Firestone Capital Management, Inc. (Firestone, us, we, our) is an S Corporation organized under
the laws of the State of Florida on August 29, 1997, and owned by Carol G. Kaufman, Carlos A.
Carbonell, Anthony E. Poppe, and Jerad O. Waggy. We have been registered as an investment
advisor with the U. S. Securities and Exchange Commission since December 16, 1991. We are
notice filed as an investment advisor with the State of Florida, Office of Financial Regulation, as
well as the states of Arizona, California, Georgia, Illinois, Massachusetts, New Hampshire, New
Mexico, New York, North Carolina, Pennsylvania, Tennessee, Texas, Virginia, and Washington. As
of December 31, 2023, we have approximately $646.2 million in discretionary assets under
management, $2.1 million managed on a non-discretionary basis, and $37.4 million in assets under
advisem
ent1.
We offer investment advisory services, personal financial planning, and wealth management to
individuals, families (including their related entities, trusts, and estates), pension and profit-
sharing plans, charitable organizations, and corporations. We will deliver a copy of this Disclosure
Brochure, the Form ADV Part 2, to you before or at the time we enter into an investment advisory
contract with you. This Disclosure Brochure will provide you with information regarding our
qualifications, business practices, and advisory services. Read and consider this information
carefully before becoming our client.
Please contact Louise G. Owen, our Chief Compliance Officer, if you have any questions about
this Brochure.
Types of Advisory Services
The primary business of our firm is wealth management. We provide portfolio management
services and furnish investment advice as part of an ongoing wealth management and financial
planning relationship.
1 Assets under advisement represent client assets for which we provide consulting services, but with neither
discretionary authority nor responsibility for implementing investment recommendations. Inclusion of these assets
will make our asset totals as provided here different from our assets under management as disclosed in Item 5.F of
our Form ADV Part 1A, due to specific calculation instructions for Regulatory Assets Under Management.
Financial Planning Services
Before you engage us to provide financial planning services, you will generally be required to
enter into a financial planning agreement that sets forth the terms and conditions of the
engagement, the scope of the services to be provided, and the portion of the fee that is due from
you before our planning work begins. You are advised that you have the responsibility to notify
us promptly if your financial situation or investment objectives change, so that we can review,
evaluate, and revise our recommendations and services.
Our financial planning services include personal financial management, risk management,
investment planning, tax planning, retirement planning, estate planning, and special needs
planning such as education planning. Targeted investment and/or retirement plans may be
provided for the client who desires a less comprehensive plan.
Our financial planning services involve an assessment of your financial situation, including an
analysis of your entire financial planning needs and investment portfolio. We will examine the
information you provide in relation to your long and short-term investment objectives, your
needs as perceived by you and us, market conditions and general economic conditions. Our
advice includes specific recommendations regarding long and short-term financial planning and
investment recommendations.
Wealth Management Services
After your initial financial planning work has been completed, we will assist you in maintaining a
properly structured and diversified investment portfolio that is consistent with your objectives.
The engagement includes implementation of recommendations accepted by the client,
individualized attention and support, and meetings as required.
Because your financial situation and goals will inevitably change over time, you are encouraged
to have your financial position re-examined periodically. You may want us to perform follow-up
reviews and analyses after we complete our initial financial planning work. Such follow-up
reviews are performed, and reports provided, as frequently as needed, and are included in our
regular management fees.
We provide continuous and regular investment advisory services on a discretionary basis to you
in connection with establishing and monitoring your investment objectives, risk tolerance, asset
allocation goals, and time horizon. In addition, we provide information and research about
investment products and strategies, and review portfolio performance reports.
Discretion to manage your accounts must be granted to us in writing. You always have the option
of placing reasonable restrictions or constraints on the way your account is managed; however,
such restrictions may affect the composition and performance of your portfolio.
If requested, we may recommend the services of other professionals such as attorneys or
accountants. You are under no obligation to engage the services of any such recommended
professional. You retain absolute discretion over all such decisions and are free to accept or
reject any recommendation.
IRA Rollover Recommendations
For the purposes of complying with the US Department of Labor’s Prohibited Transaction
Exemption 2020-02 (“PTE 2020-02”), when applicable, we provide the following
acknowledgment to clients:
When we provide investment advice to clients regarding your retirement plan accounts or
individual retirement accounts, we are a fiduciary within the meaning of Title I of the Employee
Retirement Income Security Act. The way we make money creates some conflicts with client
interests. We operate under an exemption that requires us to act in our clients’ best interests,
and not to put our interests ahead of the clients. Under this exemption, we must:
• meet professional standards of care when making investment recommendations (give
prudent advice),
• never put our financial interests ahead of the clients’ when making recommendations
(give loyal advice),
• avoid making misleading statements about conflicts of interest, fees, and investments,
• follow policies and procedures designed to ensure that our advice is in the clients’ best
interest,
• charge no more than is reasonable for services, and
• give our clients basic information about conflicts of interest.
We benefit financially from the rollover of client assets from external retirement accounts to
accounts under our management because these assets increase our assets under management,
and, in turn, our advisory fees. As a fiduciary, we only recommend asset rollover when we believe
it is in your best interest.
Firm Personnel and Qualifications
Our staff currently consists of five principals and four additional staff providing support in
investment management, research, implementation, and operations. Our Investment Advisor
Representatives (Advisors) hold either the Certified Financial Planner® designation or the
Chartered Financial Analyst certification, or both.
Both the Certified Financial Planner CFP® certification and the Chartered Financial Analyst (CFA)
charter are globally respected, graduate-level professional credentials. To earn either or both, a
candidate must pass complete extensive training, pass a stringent examination and qualification
process incorporating both professional knowledge and professional experience and continue to
meet rigorously enforced continuing education requirements. Both these certifying bodies, the
CFA Institute and the CFP Board, require all certified professionals to meet a high ongoing
standard of competence and expertise, to remain current with new developments in the field, to
act with integrity and objectivity, and to uphold the fiduciary standard by placing client’s interests
ahead of their own at all times.
In addition, all CFP® professionals and CFA charterholders must commit to abide by, and annually
reaffirm, a strict Code of Ethics and Standards of Professional Conduct. More details of the
professional Code of Ethics maintained at Firestone Capital Management are given in section 11
of this form.