sub-advisor to recommend to clients. Ultimately, clients can accept or
reject the recommended sub-advisor recommended to them by the Advisor.
The client, prior to entering into an agreement with a sub-advisor selected by the Advisor, will be
provided with that sub-advisor’s Brochure. Clients are encouraged to read the Brochure in its
entirety. In addition, the Advisor and its client will agree in writing that the client’s account will be
managed by that selected sub-advisor on a discretionary basis.
Pension Consulting Services
The Advisor offers consulting services to pension or other employee benefit plans (including but not
limited to 401(k) plans). Pension consulting may include, but is not limited to:
● identifying investment objectives and restrictions
● providing guidance on various assets classes and investment options
● recommending money managers to manage plan assets in ways designed to achieve
objectives
● monitoring performance of money managers and investment options and making
recommendations for changes
● recommending other service providers, such as custodians, administrators and
broker-dealers
● creating a written pension consulting plan
These services are based on the goals, objectives, demographics, time horizon, and/or risk tolerance
of the plan and its participants.
Seminars/Workshops
The Advisor also offers educational seminars or workshops on topics including but not limited to,
general information concerning investing, financial and estate planning, business and tax planning,
as well as the services provided by the Advisor.
C. Clients Tailored Services and Client Imposed Restrictions
The Advisor will tailor its advisory services to its client’s individual needs based on meetings and
conversations with the client. If clients wish to impose certain restrictions on investing in certain
securities or types of securities, the Advisor will address those restrictions with the client to have a
clear understanding of the client’s requirements.
For clients who are referred to sub-advisors for management of their portfolios, those sub-advisors
may have established model portfolios with specific asset allocations and targets that cannot be
altered by client-imposed restrictions. Clients need to be aware that the model portfolio will not be
tailored to the client specifically. Therefore, clients will not be able to impose restrictions on
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investing in certain securities or types of securities. Though some stocks in 4 Alpha can be
eliminated from client holdings. The Advisor invites clients to discuss any concerns they may have
with any of the holdings in the model portfolios.
D. Wrap Fee Programs
The Advisor does not provide portfolio management services to wrap fee programs. The Advisor is
not a wrap fee program since the client is not charged for transaction costs through the Advisor
fees.
E. Assets Under Management
As of December 6th, 2023, the Advisor has the following assets under management as filed on the
ADV:
Discretionary assets: $ 263,137,464
Non-discretionary assets: $ 102,297,633
A. & B. Method of Compensation and Fee Schedule and Client Payment of Fees
Asset Management Fees
Pursuant to an investment advisory contract signed by each client, the client will pay the Advisor a
monthly management fee, payable in arrears, based on the average daily balance of the account.
The amount agreed upon will be charged as stated in the client agreement and will not exceed the
maximum annual amount of 2.00%.
This fee may be negotiated by the Advisor. This fee is negotiated by the Client and Advisor based on
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, negotiations with client, etc. Asset
management fees will be automatically deducted from the client account on a monthly basis by the
qualified custodian. The client will give written authorization permitting the Advisor to be paid
directly from their account held by the custodian. The custodian will send a monthly statement to
the client. Clients are encouraged to review the monthly statement and notify the Advisor of any
discrepancies.
Selection of Other Advisors Fees
The Advisor may specifically direct clients to Financial Gravity Asset Management, Inc. The annual
fee schedule is as follows:
Total Assets Advisor’s Fee Third Party’s Fee Total Fee
All Assets 0% - 1.55% 0% - .45% 0% - 2.00%
The fees will not exceed 2%. Fees are negotiable. Fees are charged monthly, in arrears, debited from
the account specified on the agreement with the client’s written authorization.