A. Description of the Advisory Firm
B. Types of Advisory Services
account(s) to the platform. Once a Client account(s) is connected to the platform, your
adviser will review the current account allocations. When deemed necessary, we 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. There is no additional fee for this service.
Financial Planning
Financial plans and financial planning may include but are not limited to: investment planning;
life insurance; tax concerns; retirement planning; college planning; and debt/credit planning.
Educational Seminars/Workshops
Cornerstone provides periodic educational seminars and workshops to clients and the
general public.
Cash Management Services
CORNERSTONE makes available to clients the FICA For Advisors cash management
program (“FICA Program”) offered by StoneCastle Network, LLC (“StoneCastle”), an
affiliate of StoneCastle Cash Management, LLC. The FICA Program allows customers to
deposit funds in accounts at banks, savings institutions and credit unions (collectively,
“Insured Depositories”) in a manner that maintains full insurance of the funds by the
Federal Deposit Insurance Corporation (“FDIC”) or National Credit Union Administration
(“NCUA”), whichever is applicable. Funds will be deposited within StoneCastle’s network of
Insured Depositories (“Deposit Network”). CORNERSTONE will assist clients in signing
up for this program and facilitating the transfer of funds between the client’s like-titled
brokerage accounts and the FICA 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 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.
Services Limited to Specific Types of Investments
Cornerstone generally limits its investment advice to mutual funds, fixed income securities, real
estate funds (including REITs), insurance products including annuities, equities, ETFs (including
ETFs in the gold and precious metal sectors), treasury inflation protected/inflation linked
bonds, non-U.S. securities and private placements. Cornerstone may use other securities as well
to help diversify a portfolio when applicable.
Cornerstone offers the same suite of services to all its clients. However, specific
client
investment strategies and their implementation are dependent upon the client Investment Policy
Statement which outlines each client’s current situation (income, tax levels, and risk tolerance
levels). Clients may impose restrictions in investing in certain securities or types of securities in
accordance with their values or beliefs. However, if the restrictions prevent Cornerstone from
properly servicing the client account, or if the restrictions would require Cornerstone to deviate
from its standard suite of services, Cornerstone reserves the right to end the relationship.
Cornerstone acts as portfolio manager for and sponsor of a wrap fee program, which is an
investment program where the client pays one stated fee that includes management fees,
transaction costs, and certain other administrative fees. However, this brochure describes
Cornerstone’s non-wrap fee advisory services; clients utilizing Cornerstone’s wrap fee portfolio
management should see Cornerstone’s separate Wrap Fee Program Brochure Cornerstone
manages the investments in the wrap fee program, but does not manage those wrap fee accounts
any differently than it would manage non-wrap fee accounts. Cornerstone receives the advisory
fee set forth in Item 5 below as a management fee under the wrap fee program. Please also see
Item 5 and Item 12 of this brochure.
Cornerstone has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$ 172,896,169 $ 17,675,738 December 2023
C. Client Tailored Services and Client Imposed Restrictions
D. Wrap Fee Programs
E. Assets Under Management
Portfolio Management Fees
Total Assets Under Management Annual Fees
$1 - $249,999 1.25%
$250,000 - $499,999 1.15%
$500,000 – 1,499,999 1.00%
$1,500,000 - $2,999,999 0.85%
$3,000,000 - $4,999,999 0.70%
$5,000,000+ 0.50%
Cornerstone uses an average of the daily balance in the client's account throughout the billing
period, after taking into account deposits and withdrawals, for purposes of determining the market
value of the assets upon which the advisory fee is based. Client accounts on the Pontera
platform will be added to the Client’s overall portfolio value for the purposes of calculating
fees. Fees for qualified accounts at Pontera will not be deducted from the account, but from
one of your other taxable custodian/broker-dealer accounts.
These fees are generally negotiable and the final fee schedule will be memorialized in the client’s
advisory agreement. Clients may terminate the agreement without penalty for a full refund of
Cornerstone's fees within five business days of signing the Investment Advisory Contract.
Thereafter, clients may terminate the Investment Advisory Contract generally with 10 days' written
notice.
Financial Planning Fees
• Fixed Fees - The negotiated fixed rate for financial planning services is between $300 and
$2,500.
• Subscription Fees -
The negotiated recurring subscription fee rate for financial planning
services is between $30 and $1,000.
• Hourly Fees - The negotiated hourly fee for financial planning services is between $150
and $300 per hour.
Clients may terminate the agreement without penalty, for a full refund of Cornerstone’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon 10 days written notice.