Who We Are
Reston Wealth Management, LLC1 (hereinafter referred to as “the Company”, “we”, “us” and
“our”) is a fee-based registered investment advisor2 offering a wide range of financial services3
designed to assist you, our client4, in achieving the financial stability, security, and independence
you desire.
Owner
The following person controls the Company:
Name
Title
CRD#
Robert E. Tucker III Managing Member 1610751
Alexander C. Voorhees Partner 6153993
Our Mission
Our mission is to foster a lasting relationship with you founded on mutual trust, concern,
respect, and to honor God in all we do. Together we will come alongside you . . . to hold in
trust your financial future as if it were our own . . . to be the resource you turn to for clear,
objective, and sound investment advice . . . to guide you as we explore what you value to
ultimately set a course to pursue tomorrow’s dreams, and a strategy to build a lasting legacy
for future generations.
We will do our best to keep you focused on where you want to go, offer advice on how best to
get there, and continually remind you of the importance of maintaining a disciplined financial
strategy to realize your dreams.
Assets Under Management
As of January 1, 2024, our assets under management totaled:
Discretionary Accounts....................................................... $399,417,129
Non-Discretionary Accounts ................................................. $ 12,336,966
1 Reston Wealth Management, LLC was organized as a Limited Liability Company in the Commonwealth of Virginia in 2003.
2 The term “registered investment advisor” is not intended to imply that Reston Wealth Management, LLC has attained a certain level
of skill or training. It is used strictly to reference the fact that we are “registered” as a licensed “investment advisor” with the
United States Securities & Exchange Commission – and “Notice Filed” with State Regulatory Agencies that may have limited
regulatory jurisdiction over our business practices.
3 Reston Wealth Management, LLC is a fiduciary, as defined within the meaning of the Employer Retirement Income Security Act of
1974 (“ERISA”) or as defined under the Internal Revenue Code of 1986 (the “Code”) for any financial services provided to a client
who is: (i) a plan participant or beneficiary of a retirement plan subject to ERISA or as described under the Code; or, (ii) the
beneficial owner of an Individual Retirement Account (“IRA”).
4 A client could be an individual and their family members, a family office, a foundation or endowment, a charitable organization, a
corporation and/or small business, a trust, a guardianship, an estate, or any other type of entity to which we choose to give investment
advice.
What We Do
We provide financial solutions that stress the importance of you making fiscally responsible
decisions and disciplined economic choices in your personal life, so we can effectively help you
achieve your monetary goals.
The focus of our advice begins with identifying your standards of living and quality of lifestyle
expectations. We will accomplish this through an initial Discovery Meeting where we will
review the financial documents we asked you to bring for discussion. Together questions will
be asked, information shared, and an evaluation made as to whether we should move to the
next step. During our meeting(s), we will:
• Learn about your core values and guiding principles
• Seek to understand your financial concerns and how you have been addressing them
• Discover your financial objectives and what success looks like for you
• Create an internal profile consisting of your concerns, objectives, relationships,
values, interests, assets, professional advisors and process preferences
Moving forward from the Discovery Meeting, should you choose to engage us for our advisory
services, we will begin the process of identifying your life goals (i.e., core values, family, monetary
needs, future plans, etc.). Our services include:
Portfolio Management
Our portfolio management strategies focus on designing and managing a diversified allocation
of Investment Company (“mutual funds”) products, Exchange-Traded Funds (“ETFs”), along with
the occasional mix of equity (“stock”) positions and fixed-income/debt (“bond”) instruments to
pursue a return on your investment capital5 consistent with your objectives.
Third Party Money Manager
We may recommend that you use the services of a third party money manager to manage a portion
of your investment portfolio. Factors that we take into consideration when making our
recommendation include, but are not limited to, the following: the money manager’s performance,
methods of analysis, fees, your financial needs, investment goals, risk tolerance, and investment
objectives. We will monitor the money manager’s performance to ensure its management and
investment style remains aligned with your investment goals and objectives.
The money manager will actively manage your portfolio and will assume discretionary investment
authority over a portion of your account. We will assume discretionary authority to hire and fire
this manager and/or reallocate your assets to other money managers where we deem such action
appropriate.
Information regarding our management fee structure is disclosed under “Portfolio Management
Fee” in Item 5, “Fees & Compensation” and further description of our investment strategies
under Item 8, “Methods of Analysis, Investment Strategies & Risk of Loss”.
5 You may, at any time, impose restrictions in writing on the securities we may recommend (i.e., limit the types/amounts of particular
securities purchased for your account, etc.).
Wealth Planning
Wealth planning is an essential tool to help navigate unexpected events with the ultimate
goal of providing the confidence and security necessary during both the working years
(wealth accumulation) and retirement years (wealth distribution) of your life. However, such
planning requires a lifetime commitment, not only from you but from us as well, your Financial
Planner.
What is a Wealth Plan?
Wealth planning is an evaluation of the investment and financial options available to you based
upon your defined life goals and choices. A well-designed plan is a step-by-step process
intended to identify and clarify purpose, personal and family core values, needs, and
priorities to align your financial decisions with your goals in all areas of your life and business.
Planning includes:
• Arriving at a series of decisions and action items based on current and future
financial circumstances and defined goals and objectives;
• Projecting the consequences of these decisions for you in the form of an
economic plan – a working blueprint; and,
• Implementing the protocols outlined in the plan to achieve the plan objectives.
Once complete, the wealth plan, or working blueprint, becomes the benchmark that is
used to help us evaluate where you are in achieving your financial goals, needs, and
objectives.
Wealth Planning Composition
All forms of wealth planning are a mutually defined review, analysis and evaluation of
your personal financial needs and goals. In general, our wealth planning may encompass
one or more of the following areas of financial need as communicated by you:
• Identify and clarify personal and family core values, mission, vision, and goals.
• Preparation of the wealth plan, which encompasses your:
• Current financial situation
• Liquidity and asset preservation needs
• Wealth accumulation and growth
• Wealth distribution and transfer
More specifically planning may include, but is not limited to, the following
modules:
• Financial Statements – Cash Flow and Balance Sheet
• Savings and Emergency Reserves
• Asset Allocation and Investment Portfolio Analysis
• Potential Income Tax consequences in collaboration with your tax advisor
• Risk Management and Insurance Analysis
• 529 College Education Plans
• Retirement Income Analysis
• Long-Term Healthcare
• Estate and Family Legacy Planning in collaboration with your estate attorney
• Business Succession Planning
• Outline of recommendations, strategies, solutions and resources
• Prioritizing and implementing the written action plan
• Investment consultations that allow us to create and implement a customized
investment strategy tailored to your long-term investment goals
• Facilitate meetings with you and/or other specialists within our network
• Coordinate and facilitate meetings with family members, business associates,
partners or other key individuals to assist with implementing your action plan
Preparing the Wealth Plan
In the development of your unique plan we will follow the six (6) step Financial Planning
Practice Standards process established by the Certified Financial Planner Board of Standards,
Inc. These steps are defined as follows:
Step 1: Establish and define a mutual relationship.
The first step is to conduct an introductory Discovery Meeting. During this meeting we
will learn about each other and whether we can work together to achieve your financial
objectives. We will listen as you share your needs, concerns, priorities, and what success
looks like for you. We will in-turn, share how we can help you meet your stated personal
and financial objectives, and the responsibilities we have as a fiduciary to guide you on this
journey.
In the end, we will explain the cost of completing the desired wealth planning service for
you to decide whether you want to move forward with the next step in the planning process.
Step 2: Gathering data and determining goals and objectives.
In the second step of the planning process, we learn about you and what you want to
achieve. This is accomplished through personal interviews and questionnaires6, which
are designed to address your unique wealth planning needs. You will have the opportunity
to prioritize objectives and to remove from the process any areas that are not applicable
to your circumstances. The time we invest listening and catering to your wants and
needs is critical for developing a strong wealth planning foundation.
Step 3: Analyze and evaluate your financial status.
In this third step, we analyze the information you provided to determine your current
financial situation and what you should do to meet your goals. Depending on the services
you requested, this might include analyzing: (i) your assets, liabilities and cash flow; (ii)
your current insurance coverage and investments; and, (iii) your tax strategies and estate
planning documents.
Step 4: Develop and present wealth planning recommendations and/or alternatives.
Once the analysis has been completed, we begin formally documenting your goals and
objectives. We define the plan as a road map (a series of blueprints) designed to take
you from where you currently are financially, to where you want to be at some point in
the future. This is the creative portion of the process.
6 The information we gather from you through personal interviews and questionnaires is vital for us to effectively advise you on your
unique financial needs and help you plan for your future. Electing to dismiss certain requested documents or respond to questions
with limited input can put us at a disadvantage and handicap our ability to successfully meet your financial expectations. Therefore, if
you want the best advice we can offer in designing a wealth plan or with any portfolio management, you should make every effort to
provide us with detailed personal information and be as accurate with your responses as you possibly can.
There are usually several ways to accomplish a given goal. The objective, however, is to
integrate financial instruments and strategies into a plan that you will be comfortable
executing. In some cases, the drafting of the plan reveals the need for us to help you
reconcile the gap between your expectations and your financial realities. Once a viable
plan has been drafted, it is presented to you and reviewed. The draft and review process
may be repeated until you are satisfied with the wealth plan or the scope of work has
been completed.
There may be additional costs for you to implement your plan under steps 5 and 6. You
have the choice to allow us to implement your wealth plan or you can use another
outside professional.
Step 5: Implement the planning recommendations.
A wealth plan is of limited value if it is not put into action. Accordingly, we assist you
with implementing7 the plan. The action plan schedule provides you with a list of tasks
and deadlines designed to ensure that you put your plan into action. The following are
some examples of implementation:
• Drafting of appropriate estate documents (performed in conjunction with an
estate attorney).
• Purchase of various insurance policies (provided by our licensed insurance
agents or another independent insurance agent of your choice).
• Investment advisory services and implementation of your asset allocation
strategy (performed by us, or another investment adviser/broker-dealer of your
choice).
• Ongoing income tax planning (performed in conjunction with independent
Certified Public Accountant or tax accountant).
Step 6: Monitor the planning recommendations.
Once the plan has been built and the recommendations have been implemented it is critical
that these recommendations be monitored on a continuing basis to ensure that they remain
consistent with your financial parameters. Material changes in your personal
circumstances, the general economy, changes in the way you want your investments
allocated, or tax law changes are some of the reasons why the recommendations should
be reviewed periodically and possibly adjusted.
For information on our fees for wealth planning, see “Wealth Planning Fees” under Item 5,
“Fees & Compensation.”
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Implementing the recommendations made in a wealth plan often requires consultation or coordination with one or more outside
professionals (e.g. attorneys, CPAs, insurance agents, and securities representatives). All personal and private information received
from you will be kept entirely confidential, not only by us, but by the outside professionals as well. Your confidential information
will be disclosed to third parties only with your consent or as may be permitted or required by law.
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FEES & COMPENSATION
Discovery Meeting
During the Discovery Meeting, we will review the financial documents we requested you bring
for discussion. The objectives we strive to accomplish with you during this meeting are to:
• Diagnose your current financial need;
• Address your financial concerns and answer your questions on how we can assist you;
• Recommend financial resolutions aimed at lowering costs, reducing risks, increasing
expected returns, and/or increasing tax efficiency to improve the likelihood of
successfully achieving your goal;
• Explain our investment methodology and how our investment strategies work; and,
• Explain the benefits of wealth planning and how a comprehensive evaluation of wealth
management needs is beneficial beyond just managing your investable assets.
From the Discovery Meeting, moving forward with portfolio management and/or wealth planning
will require you to complete initial contractual agreements and new account forms to get started.
Should you determine we are not a good fit for your financial needs as we conclude the
Discovery Meeting, all investment advice and wealth planning recommendations will have been
concluded and we are not responsible to implement the advice or for any on- going supervision,
monitoring, and/or reporting.
1. Portfolio Management Fee
All portfolio management services are provided on an asset-based fee arrangement to be
determined based on the following fee schedules and where your assets will be custodied.
The management fee is calculated based on the aggregate market value of your account on
the last business day of the previous calendar quarter multiplied by one-fourth of the
corresponding annual percentage rate for each portion of your portfolio assets that fall
within each tier (see “Billing” below under “Protocols for Portfolio Management” for more
information on how this fee is calculated).
We retain discretion to negotiate the management fee within each tier on a client-by-client
basis depending on the size and complexity of the portfolio managed. In addition, as your portfolio
value exceeds each tier level, either through additional deposits or asset growth, a fee break
will occur for that portion of your portfolio that falls within that tier level. The tier breaks are
as follows:
Account Value
Annual Fee
Rate
Not to Exceed
First $500,000 ................................................. 1.25%
Next $500,000 ................................................. 1.20%
Next $1,000,000 .............................................. 1.10%
Next $3,000,000 .............................................. 0.95%
Over $5,000,000 .............................................. 0.80%
We generally require a minimum initial investment of $750,000 to open a managed account;
however, we retain the right to waive or reduce this minimum if we feel circumstances are
warranted.
Pre-existing advisory clients are subject to our minimum account requirements and advisory
fee arrangements in effect at the time the client entered into the advisory relationship.
Therefore, our minimum account requirements and advisory fees will differ among clients.
Protocols for Portfolio Management
The following protocols establish how we handle our portfolio management accounts and
what you should expect when it comes to: (i) managing your account; (ii) your bill for investment
services; (iii) deposits and withdrawals of funds; and (iv) other fees charged to your
account(s).
Discretion
Unless you request non-discretionary8 portfolio management, we will establish discretionary
trading authority on all your accounts to execute securities transactions at any time without
your prior consent or advice.
You may, at any time however, impose restrictions, in writing, on our discretionary
authority (i.e., limit the types/amounts of particular securities purchased for your account,
etc.).
Billing
Your account will be billed quarterly in advance based on the fair market value for the portion
of your portfolio that falls within each tier of our fee schedule.
As your portfolio value exceeds into the next tier level, either through additional deposits or
asset growth, the amount of assets above the fee-break will be billed the corresponding annual
fee rate. This results in a weighted average annual fee, which lowers the annual fee costs to
manage your portfolio. The more you invest, the less each successive tier costs.
Deposits and/or Withdrawals
For new managed accounts opened mid-quarter, our fee will be a pro-rated calculation of
your assets to be managed for the current calendar quarter. For existing management
accounts (except for annuity accounts), pro-rated adjustments will be made for partial
deposits and/or withdrawals between billing cycles.
Advisory fees will be deducted first from any money market funds or cash balances. If such
assets are insufficient to satisfy payment of such fees, a portion of the account assets will be
liquidated to cover the fees.
Cash Balances
Cash is considered to be an asset class and is included in our fee calculations. At times our fees
will exceed the money market yield on the cash balance of your portfolio. When this happens, the
advisory fee will be higher than the interest a client will earn on their cash balance or the return
earned on money market funds.
8 Managing your portfolio on a non-discretionary basis means we cannot execute securities transactions in your account without first
obtaining your verbal consent to perform the trades. Therefore, you understand that in the event of a market correction, should we
be unable to communicate our intent, your account could experience greater market volatility over accounts managed on a
discretionary basis.
Fee Exclusions
We have elected to bear all transaction costs for LPL Financial, LLC accounts associated
with the purchase/sale of securities held in your account from our portfolio management
fees. We feel this arrangement is made in your best interest and can increase your investment
returns; however, before you engage us to manage your account, you should consider the
following:
• Your account can be charged for additional expenses9 other than the transaction
costs we have agreed to pay. At your request we will gladly provide you a list of
possible fees charged to your account.
• Since we bear the responsibility to pay all transaction costs, this creates a conflict
of interest and a financial incentive for us to trade less frequently. However,
the asset allocation structures we design are generally not traded except to
rebalance portfolios and therefore such transaction costs are minuscule.
• Transaction costs vary by security types. This is a conflict of interest since it
creates an incentive for us to select securities for managed accounts that cost
less than other types of securities. Our asset allocation structures generally do
not deviate from a select group of mutual fund families and ETFs and therefore
should not be an issue.
• This fee arrangement is not for everyone. You should consider our trading
patterns and investment strategies; including, the frequency of trading and the
number and size of transactions. If you desire a more aggressive trading program,
our asset allocation strategies may not be the right fit for you.
• You should consider the costs and potential benefits of this arrangement as
compared to paying commissions on a per-trade basis and your overall investment
objectives and goals.
Mutual Fund Expenses
All fees paid to us for portfolio management services are separate from any fees and expenses
charged on mutual fund shares by the Investment Company or by the investment advisor
managing the mutual fund portfolios. These expenses generally include management fees and
various fund expense, such as 12b-1 fees.
Redemption fees, account fees, purchase fees, contingent deferred sales charges, and other
sales load charges may occur but are the exception within managed accounts at institutional
custodians. A complete explanation of these expenses charged by the mutual funds/ETFs is
contained in each mutual fund’s or ETF’s prospectus. You are encouraged to carefully read the
fund prospectus.
Termination of Portfolio Management Services
To terminate our portfolio management services, either party (you or us) by written notification
to the other party, may terminate the Investment Advisory Agreement at any time. Such
notification should include the date the termination will go into effect along with any final
instructions on the account (i.e., liquidate the account, finalize all transactions and/or cease
all investment activity).
9 We are not responsible for the following expenses to your account: (i) any Exchange/SEC fees; (ii) certain transfer taxes; (iii) service or
account charges, such as, postage/handling fees, electronic fund and wire transfer fees, auction fees, debit balances, margin interest,
certain odd-lot differentials and mutual fund short-term redemption fees; and (iv) brokerage and execution costs associated with non-
eligible assets held in your account or with securities and other property held outside of your managed account. There can also be other
fees charged to your account that are unaffiliated with our management services.
In the event termination does not fall on the first/last day of a calendar quarter, you shall be
entitled to a pro-rated refund of the prepaid quarterly management fee based upon the
number of days remaining in the quarter after the termination notice goes into effect. Once
the termination of all portfolio management services has been finalized, neither party has
any obligation to the other – we no longer earn management fees or give investment advice
and you become responsible for making your own investment decisions.
2. Wealth Planning Fee
In addition to the portfolio management fee, you may also be charged a wealth planning fee. Wealth
planning fees are usually waived if we manage over $750,000 of your portfolio account(s). If
assets in your portfolio management account(s) are less than $750,000, the following billing
arrangements are applicable depending on the service you desire and the complexity of the wealth
plan we design.
Wealth planning is a mutually defined planning project offered for a negotiable fixed fee not to
exceed $20,000 annually billed on a quarterly basis. The fee will be fully disclosed in a Wealth
Planning Agreement, which will include the cost10 to review your financial information and prepare
the comprehensive wealth plan.
It is important to note that any planning is dynamic – never static. It therefore must be periodically
re-evaluated. A wealth plan is a roadmap that is only as good as how well it reflects your current
financial position to then guide you on a clear path to a future financial destination. Changing
circumstances in your life often necessitate periodic reviews designed to systematically address
these unexpected diversions and continually keep you on the right road towards your future
financial destination.
Once the initial wealth plan has been completed, we will establish future “Review” dates if you
choose to continue as a wealth planning client. The Reviews generally occur after each one-year
anniversary and will be used to review and make adjustments, if necessary, to the wealth plan.
Together we will set the calendar dates for your future reviews; inasmuch, a Review may consist of
three or four reviews during the calendar year.
If we are not managing your investment portfolio and you want us to review your wealth plan, we
will notify you of the cost to perform the desired work before commencing with any planning.
Termination of Wealth Planning Services
You can terminate the Wealth Planning Agreement at any time prior to the presentation of any
final planning documents. We will be compensated through the date of termination for time spent
in design of such financial documents at the hourly rate agreed to in the Agreement. If you have
prepaid any fees, such un-earned fees will be returned on a pro-rata basis. Once the wealth
plan has been completed and presented to you, termination of the Wealth Planning
Agreement is no longer an option.
10 Rarely will a fee exceed those costs outlined in the Agreement. However, there can be instances where we did not contract with you
to perform a particular task and therefore merits notifying you of the additional cost prior to beginning such services.
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3. 529 College Saving Plan Administrative Fee
We do not charge a portfolio management fee on 529 college savings plan accounts. We
charge a separate annual administration fee for the management of each beneficiary’s college
savings plan account. This administration fee is based on the account balance on the last
trading day of June each calendar year.
Account Size Annual Administration Feeà
Per Beneficiary
Below $5,000 ........................... $25
$5,000 – $10,000 ....................... $50
Over $10,000............................ $100
* Maximum Fee Per Family: $250
This administration fee is not pro-rated, and you are expected to pay the administration fee
annually in arrears by check. The administration fee is not part of the fees charged by the 529
plan itself. Please refer to each plan’s prospectus to ascertain the fees and expenses for your
particular plan.
PERFORMANCE-BASED FEES & SIDE-BY-SIDE MANAGEMENT
We do not charge fees based on a share of capital gains or the capital appreciation of the
assets held in your accounts.