Description of Services and Pricing
BlueSky Wealth Advisors, LLC is a registered investment adviser with our primary office in New Bern,
North Carolina. We are organized as a limited liability company under the laws of the State of North
Carolina, and we have been providing investment advisory services since 1999. We are owned
by BlueSky WA Holdings, LLC. BlueSky WA Holdings LLC is owned by BlueSky Management Team
LLC, which is owned by David Blain and Caroline Blain, and four minority partners.
We provide broad based advisory services designed to provide you with a plan that is aimed at
integrating your overall investment, tax, estate, insurance, and other planning needs. Our advisory
services consist of financial planning and discretionary investment management as described below.
You may retain us to provide both financial planning and investment management or in limited
circumstances you may engage us to provide either service exclusive of the other.
The following paragraphs describe our services and pricing. 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 BlueSky Wealth
Advisors, LLC and the words "you", "your" and "client" refer to you as either a client or prospective
client of our firm. Also, you may see the term Associated Person or Investment Adviser Representative
throughout this Brochure. As used in this Brochure, our Associated Persons or Investment Adviser
Representatives are our firm's officers, employees, and all individuals providing investment advice on
behalf of our firm.
Financial Planning
Financial planning will typically involve providing a variety of services, principally advisory in nature, to
you regarding the management of your financial resources based upon an analysis of your individual
needs.
At the inception of the client relationship, we will establish your objectives by collecting data and
reviewing your financial information and circumstances. Once such information has been reviewed and
analyzed, written reports designed to achieve your stated financial goals and objectives will be
produced and presented to you. The primary objective of this process is to allow us to assist you in
developing a strategy for the successful management of income, assets and liabilities in meeting your
financial goals and objectives.
Financial plans may incorporate recommendations with respect to cash flow, assets and liabilities,
asset allocation, insurance analysis, education funding, retirement planning, estate planning, tax
strategies, asset protection, real estate, charitable giving, equity compensation, and small business
planning. Additionally, financial planning services include periodic reviews and assistance to you in
implementing the plan as mutually agreed upon.
Financial plans are based on your financial situation at the time the plan is presented and are based on
the financial information disclosed by you to us. You are advised that certain assumptions may be
made with respect to interest and inflation rates and the use of past trends and performance of the
market and economy. Past performance is in no way an indication of future performance. We cannot
offer any guarantees or promises that your financial goals and objectives will be met. As your financial
situation, goals, objectives, or needs change, you must notify us promptly.
Financial planning is offered through an ongoing relationship or, in narrowly defined circumstances, a
limited scope defined service relationship.
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Real Estate
As part of our financial planning service, we may advise on the disposition, acquisition, or
management of real property (real estate). Sometimes our recommendations include investing
with unaffiliated third-party real estate investment companies. Furthermore, in some
circumstances, we facilitate our client's investments, report the performance, and help organize
clients' investments in these private real estate funds or properties. However, BlueSky Wealth
Advisors does not sponsor or manage the real estate investments, nor does it receive any
additional compensation for recommending an investment in any particular third-party fund. Our
sole payment is the one described in the pricing paragraph below.
We consider the assets invested with unaffiliated third-party real estate investment companies
based on our recommendation to be calculated as Assets Under Advisement.
As of March 12, 2024, our total Real Estate assets under advisement are $77,202,050. This
amount is based on the initial investment amount (cost basis), not fair market value.
Investment Management
We provide discretionary investment management and the advice provided is tailored to meet your
needs and investment objectives. We will utilize information gathered in the financial planning process
or at the inception of the relationship such as your risk tolerance, risk capacity, investment objectives
and other relevant information, and will provide an investment policy statement to you.
Based upon the investment policy statement, we will recommend an initial portfolio of securities which
may be customized for you in accordance with your risk tolerance and investing objectives. We may
also invest your assets according to one or more model portfolios developed by our firm. Once we
construct an investment portfolio for you, or select a model portfolio, we will monitor your
portfolio's
performance on an ongoing basis and will place trades and rebalance the portfolio as required by
changes in market conditions and in your financial circumstances.
If you participate in our discretionary investment management services, we require you to grant our
firm discretionary authority to manage your account. 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 client advisory agreement you sign with our firm, a power of attorney, or trading authorization
forms.
Tax Preparation
We provide individual and business federal and state income tax preparation services to select clients
for an additional cost.
Pricing
For our ongoing financial planning and discretionary investment management services, we charge a
quarterly price generally ranging between $2,500 and $25,000 paid in advance. The quarterly price for
advisory services is determined by the complexity of the client's situation. BlueSky Wealth Advisors'
pricing formula starts with a base price determined by the client's age, employment status, and family
size then adds complexity factors based on their level of income and net worth. All client prices are
adjusted annually based on changing client circumstances and the inflation rate of the economy. The
exact pricing formula is a trade secret and is only disclosed upon request to qualified prospective
clients. Some legacy advisory clients may pay a higher or lower price determined by the advisory
agreement they signed at the time they became a client.
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We will deduct your quarterly payment directly from your investment account(s) through the qualified
custodian holding your funds and securities only when you have given our firm written authorization
permitting the payments to be paid directly from your account. Further, the qualified custodian will
deliver an account statement to you at least quarterly. These account statements will show all
disbursements from your account. You should review all statements for accuracy.
In the event your agreement is executed at any time other than the first day of a calendar quarter, an
initial adjusted price will be assessed. Subsequent quarterly payments will be due on the first day of
the calendar quarter. Either party, upon receipt of fourteen days written notice from the other, may
terminate the agreement. In the event of termination, a refund of unearned fees, calculated pro rata for
the remainder of the period based upon the client termination date will be made to the client via check
or reimbursement transfer from the company's account to the client's brokerage account
For federal and state income tax preparation services, prices range between $300 and $20,000. The
cost for tax preparation services is calculated individually for your specific circumstances and is based
on a number of factors, including; the complexity of the tax return, the knowledge required by the
preparer, the time necessary to complete the return, and the number of forms required.
For financial planning defined service relationships, which are offered only in limited circumstances, we
charge a flat price ranging between $2,000 and $20,000. We will invoice you directly for the payment,
half of which we require to be paid up front and the remainder due upon completion of the work
performed or as otherwise agreed.
For advisory services performed outside the scope of the financial planning, tax, or investment
management services described previously, which are offered only in limited circumstances, we
charge $500 per hour due upon receipt of invoice. Pricing and payment arrangements will be
determined on a case-by-case basis depending on the scope and complexity of the services to be
performed. At no time will we charge you more than $1,200 and for six months or more in advance.
Types of Investments
We do not primarily offer advice on one type of security over another and offer advice on a broad
range of investments.
We do not participate in or sponsor a wrap fee program.
IRA Rollover Recommendations
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. 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.
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As a fiduciary, we only recommend a rollover when we believe it is in your best interest.
Assets Under Management
As of March 12, 2024, we provide continuous management services for $730,182,752 in client assets
on a discretionary basis.