Our Firm
Bauer Wealth Management, Inc, dba Bauer Heitzmann (“Bauer Heitzmann or the “Advisor”) is a
registered investment adviser with the Securities & Exchange Commission (SEC). Bauer Heitzmann was
founded in 2010 with its principal place of business in Colorado Springs Colorado. Bauer Heitzmann is
owned and operated by Daniel Bauer (President), Stephen Heitzmann MSF, CRPC® (Chief Executive
Officer and Chief Compliance Officer), Joseph Breakey, and Christopher Franz. This Disclosure Brochure
provides information regarding the qualifications, business practices, and the advisory services provided
by Bauer Heitzmann.
Bauer Heitzmann serves as a fiduciary to Clients, as defined under 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 and fully disclose conflicts of interest. Our fiduciary commitment is further described in our
Code of Ethics, Item 11.
Bauer Heitzmann Fiduciary Oath – Bauer Heitzmann is committed to the following Fiduciary Oath and
provides a signed copy to all Clients who engage in an Family Office, Concierge Wealth Management, or
Investment Management agreement. We believe in always acting in the client’s best interest. Therefore,
we commit to the following five fiduciary principals. We will act with prudence, that is, with the skill,
care, diligence, and good judgment of a professional. We will not mislead Clients, and will provide
conspicuous, full and fair disclosure of all-important facts. We will fully disclose and fairly mitigate, in our
clients’ favor, any unavoidable conflicts. Conflicts of Interest – In the event of a conflict of interest, Bauer
Heitzmann has implemented the following 3 step process to openly disclose the conflict. 1. Disclose 2.
Explicitly Identify & Communicate 3. Mitigate
Types of Advisory Services Offered
Bauer Heitzmann provides investment advisory services to individuals, high net-worth and ultra-high-
net-worth families, trusts, estates, small businesses, corporations, charitable organizations and other
businesses (each referred to as the “Client”). Bauer Heitzmann clients have a net worth (assets minus
debts) between $500,000 and $15,000,000 and household income of $200,000 to $1,000,000. Bauer
Heitzmann has many clients who have been divorced or lost a spouse to death. Bauer Heitzmann also
has many clients who are busy professionals who want help with organizing their finances and making
financial decisions. The majority of clients fall within these descriptions, but there are some who do not
fit these demographics. Our services are fully customizable depending on the individual need of each
client and clients may impose restrictions on investing in certain securities.
Bauer Heitzmann tailors its advisory services based on the Client’s unique situation. We provide
recommendations using the following criteria; (but not limited to) risk profile, investment objectives,
and life goals. Implementation of our tailored services are mutually agreed upon and detailed in our
family office, investment advisory and financial planning agreements. These services are described
below.
Our investment recommendations may consist of public equities, fixed income, private equity, private
credit and real estate, venture capital, structured/market linked notes, cryptocurrency and other public
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and private securities. We utilize third-party managers to give you exposure to specialized strategies
within your portfolio.
We offer Family Office Client Services, Concierge Wealth Management, Investment Management
Client Services and Discretionary Services to clients, as described below:
Our Family Office Client Services encompass a robust platform of investment and wealth planning
related services for Integrated Family Office Structures ie. FLLC, FLP, SFLLC etc. including investment
strategy and management; access to institutional manager search, selection, and monitoring; integrated
estate, tax, philanthropic, and wealth planning.
Family Office Wealth Management Planning generally falls into the following categories, but we may
provide other services depending on a family’s customized needs:
Cash Flow Based Planning:
• Consolidated Personal Balance Sheet to include all assets and liabilities
• Income, Expense, Savings, Tax, Estate, and Net Worth management
• Long-term Monte-Carlo modeling used to aid in short-term decision making
Investment-Related Services:
Investment management advice on assets managed by Advisor
• Ongoing Portfolio Management
• Investment Policy Statement (“IPS”) development, portfolio strategy, design, and
implementation
• Investment manager research, selection, and monitoring
• Ongoing education to the family regarding investment philosophy, strategy, and capital markets
Investment Reporting
• Portfolio data and performance reports on securities under the management of Advisor
• Consolidated data aggregation
• Consolidated balance sheet reporting
• Ad hoc income and capital gain tax support and reporting
Cash Flow Management
• Assistance with cash flow planning and tax-efficient distribution methods
Management of Concentrated Wealth Assets
• Ongoing monitoring of concentrated holdings (if applicable)
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• Advise, execute and manage hedging and/or covered call strategies around concentrated
holdings.
• Direct lending against concentrated holdings (if applicable)
Other Services Sourced by Advisor but Not Provided Directly
• Tax and Estate
• Family Governance
• Lending Options
• Legal Services ex-Estate (business, M&A, philanthropic)
• Corporate Trustee
• Philanthropic/Foundation
• Bill Pay services and bookkeeping
• Tax return oversight and CPA sourcing
Our Concierge Wealth Management services are similar to our Family Office services outlined above but
have been designed for individuals that do not require and/or have implemented the family office
structure.
Services will contain Cash Flow Based Planning, Investment Services, Investment Reporting, Cash Flow
Management, Management of Concentrated Assets, and other services depending on the clients need
as described above.
Our Investment Management Client Services have been designed for clients who are focused on
investment services only, without the all-encompassing, family office or wealth management services
outlined above. For such clients, Advisor will provide investment research, consulting, and advice to
source and secure access to investment opportunities in the public and private arena.
For Family Office, Wealth Management, and Investment Management Clients, we create a customized
IPS based on the client’s investment preferences and objectives. The IPS sets investment parameters
that guide us when we make decisions about each client’s portfolio.
Client Account Management Overview
Prior to engaging Bauer Heitzmann to provide wealth management services, each Client is required to
enter into one or more advisory 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 Policy Statement – Bauer Heitzmann, in collaboration with the Client,
will define the Client’s investment goals and objectives along with the broad strategy[ies] to be
employed to meet the client’s unique financial position.
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• Asset Allocation – Bauer Heitzmann will develop a strategic asset allocation that is targeted to
meet the investment objectives, time horizon, financial situation and tolerance for risk for each
Client.
• Portfolio Construction – Bauer Heitzmann will develop a portfolio for the Client that is intended
to meet the stated goals and objectives of the Client.
• Investment Management and Supervision – Bauer Heitzmann will provide discretionary
investment management and ongoing oversight of the Client’s investment portfolio.
• Investment strategies seek to provide:
o Diversification across different asset classes.
o The most efficient Mutual Funds, Exchange Traded Funds (“ETFs”), Securities, cost and
otherwise, to represent each of those asset classes.
o The ideal mix of assets classes based on mapped risk tolerance.
o Rebalancing of strategies based on internal research in combination with modern
portfolio theory and fundamental inputs.
Bauer Heitzmann will construct a portfolio consisting of ETFs, mutual funds, alternative investments, or
individual securities offered by a number of providers to achieve the Client’s investment goals. Bauer
Heitzmann is independent from any provider and does not have a conflict of interest with any provider.
The Advisor may retain certain types of investments based on a client’s legacy portfolio construction.
Bauer Heitzmann’s investment strategy[ies] is 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. Bauer Heitzmann 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.
Bauer Heitzmann evaluates and selects investments for inclusion in Client portfolios only after applying
its internal due diligence process. Bauer Heitzmann may recommend, on occasion, redistributing
investment allocations to diversify the portfolio regarding legacy or inherited positions. The Advisor may
recommend employing cash or non-leveraged short positions as a possible hedge against market
movement. Bauer Heitzmann 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 Client, generating cash to meet Client needs, or any risk deemed unacceptable for the
Client’s risk tolerance.
Bauer Heitzmann may also recommend that clients invest in unaffiliated or affiliated private investment
vehicles whose interests are not publicly offered under the Securities Act of 1933 (“Private Funds”).
Such Private Funds may be structured as fund of funds or as access vehicles to underlying funds or
portfolios managed by third-party investment advisors. Bauer Heitzmann will, from time to time and as
appropriate, solicit clients to invest in such vehicles, and Bauer Heitzmann will decide which clients to
approach for some or all of these investments, in its own discretion. All relevant information pertaining
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to Private Fund recommendations, including the compensation received by Bauer Heitzmann (if any) or
a Bauer Heitzmann affiliate or related person (as applicable) and by the third-party manager resulting
from a client’s investment in a Private Fund, other fees and expenses paid by the respective Private
Fund, withdrawal rights, minimum investments, qualification requirements, suitability, risk factors and
potential conflicts of interest is set forth in the respective Private Fund’s disclosure
documents,
governing documents and other offering materials pertaining to such interest (the “Offering Materials”).
Each investor is required to receive, review and execute (as applicable) the Offering Materials prior to
being accepted as an investor in any such Private Fund.
It is important to note that any Bauer Heitzmann advisory fee charged to clients for investing in a Private
Fund is in addition to the fees charged by the Private Funds to investors. This is a conflict of interest with
the multiple fees charged because certain owners of Bauer Heitzmann could be owners and general
partners of the Private Funds and will receive multiple forms of compensation.
It should also be noted that certain members of Bauer Heitzmann may directly participate in any of the
investment opportunities described for which a Private Fund is established and/or may participate
through the Private Fund itself for the purposes of investing. This right to participate and any
corresponding economic interest therefrom will likely mean that certain members of Bauer Heitzmann
will derive a direct or indirect benefit from their direct participation and may also receive management
fees, carried interest and other fees that a Private Fund charges to investors and clients for their
participation in the respective investment opportunity. As such, a conflict of interest arises between the
presentation of a private market investment opportunity to Bauer Heitzmann clients and prospective
clients, and those members of Bauer Heitzmann who will have an interest in the alternative investment
opportunity and who, through a Private Fund, may also be charging clients and investors a variety of
fees for investment in the respective investment opportunity. Therefore, it should be understood that
members of Bauer Heitzmann may be highly incentivized to recommend an alternative investment
opportunity to clients. Clients are strongly advised and encouraged to discuss this conflict of interest
with their advisors and to assess the risks, merits, charges, suitability and appropriateness of the
opportunity prior to making any investment decision.
At no time will Bauer Heitzmann accept or maintain physical custody of a client’s funds or securities. All
Client assets will be managed within their account[s] at the Custodian, pursuant to the Client investment
management agreement. For additional information, please see Item 12 – Brokerage Practices and Item
15 - Custody.
Held Away Accounts - Pontera - We use a third party platform to facilitate management of held away
assets such as defined contribution plan participant accounts, with discretion. The platform allows us to
avoid being considered to have custody of Client funds since we do not have direct access to Client log-
in credentials to affect trades. We are not affiliated with the platform in any way and receive no
compensation from them for using their platform. A link will be provided to the Client allowing them to
connect an account(s) to the platform. Once Client account(s) is connected to the platform, Adviser will
review the current account allocations. When deemed necessary, Adviser will rebalance the account
considering client investment goals and risk tolerance, and any change in allocations will consider
current economic and market trends. The goal is to improve account performance over time, minimize
loss during difficult markets, and manage internal fees that harm account performance. Client
account(s) will be reviewed at least quarterly and allocation changes will be made as deemed necessary.
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Pension Consulting Services
Bauer Heitzmann 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:
o identifying investment objectives and restrictions
o providing guidance on various assets classes and investment options
o recommending money managers to manage plan assets in ways designed to achieve
objectives
o monitoring performance of money managers and investment options and making
recommendations for changes
o recommending other service providers, such as custodians, administrators and broker-
dealers
o 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.
Financial Planning Services
Bauer Heitzmann will typically provide a variety of financial planning services to Clients, pursuant to a
written Family Office, Wealth Management or Investment Management Agreement or as a part of the
Advisor’s Concierge Wealth Management Services. 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. The unique situation of each individual Client will be detailed in the
Financial Planning Agreement. This planning may encompass one or more of the 8 areas of need,
including but not limited to:
Current Financial Position Review - Reviewing and prioritizing your goals and objectives. Developing a
summary of your current financial situation, including a net worth statement, cash flow summary, and
insurance analysis. Presenting a written financial plan that will be reviewed in detail with Client. It will
contain recommendations designed to meet stated goals and objectives, supported by relevant financial
summaries. Developing an accountability checklist or action plan to implement the agreed upon
recommendations of the financial plan. Referral to other professionals, as required, to assist with
implementation of the action plan. Determining necessity to revise financial plan.
Retirement Planning/Income Planning - Completing a retirement planning and income analysis
assessment, including financial projections of assets required at estimated retirement date. Social
Security, pension, and annuity review and analysis.
Investment Strategy - Consultation and assessment of your current investment portfolio (Including
401K/Self-Employed Plans). Develop an asset management strategy, including financial projections,
analysis, and investment selection.
Insurance Analysis/Risk Management - Review and analysis of current life, disability, LTC, and P&C
insurance policies and needs. Recommendations on insurance needs.
Tax Planning - Identifying and review of tax planning strategies to optimize financial position.
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Estate Planning - Assessing estate net worth and liquidity. Estate planning document checklist and flow
chart. Legacy and charitable strategies.
Education Planning - College funding analysis and investment review.
Other (Examples and not limited too – Additional services agreed upon will be detailed in the Financial
Planning Agreement) - Charitable Giving Strategies, Highly Appreciated Stock (NUA), Business
Consultation, Business Exit Planning, Small Business Retirement Plans.
A financial plan developed for 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 charitable giving programs. Bauer Heitzmann Management may also refer Clients
to an accountant, attorney or another specialist, as appropriate for their unique situation. For certain
financial planning engagements, the Advisor will provide a written summary of Client’s financial
situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may
not provide a written summary. Plans are typically completed within six months of contract date,
assuming all information and documents requested are provided promptly.
Bauer Heitzmann provides Financial Planning clients with ongoing access to their plan online as agreed
upon in the Financial Planning Agreement. The client also receives a written or electronic action plan
(Accountability Checklist) that outlines our recommendations and the client’s priorities. This document
is reviewed at and is updated on an as needed basis outlined in the agreement.
Financial planning recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor may complete a statement analysis as part of a financial
plan and recommend purchasing our models instead of the current strategy. This creates a conflict of
interest because Bauer Heitzmann receive a management fee for these investments. Recommendations
are made in the Client’s best interest. The Client always has the right to decide whether to act on
recommendations made and to maintain an ongoing relationship with the Bauer Heitzmann. The client
always has the right to implement the recommendation with the advisor of their choice. 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.
Financial Coaching
Bauer Heitzmann offers, at its discretion, “coaching” services to clients for a flat fee or hourly charge.
Bauer Heitzmann can also offer a monthly service fee for accountability check ins. These services include
investment consulting, company valuation, financial plan software access and other related topics
requested by the client. Fees will be outlined in the contract between Bauer Heitzmann and the Client.
Under these arrangements, our firm will perform only limited servicing functions and often will provide
no investment management or continuous account supervision. Clients have the exclusive responsibility
for any purchase/sale, rebalancing, performance and monitoring of all securities within such an account.
Written Acknowledgement of Fiduciary Status
When we provide 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
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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.
Additional Advisory Business Information
As an independent firm, we work for our clients only and base all our investment decisions on objective
analysis and independent research. All client account information is kept in strict confidence.
Assets Under Management
As of December 2023, we had $132,206,688.00 in discretionary assets under management and
$1,106,950.00 on a non-discretionary basis. Total assets are $133,313,638.00