Kiely Wealth Advisory Group, Inc. (“KWAG” or “we”) generally provides investment supervisory
services to individually managed accounts for individuals and/or institutional clients (each a
“Client” and collectively, the “Clients”).
- Education – We provide investment education through seminars, one-on-one consultations,
group presentations, publications and various media communications that are designed to
help individuals more successfully manage their investments by learning to avoid the many
pitfalls associated with investing.
- Investment Planning and Asset Management – In those cases where an individual has
sufficient time and/or interest in managing his/her assets, we will plan and execute a personal
investment strategy based on his/her current financial situation, risk tolerance, goals, etc.
- Individual Retirement Planning – Because employee-sponsored retirement plans play a
significant role in comprehensive financial planning, we make a special effort to educate both
individuals and organizations about effective participation in these plans, how they work, how
to make sound choices regarding the options available within the plans, as well as the options
that are available when someone leaves a company or retires.
- Corporate Retirement Planning – We develop plans suitable for a particular organization,
engage a plan administrator, provide on-going education to both management and employees
about the plan, and manage the plan’s investments.
- Other Services – Frequently, we will encounter individuals with obvious gaps in their plans for
a secure financial future. As we see needs that extend beyond the scope of portfolio
development, we are prepared to help the individual address those needs by making
appropriate referrals to qualified and knowledgeable individuals and organizations that we
believe adhere to a philosophy of putting the Client’s best interest first. Such referrals include
attorneys specializing in estate planning, CPAs providing tax planning advice, independent
insurance agents providing policies to meet life insurance and/or long-term care insurance
needs, etc.
MISCELLANEOUS
No Financial Planning or Non-Investment Consulting/Implementation Services. KWAG does not
provide financial planning nor related consulting services matters such as estate planning, tax
planning, insurance, etc. Please Note: We do not serve as an attorney, accountant, or insurance
agency, and no portion of our services should be construed as same. Accordingly, we do not
prepare estate planning documents or tax returns, not do we offer or sell insurance products. To
the extent requested by a client, we may recommend the services of other professionals for non-
investment implementation purpose (i.e. attorneys, accountants, insurance, etc.). 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 KWAG and/or its representatives. If the client engages any professional
(i.e., attorney, accountant, insurance agent, etc.), recommended or otherwise, and a dispute
arises thereafter relative to such engagement, the engaged professional shall remain exclusively
responsible for resolving any such dispute with the client. At all times, the engaged licensed
professional[s] (i.e. attorney, accountant, insurance agent, etc.), and not KWAG, shall be
responsible for the quality and competency of the services provided.
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 KWAG recommends that a client roll over their retirement plan assets into an
account to be managed by KWAG, such a recommendation creates a conflict of interest if KWAG
will earn new (or increase its current) compensation as a result of the rollover. If KWAG 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), KWAG 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 KWAG, whether it is from an
employer’s plan or an existing IRA. KWAG’s Chief Compliance Officer, Kathryn Miceli, 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, KWAG generally recommends that
SCHWAB Ameritrade serve as the broker-dealer/custodian for client investment management
assets. SCHWAB Ameritrade shall merge into and become part of Charles Schwab & Co., Inc. in
September 2023, at which time all client accounts shall transition from SCHWAB Ameritrade to
Schwab as the broker-dealer/custodian for client investment management assets (together
SCHWAB Ameritrade and Charles Schwab referred to below as “Schwab”). 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, generally (with the potential exception for large orders) do not currently
charge fees on individual equity transactions (including ETFs), others do. Please Note: there can
be no assurance that Schwab will not change their transaction fee pricing in the future. The above
fees/charges are in addition to KWAG’s investment advisory fee at Item 5 below. KWAG does not
receive any portion of these fees/charges. ANY QUESTIONS: KWAG’s Chief Compliance Officer,
Kathryn Miceli, remains available to address any questions that a client or prospective client
may have regarding the above.
Cash Sweep Accounts. Certain account custodians can require that cash proceeds from account
transactions or new deposits, be swept to and/or initially maintained in a specific custodian
designated sweep account. The yield on the sweep account will generally be lower than
those available for other money market accounts. When this occurs, to help mitigate the
corresponding yield dispersion, KWAG shall (usually within 30 days thereafter) generally (with
exceptions) purchase a higher yielding money market fund available on the custodian’s platform,
unless KWAG reasonably anticipates that it will utilize the cash proceeds during the subsequent
30-day period to purchase additional investments for the client’s account. Exceptions and/or
modifications can and will occur with respect to all or a portion of the cash balances for various
reasons, including, but not limited to the amount of dispersion between the sweep account and
a money market fund, an indication from the client of an imminent need for such cash, or the
client has a demonstrated history of writing checks from the account. Please Note: The above
does not apply to the cash component maintained within a KWAG actively managed investment
strategy (the cash balances for which shall generally remain in the custodian designated cash
sweep account), an indication from the client of a need for access to such cash, assets allocated
to an unaffiliated investment manager, and cash balances maintained for fee billing purposes.
Please Also Note: The client shall remain exclusively responsible
for yield dispersion/cash
balance decisions and corresponding transactions for cash balances maintained in any KWAG
unmanaged accounts. ANY QUESTIONS: KWAG’s Chief Compliance Officer, Kathryn Miceli,
remains available to address any questions that a client or prospective client may have regarding
the above.
Portfolio Activity. KWAG has a fiduciary duty to provide services consistent with the client’s best
interest. KWAG 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 KWAG determines that changes to a client’s portfolio are unnecessary.
Clients remain subject to the fees described in Item 5 below during periods of portfolio inactivity.
Of course, as indicated below, there can be no assurance that investment decisions made by the
KWAG will be profitable or equal any specific performance level(s).
Cybersecurity Risk. The information technology systems and networks that KWAG and its third-
party service providers use to provide services to KWAG’s clients employ various controls, which
are designed to prevent cybersecurity incidents stemming from intentional or unintentional
actions that could cause significant interruptions in KWAG’s operations and result in the
unauthorized acquisition or use of clients’ confidential or non-public personal information.
Clients and KWAG are nonetheless subject to the risk of cybersecurity incidents that could
ultimately cause them to incur losses, including for example: financial losses, cost and
reputational damage to respond to regulatory obligations, other costs associated with corrective
measures, and loss from damage or interruption to systems. Although KWAG has established its
systems to reduce the risk of cybersecurity incidents from coming to fruition, there is no
guarantee that these efforts will always be successful, especially considering that KWAG does not
directly control the cybersecurity measures and policies employed by third-party service
providers. Clients could incur similar adverse consequences resulting from cybersecurity
incidents that more directly affect issuers of securities in which those clients invest, broker-
dealers, qualified custodians, governmental and other regulatory authorities, exchange and
other financial market operators, or other financial institutions.
Please Note-Use of Mutual and Exchange Traded Funds: KWAG utilizes mutual funds and
exchange traded funds for its client portfolios. In addition to KWAG’s investment advisory fee
described below, and transaction and/or custodial fees discussed above, 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).
Client Retirement Plan Assets. If requested to do so, KWAG shall provide investment advisory
services relative to 401(k) plan assets maintained by the client in conjunction with the retirement
plan established by the client’s employer. In such event, KWAG shall allocate (or recommend that
the client allocate) the retirement account assets among the investment options available on the
401(k) platform. KWAG’s ability shall be limited to the allocation of the assets among the
investment alternatives available through the plan. KWAG will not receive any communications
from the plan sponsor or custodian, and it shall remain the client’s exclusive obligation to notify
KWAG of any changes in investment alternatives, restrictions, etc. pertaining to the retirement
account. Unless expressly indicated by KWAG to the contrary, in writing, the client’s 401(k) plan
assets shall be included as assets under management for purposes of KWAG calculating its
advisory fee.
Please Note: Cash Positions. KWAG continues to treat cash as an asset class. As such, unless
determined to the contrary by KWAG, all cash positions (money markets, etc.) shall continue to
be included as part of assets under management for purposes of calculating KWAG’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), KWAG 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, KWAG’s advisory fee could exceed the interest paid by the client’s money
market fund. ANY QUESTIONS: KWAG’s Chief Compliance Officer, Kathryn Miceli, remains
available to address any questions that a client or prospective may have regarding the above
fee billing practice.
Borrowing Against Assets/Risks. A client who has a need to borrow money could determine to
do so by using:
• Margin-The account custodian or broker-dealer lends money to the client. The custodian
charges the client interest for the right to borrow money, and uses the assets in the
client’s brokerage account as collateral; and,
• Pledged Assets Loan- In consideration for a lender (i.e., a bank, etc.) to make a loan to
the client, the client pledges investment assets held at the account custodian as
collateral.
These above-described collateralized loans are generally utilized because they typically
provide more favorable interest rates than standard commercial loans. These types of
collateralized loans can assist with a pending home purchase, permit the retirement of more
expensive debt, or enable borrowing in lieu of liquidating existing account positions and
incurring capital gains taxes. However, such loans are not without potential material risk to
the client’s investment assets. The lender (i.e. custodian, bank, etc.) will have recourse
against the client’s investment assets in the event of loan default or if the assets fall below
a certain level. For this reason, KWAG does not recommend such borrowing unless it is for
specific short-term purposes (i.e. a bridge loan to purchase a new residence). KWAG does
not recommend such borrowing for investment purposes (i.e. to invest borrowed funds in
the market). Regardless, if the client was to determine to utilize margin or a pledged assets
loan, the following economic benefits would inure to KWAG:
• by taking the loan rather than liquidating assets in the client’s account, KWAG continues
to earn a fee on such Account assets; and,
• if the client invests any portion of the loan proceeds in an account to be managed by
KWAG, KWAG will receive an advisory fee on the invested amount; and,
• if KWAG’s advisory fee is based upon the higher margined account value, KWAG will earn
a correspondingly higher advisory fee. This could provide KWAG with a disincentive to
encourage the client to discontinue the use of margin.
Please Note: The Client must accept the above risks and potential corresponding
consequences associated with the use of margin or a pledged assets loan.
Client Obligations. In performing our services, KWAG 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, it remains each client’s responsibility to promptly notify
KWAG if there is ever any change in his/her/its financial situation or investment objectives for
the purpose of reviewing/evaluating/revising our previous recommendations and/or services.
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 KWAG) will be profitable or equal any specific performance level(s).
Disclosure Brochure. A copy of KWAG’s written Brochure as set forth on Part 2A of Form ADV
and Form CRS (Client Relationship Summary) shall be provided to each client prior to, or
contemporaneously with, the execution of an agreement between the client and KWAG.
strategy (including the investments and/or investment strategies recommended or undertaken
by KWAG) will be profitable or equal any specific performance level(s).