A. Description of our advisory firm, our principal owner, and how long we have been in business.
We are dedicated to providing individuals and other types of clients with a wide array of
investment advisory services. Our firm is a limited liability company formed in the State of New
York and has been in business as an investment adviser since 2013. The firm’s principal owners
are Barry Ritholtz (37.90%), Joshua Brown (27.19%), Kristopher Venne (8.29%), and Michael
Batnick (8.29%). In addition, Benjamin Carlson, William Sweet, Erika Mauro, Joel Fishman, Dina
Isola, Alex Palumbo, Brian Rosen, Jonathan Novy, Jay Tini, Blair DuQuesnay, Nicholas Maggiulli,
Paul Zodtner, Daniel LaRosa, Anna Chaiken, Gary Pulford, Patricia Hatzfeld, Dylan Kluender,
Matthew Lohrius, Nicholas Sapienza, Kevin Young, and Benjamin Coulthard each have ownership
under 5%.
B. Description of the Types of Advisory Services We Offer.
Comprehensive Portfolio Management:
Our Comprehensive Portfolio Management service encompasses asset management as well as
the option of financial planning/financial consulting to clients. It is designed to assist clients in
meeting their financial goals through the use of financial investments. We conduct at least one,
but sometimes more than one meeting (in person if possible, otherwise via telephone or web
video conference) with clients in order to understand their current financial situation, existing
resources, financial goals, and tolerance for risk. Based on what we learn, we propose an
investment approach to the client. We may propose an investment portfolio, consisting of
exchange traded funds (“ETFs”), mutual funds, individual stocks or bonds, or other securities.
Upon the client’s agreement to the proposed investment plan, we work with the client to establish
or transfer investment accounts so that we can manage the client’s portfolio. Once the relevant
accounts are under our management, we review such accounts on a regular basis and at least
quarterly. We may periodically rebalance or adjust client accounts under our management. If
the client experiences any significant changes to his/her financial or personal circumstances, the
client must notify us so that we can consider such information in managing the client’s
investments.
We may utilize Independent Money Managers, where we design an investment portfolio on a fee-
only basis for a percentage of assets in conjunction with another investment advisory firm. The
selection of other advisers may be done on a discretionary basis pursuant to the terms of the
executed investment advisory client agreement with our firm. Before selecting other advisers, we
make sure that the other advisers are properly licensed or registered. When a client has
authorized our firm to select other advisers on a discretionary basis, we shall have the authority
to select and terminate them without the client’s specific approval. A copy of the Independent
Money Manager’s disclosure brochure will be provided to the client. The terms and conditions
under which the client shall engage the Independent Managers shall generally be set forth in the
agreement between the client and our firm or a separate written agreement between the client
and the designated Independent Managers. Clients may terminate these contracts at any time
upon written notice.
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Good Advice – Automated Wealth Management:
Good Advice is an automated online platform powered by Ritholtz Wealth Management that
guides clients through the entire investment management process. Our Good Advice Automated
Wealth Management service encompasses asset management and financial planning/financial
consulting. It is designed to assist clients in meeting their financial goals through the use of
financial investments. Clients subscribing to the Good Advice Automated Wealth Management
service authorize our firm to implement our proprietary portfolio models. As part of the Good
Advice Automated Wealth Management service, clients complete an online personal risk
tolerance assessment and provide additional information about their financial goals. Based on
the information provided, the appropriate model portfolio is selected for the client. We generally
create diversified model portfolios of investments consisting of low cost exchange traded funds
(“ETFs”), mutual funds, and other similar equity-related index funds, stocks, or investment
products tailored to the client’s specific needs. Information about the client’s model portfolio is
available on the online Platform, which includes their investment style, objectives, and a list of
ETFs and other investments with shares that are included in and traded through them. The client
can also edit their risk profile or complete a new risk questionnaire directly through the online
Platform. The Platform also aims to help lower taxes through active tax-loss harvesting. When
securities decline in value, clients can get what amounts to a small rebate by selling the security
and buying a substitute, then using these losses to offset gains from elsewhere in the portfolio. If
they don’t have any gains to offset today, these losses can be banked for use at a future date.
Liftoff – Automated Advisory Services:
Liftoff is an automated online platform powered by Ritholtz Wealth Management that guides
clients through the entire investment management process and provides management services.
Clients subscribing to the Liftoff service authorize Ritholtz Wealth Management to select money
managers to implement our proprietary portfolio models. As part of the Liftoff investment
management service, clients complete an online personal risk tolerance assessment and provide
additional information about their financial goals. Based on the information provided, the
appropriate model portfolio is selected for the client. We generally create diversified model
portfolios of investments consisting of
low-cost exchange traded funds (“ETFs”), mutual funds,
and other similar equity-related index funds, stocks, or investment products tailored to the
client’s specific needs. Information about the client’s model portfolio is available on the online
platform, which includes their investment style, objectives, and a list of ETFs and other
investments with shares that are included in and traded through them. The client can also submit
or modify risk preferences, investment objectives, investment size and any other restrictions for
their accounts directly through the online platform. The money managers will periodically
rebalance client model portfolios based upon the client’s individual needs, stated goals and
objectives. Before selecting money managers, we make sure that they are properly licensed or
registered. Clients who subscribe to this service will enter into a dual contract with us and the
money manager.
Retirement Plan Consulting:
Our firm provides retirement plan consulting services to employer plan sponsors on an ongoing
basis. Generally, such consulting services consist of assisting employer plan sponsors in
establishing, monitoring and reviewing their company's participant-directed retirement plan. As
the needs of the plan sponsor dictate, areas of advising could include: investment options, plan
structure and participant education.
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In providing services for retirement plan consulting, our firm does not provide any advisory
services with respect to the following types of assets: employer securities, real estate (excluding
real estate funds and publicly traded REITS), participant loans, non-publicly traded securities or
assets, other illiquid investments, or brokerage window programs (collectively, “Excluded
Assets”).
All retirement plan consulting services shall be in compliance with the applicable state laws
regulating retirement consulting services. This applies to client accounts that are retirement or
other employee benefit plans (“Plan”) governed by the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”). If the client accounts are part of a Plan, and our firm accepts
appointments to provide services to such accounts, our firm acknowledges its fiduciary standard
within the meaning of Section 3(21) or 3(38) of ERISA as designated by the Retirement Plan
Consulting Agreement with respect to the provision of services described therein.
College Financial Planning:
Our firm provides College Financial Planning services to individuals, families, and other clients
regarding the management of their financial resources based upon an analysis of the client’s
current situation, goals, and objectives. Planning rendered to clients usually includes general
recommendations for a course of activity or specific actions to be taken by the clients. College
Planning services are provided at a reduced cost to existing clients (see Item 5: “Fees &
Compensation”). Planning services will be rendered within six months of payment.
Implementation of the recommendations will be at the client’s discretion.
College Financial Planning is a process that helps parents and students understand how to pay
for college and make the most optimal college decisions. College is a big purchase decision, and it
is one where planning and preparation can help. We will advise you about your options to fund
education for your children or grandchildren. We will help you determine the funds needed and
advise on ways that may improve your ability to obtain merit- and needs-based aid through
various tax, income and asset strategies.
Our College Financial Planning service includes a College Cost Analyzer solution, predominantly
for late-stage college planning (high school years), that provides the average costs of attendance,
average GPA, minimum standardized test scores and acceptance rates for desired college
applications. Our services will compare the best college value matched with potential merit-
based opportunities, required funding and contributions and loan options for financial planning
and college selection purposes. We will also analyze and recommend strategies to improve
affordability and funding outlook. Working with your financial advisor we can also help by
projecting the amount that will be needed to achieve college or other post‐secondary education
funding goals, along with advice on ways for you to save the desired amount including, but not
limited to, cash flow strategies, education tax planning, financial aid optimization, family gifting,
and school selection.
C. Explanation of whether (i) we tailor our advisory services to the individual needs of clients and
(ii) whether clients may impose restrictions on investing in certain securities or types of
securities.
(i) We offer individualized investment advice to clients utilizing our Comprehensive Portfolio
Management and Good Advice services. We offer general investment advice to clients
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utilizing our Liftoff – Automated Advisory Services, Retirement Plan Consulting, and College
Financial Planning clients.
(ii) Each Comprehensive Portfolio Management and Good Advice client has the opportunity to
place reasonable restrictions on the types of investments to be held in the portfolio. Restrictions
on investments in certain securities or types of securities may not be possible due to the level
of difficulty this would entail in managing the account.
D. Participation in Wrap Fee Programs.
We do not offer wrap fee programs.
E. Disclosure of the amount of client assets we manage on a discretionary basis and the amount of
client assets we manage on a non-discretionary basis.
We managed $3,958,632,191 on a discretionary basis and $307,320,157 on a non-discretionary
basis for a total of $4,265,952,348 as of 12/31/2023.