Background of Peak Wealth Solutions
Peak Wealth Solutions, Inc. (“Peak” or “Firm” or “Advisor”), is a registered investment advisory
firm based in Pepper Pike, Ohio. Peak is registered with the United States Securities and
Exchange Commission (SEC) under the Investment Advisers Act of 1940, and has been
registered as such since 2003.
The Firm’s owners are Gregory M. Gromek, Managing Principal, Financial Advisor and Chief
Compliance Officer and David P. Kocsis, Managing Principal, Retirement Plan Consultant.
Gary Hannah, Bill Russo, Keith Witkowski, Jeffrey Mucciarone, Dan Margheret and Daniel
Vujanov are Financial Advisors. The Firm has an internal succession plan to support long-term
continuity of the business, and to attract and retain key employees.
Advisory Services Offered
• Financial Planning
• Investment Management
• Insurance Services
• Financial Education to individuals and other entities throughout the country
• Retirement Plan Consulting
We do not provide advisory services to wrap fee programs.
FIDUCIARY DUTY
Investment advisors registered with the SEC or a state securities regulator are fiduciaries, subject to the
duty of loyalty and due care with their clients. They are typically compensated by asset management fees
and are expected to act in the best interests of their clients.
A fiduciary must act in the best interests of a client. A fiduciary is an individual who acts in the interest
of another person or an organization. A fiduciary may be an agent, a broker, an attorney or a legal
guardian who has a responsibility to supervise matters on behalf of someone else.
A fiduciary duty is the highest standard of care. The person who has a fiduciary duty is called
the fiduciary, and the person to whom he owes the duty, is typically referred to as the principal or the
beneficiary. As a result, potential beneficiaries can have greater confidence in seeking out a fiduciary.
FINANCIAL PLANNING
We offer broad based consultative financial planning services. Financial plans are prepared
based on the information you provide; and since your circumstances are constantly changing,
your plan is regularly updated.
The planning process occurs over a number of meetings, and begins with an initial consultation
in which we meet with you to discuss your financial situation, goals, and concerns. Our plans
cover a number of topic areas including retirement planning, estate planning, education planning,
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income tax planning, and cash flow planning. We also complete a comprehensive risk
assessment and insurance needs analysis covering life, disability, and long-term care planning.
If you choose to retain our Firm for these services, you have the option to implement the
recommendations set forth in your financial plan through our Firm.
Everyone who goes through the financial planning process with our Firm enters into a financial
planning agreement which states the terms, conditions, and scope of our relationship. A modest
initial planning fee is quoted based on expected staff preparation time and the complexity of
your case. Clients wishing to use our Firm for investment management purposes do not pay for
future and ongoing planning.
Clients who would like to retain our Firm for financial planning services, but not investment
management services, will be charged hourly fees not to exceed $1,000 per hour. The fees are
negotiable, and will vary depending on the complexity and depth of the services provided.
Under this arrangement, our Firm is under no obligation to update or monitor your financial
plan, including your investment and insurance portfolios.
The financial plan is based upon your financial situation and the information you provide to us at
the time we prepare the plan. It is important that you notify us promptly if your financial
situation, goals, objectives, or needs change.
INVESTMENT MANAGEMENT
We design investment plans that help grow and protect your wealth. By engaging you in a
comprehensive financial planning process, we are better positioned to implement investment
strategies that serve your long-term growth and spending needs. We believe in full transparency
of transactions and investment holdings, and use individually managed accounts to provide you
with flexibility and added security. By partnering with Fidelity Investments, we are able to offer
a full menu of investment offerings, with the added comfort of some of the most trusted
custodians in the industry.
All investment decisions are guided by your individual risk tolerance and financial goals, and
management of your accounts will be done on a discretionary basis. This means that you are
authorizing us to make investment decisions in your individually managed account without
obtaining your approval prior to each transaction. Under this authority, we have a fiduciary duty
to put your interests above all others. This discretionary authority will enable us to maneuver
your portfolio quickly to ever changing market conditions.
We manage investment accounts using one or more variations of our three (3) distinct global
asset allocation strategies:
• Enhanced Global Index
• Strategic Allocation
• Tactical Management
These models are comprised of combinations of investment products which include: no-load
open-ended investment company shares (“mutual funds”), exchange traded funds (“ETF’s”),
fixed-income securities, and individual equities. Investments are selected based on past
performance, manager tenure, portfolio turnover, fees, investment style, investment philosophy
and objective; and a variety of investment related statistics including alpha, beta, standard
deviation, and R-squared. Our Active Tactical strategy selects investments based, not only on
the above criteria, but also uses price momentum, moving averages, and trading volume to
identify security price trends.
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Our investment strategies are based on over forty (40) years of academic research that asset
allocation is the primary driver of investment returns, not market timing or security selection.
We believe that markets are primarily efficient, and for investing purposes, securities are fairly
priced. Asset allocation, broad global diversification, and an unemotional approach to strategic
rebalancing ultimately reduce portfolio risk. All investments carry risk; and generally the riskier
the investment, the greater the potential return. Even investments that are perceived to be safe
carry risk. For example, returns on certificates of deposit may not be able to protect against the
impact of inflation and taxes, thus a loss in purchasing power occurs.
If you wish to impose certain restrictions on investing in a certain security, or types of securities,
we will address those restrictions with you so that we have a clear understanding of your
requirements. However, we reserve the right to reject any account for which unreasonable or
overly restrictive conditions are requested. It is our preference for you to use a combination of
our various investment models.
By entering into an investment advisory relationship with our Firm, you must agree to the terms
of our “Discretionary Accounts Advisory Agreement.” This agreement sets forth the terms for
managing your accounts, and may be canceled for any reason, at any time, by either party, upon
receiving 30 days’ notice. Upon termination of an account’s advisory agreement, any prepaid,
unearned fees will be reimbursed, and any earned, unpaid fees will be due and payable.
Additionally all trading activity will stop. You have the sole right to terminate your advisory
agreement without penalty, within five business days.
INSURANCE SERVICES
As part of our Firm’s overall financial planning services, an advisor may recommend changes to
your life, health, disability,
or long-term care insurance coverage. You have the option to
implement the insurance advice by purchasing a policy through our insurance agency.
Through our insurance agency, we have access to a wide range of insurance carriers. When
acting in the capacity of an insurance agent, the advisor may receive a normal and customary
commission for the sale of such insurance products. In such instances, there is no advisory fee
associated with these insurance products.
FINANCIAL EDUCATION
Our Firm has long been committed to financial education and financial literacy. Because of this
commitment, we regularly hold financial education programs. These educational programs are
held periodically throughout the year, and address a wide range of financial topics. Such topics
include:
• Life Planning For Retirement
• Determining Retirement Expenses
• Overcoming Retirement Roadblocks
• Retirement Income Sources
• Investments
• Taxes
• Risk Management
• Estate Planning
Our programs are educational in nature, and do not discuss any particular investment or product
offering. Attendees are charged a fee to attend, which covers the cost of class materials and
expenses.
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RETIREMENT PLAN CONSULTING SERVICES
The Firm may assist clients that are trustees, plan sponsors or other fiduciaries to qualified
retirement plans (“Plans”) by providing fee-based consulting and/or advisory services. The Firm
advisors perform one or more of the following services, as selected by the client in the client
agreement:
Investment Policy Statement: Advisor will assist the Plan in the preparation or review of an investment
policy statement (“IPS”) for the Plan based upon consultation with Client.
Ongoing Investment Recommendations: Advisor will recommend, for consideration and selection by
Client, specific investments to be held by the Plan or, in the case of a participant- directed defined
contribution plan, to be made available as investment options under the Plan. Advisor will recommend,
for consideration and selection by Client, investment replacements if an existing investment is
determined by the Client to no longer be suitable as an investment option.
Ongoing Investment Monitoring: Advisor will perform ongoing monitoring of investments options in
relation to the criteria provided by the Client to the Advisor.
Qualified Default Investment Alternative Assistance: Advisor may assist Client with selecting
investment products or managed accounts offered by third parties in connection with the definition of a
“Qualified Default Investment Alternative” (“QDIA”) under ERISA (for plans subject to ERISA).
Non-Discretionary Model Portfolios: Advisor will recommend, for consideration and approval by
Client, (i) asset allocation target- date or risk- based model portfolios for the Plan to make available to
Plan participants, and (ii) funds from the line-up of investment options chosen by the Client to include in
such model portfolios.
Performance Reports: Advisor will prepare periodic reports reviewing the performance of all Plan
investment options, as well as comparing the performance thereof to benchmarks with Client. The
information used to generate the reports will be derived directly from information such as statements
provided by Client, investment providers and/or third parties.
Service Provider Liaison: Advisor shall assist the Plan by acting as a liaison between the Plan and
service providers, product sponsors and/or vendors. In such case, Advisor shall act only in accordance
with instructions from the Client on investment or Plan administration matters and shall not exercise
judgment or discretion.
Education Services to Plan Committee: Advisor will provide education, training, and/or guidance for the
members of the Plan Committee with regard to plan features, retirement matters, or duties and
responsibilities of the Committee, including education with respect to fiduciary responsibilities.
Participant Enrollment: Advisor will assist Client in enrolling Plan participants in the Plan, including
conducting an agreed upon number of enrollment meetings. As part of such meetings, Advisor will
provide participants with information about the Plan, which may include information on the benefits of
Plan participation, the benefits of increasing Plan contributions, the impact of preretirement withdrawals
on retirement income, the terms of the Plan and the operation of the Plan.
Participant Education: Advisor will assist with participant education, which may include preparation of
education materials and/or conducting investment education seminars and meetings for Plan
participants. Such meetings may be on a group or individual basis, and may include information about
the investment options under the Plan (e.g., investment objectives, risk/return characteristics, and
historical performance), investment concepts (e.g., diversification, asset classes, and risk and return), and
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how to determine investment time horizons and assess risk tolerance. Such meetings shall not include
specific investment advice about investment options under the Plan as being appropriate for a particular
participant, but may include use of educational investment models.
Plan Search Support/Vendor Analysis: Advisor will assist with the preparation, distribution and
evaluation of Request for Proposals, finalist interviews, and conversion support.
Benchmarking Services: Advisor will provide the Client with comparisons of Plan data (e.g., regarding
fees, services, participant enrollment and contributions) and data from the Plan’s prior years and/or a
benchmark group of similar plans.
Assistance Identifying Plan Fees: Advisor will assist Client in identifying the fees and other costs borne
by the Plan for, as specified by client, investment management, recordkeeping, participant education,
participant communication and/or other services provided with respect to the Plan.
Advisor may provide these services or, alternatively, may arrange for the Plan’s other providers to offer
these services, as agreed upon between Adviser and Client.
If the Plan makes available publicly traded employer stock (“company stock”) as an investment option
under the Plan, advisors do not provide investment advice regarding company stock and are not
responsible for the decision to offer company stock as an investment option. In addition, if participants in
the Plan may invest the assets in their accounts through individual brokerage accounts, a mutual fund
window, or other similar arrangement, or may obtain participant loans, representatives do not provide
any individualized advice or recommendations to the participants regarding these decisions.
Furthermore, advisors do not provide individualized investment advice to Plan participants regarding
their Plan asset.
If a client elects to engage our Firm and its advisors to perform ongoing investment monitoring
and ongoing investment recommendation services in the client agreement, such services will
constitute “investment advice” under Section 3(21)(A)(ii) of ERISA. Therefore, our Firm and its
advisors will be deemed a “fiduciary” as such term is defined under Section 3(21)(A)(ii) of
ERISA in connection with those services. Clients should understand that to the extent our Firm
and its advisors are engaged to perform services other than ongoing investment monitoring and
recommendations, those services are not “investment advice” under ERISA and therefore, our
Firm and its advisors will not be a “fiduciary” under ERISA with respect to those other services.
Assets Under Management
As of December 31st, 2023 the Firm has the following client assets under management:
Discretionary $566,775,000
Non-Discretionary $91,000,000
FINRA Regulated $104,735,000
Total Assets $762,510,000
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