A. FIRM INFORMATION
LeafHouse Financial Advisors, LLC (“LeafHouse”) was formed in 2009 and is a registered investment adviser with the U.S.
Securities and Exchange Commission (“SEC”). LeafHouse is a Limited Liability Company (“LLC”) formed under the laws of the
State of Texas that conducts business in Texas and other states. LeafHouse is owned by LeafHouse Financial Group, LLC
(which is principally owned by Todd Kading, Managing Member, and David Packard, Member). This Disclosure Brochure
provides information regarding the qualifications, business practices, and the advisory services provided by LeafHouse.
The Adviser serves as a fiduciary to Clients, as defined under applicable laws and regulations. As a fiduciary, the Adviser
upholds a duty of loyalty, fairness, and good faith towards each Client and seeks to mitigate potential conflicts of interest. Our
fiduciary commitment is further described in our Code of Ethics. For more information regarding our Code of Ethics, please see
Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading.
B. ADVISORY SERVICES OFFERED
LeafHouse offers investment advisory services to individuals, high net worth individuals, businesses, retirement plans, and
other financial professionals in Texas and other states (each referred to as a “Client” and also referred to as “you” or “your”).
Financial Planning Services – By Invitation Only
LeafHouse (on a limited and selective basis) provides comprehensive financial planning and consulting services. A financial plan
may include a review of a Client’s net worth (including assets and liabilities), objectives, risk tolerance, risk capacity, cash flow
and expenses, income tax analysis, review and analysis of fringe benefits, retirement forecast and probability analysis,
educational funding analysis, estate planning analysis, and risk management review. LeafHouse’s approach to providing this
service starts with gathering the Client’s current financial and subjective information. LeafHouse assesses the Client’s goals,
objectives, time horizon, and risk tolerance to compare where the Client is today in relation to the attainment of their stated
goals. A comprehensive financial plan thereafter is prepared to discuss the Client’s situation.
In performing its services, LeafHouse entrusts that the Client will provide accurate information, and LeafHouse will not be
obligated to verify any information received from the Client or from the Client’s other professionals. If requested by the Client,
LeafHouse may recommend the services of other professionals for purposes of implementing the plan. The Client is under no
obligation to engage the services of any such recommended professional. The Client retains absolute discretion over all
implementation decisions and is free to accept or reject any recommendation from LeafHouse. Moreover, Clients are advised
that it remains their responsibility to promptly notify LeafHouse if there is ever any change in their financial situation during
the financial planning process.
Prior to rendering financial planning, LeafHouse will ascertain, in conjunction with the Client, the Client’s financial situation,
risk tolerance, and investment objective(s).
Investment Advisory Services
LeafHouse provides continuous management of Client investment portfolios. LeafHouse has developed a Client service model
that includes discovery, implementation, and monitoring components.
• Investment Policy Statement – Based on the information provided by the Client, LeafHouse will furnish the Client
with an “Investment Policy Statement” as necessary, which summarizes the Client’s current investment portfolio,
investment goals and objectives, and risk tolerance level. Working with the Client, LeafHouse will craft an investment
plan for the Client.
• Investment Selection and Implementation – Upon completion of this investment profile information, LeafHouse will
implement an investment plan for the Client and select an investment portfolio. LeafHouse may invest Client assets in
a variety of instruments in order meet Client investment objectives. All investments are made with the Client’s risk
tolerance in mind. LeafHouse may invest in stocks, bonds, options, mutual funds, or any other marketable security as
deemed appropriate by LeafHouse.
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• Investment Monitoring and Maintenance – LeafHouse will monitor investment portfolios to ensure that the portfolio
meets the Client’s goals and objectives as well as appropriate benchmarks. Further, LeafHouse monitors each Client
portfolio in order to ensure they are invested in accordance with LeafHouse’s firm-wide investment guidance and
economic outlook.
It is the Client’s responsibility to notify LeafHouse promptly of any change to the information provided by the Client, including
any change to any investment objectives, risk tolerance, investment time horizon, and any investment policies, guidelines, or
reasonable restrictions. When providing Advisory Services to its Clients, LeafHouse will honor Client restrictions unless those
restrictions impair LeafHouse’s ability to manage Client assets.
Business and Nonprofit Retirement Plans
LeafHouse will work with business and nonprofit Clients to develop, design, and implement a retirement savings plan for its
employees. LeafHouse provides objective financial advice to plan sponsors and senior management regarding issues involving
benefit plan options, wealth accumulation strategies for employees, and participant education. LeafHouse will evaluate a
sponsor’s current plan and recommend changes, if necessary. LeafHouse may also provide consulting regarding new plans for
companies that have not previously offered retirement plan benefits.
Non- Fiduciary Services for Retirement Plans
• Monitoring and Reporting Key Metrics – Monitoring investments is an essential part of discharging your fiduciary
responsibilities. Performance monitoring and reporting can assist you in making sure your investment decision-
making is in line with your investment policy. LeafHouse assists you by tracking key metrics to confirm investment
performance adheres to your Investment Policy Statement, identifying any areas of concern, and recommending
changes as necessary.
• Ongoing Fiduciary Governance* – If you are to have sound fiduciary discharge of your duties, you must establish a
sound fiduciary governance system. The Adviser helps you develop and implement the optimal organization and
governance design for your plan.
• Vendor Search & Selection* – Selecting your 401(k) vendor is a serious fiduciary obligation. LeafHouse will assist in
you developing your selection methods, guide you through the evaluation process, and help you manage the
implementation process once you’ve made your decision. LeafHouse does not pick other service providers. The plan
sponsor is responsible for service provider selection.
• Fee Assessment/Negotiation – As an ERISA fiduciary, you have an obligation to ensure that your plan’s fees and
expenses are reasonable in light of the level and quality of services being provided. Typically, plan sponsors lose track
of the total plan expenses. LeafHouse helps you uncover and document all the fees (both obvious and difficult)
associated with your plan and recommend specific steps you can take to reduce those fees, if applicable. When
appropriate, we will assist you in negotiating the fee arrangements.
• Education of Employees* – In order to fulfill your fiduciary duties to your plan participants (and in order to provide a
valuable benefit for your employees), you need to have a benefits education structure in place. LeafHouse will assist
in providing both online and on-site education for your organization or help develop a plan to have a service provider
educate the participants.
• Outcomes-Based Design* – Keeping fees in line with service and making sure your investment and fiduciary process
is operating properly are very important aspects of managing a retirement plan; however, they are only a part of what
the ultimate goal of the retirement plan actual should be. The plan should help assure that employees are able to
retire in a dignified manner. By focusing energy and output on developing proper Outcomes for participants,
LeafHouse provides a large amount of value to the plan
sponsor and the participants.
*These services do not apply to our Institutional Service Agreement.
Fiduciary Services for Retirement Plans
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• Development of an Investment Policy Statement Development – A written investment policy statement is the only
way to demonstrate a thoughtful process that helps ensure that investment decisions are prudent and well informed.
The Adviser helps you develop your overall investment policy approach and create your Investment Policy Statement,
which describes the procedures and metrics used to manage the investment process.
• Initial Selection and On-going Monitoring of the Plan’s Designated Investment Alternatives (“DIAs”) – LHFA will
review the investment options available to the Plan and will utilize quantitative analysis, and if deemed necessary by
LHFA, a qualitative analysis. To the extent that LHFA has discretion, it will implement its recommendations. If LHFA
does not have discretion, then it is to provide the Client with recommendations that meet the criteria set forth in the
IPS.
• Creation and Maintenance of Model Asset Allocation Portfolios (“Model Portfolios”) – If the Client desires, we may
alternatively allocate among the Plan’s approved DIAs or other funds to create either a target date glidepath model
system or the following five (5) risk-based Model Portfolios to be offered to Plan participants through the Record-
keeper’s platform:
o Conservative
o Moderately Conservative
o Moderate
o Moderately Aggressive
o Aggressive
• Qualified Default Investment Alternative (“QDIA”) Management – LHFA may pick an appropriate QDIA for the plan.
This investment will fit within the Department of Labor’s guidance for such a choice.
• Investment Management Services through RetireGuide – LHFA works with various recordkeeping platforms to build
a customized investment strategy that aligns with the participants’ financial considerations and retirement needs
through RetireGuide. RetireGuide is an automated, online managed account solution provided by LeafHouse, via
various Empower platforms. Through RetireGuide, LHFA is able to construct and manage customized managed
accounts. Based on inputs from the participant, LHFA creates an allocation and manages the underlying funds on an
ongoing basis. The recordkeeper’s role is limited to offering the platform on which RetireGuide is available.
• Investment Management Services with iJoin Managed Account Program (“MAP)– LHFA with iJoin MAP partner with
various recordkeeping platforms to provide personalized managed account offerings. iJoin MAP relies on LFHA’s Flex
Fiduciary and reallocateIT to provide personalized solutions for individual investors and employers.
• Collective Investment Trusts (“CITs”) – LHFA serves as investment manager to multiple CITs. LHFA serves as the
investment manager pursuant to an investment management agreement, and receives a fee for managing the
investment portfolios. The CITs have not been registered under federal or state securities laws and is subject to an
exemption provided by Rule 3(c)(11) of the Investment Company Act of 1940. The CITs are only available for
investment by qualified retirement plans and is not for sale to the general public.
Investment Management Model Programs
LeafHouse manages investment model portfolios through its “Model Program.” LeafHouse’s investment strategies are offered
to individual Clients as well as through other financial professionals. Investments in models are allocated and repositioned over
time based on a Client’s specific strategic allocation and tactical allocation adjustments. Clients are offered a model based on
their investment objectives and tolerance for risk and include investments in mutual funds, exchange traded funds and other
investment products.
Investors may be offered these strategies through independent financial professionals, who will serve as your relationship
manager and assist with selecting an appropriate strategy based on an investor’s financial situation, investment objectives, and
risk tolerance. The Model Program may also be offered to you through an unaffiliated broker-dealer/custodian or investment
adviser as part of their investment products, which may include self-directed 401(k) brokerage assets and/or retirement plan
assets such as 403(b) and 457 plans.
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Clients will enter into an investment advisory agreement with LeafHouse that defines the scope and terms the advisory
relationship. This agreement will tell us which Model Program[s] you are selecting and authorize us with discretionary
authority to allocate your account into the investment positions of the Model Program[s] you have selected and to continue to
make reallocations according to the selected strategy. Clients may impose reasonable restrictions on LeafHouse Financial
Advisors’ management of your accounts. In addition, Clients may also hold non-managed securities in your account, depending
on the arrangement with your financial professional. You or your financial representative can contact us at any time to inquire
on the status of your account.
Third-Party Managed Assets
In certain cases, LeafHouse and the Client may decide portfolio management by a third-party fund company is in the Client’s
best interest. In those cases, LeafHouse will work with the Client to determine the most suitable program in which the Client
will invest. In selecting the appropriate third-party fund company, LeafHouse will adhere to the following process:
• Determining an Investment Plan – LeafHouse will formulate a long-term asset allocation strategy that specifies the
percentage of assets to be invested among equity, fixed-income securities, and money market funds.
• Selecting an Independent Manager – Some Clients may require a highly focused investment style and/or investment
strategy to best meet their goals. LeafHouse will access highly regarded portfolio managers throughout the country
to specialize in particular investment styles, strategies, and asset classes.
• Ongoing Investment Monitoring – LeafHouse provides ongoing oversight of the Client’s investment program,
whether managed by LeafHouse or by a third party. All investments are monitored for performance relative to certain
benchmarks and LeafHouse expectations.
All portfolios are rebalanced as necessary upon LeafHouse review. More or less frequent rebalancing may be required
depending on macroeconomic, market, or sector factors.
C. CLIENT ACCOUNT MANAGEMENT
LeafHouse Managed Assets
LeafHouse generally only tailors advisory services to the individual needs of clients when providing financial planning services.
Prior to engaging LeafHouse to provide investment advisory services, the Client is required to enter into an investment
management agreement with LeafHouse setting forth the terms and conditions of the engagement and the services to be
provided. These services will include:
• Determining Portfolio Asset Allocation – LeafHouse will formulate a long-term asset allocation strategy that
specifies the percentage of assets to be invested among equity, fixed-income securities, and money market funds.
• Asset Allocation Recommendation – LeafHouse will implement its recommended investment plan via an asset
allocation model. Generally, portfolio management is done on a discretionary basis. Non-discretionary services are
also available. LeafHouse will use the services of a discount broker-dealer to provide account custodial services and
to effect trades.
• Ongoing Investment Monitoring – LeafHouse provides ongoing oversight of the Client’s investment program. All
investments are monitored for performance relative to certain benchmarks and LeafHouse expectations.
All portfolios are rebalanced as necessary upon LeafHouse review. More or less frequent rebalancing may be required
depending on macroeconomic, market, or sector factors.
D. WRAP FEE PROGRAMS
LeafHouse does not manage any proprietary wrap fee programs.
E. ASSETS UNDER MANAGEMENT
As of December 31, 2023, LeafHouse has approximately the following assets under management:
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Discretionary Assets $15,097,477,094
Non-Discretionary Assets $1,907,470,891
Total $17,004,947,985
Clients may request more current information at any time by contacting the Adviser.