A. Sheeley & Partners Wealth Management, LLC (the “Registrant”) is a limited liability company formed under the laws of the State
of Rhode Island. The Registrant has been registered as an investment adviser since 1998. The Registrant is principally owned by
NCG, LLC, which is principally owned by Lesley Sheeley, who is the Registrant’s Chief Compliance Officer.
B. As discussed below, the Registrant offers to its clients investment advisory services and financial planning and consulting services.
INVESTMENT ADVISORY SERVICES
The client can engage the Registrant to provide discretionary investment advisory services. Before engaging the Registrant to
provide investment advisory services, new clients will be required to enter into an Investment Advisory Agreement with Registrant
setting forth the terms and conditions of the engagement.
Registrant’s annual investment advisory fee includes investment advisory services, and general financial planning and consulting
services. In the event that the client requires extraordinary planning or consultation services (to be determined in the sole discretion
of the Registrant), the Registrant may determine to charge for such additional services pursuant to a stand-alone Financial Planning
Agreement (see Items 4 and 5 below).
The Registrant provides investment advisory services specific to the needs of each client. Before providing investment advisory
services, an investment adviser representative will ascertain each client’s investment objectives. Then, the Registrant will allocate
investment assets consistent with the client’s designated investment objectives. The Registrant generally allocates client
investment assets among: exchange-listed securities, over-the-counter securities, mutual fund shares, corporate debt, exchange
traded funds (“ETFs”), exchange traded notes (“ETNs”) US government securities, bond funds, and certificates of deposit on a
discretionary basis. The Registrant may use or recommend short sales, use of margin, the use of leveraged or inverse mutual funds
or ETFs, and options transactions (please refer to Item 8 below for a more detailed discussion of these strategies and the risks
involved).
Once the client’s assets are allocated, the Registrant provides ongoing monitoring and review of account performance, asset
allocation, and client investment objectives, and rebalances account on a discretionary basis.
Please Note: Registrant believes that it is important for the client to address financial planning issues on an ongoing basis.
Registrant’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 Registrant.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent it is specifically requested to do by a client requested by a client, the Registrant may also provide financial planning
and/or consulting services (including investment and non-investment related matters, including estate planning, insurance
planning, etc.) on a stand-alone separate fee basis. Before engaging the Registrant to provide stand-alone planning or consulting
services, clients are required to enter into a Financial Planning and Consulting Agreement with Registrant setting forth the terms
and conditions of the engagement. If requested by the client, Registrant may recommend the services of other professionals for
implementation purposes, including Registrant’s representatives in their separate individual capacities as licensed insurance agents
(See disclosure in Item 10.C. below). The client is under no obligation to engage the services of any recommended professional.
The client retains absolute discretion over all implementation decisions and is free to accept or reject any recommendation from
the Registrant. Please Note: If the client engages any 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: Clients
are responsible for promptly notifying the Registrant if there is ever any change in their financial situation or investment objectives
so that the Registrant can review, and if necessary, revise its previous recommendations or services.
RETIREMENT PLAN CONSULTING SERVICES
The Registrant also provides non-discretionary retirement plan consulting services, pursuant to which it assists sponsors of self-
directed retirement plans with the selection and/or monitoring of investment alternatives (generally open-end mutual funds) from
which plan participants shall choose in self-directing the investments for their individual plan retirement accounts. In addition, to
the extent requested by the plan sponsor, the Registrant shall also provide participant education designed to assist participants in
identifying the appropriate investment strategy for their retirement plan accounts. The terms and conditions of the engagement
shall generally be set forth in a Retirement Plan Consulting Agreement between the Registrant and the plan sponsor.
MISCELLANEOUS
Limitations of Non-Investment Consulting/Implementation Services. If requested by the client, the Registrant may provide
consulting services regarding non-investment related matters, such as estate planning, tax planning, insurance, etc. Neither the
Registrant, nor any of its representatives, serves as an attorney or accountant, and no portion of the Registrant’s services should
be construed as legal or accounting services. To the extent requested by a client, the Registrant may recommend the services of
other professionals for certain non-investment implementation purposes (i.e. attorneys, accountants, insurance, etc.), including
Registrant’s affiliate, Knickerbocker Wealth Resources, LLC (“Knickerbocker”), in its separate capacity as a licensed insurance
agency-see Item 10 below, or Registrant’s representative, in their separate individual capacity as a licensed insurance agent, as
discussed below. 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 the Registrant.
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. If, and when, the Registrant is involved
in a specific matter (i.e. estate planning, insurance, accounting-related engagement, etc.), it is the engaged licensed professionals
(i.e. attorney, accountant, insurance agent, etc.), and not the Registrant, that is responsible for the quality and competency of the
services provided.
Please Also Note-Conflict of Interest: The recommendation by Registrant’s representative that a client purchase an insurance
commission product through Knickerbocker or Registrant’s representative in their separate and individual capacity as an insurance
agent presents a conflict of interest, as the receipt of commissions may provide an incentive to recommend insurance products
based on commissions to be received, rather than on a particular client’s need. No client is under any obligation to purchase any
insurance commission products through Knickerbocker or such a representative. Clients are reminded that they may purchase
insurance products recommended by Registrant through other, non-affiliated insurance agencies and agents. Registrant’s Chief
Compliance Officer, Lesley Sheeley, remains available to address any questions that a client or prospective client may
have regarding the above conflict of interest.
Custodian Charges-Additional Fees. As discussed below at Item 12 below, when requested to recommend a broker-
dealer/custodian for client accounts, Registrant generally recommends that Charles Schwab & Co., Inc. (“Schwab”) or Interactive
Brokers, LLC (“IB”) serve as the broker-dealer/custodian for client investment management assets. Schwab, and IB 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 and IB, do not currently charge fees on
individual equity transactions, others do). Please Note: there can be no assurance that Schwab, or IB will not change their
transaction fee pricing in the future. Please Also Note: IB or Schwab may also assess fees to clients who elect to receive trade
confirmations and account statements by regular mail rather than electronically. These fees/charges are in addition to Registrant’s
investment advisory fee at Item 5 below. Registrant does not receive any portion of these fees/charges. ANY QUESTIONS:
Registrant’s Chief Compliance Officer, Lesley Sheeley, remains available to address any questions that a client or
prospective client may have regarding the above.
However, Schwab (as do its primary competitors that provide similar pricing arrangements) requires that cash proceeds
automatically be swept into a Schwab proprietary or affiliated money market mutual funds or cash sweeps accounts,
which proprietary/affiliated Schwab funds/accounts do not provide the highest return available.
Cash Positions. At any time and for a substantial length of time, we may maintain a significant portion of a client’s assets in cash
or money market mutual funds for defensive purposes. 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.
Unaffiliated Private Investment Funds. Registrant also provides investment advice regarding private investment funds.
Registrant, on a non-discretionary basis, may recommend that certain qualified clients consider an investment in private
investment funds, the description of which (the terms, conditions, risks, conflicts, and fees) is set forth in the fund’s offering
documents. Registrant’s role relative to unaffiliated private investment funds shall be limited to its initial and ongoing due
diligence and investment monitoring services. If a client determines to become an unaffiliated private fund investor, the amount
of assets invested in the fund(s) shall be included as part of “assets under management” for purposes of Registrant calculating its
investment advisory fee. Registrant’s fee shall be in addition to the fund’s fees. Registrant’s clients are under absolutely no
obligation to consider or make an investment in any private investment fund(s).
Please Note: Private investment funds generally involve various risk factors, including, but not limited to, potential for complete
loss of principal, liquidity constraints and lack of transparency, a complete discussion of which is set forth in each fund’s offering
documents, which will be provided to each client for review and consideration. Unlike liquid investments that a client may own,
private investment funds do not provide daily liquidity or pricing. Each prospective client investor will be required to complete a
Subscription Agreement, pursuant to which the client shall establish that the client is qualified for investment in the fund, and
acknowledges and accepts the various risk factors that are associated with such an investment.
Please Also Note: Valuation. In the event that Registrant references private investment funds owned by the client on any
supplemental account reports prepared by Registrant, the value(s) for all private investment funds owned by the client shall reflect
the most recent valuation provided by the fund sponsor. However, if subsequent to purchase, the fund has not provided an updated
valuation,
the valuation shall reflect the initial purchase price. If subsequent to purchase, the fund provides an updated valuation,
then the statement will reflect that updated value. The updated value will continue to be reflected on the report until the fund
provides a further updated value. Please Also Note: As result of the valuation process, if the valuation reflects initial purchase
price or an updated value subsequent to purchase price, the current value(s) of an investor’s fund holding(s) could be significantly
more or less than the value reflected on the report. Unless otherwise indicated, Registrant shall calculate its fee based upon the
latest value provided by the fund sponsor.
Interval Funds/Risks and Limitations: Where appropriate, Registrant may utilize interval funds (and other types of securities
that could pose additional risks, including lack of liquidity and restrictions on withdrawals). An interval fund is a non-traditional
type of closed-end mutual fund that periodically offers to buy back a percentage of outstanding shares from shareholders.
Investments in an interval fund involve additional risk, including lack of liquidity and restrictions on withdrawals. During any
time periods outside of the specified repurchase offer window(s), investors will be unable to sell their shares of the interval fund.
There is no assurance that an investor will be able to tender shares when or in the amount desired. There can also be situations
where an interval fund has a limited amount of capacity to repurchase shares, and may not be able to fulfill all purchase orders.
In addition, the eventual sale price for the interval fund could be less than the interval fund value on the date that the sale was
requested. While an internal fund periodically offers to repurchase a portion of its securities, there is no guarantee that investors
may sell their shares at any given time or in the desired amount. As interval funds can expose investors to liquidity risk, investors
should consider interval fund shares to be an illiquid investment. Typically, the interval funds are not listed on any securities
exchange and are not publicly traded. Thus, there is no secondary market for the fund’s shares. Because these types of investments
involve certain additional risk, these funds will only be utilized when consistent with a client’s investment objectives, individual
situation, suitability, tolerance for risk and liquidity needs. Investment should be avoided where an investor has a short-term
investing horizon and/or cannot bear the loss of some, or all, of the investment. There can be no assurance that an interval fund
investment will prove profitable or successful. In light of these enhanced risks, a client may direct Registrant, in writing, not to
purchase interval funds for the client’s account.
Cash Sweep Accounts. Account custodians generally require that cash proceeds from account transactions or cash deposits be
swept into and/or initially maintained in the custodian’s sweep account. The yield on the sweep account is generally lower than
those available in money market accounts. To help mitigate this issue, Registrant shall generally purchase a higher yielding money
market fund available on the custodian’s platform with cash proceeds or deposits, unless Registrant 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, the size of the cash
balance, 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 the Registrant’s 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 of the Registrant’s unmanaged accounts.
Cybersecurity Risk. The information technology systems and networks that Registrant and its third-party service providers use
to provide services to Registrant’s clients employ various controls, which are designed to prevent cybersecurity incidents
stemming from intentional or unintentional actions that could cause significant interruptions in Registrant’s operations and result
in the unauthorized acquisition or use of clients’ confidential or non-public personal information. Clients and Registrant 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 Registrant has established its processes to reduce the risk of
cybersecurity incidents, there is no guarantee that these efforts will always be successful, especially considering that Registrant
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.
Portfolio Activity. Registrant has a fiduciary duty to provide services consistent with the client’s best interest. As part of its
investment advisory services, Registrant 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, 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 Registrant determines that changes to a client’s portfolio are neither necessary nor prudent. Of
course, as indicated below, there can be no assurance that investment decisions made by Registrant will be profitable or equal any
specific performance level(s). Clients nonetheless remain subject to the fees described in Item 5 below during periods of account
inactivity.
Retirement Plan 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 the Registrant recommends that a client roll over their retirement
plan assets into an account to be managed by the Registrant, such a recommendation creates a conflict of interest if the Registrant
will earn a new (or increase its current) advisory fee on the rolled over assets. If Registrant 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), Registrant 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 Registrant, whether it is from an employer’s plan or an existing IRA. The Registrant’s
Chief Compliance Officer, Lesley Sheeley, remains available to address any questions that a client or prospective client
may have regarding its prospective engagement and the corresponding conflict of interest presented by such engagement.
Use of Mutual Funds and Exchange Traded Funds. While the Registrant may recommend allocating investment assets to
mutual funds and exchange traded funds that are not available directly to the public, Registrant may also recommend that clients
allocate investment assets to publicly-available mutual funds or exchange traded funds that the client could obtain without
engaging Registrant as an investment advisor. However, if a client or prospective client determines to allocate investment assets
to publicly-available mutual funds or exchange traded funds without engaging The Registrant as an investment advisor, the client
or prospective client would not receive the benefit of Registrant’s initial and ongoing investment advisory services. Please Note:
In addition to Registrant'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).
Client Obligations. In performing its services, Registrant 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
their responsibility to promptly notify the Registrant if there is ever any change in their financial situation or investment objectives
for the purpose of reviewing, evaluating, or revising Registrant’s previous recommendations and/or services.
eMoney. Registrant may provide its clients with access to an online platform hosted by eMoney Advisor (“eMoney”). The eMoney
platform allows a client to view their complete asset allocation, including those assets that Registrant does not manage (the
“Excluded Assets”). Registrant does not provide investment management, monitoring, or implementation services for the
Excluded Assets. The Registrant’s service relative to the Excluded Assets is limited to reporting services only, which does not
include investment implementation. Therefore, Registrant will not be responsible for the investment performance of the Excluded
Assets. Because the Registrant does not have trading authority for the Excluded Assets, to the extent applicable to the nature of
the Excluded Assets (assets over which the client maintains trading authority vs. trading authority designated to another investment
professional), the client (and/or the other investment professional), and not the Registrant, shall be exclusively responsible for
directly implementing any recommendations relative to the Excluded Assets and are exclusively responsible for the investment
performance of the Excluded Assets. The eMoney platform also provides access to other types of information and functionality,
including financial planning concepts and applications, which should not, in any manner whatsoever, be construed as services,
advice, or recommendations provided by Registrant. The client may engage Registrant to manage some or all of the Excluded
Assets pursuant to the terms and conditions of an Investment Advisory Agreement.
Disclosure Brochure. A copy of the Registrant’s written Brochure as set forth on Part 2 of Form ADV, along with the Form CRS
(Relationship Summary) shall be provided to each client before, or contemporaneously with, the execution of the Investment
Advisory Agreement, Financial Planning and Consulting Agreement, and/or Retirement Plan Consulting Agreement, as
applicable.
C. The Registrant shall provide investment advisory services specific to the needs of each client. Before providing investment
advisory services, an investment adviser representative will ascertain each client’s investment objective(s). Thereafter, the
Registrant shall allocate and/or recommend that the client allocate investment assets consistent with the designated investment
objective(s). The client may, at any time, impose reasonable restrictions, in writing, on the Registrant’s services.
D. The Registrant does not participate in a wrap fee program.
E. As of December 31, 2023, the Registrant had $117,979,799 in assets under management on a discretionary basis.