A. Description of the Advisory Firm
Principia Wealth Advisory, LLC is a limited liability company formed on December 17, 2009 under the laws of the
State of Texas and domiciled in the State of Texas. PWA offers investment advisory and financial planning services
to individuals and high net worth individuals, pension and profit sharing plans, trusts, estates, charitable
organizations, corporations, and other business organizations. PWA’s services and fee arrangements are
described in the following pages. This narrative provides clients with information regarding PWA and the
qualifications, business practices, and nature of advisory services that should be considered before becoming a
client of PWA.
Principal Owners
Aaron J. Plautz is a 96% shareholder. Andrew Winningham is a 4% shareholder.
B. Types of Advisory Services
Portfolio Management
PWA’s portfolio management service is designed to assist clients in meeting their financial goals through the use
of financial investments. For each portfolio management client, PWA will conduct one or more meetings (in
person if possible, otherwise via telephone conference) with the client in order to understand the client’s current
financial situation, existing resources, financial goals, and tolerance for risk. Based on the foregoing, PWA will
propose an investment approach to the client. PWA may propose an investment portfolio, consisting of exchange
traded funds, mutual funds, individual stocks or bonds, or other securities. Upon the client’s agreement to the
proposed investment plan, PWA will work with the client to establish or transfer investment accounts so that
PWA is able to manage the client’s portfolio. Once the relevant accounts are under PWA’s management, PWA
will review such accounts on a regular basis and at least quarterly. PWA may periodically rebalance or adjust
client accounts under its management. If the client experiences any significant changes to his/her financial or
personal circumstances, the client must notify PWA so that PWA can consider such information in managing the
client’s investments.
Financial Planning/Financial Consulting
PWA offers financial planning and financial consulting services to individuals, families, business organizations, and
other clients. These services will be provided pursuant to a written client agreement. PWA can work with a client
to develop a written financial plan or provide consulting services on specific issues or areas that are of concern to
the client.
The goal of a financial planning engagement is to provide the client with a written financial plan that will assist
the client in meeting his/her financial goals. PWA and the client will discuss and agree upon the specific topics to
be covered by the financial plan. Such topics may include investment planning, retirement planning, tax planning,
insurance planning, estate planning, or business planning. PWA will conduct one or more meetings (in person if
possible, otherwise via telephone conference) with the client in order to understand the client’s current financial
situation, financial goals, specific issues or questions, and topics to be covered by the financial plan. PWA may
also request copies of relevant financial documents, such as account statements, income tax
returns, insurance policies, retirement plans, estate planning documents, and business financial statements. PWA
will then prepare a written financial plan that summarizes the client’s current financial situation and offers
observations and recommendations. PWA prepares the financial plan based on the information provided to PWA
by the client and as of the date that the plan is submitted to the client. PWA undertakes no responsibility to
update the financial plan unless PWA and the client agree upon a subsequent financial planning engagement or
the client agrees to PWA’s monthly retainer fee, in which case the client will have responsibility to furnish updated
information as necessary.
PWA also offers financial consulting services on specific issues or areas that are of concern to the client. PWA will
obtain background information on the issues or topics to be covered by the financial consulting engagement
through client meetings and documents provided by the client. PWA will then offer advice or recommendations
to the client. Such advice or recommendations may or may not be in writing depending on the nature of the
engagement.
Pension Consulting Services
Pension Consulting consists of assisting employer plan sponsors establish, monitor and review their company's
participant‐directed retirement plan. As the needs of the plan sponsor dictate, areas of advising could include:
investment options, plan structure, participant education.
Miscellaneous Disclosures
Non‐Investment Consulting/Implementation Services
To the extent requested by the client, PWA may provide consulting services regarding non‐investment related
matters, such as estate planning, tax planning, insurance, etc. Neither PWA, nor any of its representatives, serves
as an attorney or accountant and no portion of PWA’s services should be construed as same. To the extent
requested by a client, PWA may recommend the services of other professionals for certain non‐ investment
implementation purposes (i.e., attorneys, accountants, insurance, etc.). The client is under no obligation to
engage the services of any such recommended professional. The client retains absolute discretion over all such
implementation decisions and is free to accept or reject any recommendation from PWA. Please Note: If the
client engages any such recommended professional, and a dispute arises thereafter relative to such engagement,
the client agrees to seek recourse exclusively from and against the engaged professional. Please Also Note: It
remains the client’s responsibility to promptly notify PWA if there is ever any change in his/her/its financial
situation or investment objectives for the purpose of reviewing/evaluating/revising PWA’s previous
recommendations and/or services.
Client Obligations
In performing its services, PWA shall not be required to verify any information received from the client or from
the client’s other professionals and is expressly authorized to rely thereon. Moreover, each client is advised that it
remains his/her/its responsibility to promptly notify PWA if there is ever any change in his/her/its financial
situation or investment objectives for the purpose of reviewing/evaluating/revising PWA’s previous
recommendations and/or services.
Limitations of Financial Planning and Non‐Investment Consulting/Implementation Services
As indicated above, if, subsequent to completion of the initial planning and consulting services engagement, the
client determines to engage PWA to provide investment advisory services per the terms and conditions of the
above‐referenced Investment Advisory Agreement, PWA’s annual investment advisory fee thereafter shall
generally include (with exceptions) ongoing financial planning and consulting services, to the extent specifically
requested by the client. In the event that the client requires extraordinary planning and/or consultation services
(to be determined in the sole discretion of PWA), PWA may determine to charge an additional fee for such
services, the dollar amount of which shall be set forth in a separate written notice to the client.
PWA believes that it is important for the client to address financial planning issues on an ongoing basis. PWA’s
advisory fee, as set forth at Item 5 below, will remain the same regardless of whether or not the client determines
to address financial planning issues with PWA
PWA does not serve as an attorney, accountant, or insurance agent, and no portion of our services should be
construed as same. Accordingly, PWA does not prepare legal documents, prepare tax returns, or sell insurance
products. To the extent requested by a client, PWA may recommend the services of other professionals for non‐
investment implementation purpose (i.e., attorneys, accountants, insurance, etc.), including PWA’s Chief
Operating Officer, for insurance
sales/services per a separate engagement and fee. The client is not under any
obligation to engage any such professional(s). The client retains absolute discretion over all such implementation
decisions and is free to accept or reject any recommendation from PWA and/or its representatives. If the client
engages any unaffiliated professional (i.e., attorney, accountant, insurance agent, etc.) recommended or
otherwise, and a dispute arises thereafter relative to such engagement, the client agrees to seek recourse
exclusively from the engaged professional. At all times, the engaged unaffiliated licensed professional[s] (i.e.,
attorney, accountant, insurance agent, etc.), and not PWA, shall be responsible for the quality and competency
of the services provided.
Initial Planning and Consulting Services
To the extent requested and separately engaged by the client to do so, PWA will generally provide initial financial
planning and related consulting services regarding matters such as tax and estate planning, insurance, etc. per
the terms and conditions of a separate agreement and a separate fee as discussed at Item 5 below. Prior to
engaging PWA to provide initial planning or consulting services, clients are generally required to enter into a
Financial Planning and Consulting Agreement with PWA setting forth the terms and conditions of the engagement
(including termination), describing the scope of the services to be provided, and the portion of the fee that is due
from the client prior to PWA commencing services.
Cash Positions
Registrant continues to treat cash as an asset class. As such, unless determined to the contrary by Registrant, all
cash positions (money markets, etc.) shall continue to be included as part of assets under management for
purposes of calculating Registrant’s advisory fee. At any specific point in time, depending upon perceived or
anticipated market conditions/events (there being no guarantee that such anticipated market conditions/events
will occur), Registrant may maintain cash positions for defensive purposes. In addition, while assets are
maintained in cash, such amounts could miss market advances. Depending upon current yields, at any point in
time, Registrant’s advisory fee could exceed the interest paid by the client’s money market fund.
Please Note: Retirement Rollovers‐Potential for Conflict of Interest
A client or prospective client leaving an employer typically has four options regarding an existing retirement plan
(and may engage in a combination of these options): (i) leave the money in the former employer’s plan, if
permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers are permitted, (iii)
roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending
upon the client’s age, result in adverse tax consequences). If PWA recommends that a client roll over their
retirement plan assets into an account to be managed by PWA, such a recommendation creates a conflict of
interest if PWA will earn new (or increase its current) compensation as a result of the rollover. If PWA provides a
recommendation as to whether a client should engage in a rollover or not (whether it is from an employer’s plan
or an existing IRA), PWA is acting as a fiduciary 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. No
client is under any obligation to roll over retirement plan assets to an account managed by PWA, whether it is
from an employer’s plan or an existing IRA. PWA’s Chief Compliance Officer, Aaron J. Plautz remains available
to address any questions that a client or prospective client may have regarding the potential for conflict of
interest presented by such rollover recommendation.
Custodian Charges ‐ Additional Fees
As discussed below at Item 12 below, when requested to recommend a broker‐dealer/custodian for client
accounts, PWA generally recommends that Schwab serve as the broker‐dealer/custodian for client investment
management assets. Broker‐dealers such as Schwab charge brokerage commissions, transaction, and/or other
type fees for effecting certain types of securities transactions (i.e., including transaction fees for certain mutual
funds, and mark‐ups and mark‐downs charged for fixed income transactions, etc.). The types of securities for
which transaction fees, commissions, and/or other type fees (as well as the amount of those fees) shall differ
depending upon the broker‐dealer/custodian (while certain custodians, including Schwab, do not currently charge
fees on individual equity transactions, others do. Please Note: there can be no assurance that Schwab will not
change their transaction fee pricing in the future). These fees/charges are in addition to PWA’s investment
advisory fee disclosed at Item 5 below. PWA does not receive any portion of these fees/charges. ANY QUESTIONS:
PWA’s Chief Compliance Officer, Aaron J. Plautz remains available to address any questions that a client or
prospective client may have regarding the above.
Portfolio Activity
PWA has a fiduciary duty to provide services consistent with the client’s best interest. PWA will review client
portfolios on an ongoing basis to determine if any changes are necessary based upon various factors, including,
but not limited to, investment performance, market conditions, fund manager tenure, style drift, account
additions/withdrawals, and/or a change in the client’s investment objective. Based upon these factors, there may
be extended periods of time when PWA determines that changes to a client’s portfolio are neither necessary, nor
prudent. Clients remain subject to the fees described in Item 5 below during periods of account inactivity.
Please Note: Use of Mutual and Exchange Traded Funds: PWA utilizes mutual funds and exchange traded funds
for its client portfolios. In addition to PWA’s investment advisory fee described below, and transaction and/or
custodial fees discussed below, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g., management fees and other fund expenses).
Please Note: Investment Risk. Different types of investments involve varying degrees of risk, and it should not be
assumed that future performance of any specific investment or investment strategy (including the investments
and/or investment strategies recommended or undertaken by PWA) will be profitable or equal any specific
performance level(s).
Disclosure Statement
A copy of PWA’s written Brochure as set forth on Part 2A of Form ADV shall be provided to each client prior to, or
contemporaneously with, the execution of any advisory agreement.
C. Tailored Relationships and Client Imposed Restrictions
Prior to engaging PWA to provide wealth management services, each Client is required to enter into an agreement
with PWA that define the terms, conditions, authority and responsibilities of PWA and the Client. These services may
include:
Establishing an Investment Strategy – PWA, in connection with the Client, will develop a strategy that seeks
to achieve the Client’s goals and objectives.
Asset Allocation – PWA will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation and tolerance of risk for each Client.
Portfolio Construction – PWA will develop a portfolio for the Client that is intended to meet the stated goals
and objectives of the Client.
Investment Management and Supervision – PWA will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
PWA does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by PWA.
E. Assets Under Management
As of 3/27/2024, PWA manages approximately $163,200,000 in assets on a discretionary basis, and $0 is managed
on a non‐discretionary basis for approximately 634 accounts.