Firm Description
Rockwood Wealth Management, LLC (hereinafter “RWM”) is a registered investment adviser with a principal office
based in New Hope, Pennsylvania and is organized as a limited liability company under the laws of the State of
Pennsylvania. RWM was founded in 2008. The principal owner is John Augenblick; Mark Kelly, Samuel Feldbaum,
Kenny Bauer and Megan Lottier also hold ownership interest in the firm.
RWM provides personal financial planning and investment management services to individuals, families and their
related entities including trusts and estates, endowments and family businesses. RWM works with clients to define
financial objectives and to develop strategies for reaching those objectives, some of which may include cash flow
management, tax planning, risk exposure review, investment management, education funding, retirement
planning, estate planning, charitable giving, special needs planning, family business succession issues, employer
benefits, and/or other issues specific to the client. Investment management services include ongoing review and
rebalancing of portfolios based on market conditions and client’s individual financial circumstances. We meet with
clients and prospects to determine investment objectives, risk tolerance and other relevant information.
RWM derives its revenues from financial planning and investment advisory fees only. The firm’s compensation is
based solely from fees paid directly by clients. The firm does not receive any commission based on the client’s
purchase of any particular financial product(s). No commissions in any form are accepted. No benefits are received
from custodians or broker-dealers based on client securities transactions (“soft dollar benefits”). For more on our
investment philosophies and the risks of our strategies and/or specific investments recommended, please refer to
the paragraphs below, as well as Item 8 of this brochure.
Assets under the direct management of RWM are held by independent and unaffiliated qualified custodians in the
client’s name. RWM does not act as a custodian of client assets.
At times we may recommend other professionals (e.g., lawyers, accountants, insurance agents, real estate agents)
at the request of the client. Such other professionals are engaged directly by the client on an as-needed basis at
the client’s discretion. Professionals recommended by RWM may also in their discretion recommend our services to
their clients. With the exception of a single referral relationship with another independent and unaffiliated registered
investment adviser as described in Item 14, we have no official referral agreements with any of the professionals we
recommend.
We actively seek to avoid, or at least minimize, conflicts of interest which may exist between our firm and you.
Conflicts of interest will be disclosed and managed in the best interest of the client. However, all investment
advisory firms will likely possess some unavoidable conflicts of interest. In those instances when conflicts of
interest arise, we have adopted policies which seek to keep the client’s best interests paramount at all times.
Please see other sections of this brochure which explores in further detail how we act to keep the client’s best
interests first at all times during the course of our client relationship. Refer to the details of each service listed for
information on how we customize our wealth management and advisory services to each client’s individual needs.
Types of Services
RWM provides wealth management advisory services which includes financial planning and investment
management. RWM also provides clients with investment advice through one-on-one consultations. In performing
its services, RWM relies on the information received from the client or from the client's other professionals. Each
client is advised that it remains his/her responsibility to promptly notify RWM when there are any changes to his
or her financial situation and/or financial objectives for the purpose of reviewing, evaluating, or revising previous
recommendations and/or services.
Tailored Advisory Services
RWM tailors its advisory services to meet each client’s needs. This is achieved for most clients by individually
customizing investment portfolios based on client’s profile. Clients will be offered a conference with an advisor at
least annually to review any changes to their financial situation, the investment portfolio upon which advice is
provided by RWM, and other financial planning issues. In addition, clients may impose reasonable restrictions on
investing in certain securities or certain types of securities so long as they can be implemented by RWM.
Financial Planning
RWM provides a broad-based consultative financial planning service for clients. Financial planning may include
identification of financial problems, overall cash flow management, tax planning, risk exposure review, asset
allocation, education funding, retirement planning, estate planning, charitable goals, small business advisory, fringe
benefits, special needs planning or other issues specific to the client. Reviews are conducted to determine if the
client’s financial objectives and goals are being met and if changes or adjustments to the plan should be made.
Financial planning software, such as Money Guide Pro, may be used to assist in assessing client’s financial
circumstances and define in some detail risk tolerance and investment objectives. No implementation services or
ongoing asset management services are provided unless otherwise separately elected by the client. Upon review
and analysis of the information provided via the financial planning software, a written evaluation of the client's
current situation and goals is provided to the client. Customized recommendations are given in each area
specifically requested by the client. The recommendations may include types of securities, portfolio allocation
as
well as investment timeframe.
RWM Account Statements
Clients are at times provided account statements, net worth statements, and net worth graphs that are generated
from our portfolio accounting and financial planning software. Net worth statements contain approximations of
bank account balances provided by the client, as well as the value of land, real estate, limited partnerships, and
other hard-to-price assets. The net worth statements are used for long-term financial planning where the exact
values of assets are not material to the financial planning tasks. The book values of hard to price assets are
reviewed whenever supplemental information relating to valuation is received. Otherwise, these assets are
priced at client cost. Clients are urged to compare the statements they receive from us to those they receive from
their qualified custodians.
Agreement Termination
Either party may cancel the financial planning agreement at any time by providing written notification.
Wealth Management
This service includes financial planning, implementation as well as ongoing investment management and
monitoring services. Wealth management services are tailored to meet the client’s needs. For most clients, each
investment portfolio is individually designed; RWM will develop a customized investment portfolio in accordance with
the client’s risk tolerance and investment objectives. At least annually clients will have the opportunity to review and
discuss via conference call or in person with their designated advisor any changes to their financial situation, the
investment portfolio upon which advice is provided by RWM, and other financial planning issues. Clients will also
have the ability to obtain unlimited telephone support and reviews on a more frequent basis. The advisor may conduct
more frequent account reviews which may not necessarily be communicated to the client unless immediate
changes are recommended. On an ongoing basis, RWM will monitor client’s portfolio performance and will
rebalance as dictated by portfolio fluctuations and the client’s financial circumstances.
Clients who request this service have the option of granting discretionary authority to RWM for the management
of their accounts. This will allow RWM to effectuate trades in line with the client’s investment objectives, risk
tolerance and goals, without the client’s written approval prior to each transaction. Non-discretionary accounts do
not allow for trades to be placed by RWM investment personnel without the client’s written approval prior to each
transaction.
Investment Management Services
In certain circumstance RWM may provide Investment Management as a stand-alone service, in which case
financial planning services are not rendered.
Sub-Advisory Relationships for Smaller Accounts
For certain smaller accounts which do not require the same level of advisory services, RWM has selected certain
third-party proprietary automated investment allocation programs offered by the investment advisory affiliates of
brokerage firms. The underlying investments in such accounts are exchange-traded funds or mutual funds.
Generally, the process for establishing this arrangement is as follows: RWM recommends that the Client open an
account with the brokerage firm and enroll in the investment allocation service provided by the advisory affiliate.
(The client will receive this affiliate’s Form ADV Part 2 brochure directly from the advisory affiliate.) RWM will have
access to the account solely for the purpose of selecting the appropriate investment allocation for the account.
The providers of such programs charge a unitary asset-based fee for custody, fund share transactions and access
to the automated program. The Client will be charged this fee in addition to RWM’s investment advisory fee.
In selecting which providers to recommend for smaller accounts, RWM will consider the quality of the investment
allocation program and its underlying investments, the reliability of the provider and the reasonableness of the
fees.
Third-Party Advisory Firms
From time to time, if RWM determines that a client may benefit from the specialized advice on a particular type of
investment, it may retain (with the client’s consent) an appropriate independent third-party firm to provide such
advice for the client’s account. Typically, such services will be billed separately from RWM’s fees.
Account Termination
The investment management agreement and wealth management agreement may be canceled within five (5)
days of acceptance with no penalty. After the initial five (5) days, the client or advisor may terminate the
Agreement by giving a written notice. The balance of any unearned fee, if any, is promptly refunded to the client.
The refund is calculated based on a pro-rata basis for the portion of the quarter completed and will be promptly
refunded.
Wrap Fee Programs
RWM does not invest in wrap fee programs or manage assets for any wrap fee accounts.
Types of Investments
RWM’s investment philosophy is a structured passive approach to investing. RWM’s securities investments
consist primarily of mutual funds and exchange traded funds (ETFs). Occasionally, we will provide guidance on
individual securities in order to assist the clients in liquidating their position. Additionally, RWM generally advises
clients on the type of mutual fund or ETF that we deem appropriate based on the client’s stated goals, risk
tolerance, and objective. Clients must provide reasonable investment restriction requests in writing to RWM so
we can refrain from investing in certain types of funds and ETFs.
Assets Under Management
As of December 31, 2022, RWM had $ 1,342,897,504 in discretionary assets under management (AUM) and $
41,226,538 in non-discretionary assets under management (AUM).