Description of Advisory Firm
Private Financial Counseling (also “PFC”, “we,”, “us,” or the “Firm”) is a privately-owned corporation
headquartered in Los Angeles, California. Founded by Stephen E. Scherer, PFC is a wealth management
Firm established in 1981. Our philosophy is to provide our clients with both personal and professional
service. PFC is registered as an investment adviser with the U.S. Securities and Exchange Commission. The
Firm’s principal owner is Stephen E. Scherer, President.
Our mission is to create and maintain wealth for our clients through long-term effective asset
management. We build client relationships based on trust, competent professional advice, continual
communication and prompt personal service. We will assist our clients in setting financial goals,
monitoring these goals and keeping them informed of the process and achievement of these goals.
Our success is based on our avid commitment to research. We have equipped our business with
sophisticated technology and resources to provide us with data that allows us to utilize our research
capabilities to the fullest. These investments in our business have allowed us to give our clients the
intensely personalized asset analysis, allocation and investment service.
Advisory Services Offered
Wealth Management Services
PFC offers wealth management services primarily to individuals, including high-net-worth individuals and
families, as well as corporations, retirement plans and charitable organizations. Through PFC’s wealth
management services, we work with clients to get a complete overview of their financial picture to create
a customized wealth management approach. Our wealth management services include implementation
of the client’s investment plan through investment management utilizing customized portfolios.
Customized Portfolios
Once we have determined the overall investment approach for the client, we design, monitor, and
evaluate the client’s investment portfolio. The customized portfolios we build are tailored to address the
client’s unique financial needs and preferences. Asset allocations and client portfolio performance may
differ even among clients with similar risk tolerance and objectives.
PFC’s investment strategies are described in Item 8 - Methods of Analysis below.
Investment Advice
Depending on the client’s account strategy, we typically use the following types of securities in our
ongoing management:
• Equity securities, such as stocks and foreign securities listed on US exchanges (ADRs)
• Fixed income securities, such as corporate and government bonds, preferred stocks, and TIPS
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• Exchange traded funds (ETFs), open-end investment companies (mutual funds), exchange traded
notes (ETNs), and closed-end investment companies
• Alternative investments, such as commodity funds, gold funds, inverse ETFs and other funds
(leveraged and unleveraged), real estate investment funds, and registered hedge funds (upon
additional discussion with the client)
• Money market funds and cash
PFC may offer investment
advice on any investment held by the client at the start of an advisory
relationship. We may also occasionally offer advice regarding additional types of investments if they are
appropriate to address the individual needs, goals, and objectives of the client or in response to client
inquiry. We describe the material investment risks for many of the securities that we recommend under
the heading Specific Security Risks in Item 8 below.
We discuss our discretionary authority below under Item 16 - Investment Discretion. For more
information about the restrictions clients can put on their accounts, see Tailored Services and Client
Imposed Restrictions in this item below.
We describe the fees charged for investment management services below under Item 5 - Fees and
Compensation.
Limitations on Investments
In some circumstances, PFC’s advice may be limited to certain types of securities. For example, when we
provide services to participants in an employer-sponsored plan, the participant may be limited to investing
in securities included in the plan’s investment options. Therefore, PFC can only select investments from
among the available options, and will not recommend other securities, even if there may be better options
elsewhere. Similarly, if PFC is managing assets within an annuity, PFC is limited to those investment
options made available by the insurance company.
Tailored Services and Client Imposed Restrictions
We believe every client is unique. Each has highly individual preferences, resources, and challenges.
Therefore, we begin every client relationship by getting to know the client, so that we can better
understand their financial circumstances. Only then can we develop an investment strategy and wealth
management approach that is specifically suited to our clients’ needs. PFC manages client accounts based
on the investment strategies discussed below under Item 8 - Methods of Analysis, Investment Strategies,
and Risk of Loss. We apply the strategy for each client, based on the client’s individual circumstances and
financial situation. We make investment decisions for clients based on information the client supplies
about their financial situation, goals, and risk tolerance. Our recommendations may not be suitable if the
client does not provide us with accurate and complete information. It is the client’s responsibility to keep
PFC informed of any changes to their investment objectives or restrictions.
Clients may also request other restrictions on the account, such as when a client needs to keep a minimum
level of cash in the account or does not want us to buy or sell certain specific securities. We reserve the
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right to not accept and/or terminate management of a client’s account if we feel that the client-imposed
restrictions would limit or prevent us from meeting or maintaining the client’s investment strategy.
Assets Under Management
As of July 31, 2023, the total amount of assets under our management was:
Discretionary Assets $ 212,242,2013
Non-Discretionary Assets $ 0
Total Assets $ 212,242,2013