A. Firm Information
BrightPath Wealth Planning, LLC (“BPWP” or the “Advisor”) is a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”). The Advisor is organized as a Limited Liability Company (LLC)
under the laws of State of California. BPWP was founded in April 2012 and is owned and operated by Peter
Kozak (Managing Member and Chief Compliance Officer). Beginning in 2004, Kozak owned and operated
another firm (Kozak Financial Advisory) which became BPWP in 2012. This Disclosure Brochure provides
information regarding the qualifications, business practices, and the advisory services provided by BPWP.
B. Advisory Services Offered
BPWP offers investment advisory services to individuals, high net worth individuals, trusts, estates, 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. BPWP's fiduciary commitment is further described in the Advisor’s Code of Ethics. For more
information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading.
Wealth Management Services
BPWP provides wealth management services for its Clients. These services generally include discretionary
investment management services in connection with a broad range of financial planning services. These services
are described below.
Investment Management Services – BPWP provides customized investment advisory solutions for its Clients.
This is achieved through continuous personal Client contact and interaction while providing discretionary
investment management and related advisory services. BPWP works closely with each Client to identify their
investment goals and objectives as well as risk tolerance and financial situation in order to create a portfolio
strategy. BPWP will then construct an investment portfolio, consisting of low-cost, diversified mutual funds and/or
exchange-traded funds (“ETFs”) to achieve the Client’s investment goals. BPWP primarily recommends mutual
funds that follow a passive asset class investment philosophy with low holdings turnover. The Advisor may also
utilize individual stocks, bonds or alternative investments to meet the needs of its Clients. The Advisor may retain
certain types of investments based on a Client’s legacy investments based on portfolio fit and/or tax
considerations.
BPWP’s investment strategies are primarily long-term focused, but the Advisor may buy, sell or re-allocate
positions that have been held for less than one year to meet the objectives of the Client or due to market
conditions. BPWP 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.
BPWP evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. BPWP may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. BPWP may recommend specific positions to increase sector or asset class weightings. The Advisor
may recommend employing cash positions as a possible hedge against market movement. BPWP 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.
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Independent Managers – BPWP will recommend that Clients utilize one or more unaffiliated investment
managers or investment platforms (collectively “Independent Managers”) for all or a portion of a Client’s
investment portfolio, based on the Client’s needs and objectives. In certain instances, the Client may be required
to authorize and enter into an investment management agreement with the Independent Manager[s] that defines
the terms in which the Independent Manager[s] will provide its services. The Advisor will perform initial and
ongoing oversight and due diligence over each Independent Manager to ensure the strategy remains aligned
with Clients investment objectives and overall best interests. The Advisor will also assist the Client in the
development of the initial policy recommendations and managing the ongoing Client relationship. The Client,
prior to entering into an agreement with an Independent Manager, will be provided with the Independent
Manager's Form ADV Part 2A - Disclosure Brochure (or a brochure that makes the appropriate disclosures).
At no time will BPWP 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.
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
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.
Financial Planning Services – BPWP typically provides a variety of financial planning and consulting services to
Clients as part of their overall wealth management engagement. Financial planning is also offered as a stand-
alone service. Services are offered in several areas of a Client’s financial situation, depending on their goals and
objectives. 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.
BPWP 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 pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for investment management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of 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.
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Retirement Plan Advisory Services
BPWP provides retirement plan advisory services on behalf of the retirement plans (each a “Plan”) and the
company (the “Plan Sponsor”). The Advisor’s retirement plan advisory services are designed to assist the Plan
Sponsor in meeting its fiduciary obligations to the Plan and its Plan Participants. Each engagement is customized
to the needs of the Plan and Plan Sponsor. Services generally include:
● Investment Policy Statement (“IPS”) Design and Review
● Investment Oversight Services (ERISA 3(21))
● Ongoing Investment Recommendation and Assistance
These services are provided by BPWP serving in the capacity as a fiduciary under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). In accordance with ERISA Section 408(b)(2), the Plan
Sponsor is provided with a written description of BPWP’s fiduciary status, the specific services to be rendered
and all direct and indirect compensation the Advisor reasonably expects under the engagement.
C. Client Account Management
Prior to engaging BPWP to provide investment advisory 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 – BPWP, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
● Asset Allocation – BPWP 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 – BPWP will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
● Investment Management and Supervision – BPWP will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
BPWP does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by BPWP.
E. Assets Under Management
As of December 31, 2023, BPWP manages $164,464,107 in Client assets, all of which are managed on a
discretionary basis. Clients may request more current information at any time by contacting the Advisor.