Firm Information
The firm was organized as an LLC in 2010 and registered as an investment advisor with the SEC in 2021.
Buchanan Wealth Management was built on the foundation of integrity and the strength of relationship. It
strives to serve and advise its clients in a manner that is objective. This disclosure brochure provides
information regarding the qualifications, business practices and details of the advisory services and the
applicable fees.
Principal Owner
Matthew S. Buchanan, CFP®
CEO, Founder and Chief Compliance Officer
Matt has been a financial advisor since 2003. He serves as the company’s founder
and Chief Executive Officer, and specializes in wealth management and insurance
planning. He is a CERTIFIED FINANCIAL PLANNER™ certificant and has his
Series 7, Series 31, Series 66 and insurance licenses. He holds a Bachelor of Science
in Business Administration from Belhaven University, where he graduated summa
cum laude in 2001.
Advisory Services Offered
Buchanan Wealth Management, LLC provides financial planning and fee-based investment advisory services
primarily to individual Clients and high-net worth individuals with a focus on retirement. Services are also
available to businesses and financial institutions. Accounts are managed based on the individual goals,
objectives, time horizon, and risk tolerance of each Client.
Assets are managed on a discretionary basis where the client grants Buchanan Wealth Management ongoing
and continuous discretionary authority to execute its investment recommendations without prior approval of
each transaction. Investment strategies and recommendations are tailored to the individual needs of each Client
but generally consist of an asset allocation consistent with:
• Income with Capital Preservation. Designed as a longer-term accumulation account, this investment
objective is considered generally the most conservative. Emphasis is placed on generation of current
income with minimal risk of capital loss. Lowering the risk generally means lowering the potential
income and overall return.
• Income with Moderate Growth. This investment objective emphasizes generation of current income
with a secondary focus on moderate capital growth.
• Growth with Income. This investment objective emphasizes modest capital growth with some focus on
generation of current income.
• Growth. This investment objective emphasizes achieving high long-term growth and capital
appreciation.
• Aggressive Growth. This investment objective emphasizes aggressive growth and maximum capital
appreciation, with no focus on generation of current income. This objective has an extremely high level
of risk and is for investors with a longer timer horizon.
At no time will Buchanan Wealth Management, LLC accept or maintain custody of a Client’s funds or
securities. All Client assets will be managed within their designated brokerage account or pension account,
pursuant to the Client investment advisory agreement on a discretionary or non-discretionary basis.
• Investment advice is not limited to certain investment types.
• A minimum total investment amount of $500,000 is generally required.
• Advisory services are tailored to the individual need of each Client.
LPL Financial Sponsored Platforms
Strategic Wealth Management (SWM I)
Strategic Wealth Management is the name of the custodial account offered through LPL to support investment
advisory services provided by Buchanan Wealth Management, LLC. Within a SWM account, Investment
Advisor Representatives provide advice on the purchase and sale of various types of investments, such as
mutual funds, exchange-traded funds (“ETFs”), and equities. The advice is tailored to the individual needs of
the Client based on the investment objective chosen by the Client to help assist Clients in attempting to meet
their financial goals. Accounts are reviewed on a regular basis and rebalanced as necessary according to each
Client’s investment profile. More specific account information and acknowledgements are further detailed in
the account opening documents. Investment Advisor Representatives can offer SWM I or SWM II. The
accounts offer the same investment choices and are managed in the same manner, but the fee structure is
different. For SWM I, Clients are charged transaction fees in addition to the advisory fee whereas for SWM II,
the transactions fees are sponsored by Buchanan Wealth Management, LLC.
LPL Sponsored Wrap Fee Programs
Buchanan Wealth Management, LLC also offers a wrap fee program where LPL serves as the sponsor and
portfolio manager. While LPL serves as the wrap fee sponsor and portfolio manager, Buchanan Wealth
Management, LLC manages the allocation of funds between the different portfolios and available fund
selections.
Optimum Market Portfolios Program (OMP)
The Optimum Market Portfolios (OMP) program offers clients the ability to participate in a
professionally managed asset allocation program designed by LPL Financial. There are up to six
Optimum Funds that may be purchased within an OMP account:
1. Optimum Large Cap Growth Fund
2. Optimum Large Cap Value Fund
3. Optimum Small Cap Growth Fund
4. Optimum Small Cap Value Fund
5. Optimum International Fund
6. Optimum Fixed Income Fund
Buchanan Wealth Management will obtain the necessary financial data from each client and then select
the proper fund portfolio program. While Buchanan Wealth Management selects the proper portfolio
program, LPL Financial will manage the underlying Optimum Funds on a discretionary basis consistent
with the portfolio program objectives. LPL Financial does not directly manage fund assets on behalf of
any particular client. LPL Financial follows an asset allocation investment style in constructing
portfolios for the Program. Asset allocation methodology is implemented by combining investments
representing various asset classes that react differently to varying market conditions. Thus, if one asset
class reacts negatively to certain market events, the potential exists for another asset class to react
positively. As with any investment strategy, there is no guarantee that the use of an asset allocation
strategy will produce favorable results. Buchanan Wealth Management is responsible for educating the
client about this investment style in advance of opening the Account by explaining the various asset
classes (e.g., large cap growth, large cap value, etc.) being used within the selected portfolio. This
educational process continues throughout the time that the client maintains the account.
OMP is one of several portfolio platforms centrally managed by LPL Financial. OMP enables advisors
of Buchanan Wealth Management to manage client assets through diversified asset allocation models,
professional money management, automatic rebalancing, and online marketing and sales support. A
minimum account value of $1,000 is required for OMP.
Model Wealth Portfolios Program (MWP)
MWP offers Clients a professionally managed mutual fund asset allocation program. Buchanan Wealth
Management, LLC will obtain the necessary financial data from the Client, assist the Client in
determining the suitability of the MWP program and assist the Client in setting an appropriate
investment objective. Buchanan Wealth Management, LLC will initiate the steps necessary to open an
MWP account and have discretion to select a model portfolio designed by LPL’s Research Department
consistent with the Client’s stated investment objective. LPL’s Research Department, a third-party
portfolio strategist and/or Advisor, through its Investment Advisor Representative, may act as a portfolio
strategist responsible for selecting the mutual funds or ETFs within a model portfolio and for making
changes to the mutual funds or ETFs selected.
The Client will authorize LPL to act on a discretionary basis to purchase and sell mutual funds and ETFs
and to liquidate previously purchased securities. The Client will also authorize LPL to effect
rebalancing for MWP accounts. MWP requires a minimum asset value for a program account to be
managed. The minimums vary depending on the portfolio(s) selected and the account’s allocation
amongst portfolios.
Buchanan Wealth Management, LLC Wrap Fee Program
Strategic Wealth Management – II (SWM II) is a comprehensive, open-architecture, fee-based investment
platform created by LPL Financial (LPL) to allow Independent Investment Advisors such as Buchanan Wealth
Management to offer Clients customized advice and service. The platform provides a foundation to develop
long-term financial goals and provide potential solutions. With this platform, multiple investments can be in a
single account with one consolidated statement. Clients may impose restrictions on investing in certain
securities.
SWM II is offered as a wrap fee program where Buchanan Wealth Management acts as the sponsor and
portfolio manager. As the sponsor, Buchanan Wealth Management provides regular and continuous
management and advice to clients regarding the allocation of assets. The assets typically consist of mutual
funds and ETFs. The cost to manage an account, advisory fees and transaction expenses are “wrapped” into a
single fee.
• Please see Appendix 1 –Wrap Fee Program Brochure, which is included as a supplement to this
Disclosure Brochure for additional details.
Client Account Management
Prior to engaging Buchanan Wealth Management, LLC to provide investment advisory services, each Client is
required to enter into an investment advisory agreement with that defines the terms, conditions, authority, and
responsibilities.
Assets Under Management
The firm is a newly registered investment adviser. Assets under management will be amended at least annually
as of December 31st.
Assets under Management (12/31/2022)
Discretionary $98,055,753
Non-Discretionary $10,679,608
Total $108,735,391
Retirement Plan Rollovers
An employee generally has four (4) options for their retirement plan when they leave an employer:
1. Leave the money in his/her former employer’s plan, if permitted
2. Rollover the assets to his/her new employer’s plan if one is available and permitted
3. Rollover to an Individual Retirement Account (IRA), or
4. Cash out the account value, which has significant tax considerations
Each of these options has advantages and disadvantages and before making a change we encourage you to
speak with your CPA and/or tax attorney. If you are considering rolling over your retirement funds to an IRA
for us to manage here are a few points to consider before you do so:
• Determine whether the investment options in your employer's retirement plan address your needs or
whether you might want to consider other types of investments.
• Employer retirement plans generally have a more limited investment menu than IRAs.
• Employer retirement plans may have unique investment options not available to the public such as
employer securities, or previously closed funds.
• Your current plan may have lower fees than our fees.
If you elect to roll the assets to an IRA that is subject to our management, we will charge you an asset-based fee
as set forth in the agreement you executed with our firm. This practice presents a conflict of interest because
Investment Advisor Representatives have an incentive
to recommend a rollover to you for the purpose of
generating fee-based compensation rather than solely based on your needs. You are under no obligation,
contractually or otherwise, to complete the rollover. Moreover, if you do complete the rollover, you are under
no obligation to have the assets in an IRA managed by our firm.
Many employers permit former employees to keep their retirement assets in their company plan. Also, current
employees can sometimes move assets out of their company plan before they retire or change jobs. In
determining whether to complete the rollover to an IRA, and to the extent the following options are available,
you should consider the costs and benefits of each. An employee will typically be investing only in mutual
funds, you should understand the cost structure of the share classes, available in your employer's retirement plan
and how the costs of those share classes compare with those available in an IRA. Clients should understand the
various products and services they might take advantage of at an IRA provider and the potential costs of those
products and services.
• Our strategy may have higher risk than the option(s) provided to you in your plan.
• Your current plan may also offer financial advice.
• If you keep your assets titled in a 401k or retirement account, participants could potentially delay their
required minimum distribution age.
• A 401(k) may offer more liability protection than a rollover IRA; each state may vary.
• Participants may be able to take out a loan on your 401k, but not from an IRA.
• IRA assets can be accessed any time; however, distributions are subject to ordinary income tax and may
also be subject to a 10% early distribution penalty unless they qualify for an exception such as disability,
higher education expenses or the purchase of a home.
• If company stock is owned in a plan, participants may be able to liquidate those shares at a lower capital
gains tax rate.
• Plans may allow Advisor to be hired as the manager and keep the assets titled in the plan name.
Generally, federal law protects assets in qualified plans from creditors. Since 2005, IRA assets have been
generally protected from creditors in bankruptcies. However, there can be some exceptions to the general rules
so you should consult with an attorney if you are concerned about protecting your retirement plan assets from
creditors.
It is important to understand the differences between these types of accounts and to decide whether a rollover is
the best option. Prior to proceeding, if you have questions contact your Investment Adviser Representative, or
call our main number as listed on the cover page of this brochure.
When Buchanan Wealth Management provides investment advice to you regarding your retirement plan
account or individual retirement account, we are fiduciaries within the meaning of Title I of the Employee
Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws governing
retirement accounts. The way we make money creates some conflicts with your interests, so we operate
under a special rule that requires us to act in your best interest and not put our interest ahead of yours. Under
this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Buchanan Wealth Management also provides educational services to retirement plan participants with assets that
could potentially be rolled-over to an IRA advisory account. Education is based on a particular Client’s financial
circumstances and best interests. Again, Advisor has an incentive to recommend such a rollover based on the
compensation received, which is mitigated by the fiduciary duty to act in a Client’s best interest and acting
accordingly.
Retirement Plan Consulting to Institutional Retirement Plan Clients
Buchanan Wealth Management, LLC provides fee-based retirement plan consulting services for compensation
to institutional retirement plan clients. Services include both discretionary and non-discretionary plan-level
fiduciary services as well as non-fiduciary, ministerial services to the plan to assist fiduciaries in meeting their
obligations under the Employee Retirement Income Security Act (ERISA). Specifically, services include, but
are not limited to, the following:
Plan-level, Discretionary Fiduciary Services
Buchanan Wealth Management, LLC may provide plan-level, discretionary fiduciary services to retirement
plan clients. When performing the services with discretion, the plan sponsor will appoint Buchanan Wealth
Management, LLC under ERISA Section 3(38) to serve as the investment manager. The plan sponsor will
retain the obligation to monitor Buchanan Wealth Management, LLC. The service include:
• Selecting, monitoring, and replacing the plan’s designated investment alternatives with discretion
• Selecting, monitoring, and replacing the plan’s qualified default investment alternative with
discretion
Plan-level, Non-Discretionary Fiduciary Services
Buchanan Wealth Management, LLC may provide plan-level, non-discretionary fiduciary services to
retirement plan clients. To the extent a plan is covered by ERISA, Buchanan Wealth Management, LLC
will perform the services as a fiduciary under ERISA Section 3(21)(A)(ii). These services include:
• Selecting and monitoring the plan’s designated investment alternatives
• Selecting and monitoring the plan’s qualified default investment alternative
Plan-level, Non-fiduciary Services
Buchanan Wealth Management, LLC may provide the following services in a ministerial nature to assist the
plan sponsor in meeting its fiduciary obligations. These services may include:
• Coordinate and attend committee meetings for the Plan’s fiduciaries, including coordination of
agendas
• Coordination of the recordkeeper and custodian, including periodic review and assessment of
services and fees
• Assistance with plan governance, including an investment policy statement and education policy
statement (optional)
• Periodic assessment of current participant financial wellness program(s)
• Periodic assessment of the service providers cyber security policies and resources
• Assist Sponsor with discussions related to retirement in the overall benefit strategy conversations,
ensuring full integration of the retirement plan offering and its benefits
Participant-level, Non-fiduciary Services
Buchanan Wealth Management, LLC can provide non-fiduciary, educational services to participants in the plan.
This includes but is not limited to assistances with on-site participant education or education over the web.
Unless otherwise agreed, if the Plan makes available employer stock or other securities; real estate (except for
real estate and other publicly traded REITs); individual annuities, life insurance or other individual contracts;
stock brokerage accounts or self-directed mutual fund windows, participant loans, non-publicly traded
partnership interests or other non-publicly traded securities or property (except for collective trusts); or any
other hard to value or illiquid securities or property (collectively, “Excluded Assets”), Buchanan Wealth
Management, LLC will not provide investment advice regarding these Excluded Assets and are not responsible
for the decision to offer Excluded assets as investment options.
From time-to-time Buchanan Wealth Management, LLC can make the Plan or Plan participants aware of and
may offer services available from IARs that are separate and apart from the services provided under Retirement
Plan Consulting. Such other services may include services to one or more Plan participants. In offering any such
services, the IAR is not acting as a fiduciary under ERISA and will act solely within the Department of Labor’s
Interpretive Bulletin 96-1 providing education only. If any such separate services are offered to a client, the
client will make an independent assessment of such services without reliance on the advice or judgment of the
IAR.
Financial Planning Services
Buchanan Wealth Management, LLC, through its Investment Advisor Representatives, generally provides
financial planning as part of a comprehensive asset management engagement. However, financial planning is
available separately for a separate fee. The type of planning can vary greatly depending on the scope and
complexity of an individual’s financial situation. Examples of the type of planning available include but are
not limited to the following:
ADV 2A – Firm Disclosure Brochure
• Wealth Planning – Planning an investment strategy to provide inflation-adjusted income for life.
• Tax Planning – Efficient tax planning to maximize gains. Buchanan Wealth Management can
consult with a Client’s outside tax professionals during the financial planning process with the goal
of helping more of what you earn
• Education Planning – Planning to pay the future college/education expenses of a child or
grandchild.
• Insurance / Asset Protection Planning – Planning for the financial needs of survivors to satisfy
such financial obligations as housing, dependent child-care and spousal arrangements as well as
education.
• Estate Planning / Wealth Transfer – Planning that focuses on the most efficient and tax-friendly
option to pass on an estate to a spouse, other family members or a charity.
• Investment Planning – Planning an investment strategy consistent with objectives, time horizons
and risk tolerances.
• Small Business Planning – Planning to help ensure business success in such areas as:
Retirement Savings Plans
Defined Contribution Plans
Defined Benefit Plans
401(k) & 403(b) Plans
Group Long Term Care
Business Tax Strategies
Business Succession Planning
Executive Compensation Plans
Deferred Compensation Plans
Stock Ownership Plans
Prior to engaging the firm to provide stand-alone planning or consulting services, Clients are required to enter
into an Agreement setting forth the terms and conditions of the engagement (including termination), describing
the scope of the services to be provided, and the portion of the fee that is due from the Client prior to the firm
commencing services.
Hourly Consulting Services
Buchanan Wealth Management, LLC, through its Investment Adviser Representatives, can provide hourly
consulting services instead of a comprehensive financial planning when a narrower scope of services is
appropriate. Hourly consulting considers information collected from the client such as financial status,
investment objectives and tax status, among other data. The Investment Adviser Representatives may or may
not deliver a written analysis or report as part of the services. The engagement terminates upon final
consultation with the client.