Description of Firm
The GenWealth Group, Inc. is a registered investment adviser based in Maplewood, NJ. We are
organized as a corporation under the laws of the State of New Jersey. We have been providing
investment advisory services since February 2008. The firm is owned 50% by Michael P. Leanza and
50% Cherie Leanza.
The following paragraphs describe our services and fees. Refer to the description of each investment
advisory service listed below for information on how we tailor our advisory services to your individual
needs. As used in this brochure, the words "we," "our," and "us" refer to The GenWealth Group,
Inc. and the words "you," "your," and "client" refer to you as either a client or prospective client of our
firm.
Portfolio Management Services
We offer discretionary portfolio management services. Our investment advice is tailored to meet our
clients' needs and investment objectives.
If you participate in our discretionary portfolio management services, we require you to grant us
discretionary authority to manage your account. Subject to a grant of discretionary authorization, we
have the authority and responsibility to formulate investment strategies on your behalf. Discretionary
authorization will allow us to determine the specific securities, and the amount of securities, to be
purchased or sold for your account without obtaining your approval prior to each transaction. We will
also have discretion over the broker or dealer to be used for securities transactions in your account.
Discretionary authority is typically granted by the investment advisory agreement you sign with our
firm, a power of attorney, or trading authorization forms.
You may limit our discretionary authority (for example, limiting the types of securities that can be
purchased or sold for your account) by providing our firm with your restrictions and guidelines in
writing.
Financial Planning Services
We offer financial planning services which typically involve providing a variety of advisory services to
clients regarding the management of their financial resources based upon an analysis of their
individual needs. These services can range from broad-based financial planning to consultative or
single subject planning. If you retain our firm for financial planning services, we will meet with you to
gather information about your financial circumstances and objectives. We may also use financial
planning software to determine your current financial position and to define and quantify your long-term
goals and objectives. Once we specify those long-term objectives (both financial and non-financial), we
will develop shorter-term, targeted objectives. Once we review and analyze the information you provide
to our firm and the data derived from our financial planning software, we will deliver a written plan to
you, designed to help you achieve your stated financial goals and objectives.
Financial plans are based on your financial situation at the time we present the plan to you, and on the
financial information you provide to us. You must promptly notify our firm if your financial situation,
goals, objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to
act on any of our recommendations, you are not obligated to implement the financial plan through any
of our other investment advisory services. Moreover, you may act on our recommendations by placing
securities transactions with any brokerage firm.
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Automated Investment Program
We offer an automated investment program (the "Program") through which clients are invested in a
range of investment strategies we have constructed and manage, each consisting of a portfolio of
exchange-traded funds ("Funds") and a cash allocation. The client may instruct us to exclude up to
three Funds from their portfolio. The client's portfolio is held in a brokerage account opened by the
client at Charles Schwab & Co., Inc. ("CS&Co;"). We use the Institutional Intelligent
Portfolios® platform ("Platform"), offered by Schwab Performance Technologies ("SPT"), a software
provider to independent investment advisors and an affiliate of CS&Co. to operate the Program. We
are independent of and not owned by, affiliated with,
or sponsored or supervised by SPT, CS&Co.;, or
their affiliates (together, "Schwab"). We, and not Schwab, are the client's investment advisor and
primary point of contact with respect to the Program. We are solely responsible, and Schwab is not
responsible, for determining the appropriateness of the Program for the client, choosing a suitable
investment strategy and portfolio for the client's investment needs and goals, and managing that
portfolio on an ongoing basis. We have contracted with SPT to provide us with the Platform, which
consists of technology and related trading and account management services for the Program. The
Platform enables us to make the Program available to clients online and includes a system
that automates certain key parts of our investment process (the "System").
The System includes an online questionnaire that can help us determine the client's investment
objectives and risk tolerance and select an appropriate investment strategy and portfolio. Clients
should note that, if we use the online questionnaire, we will recommend a portfolio via the System in
response to the client's answers to the online questionnaire.
We charge clients a fee for our services as described below under Item 5 Fees and Compensation.
Our fees are not set or supervised by Schwab. Clients do not pay brokerage commissions or any other
fees to CS&Co.; as part of the Program. Schwab does receive other revenues in connection with the
Program.
We do not pay SPT fees for the Platform so long as we maintain $100 million in client assets in
accounts at CS&Co.; that are not enrolled in the Program. If we do not meet this condition, then we
pay SPT an annual licensing fee of 0.10% (10 basis points) on the value of our clients' assets in the
Program. This fee arrangement gives us an incentive to recommend or require that our clients with
accounts not enrolled in the Program be maintained with CS&Co.
Types of Investments
We primarily offer advice on ETFs. Refer to the Methods of Analysis, Investment Strategies and Risk
of Loss below for additional disclosures on this topic. We also use variable annuities for certain client
where we believe that it is our clients best interest.
Additionally, we may advise you on various types of investments based on your stated goals and
objectives. We may also provide advice on any type of investment held in your portfolio at the inception
of our advisory relationship.
IRA Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you.
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When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries 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. We operate under a special rule that requires us to act in your best interest and not put our
interest ahead of yours. Under this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
Assets Under Management
As of February 1, 2023, we provide continuous management services for $355,167,796 in client assets
on a discretionary basis.