Description of Advisory Firm
Private Financial Management LLC became registered as an Investment Adviser with the Securities and
Exchange Commission in 2024. David Born is the principal owner of PFM. PFM currently reports $105,505,585
discretionary and no non-discretionary Assets Under Management. Assets Under Management were calculated as
of December 2023.
PFM offers wealth management services consisting of Ongoing Financial Planning and Execution where a client
can also elect to have PFM manage their investable assets.
Types of Advisory Services
Ongoing Financial Planning and Execution
This service involves working one-on-one with a planner over an extended period of time. For an ongoing fee,
Clients are able to work with a planner who will work with them to develop and implement their plan. The
planner will monitor the plan, recommend any changes, and ensure the plan is up to date.
PFM will manage Client’s investable assets. PFM provides ongoing advice to a Client regarding the investment of
Client funds based on the individual needs of the Client. We develop and update Client target asset allocation
primarily through a cash need analysis which may be augmented based on personal discussions regarding Client
values, risk tolerance, outlook, and importance of competing goals. We will also review and discuss a Client’s
prior investment history, as well as family composition and background. Account management and supervision is
guided by the above factors as well as tax considerations. Clients may request reasonable restrictions on investing
in certain securities, types of securities, or industry sectors. The fee schedule for managing investable assets is
disclosed in Item 5.
The financial planning process involves an evaluation of a Client's current and future financial state by using
currently known variables to prepare for future cash flows, lifetime or multigenerational taxation, risk exposures,
asset values, and withdrawal plans. The key defining aspect of financial planning is that through the financial
planning process, the overall circumstances, questions, information, and life plans of a Client will be analyzed and
considered as they affect and are affected by the entire financial and life situation of the Client. The key benefit of
the execution component is assisting the Client in implementing the opportunities identified throughout the
financial planning process.
Clients engaging in this service will receive consultations, verbal and written guidance, introductions to other
professionals, or written or electronic reports providing the Client with a detailed financial plan designed to
achieve his or her stated financial goals and objectives. PFM may be responsible for the execution of the financial
plan through use of a Limited Power of Attorney. At times, in order to execute the financial plan, PFM may be
deemed to have custody. In all cases, the PFM will adhere to strict safeguards in order to comply with the custody
requirements. More information can be found in Item 15 of this Brochure.
In general, the financial plan will address any or all of the following areas of concern to the extent specifically
requested by the Client. The Client and advisor will work together to select specific areas to cover and prioritize.
These areas may include, but are not limited to, the following:
Business Planning: We provide consulting services for Clients who currently operate their own business, are
considering starting a business, or are planning for an exit from their current business. Under this type of
engagement, we work with you to assess your current situation, identify your objectives, and develop a plan
aimed at achieving your goals.
Cash Flow and Debt Management: We will conduct a review of your income and expenses to determine
your current surplus or deficit along with advice on prioritizing how any surplus should be used or deficit be
funded. Advice may also be provided on which debts to pay off first based on factors such as the interest rate
of the debt and any income tax ramifications. We may also recommend what we believe to be an appropriate
liquid reserve that should be considered for emergencies, contingencies, and other financial goals, along with
a review of investments (such as money market funds) for such reserves, plus strategies to save desired
amounts.
College Savings: Includes projecting the amount that will be needed to achieve college or other post-
secondary education funding goals, along with advice on ways for you to save the desired amount.
Recommendations as to savings strategies are included, and, if needed, we will review your financial picture
as it relates to eligibility for financial aid or the best way to contribute to grandchildren (if appropriate).
Employee Benefits Optimization: We will provide review and analysis as to whether you, as an employee,
are taking the maximum advantage possible of your employee benefits. If you are a business owner, we will
consider and/or recommend the various benefit programs that can be structured
to meet both business and
personal retirement goals.
Estate Planning: This usually includes an analysis of your exposure and needs relating to probate, estate
taxes, and asset protection strategies and your current estate plan, which may include whether you have a will,
powers of attorney, trusts with proper funding, and other related documents. Our advice also typically
includes ways for you to minimize or avoid future probate and estate taxes by implementing appropriate
estate planning strategies such as the use of applicable trusts. We always recommend that you consult with a
qualified attorney when you initiate, update, or complete estate planning activities or that you have us do so
on your behalf. We may provide you with contact information for attorneys who specialize in estate planning
when you wish to hire an attorney for such purposes. We may also assist you in navigating extended family
relationships during estate settlements. From time-to-time, we will participate in meetings or phone calls
directly with your attorney or family with your approval or request.
Financial Goals: We will help Clients identify financial goals and develop a plan to reach them. We will
identify what you plan to accomplish, what resources you will need to make it happen, how much time you
will need to reach the goal, and how much you should budget for your goal.
Insurance: Review of existing policies to ensure proper coverage for life, health, disability, long-term care,
liability, home, and automobile.
Investment Analysis: This may involve developing an asset allocation strategy to meet Clients’ financial
goals and risk capacity and tolerance, providing information on investment vehicles and strategies, reviewing
employee stock options, as well as assisting you in establishing your own investment account at a selected
broker/dealer or custodian. The strategies and types of investments we may recommend are further discussed
in Item 8 of this brochure.
Financial Independence and Retirement Planning: Our retirement planning services typically include
projections of your likelihood of achieving your financial goals, typically focusing on financial independence
as the primary objective. We will help you understand the implications and make choices surrounding certain
variables (e.g., working longer, saving more, spending more, taking different risks with investments).
If you are near retirement or already retired, advice may be given on appropriate distribution strategies to
minimize the likelihood of running out of money or having to adversely alter spending during your retirement
years.
Risk Management: A risk management review includes an analysis of your exposure to major risks that
could have a significant adverse impact on your financial picture, such as premature death, disability, property
and casualty losses, or the need for long‐term care planning. Advice may be provided on ways to minimize
such risks and about weighing the costs of purchasing insurance versus the benefits of doing so and, likewise,
the potential cost of not purchasing insurance (“self‐insuring”).
Tax Planning Strategies: Advice may include ways to minimize current and future income taxes as a part of
your overall financial planning picture. For example, we may make recommendations on which type of
account(s) or specific investments should be owned based in part on their “tax efficiency,” with the
consideration that there is always a possibility of future changes to federal, state or local tax laws and rates
that may impact your situation.
We recommend that you consult with a qualified tax professional before initiating any tax planning strategy,
and we often provide introductions to and work directly with accountants or attorneys on your behalf who
specialize in this area if you wish to hire someone for such purposes.
Equity Compensation Analysis/Planning: A thorough breakdown and analysis of all company stock-based
compensation schemes the client owns. Deliverables and services may include: description of type(s) of
equity award(s) granted and vesting schedules; exercising and diversification strategies; hedging strategies;
navigating private market opportunities for pre-IPO equity; tax considerations; 10b5-1 plan design; and other
corporate actions to consider that can optimize a client’s equity award.
Client Tailored Services and Client Imposed Restrictions
We tailor the delivery of our services to meet the individual needs of our Clients. We consult with Clients initially
and on an ongoing basis, through the duration of their engagement with us, to determine risk tolerance, time
horizon and other factors that may impact the Clients’ investment and/or planning needs.
Clients are able to specify, within reason, any limitations they would like to place on discretionary authority as it
pertains to individual securities and/or sectors that will be traded in their account, by notating these items on the
executed advisory agreement.
Wrap Fee Programs
We do not participate in wrap fee programs.