Quantum Financial Advisors, LLC (“We”, “our firm”, or “Quantum”) is a registered investment advisor
dedicated to providing individuals and other types of clients with a wide array of investment advisory and
financial planning services. Our firm is a limited liability company formed under the laws of the State of
California in 2021 and has been in business as an investment adviser since 2022. Our firm is owned by
David DeWolf, John Eing, Elizabeth Greulich, Wende Headley, Darius Gagne, Scott Swanson, and Ryan
Balderian who are also licensed investment advisor representatives (“IARs”) of Quantum.
The purpose of this Brochure is to disclose the conflicts of interest associated with the investment
transactions, compensation and any other matters related to investment decisions made by our firm or
its representatives. As a fiduciary, it is our duty to always act in the client’s best interest. This is
accomplished in part by knowing our client. Our firm has established a service-oriented advisory practice
with open lines of communication for clients to help meet their financial goals while remaining sensitive
to risk tolerance and time horizons. Working collaboratively with our clients to understand their
investment objectives, while providing education about our process, facilitates the kind of working
relationship our clients and we value.
Types of Advisory Services Offered
Comprehensive Portfolio Management:
We provide Comprehensive Portfolio Management, which includes asset management, financial planning
or consulting services. This service is designed to assist clients in meeting their financial goals through the
use of a financial plan or consultation. Our firm conducts client meetings to understand their current
financial situation, existing resources, financial goals, and tolerance for risk. Based on what is learned, an
investment approach is presented to the client, consisting primarily of:
• exchange traded funds (“ETFs”) that invest in stocks
• ETFs that invest in real estate investment trusts (“REITs”)
• ETFs that invest in bonds
• mutual funds that invest in stocks
• mutual funds that invest in REITs
• mutual funds that invest in bonds
• separately managed accounts (“SMAs”) that invest in stocks
• SMAs that invest in bonds.
Once the appropriate portfolio has been determined, portfolios are continuously and regularly monitored,
and rebalanced, as necessary, based upon the client’s individual needs, stated goals and objectives. Upon
client request, our firm provides a summary of observations and recommendations for the planning or
consulting aspects of this service.
We offer two types of portfolios, “Total Market” and “Sustainable”, each designed to have a similar risk
and return profile. The Total Market portfolio invests in all available industries and does not exclude any
companies. The portfolio is primarily designed with ETFs and mutual funds offered by Avantis Investors
and Dimensional Fund Advisors (“DFA”), but also includes Vanguard. The Sustainable portfolio divests
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from fossil fuel companies in most of its funds. Also, in most of its funds that invest in stocks it allocates
more to companies that rank higher on environmental criteria and allocates less to companies that rank
lower on environmental criteria, than the allocation to those same companies in the Total Market
portfolio. The portfolio is primarily designed with mutual funds offered by DFA, but also includes Avantis
Investors and Vanguard. DFA is responsible for ranking companies based on environmental criteria (which
they do using data from specialized vendors such as MSCI, Inc.).
In cases where specific companies or industries need to be excluded from the portfolio or specific tax
strategies need to be deployed, we will use a separately managed account (“SMA”) for stocks, or an SMA
for bonds, or both, within the Total Market or Sustainable portfolios, and those SMAs will replace certain
ETFs or mutual funds. SMAs that invest in stocks are managed by DFA while SMAs that invest in bonds are
managed by Wasmer Schroeder Strategies (owned by Charles Schwab Investment Management, Inc.). The
SMAs used in the Total Market portfolio have exclusions that are unrelated to environmental concerns,
but otherwise have a similar design as the funds used in the Total Market portfolio. The SMAs in the
Sustainable portfolio have a similar design as the funds in the Sustainable portfolio, including the
environmental focus, but add additional exclusions that the funds do not provide which may or may not
be environmental related.
In terms of investment style, the ETFs, mutual funds, and SMAs that invest in stocks in the Total Market
portfolio allocate more to small capitalized (“small cap”) companies, low price-to-book (“value”)
companies, and high profitability-to-book (“high prof”) companies, while allocating less to large
capitalized (“large cap”) companies, high price-to-book (“growth”) companies, and low profitability-to-
book (“low prof”) companies, than the allocations would be to those same companies in a market-
capitalized (“market cap”) weighted portfolio. The Sustainable Portfolio is built on the same style design,
but within each ‘style bucket’ (whose metrics are company size, price-to-book, profitability-to-book), an
additional over-weighting and underweighting based on environmental scoring is performed as described
above in such a way that the metrics of the style bucket are preserved. As a result of the investment style
of the two portfolios, the composition of underlying companies, as well as the performance of the
portfolios, can vary significantly from widely used benchmark indices.
Portfolios can hold investments that our firm does not normally invest in, the most common situation
being legacy holdings that the client bought before working with our firm which would incur significant
capital gains if sold. The most common types of such investments
are individual stocks, mutual funds that
invest in stocks, ETFs that invest in stocks, and annuities.
Depending on how well the investment is suited to the client’s goals and circumstances, the degree of
taxation required to liquidate the investment, and the liquidity of the investment, a plan is often put in
place to liquidate the investment over a specific period of time agreed to by the client and the Quantum
IAR. Trades for these assets, including individual stocks, are rules-based (such as selling a certain
percentage of the shares each year), driven by tax and financial planning considerations, and are not based
on an analysis of the circumstances of the underlying companies, nor an analysis of market and economic
conditions, nor a determination of the optimal timing or the optimal stock valuation at which to sell. Those
trades may be discretionary or non-discretionary as agreed to between the client and the Quantum IAR.
A liquidation plan is not always appropriate or needed, such as if the investment is well suited to the
client’s goals.
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Financial Planning & Consulting:
Our firm provides a variety of financial planning and consulting services to clients for the management of
financial resources based upon an analysis of their current situation, goals, and objectives. Financial
planning services will typically involve preparing a financial plan or rendering a financial consultation for
clients based on the client’s financial goals and objectives. This planning or consulting could encompass
Investment Planning, Retirement Planning, Estate Planning, Charitable Planning, Education Planning,
Corporate and Personal Tax Planning, Cost Segregation Study, Corporate Structure, Real Estate Analysis,
Mortgage/Debt Analysis, Insurance Analysis, Lines of Credit Evaluation, or Business and Personal Financial
Planning.
Written financial plans or financial consultations rendered to clients usually include general
recommendations for a course of activity or specific actions to be taken by the clients. Implementation of
the recommendations will be at the discretion of the client. Our firm provides clients with a summary of
their financial situation, and observations for financial planning engagements. Financial consultations are
not typically accompanied by a written summary of observations and recommendations, as the process is
less formal than the planning service. Assuming that all the information and documents requested from
the client are provided promptly, plans or consultations are typically completed within 6 months of the
client signing a contract with our firm.
Retirement Plan Consulting:
Our firm provides retirement plan consulting services to employer plan sponsors on an ongoing basis.
Generally, such consulting services consist of assisting employer plan sponsors in establishing, monitoring
and reviewing their company's participant-directed retirement plan. As the needs of the plan sponsor
dictate, areas of advising may include:
• Establishing an Investment Policy Statement – Our firm will assist in the development of a
statement that summarizes the investment goals and objectives along with the broad strategies to
be employed to meet the objectives.
• Investment Options – Our firm will work with the Plan Sponsor to evaluate existing investment
options and make recommendations for appropriate changes.
• Asset Allocation and Portfolio Construction – Our firm will develop strategic asset allocation
models to aid Participants in developing strategies to meet their investment objectives, time
horizon, financial situation and tolerance for risk.
• Investment Monitoring – Our firm will monitor the performance of the investments and notify the
client if any changes are recommended.
• Participant Education – Our firm will provide opportunities to educate plan participants about their
retirement plan offerings, different investment options, and general guidance on allocation
strategies.
In providing services for retirement plan consulting, our firm does not provide any advisory services with
respect to the following types of assets: employer securities, real estate (excluding real estate funds and
publicly traded REITs), participant loans, non-publicly traded securities or assets, other illiquid
investments, or brokerage window programs (collectively, “Excluded Assets”). All retirement plan
consulting services shall be in compliance with the applicable state laws regulating retirement consulting
services. This applies to client accounts that are retirement or other employee benefit plans (“Plan”)
governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). If the client
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accounts are part of a Plan, and our firm accepts appointment to provide services to such accounts, our
firm acknowledges its fiduciary standard within the meaning of Section 3(21) of ERISA as designated by
the Retirement Plan Consulting Agreement with respect to the provision of services described therein.
Tailoring of Advisory Services
Our firm offers individualized investment advice to our Comprehensive Portfolio Management clients.
General investment advice will be offered to our Financial Planning & Consulting and Retirement Plan
Consulting clients. Each Comprehensive Portfolio Management client has the opportunity to place
reasonable restrictions on the types of investments to be held in the portfolio. Restrictions on investments
in certain securities or types of securities may not be possible due to the level of difficulty this would entail
in managing the account.
Participation in Wrap Fee Programs
Our firm does not offer or sponsor a wrap fee program.
Regulatory Assets Under Management
As of December 31st, 2023, our firm managed $948,997,591 on a discretionary basis and $23,229,586 on
a non-discretionary basis for a total of $972,227,177 in assets under management.