Robo Advisor, Inc. is registered investment advisor firm registered with the Securities and
Exchange Commission (“SEC”) since January 6, 2011.
The Principal Owner of Robo Advisor, Inc. is Jeffrey J. Hovermale, Founder & CEO, CCO, and CIO.
Advisory Services
Robo Advisor, Inc.’s (“Robo Advisor”, “Robo Advisor™”, “ROBOADVISOR.COM”, or “Advisor”)
principal service is providing fee-based investment advisory services and financial planning
services. The Advisor practices custom management of portfolios, on a discretionary basis, per
the client’s objectives. The Advisors’ primary approach is to use a tactical allocation strategy
aimed at reducing risk and increasing portfolio performance.
The Advisor may use any of the following: exchange-listed securities, over-the-counter
securities, warrants, corporate debt securities, CDs, variable life insurance, annuities, municipal
securities, ETFs, mutual funds, and United States government securities to accomplish this
objective. The Advisor measures and selects mutual funds by using various criteria, such as the
fund manager’s tenure, and/or overall career performance.
The Advisor may recommend, on occasion, redistributing investment allocations to diversify the
portfolio in an effort to reduce risk and increase performance. The Advisor may recommend
specific stocks to increase sector weighting and/or dividend potential. The Advisor may
recommend employing cash positions as a possible hedge against market movement which may
adversely affect the portfolio. The Advisor may recommend selling positions for reasons that
include but are not limited to, harvesting capital gains or losses, business or sector risk
exposure to a specific security or class of securities, overvaluation or overweighting of the
position(s) in the portfolio, change in risk tolerance of the client, or any risk deemed
unacceptable for the client’s risk tolerance.
Robo Advisor, Inc. will provide investment advisory services and portfolio management services
and will not provide securities custodial or other administrative services. At no time will Robo
Advisor, Inc. accept or maintain custody of a client’s funds or securities.
Pension/401(k)/Retirement Plan Consulting Services
Robo Advisor will evaluate the existing qualified retirement plan solution(s). Robo Advisor will
evaluate at a minimum, the qualified retirement plans fiduciary compliance program,
recordkeeping and third-party administration services, investment policy statement and
management process, employee communication and education program, liability risk transfer
for pension programs, and retiree/rollover transitional consulting services.
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Based on the evaluation, Robo Advisor will make objective recommendations to the plan
sponsor on various topics, including asset allocation strategies and the selection of specific
third-party money managers to implement the strategies. Upon approval, Robo Advisor will
implement, manage, and monitor the recommendations with the authorization of the plan
sponsor.
As part of the process, Robo Advisor will provide an investment policy statement. Robo Advisor
will recommend, monitor, and benchmark the selected investment platform according to the
investment policy statement. Robo Advisor may assist the client in completing the investment
manager’s client questionnaire and opening account paperwork. Robo Advisor will also assist in
the development of the initial policy recommendations. In consideration for this service, Robo
Advisor will receive an investment advisory fee, billed quarterly in advance, and based on the
value of the plan assets on the last day of the quarter. The third-party money manager is hired
by the client. Robo Advisor is only making recommendations to the client about who should be
hired. The investment manager will have discretion as to the model portfolios/asset allocations,
not the individual participant’s elections, or asset allocation of any participants should they
elect to customize their own portfolio. The client, prior to entering into an agreement with a
third-party money manager recommended by Robo Advisor, will be provided with that
manager’s disclosure brochure. In addition, Robo Advisor and its client will agree in writing that
the client’s account will be managed by that selected third-party money manager on a
discretionary basis. Additionally, Investment Advisor Representatives of Robo Advisor may
provide consultation services on general non-securities advice on topics including operations
management, business model integration and management, and
retirement plan consulting
and business planning. Consultation services will be charged at an hourly fee of $1,000 per
hour, paid in arrears. Fees are negotiable. Pre-payment of fees will not exceed $500 per client,
6 months in advance.
Selection of Other Advisors
Robo Advisor may periodically recommend and refer clients to unaffiliated money managers.
Through this arrangement, the client will then enter into an advisory agreement with the third-
party money manager authorizing them to construct portfolios, trade the client account, and
otherwise assist and advise the client as needed in establishing investment objectives and
developing an investment strategy to meet those objectives by identifying appropriate
investments and monitoring such investments. Robo Advisor will assist in the development of
the initial policy recommendations and in the selection of the third-party money managers,
assist with the completion of any client questionnaires and account opening paperwork, and
will continue to provide ongoing client support and oversight and management of the third
parties providing services to the client. In consideration for such, the third-party money
manager will receive an investment advisory fee, billed monthly or quarterly in advance,
depending on the money manager selected, based on the account asset value at the time the
account is established. Robo Advisor will receive a portion of the investment advisory fee for
the ongoing oversight and monitoring of the third-party money managers and the continuing
client services of the client to the third-party manager.
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The client, prior to entering into an agreement with a third-party money manager selected by
Robo Advisor, will be provided with that manager’s Form ADV Part 2. In addition, Robo Advisor
and its client will agree in writing that the client’s account will be managed by that selected
third-party money manager on a discretionary basis.
Financial Planning
In addition to investment supervisory services, Robo Advisor may provide Financial Planning
Services to some of its clients. The Advisor’s Financial Planning services may include
recommendations for portfolio customization based on their client’s investment objectives,
goals, and financial situation. Financial Planning Services may also include recommendations
relating to investment strategies as well as tailored investment advice.
Investment Advisor Representatives of Robo Advisor provide general non-securities advice on
topics including tax planning, estate planning, business planning, retirement planning,
education planning, budgeting, and cash flow. Fees are billed at a rate of $150.00 per hour and
are billed as services are rendered. Fees are negotiable. Pre-payment of fees will not exceed
$500 per client, 6 months in advance.
Tailored Advisory Services
Robo Advisor will tailor its advisory services to its client’s individual needs based on meetings
and completion of a client profile. If clients wish to impose certain restrictions on investing in
certain securities or types of securities, the Advisor will address those restrictions with the
client to have a clear understanding of the client’s requirements.
WRAP Fee Programs
As described in Item 5 below, some clients will be charged a Management Fee that is inclusive
of both the fee to Robo Advisor for advisory services as well as custodial and securities
execution fees charged by the custodian and executing broker-dealer, while other clients will
pay a Management Fee to Robo Advisor and pay the custodial and securities execution fees
directly to the custodian and executing broker-dealer from their brokerage account. The
specific client circumstances will be defined in the agreement between the client and Robo
Advisor.
A WRAP fee program is defined as one where a fee is charged to the account that is not based
directly on transactions in the account and includes both the investment advisory services
(including selecting other advisors) and the costs of executing the transactions in the account.
Robo Advisor offers both all-inclusive and separate pricing options to clients. However, Robo
Advisor provides its services to all clients in the same way, as described throughout this
brochure, no matter which pricing option is chosen.
Client Assets
As of March 30, 2024, Robo Advisor, Inc. had $0 in discretionary client assets under
management and $0 in non-discretionary client assets.
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