Advisory Firm Description
Waterway Wealth Management, L.L.C. (“WWM,” “we” or the “Firm”) has been in business since
July 2012. Daniel Paul Michalk is the sole owner.
Types of Advisory Services
We believe financial planning is an integral part of wealth management for individuals and
families.
Financial Planning Services
In analyzing each client’s individual needs, we provide a variety of financial planning services.
We first conduct a complimentary initial consultation when we collect pertinent information
about the client’s financial circumstances and objectives. The information normally covers, but
is not limited to, present and anticipated assets and liabilities, retirement goals, investment
horizon, financial needs, and cost of living needs. Once we have reviewed and analyzed this
information, we produce and present the client with a customized financial plan designed to
achieve the client’s stated financial goals and objectives.
ERISA Plan Services
WWM offers service to qualified and non-qualified retirement plans including 401(k) plans, 403(b)
plans, pension and profit-sharing plans, cash balance plans, and deferred compensation plans. WWM
may act as a 3(21) or 3(38) advisor:
Limited Scope ERISA 3(21) Fiduciary. WWM acts as a limited-scope ERISA 3(21) fiduciary that
can advise, help, and assist plan sponsors with their investment decisions. As an investment
advisor WWM has a fiduciary duty to act in the best interest of the Client. The plan sponsor is
still ultimately responsible for the decisions made in their plan, though using WWM can help
the plan sponsor delegate liability by following a diligent process.
1. Fiduciary Services the Firm offers:
• Provide investment advice to the Client about asset classes and investment
alternatives available for the Plan in accordance with the Plan’s investment policies and
objectives. Clients will make the final decision regarding the initial selection, retention,
removal, and addition of investment options. WWM acknowledges that it is a fiduciary
as defined in ERISA section 3 (21) (A) (ii).
• Assist the Client in the development of an investment policy statement (“IPS”). The IPS
establishes the investment policies and objectives for the Plan. Client shall have the
ultimate responsibility and authority to establish such policies and objectives and to
adopt and amend the IPS.
• Provide investment advice to the Plan Sponsor with respect to the selection of a
qualified default investment alternative for participants who are automatically enrolled
in the Plan or who have otherwise failed to make investment elections. The Client
retains the sole responsibility to provide all notices to the Plan participants required
under ERISA Section 404© (5) and 404(a)-5.
• Assist in monitoring investment options by preparing periodic investment reports that
document investment performance, consistency of fund management and
conformance to the guidelines set forth in the IPS and make recommendations to
maintain, remove or replace investment options.
• Meet with the Client on a periodic basis to discuss the reports and the investment
recommendations.
2. Non-fiduciary Services may include:
• Assist in the education of Plan participants about general investment information and
the investment alternatives available to them under the Plan. Client understands
WWM’s assistance in education of the Plan participants shall be consistent with and
within the scope of the Department of Labor’s definition of investment education
(Department of Labor Interpretive Bulletin 96-1). As such, WWM is not providing
fiduciary advice as defined by ERISA 3(21)(A)(ii) to the Plan participants. WWM will not
provide investment advice concerning the prudence of any investment option or
combination of investment options for a particular participant or beneficiary under the
Plan.
• Assist in the group enrollment meetings designed to increase retirement plan
participation among the employees and investment and financial understanding by the
employees.
WWM may provide these services or, alternatively, may arrange for the Plan’s other providers
to offer these services, as agreed upon between WWM and Client.
3. WWM has no responsibility to provide services related to the following types of assets
(“Excluded Assets”):
• Employer securities;
• Real estate (except for real estate funds or publicly traded REITs);
• Stock brokerage accounts or mutual fund windows;
• Participant loans;
• Non-publicly traded partnership interests;
• Other non-publicly traded securities or property (other than collective trusts and similar
vehicles); or
• Other hard-to-value or illiquid securities or property.
Excluded Assets will not be included in calculation of Fees paid to WWM on the ERISA
Agreement. Specific services will be outlined in detail to each plan in the 408(b)2 disclosure.
3(38) Investment Manager. WWM acts as an ERISA 3(38) Investment Manager in which it has
discretionary management and control of a given retirement plan’s assets. WWM would then
become solely responsible and liable for the selection, monitoring and replacement of the
plan’s investment options.
1. Fiduciary Services may include:
• Advisor has discretionary authority and will make the final decision regarding the initial
selection, retention, removal, and addition of investment options in accordance with
the Plan’s investment policies and objectives.
• Assist the Plan Sponsor with the selection of a broad range of investment options
consistent with ERISA Section 404(c) and the regulations thereunder.
• Assist the Plan Sponsor in the development of an investment policy statement. The
IPS establishes the investment policies and objectives for the Plan.
• Provide discretionary investment advice to the Plan Sponsor with respect to the
selection of a qualified default investment alternative for participants who are
automatically enrolled in the Plan or who have otherwise failed to make investment
elections. The Plan Sponsor retains the sole responsibility to provide all notices to the
Plan participants required under ERISA Section 404(c) (5).
• Assist in monitoring investment options by preparing periodic investment reports that
document investment performance, consistency of fund management and
conformance to the guidelines set forth in the IPS and make recommendations to
maintain, remove or replace investment options.
• Meet with Plan Sponsor on a periodic basis to discuss the reports and the investment
recommendations.
2. Non-fiduciary Services may include:
• Assist in the education of Plan participants about general investment information and
the investment alternatives available to them under the Plan. The Advisor’s assistance
in education of the Plan participants shall be consistent with and within the scope of
the Department of Labor’s definition of investment education (Department of Labor
Interpretive Bulletin 96-1). As such, the Advisor is not providing fiduciary advice as
defined by ERISA to the Plan participants. Advisor will not provide investment advice
concerning the prudence of any investment option or combination of investment
options for a particular participant or beneficiary under the Plan.
• Assist in the group enrollment meetings designed to increase retirement plan
participation among the employees and investment and financial understanding by the
employees.
WWM may provide these services or, alternatively, may arrange for the Plan’s other providers
to offer these services, as agreed upon between Advisor and Plan Sponsor.
3. WWM has no responsibility to provide services related to the following types of assets
(“Excluded Assets”):
a. Employer securities;
b. Real estate (except for real estate funds or publicly traded REITs);
c. Stock brokerage accounts or mutual fund windows;
d. Participant loans;
e. Non-publicly traded partnership interests;
f. Other non-publicly traded securities or property (other than collective trusts and
similar vehicles); or
g. Other hard-to-value or illiquid securities or property.
Investment Advisory Services
We also offer investment advisory services, which are separately disclosed in our Wrap Fee
brochure. The WWM Wrap Fee Program (the “Program”) is a fee-only investment management
program we sponsor, and in which we pay for all transaction expenses the custodian charges
accounts we manage. Please see the Wrap Fee brochure for particulars of this Program.
Client Assets Under Management
As of December 31, 2022, we had $500,740,211 of total assets under management. All assets are
managed on a discretionary basis.