Description of Services and Fees
Joseph P. Lucia & Associates, LLC is a registered investment adviser based in Yorktown Heights, New
York. We are organized as a limited liability company under the laws of the State of New York. We
have been providing investment advisory services since 2008. Joseph P. Lucia is the Managing
Principal and Chief Compliance Officer of our firm.
The following paragraphs describe our services and fees. Please 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 Joseph P. Lucia &
Associates, LLC and the words "you", "your" and "client" refer to you as either a client or prospective
client of our firm.
We are an independent financial adviser that provides wealth management services by incorporating
financial planning, investment portfolio management, insurance planning, and estate planning. The
combination of industry experience and comprehensive research allows our firm to provide quality
advisory services to our clients tailored to their individual needs and circumstances.
Portfolio Management Services
We offer discretionary management services to our clients and prospective clients. Our investment
advice is tailored to meet our clients' needs and investment objectives. If you retain our firm for
portfolio management services, we will meet with you to determine your investment objectives, risk
tolerance, and other relevant information (the "suitability information") at the beginning of our advisory
relationship. We will use the suitability information we gather from our initial meeting to develop a
strategy that enables our firm to give you continuous and focused investment advice and/or to make
investments on your behalf. Once we construct an investment portfolio for you, we will monitor your
portfolio's performance on an ongoing basis, and will re-balance the portfolio as required by changes in
market conditions and in your financial circumstances.
Generally, our clients grant us discretionary authority over the transactions in their accounts.
Discretionary authorization will allow our firm to determine the specific securities, and the amount of
securities, to be purchased or sold for your account without your approval prior to each transaction.
Discretionary authority is typically granted by the investment advisory agreement you sign with our
firm, a power of attorney, or trading authorization forms.
Clients who executed a Non-Discretionary Investment Advisory Contract for portfolio management
services prior to January 1, 2020 are grandfathered and will remain on the agreement in effect.
Our current fee for portfolio management services is based on a percentage of your assets we manage
and is set forth in the following fee schedule:
Assets Under Management Annual Fee
$1 to $500,000 1.50%
$500,001 to $2,000,0001.25%
$2,000,001 to $5,000,000 1.00%
$5,000,001 to $10,000,000 0.85%
Above $10,000,000 0.75%
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Our annual portfolio management fees are billed and payable quarterly in arrears. For most accounts,
the fees are calculated based on an average daily balance. However, for certain accounts the fees
are calculated based on the value of the account on the last day of the previous quarter. If the portfolio
management agreement is executed at any time other than the first day of a calendar quarter, our fees
will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the number
of days in the quarter for which you are a client. Our advisory fee is negotiable, depending on
individual client circumstances.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.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.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:
•You provide our firm with written authorization permitting the fees to be paid directly from your
account held by the qualified custodian.
•We send you a fee statement showing the amount of the fee, the value of the assets on which
the fee is based, and the specific manner in which the fee was calculated.
•The qualified custodian agrees to send you a statement, at least quarterly, indicating all
amounts dispersed from your account including the amount of the advisory fee paid directly to
our firm.
We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian, please call our main office number located on the cover page of
this brochure.
You may terminate the portfolio management agreement upon notice to our firm. You will incur a pro
rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. Because fees are charged in arrears, no refund policy is necessary.
Financial Planning and Consulting Services
We offer financial planning and consulting services. Financial planning will 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. Consulting services primarily involves advising clients on
specific financial-related topics through periodic discussions with the client as needed. Financial
planning and consulting may include, but are not limited to life insurance; tax concerns; retirement
planning; investment planning; college planning; and debt/credit planning. If you retain our firm for
financial planning services, we will meet with you to gather information about your financial
circumstances and objectives. Once we review and analyze the information you provide to our firm, we
present you with a strategy designed to help you achieve your stated financial goals and objectives.
Financial plans and consultations are based on the financial information you provide to our firm at the
time we present the strategy and/or provide advice to you. You must promptly notify our firm if your
financial situation, goals, objectives, or needs change.
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You are under no obligation to act on our recommendations. Should you choose to act on any of our
recommendations, you are not obligated to implement the recommendations through any of our other
investment advisory services. Moreover, you may act on our recommendations
by placing securities
transactions with any brokerage firm.
We charge a fixed fee for financial planning services, which generally ranges from $500 to $10,000.
The fixed fee for consulting services will vary depending on the nature of the advice requested.
Additionally, all financial planning and consulting fees are negotiable depending upon the complexity
and scope of the plan, your financial situation, your objectives, and the estimated time needed to
provide the agreed upon services.
Consulting services are also offered on an on-going annual basis for a fixed fee, which generally
ranges from $500 - $5,000 annually. As part of this annual retainer program, we will generally establish
a regular planning cycle to work with you in managing specific aspects of the overall financial plan that
are unique to your situation. Additionally, we may meet with your other professional advisers (financial,
legal, real estate, tax, etc.) for a series of information gathering and/or implementation meetings. We
will act as a project manager to coordinate the work of the appropriate parties in a manner consistent
with your long-term desired outcome. As your financial situation, goals, objectives, or needs change,
you must promptly notify us.
Generally, we require that you pay 25% of the agreed upon planning and/or consulting fee in advance,
with the remaining portion due in 25% installments every three months thereafter. Payments are due
on the first day of the relevant billing period. Limited scope general consulting fees may be payable
upon completion of the consultation as agreed upon on a case-by-case basis. In any case, we do not
require prepayment of a fee more than six months in advance and in excess of $1,200.
You may terminate financial planning and/or consulting services upon notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
paid financial planning and/or consulting fees that we have not yet earned, you will receive a prorated
refund of those fees.
Selection of Other Advisers
We may recommend that you use the services of a third party money manager ("TPMM") to manage
all, or a portion of, your investment portfolio. After gathering information about your financial situation
and objectives, we may recommend that you engage a specific TPMM or investment program. Factors
that we take into consideration when making our recommendation(s) include, but are not limited to, the
following: the TPMM's performance, methods of analysis, fees, your financial needs, investment goals,
risk tolerance, and investment objectives. We will monitor the TPMM(s)' performance to ensure its
management and investment style remains aligned with your investment goals and objectives.
The TPMM(s) will actively manage your portfolio and will assume discretionary investment authority
over your account. We will assume discretionary authority to hire and fire TPMM(s) and/or reallocate
your assets to other TPMM(s) where we deem such action appropriate
We do not charge you a separate fee for the selection of other advisers. We will share in the advisory
fee you pay directly to the TPMM. The advisory fee you pay to the TPMM is established and payable in
accordance with the brochure provided by each TPMM to whom you are referred. These fees may or
may not be negotiable. Our compensation may differ depending upon the individual agreement we
have with each TPMM. As such, a conflict of interest exists where our firm or persons associated with
our firm has an incentive to recommend one TPMM over another TPMM with whom we have more
favorable compensation arrangements or other advisory programs offered by TPMMs with whom we
have less or no compensation arrangements.
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You may be required to sign an agreement directly with the recommended TPMM(s). You may
terminate your advisory relationship with the TPMM according to the terms of your agreement with the
TPMM. You should review each TPMM's brochure for specific information on how you may terminate
your advisory relationship with the TPMM and how you may receive a refund, if applicable. You should
contact the TPMM directly for questions regarding your advisory agreement with the TPMM.
Types of Investments
We offer advice on equity securities (including exchange listed securities, over-the-counter securities,
exchange traded funds, and foreign issuers, such as American Depository Receipts), warrants,
corporate debt and municipal securities (bonds), commercial paper, certificates of deposit, investment
company securities (including variable life insurance, variable annuities, and mutual fund shares),
money markets, real estate investment trusts ("REITs"), US Government securities, options contracts
on securities and commodities, futures (intangibles and tangibles), and interest in partnerships
investing in real estate, oil and gas interests, and other pooled investments.
Additionally, we may advise you on any type of investment that we deem appropriate 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.
Wrap Fee Programs
We do not participate in wrap fee programs.
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.
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. The way we make money creates some conflicts with your interests, so 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 an ERISA account to an account that we
manage or provide investment advice to, because the assets increase our Assets Under Management
and, in turn, our advisory fees. In contrast, we receive less, or no, compensation if assets remain in the
current plan or are rolled over to another Company's plan in which you may participate.
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Assets Under Management
As of February 15, 2023, we provide continuous management services for $247,287,657 in client
assets on a discretionary basis, and $47,208,030 in client assets on a non-discretionary basis.