Our firm manages assets for many different types of clients to help meet their financial goals while
remaining sensitive to risk tolerance and time horizons. As a fiduciary, it is our duty to always act in
the client’s best interest. This is accomplished in part by knowing the client. Our firm has established
a service-oriented advisory practice with open lines of communication. Working with clients to
understand their investment objectives while educating them about our process, facilitates the kind
of working relationship we value.
Our firm sponsors and offers a wrap fee program, which allows clients to pay a single fee for
investment advisory services and associated custodial transaction costs. Transaction fees will be paid
by our firm via individual transaction charges. Because our firm absorbs client transaction fees, an
incentive exists to limit trading activities in client accounts. Custodial transaction costs, however, are
not included in the advisory fee charged by our firm for non-wrap services, and are to be paid by the
client to their chosen custodian. Depending on the client’s account or portfolio trading activity, clients
may pay more for using our wrap fee services than they would for using our non-wrap services.
Our recommended custodian, Charles Schwab & Co., Inc. (“Schwab”), does not charge transaction fees
for U.S. listed equities and exchange traded funds. Since we pay the transaction fees charged by the
custodian to clients participating in our wrap fee program, this presents a conflict of interest because
we are incentivized to recommend equities and exchange traded funds over other types of securities
in order to reduce our costs.
Our Wrap Advisory Services
Wrap Asset Management:
Our firms wrap program is only available for our tax-exempt fixed income portfolio and our total
return portfolio models further described in Item 6 of this brochure. As part of our Wrap Asset
Management service, a portfolio is created consisting primarily of mutual funds. The client’s individual
investment strategy is tailored to their specific needs. Portfolios will be designed to meet a particular
investment goal, determined to be suitable to the client’s circumstances. Once the appropriate portfolio
has been determined, portfolios are continuously and regularly monitored, and if necessary, rebalanced
based upon the client’s individual needs, stated goals and objectives. It is important to note that in order
to meet a client’s investment goals and objectives our firm may recommend that the client also
implement our
firm’s equity strategy available on a non-wrap basis.
Fee Schedule
The maximum annual fee charged for this service will not exceed 1.75%. Fees to be assessed will
be outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a
pro-rata basis monthly in advance based on the value of the account(s) on the last day of the
previous month. Fees are negotiable and will be deducted from client account(s). Adjustments
will be made for deposits and withdrawals during the quarter. In rare cases, our firm will agree
to directly invoice. Further, it is important to note that our firm assess advisory fees on cash and
cash equivalents held in client accounts unless specified in writing. As part of this process, Clients
understand the following:
ADV Part 2A, Appendix 1 – Wrap Fee Brochure Page 5
a) The client’s independent custodian sends statements at least quarterly showing the
market values for each security included in the Assets and all account disbursements,
including the amount of the advisory fees paid to our firm;
b) Clients will provide authorization permitting our firm to be directly paid by these terms.
Our firm will send an invoice directly to the custodian; and
c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
information provided in our statement with those from the qualified custodian will be
included.
Other Types of Fees & Expenses:
In addition to our advisory fees above, clients may also pay holdings charges imposed by the chosen
custodian for certain investments, charges imposed directly by a mutual fund, index fund, or
exchange traded fund, which shall be disclosed in the fund’s prospectus (i.e., fund management fees,
initial or deferred sales charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable
annuity fees, IRA and qualified retirement plan fees, and other fund expenses), mark-ups and mark-
downs, spreads paid to market makers, fees for trades executed away from custodian, wire transfer
fees and other fees and taxes on brokerage accounts and securities transactions. Our firm does not
receive a portion of these fees.
Termination and Refunds:
Either party may terminate the advisory agreement signed with our firm for Wrap Asset Management
service in writing at any time. Upon notice of termination our firm will process a pro-rata refund of
the unearned portion of the advisory fees charged in advance.
Wrap Fee Program Recommendations:
Our firm does not recommend or offer the wrap program services of other providers.