Description of Services and Fees
Rezny Wealth Management, Inc.,("we", "us" "our" "RWM" or the "firm") is a Fee-Only Registered
Investment Adviser based in Florida, with additional offices in Aurora, IL. We are organized as a
corporation under the laws of the State of Florida. We have been providing Investment Advisory
Services since 1992. Brian Charles Rezny is our principal owner and Chief Compliance Officer.
Currently, our firm offers the following Investment Advisory Services, which are personalized to each
individual client:
•Advisory Consultation Services (Financial Planning Services)
•Investment Advisory/Portfolio Management Services
•Pension or Retirement Plan Consulting Services
•Educational Workshops
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. Also, you may see the term Associated Person throughout this Brochure. As used in
this Brochure, our Associated Persons are our firm's officers, employees, and all individuals providing
investment advice on behalf of our firm.
General Consultation/Financial Planning Services
You may request limited financial advice from our firm. We will provide general consulting services that
address only those specific areas of interest or concern to you. Consultation services are available to
you regardless of whether you engage us for Investment Advisory Services. If you do engage us for
consultation services you can also engage us for Investment Advisory/Portfolio Management Services.
Consultation services can include, without limitation, retirement planning, estate planning review,
investment reviews, insurance planning or recommendations, financing options, and any other financial
situation a client requests. Fees will be billed at $800.00 per hour and are due at delivery or conclusion
of consultation.
An estimate of the total time/cost will be determined at the start of the general consulting relationship.
In limited circumstances, the cost/time could potentially exceed the initial estimate. In such cases, we
will notify you in advance and request that you approve the additional time/fee.
You are under no obligation to act on our general consultation recommendations. Should you choose
to act on any of our recommendations, you are not obligated to implement them through any of our
other Investment Advisory Services. Moreover, you may act on our recommendations by placing
securities transactions with any brokerage firm.
Investment Advisory/ Portfolio Management Services
We also provide discretionary Investment Advisory/Portfolio Management Services where the
investment advice provided is custom tailored to meet your needs and investment objectives. Our firm
offers different investment management styles based on client goals, objectives and risk profile:
COMBINATION OF MUTUAL FUNDS/EXCHANGE TRADED FUNDS (ETFs) OR NO-LOAD LOW-
COST VARIABLE ANNUITIES. We require that you meet certain investment suitability requirements
before being accepted for Investment Advisory Services. Suitability requirements include net worth,
investment goals, income, financial condition, ability to accept financial risk, etc. Such suitability
requirements vary according to your unique circumstances.
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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. As part of our investment advisory services, we may customize an investment portfolio for
you in accordance with your risk tolerance and investing objectives. We may also invest your assets
using a predefined strategy, or we may 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 reallocate or rebalance the
portfolio as required by changes in market conditions, investment conditions, economic conditions and
in your financial circumstances.
You will grant us written authorization to manage your account on a discretionary basis and perform
various functions, at your expense, without further approval from you. Such functions include making
investment decisions regarding the securities to be purchased or sold, amount of securities to be
purchased or sold, and the time at which to execute such transactions. Once the portfolio is
constructed, we will provide continuous supervision and management of the portfolio to maintain
alignment with your stated financial objectives as changes in market conditions, investment conditions
and economic conditions occur.
The annual fee for Investment Advisory Services is billed quarterly in advance based on the market
value of the assets on the last day of the previous quarter. The total portfolio value will be determined
using the value of cash plus securities priced as of the last business day of the previous quarter. Fees
will be assessed pro rata in the event the investment advisory services agreement is executed at any
time other than the first day of the billing period. Fees can be negotiated downward at the sole
discretion of our firm.
The annualized fee for Investment Advisory Account Services are as follows:
Mutual Fund and ETFs Accounts:
Assets Under ManagementAnnualized Fee*
First $500,000 1.50%
Next $500,000 & Over1.00%
Variable Annuity Sub-Accounts:
Assets Under ManagementAnnualized Fee*
First $500,000 1.50%
Next $500,000 & Over1.00%
No-Load, Low-Cost Variable Annuity Sub-Accounts:
Under limited circumstances we can utilize No-Load, Low-Cost Variable Annuities as a replacement for
a client that has an existing variable annuity, in order to reduce high internal fees and expenses
associated with an expensive variable annuity. Tax protection and expense reduction would be the
principle criteria for this decision and would be discussed and agreed upon by the client first.
Break Points on advisory fees for the accounts at Jefferson National and Nationwide will not be
combined for break point discounts on other Investment Advisory Accounts. Investment Advisory
Accounts are managed separately from the sub-accounts in Variable Annuities.
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*Note: Fee does not include transaction fees, or other fees/expenses charged by brokers, custodians,
or mutual funds.
Payment of Investment Advisory fees will be made by the qualified custodian holding your funds and
securities, provided that you grant written authorization permitting the fees to be paid directly from your
account. We will not have access to your funds for payment of fees without
your consent in writing.
Further, the qualified custodian agrees to deliver an account statement, at least quarterly, directly to
you showing all disbursements from your account. 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.
Our firm will have electronic access to account statements or it will receive duplicate copies of
statements delivered to you.
The fees charged are calculated as described above, and are not charged on the basis of a share of
capital gains upon, or capital appreciation of, the funds, or any portion of the funds of an advisory
Client (15 U.S.C. §80b-5(a)(1)). In no circumstance will our firm require prepayment of a fee more than
six months in advance and in excess of $500.
We do not represent, warrant, or imply that the services or methods of analysis employed by the our
firm can or will predict future results, successfully identify market tops or bottoms, or insulate you from
losses due to market corrections or declines.
You may terminate the Investment Advisory Services Agreement by providing written notice to our firm.
If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of
those fees.
Pension Plan or Employee Retirement Plan Consulting Services
We offer pension consulting services to employee benefit plans and their fiduciaries based upon the
needs of the plan and the services requested by the plan sponsor or named fiduciary. In general, these
services may include an existing plan review and analysis, plan-level advice regarding fund selection
and investment options, education services to plan participants, investment performance monitoring,
and/or ongoing consulting. These pension consulting services will generally be non-discretionary and
advisory in nature. The ultimate decision to act on behalf of the plan shall remain with the plan sponsor
or other named fiduciary.
Pension Consulting services will be provided pursuant to the agreement entered into and within the
parameters set forth in the plan documents. Where the plan trustee or sponsor engages us to provide
advice to participants, such advice will be limited to general retirement planning issues, investment
fund selection, asset allocation of plan assets and model portfolios.
Plan participants who wish to engage us for individualized planning, consulting or review/advisory
services outside the scope of the qualified plan, may do so by executing a separate agreement,
including separate fees and fee payment arrangements, with our firm.
The scope of these services, the fees, and the terms of the agreement for these services will be
negotiated on a case-by-case basis with each plan sponsor. We may be compensated based on an
hourly fee, a flat fee, a fee based on percentage of assets, or a combination of fee arrangements
based on the complexity of the plan and the agreement with the sponsor.
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We may also provide additional types of pension consulting services to plans on an individually
negotiated basis. All services, whether discussed above or customized for the plan based upon
requirements from the plan fiduciaries (which may included additional plan-level or participant-level
services) shall be detailed in a written agreement and be consistent with the parameters set forth in the
plan documents. Our advisory fees for these customized services will be negotiated with the plan
sponsor or named fiduciary on a case-by-case basis.
Either party to the pension consulting agreement may terminate the agreement upon written notice to
the other party. The pension consulting fees will be prorated for the quarter in which the termination
notice is given and any unearned fees will be refunded to the client.
All accounts are regulated under ERISA. We will provide consulting services to the sponsor and the
participants as described above. The named sponsor must make the ultimate decision as to retaining
us for pension consulting services. The sponsor is free to seek independent advice about the
appropriateness of any recommended services for the plan.
In most cases, we will send you an invoice for the payment of our advisory fee. Please refer to the
Investment Advisory Services Agreement for specific details on payment terms.
Regarding IRA direct transfers/rollovers, Qualified plan rollovers, including IRAs, 401k, 403B, pension
plans and all other qualified plans not previously mentioned. Client(s) acknowledge(s) they have
contacted RWM to engage our Advisory/Money Management services for all the above referenced
Qualified plans/IRA rollovers. At not point, did RWM solicit or recommend to Client(s) to rollover
Qualified plans/IRA rollovers from current Qualified plans/IRA accounts to RWM. The client
acknowledges they fully understand "All" the positives or negatives, the expense structure whether
higher or lower than they are currently paying, any tax consequences positive or negative incurred with
the client(s) decision to solicit RWM for the Qualified plans/IRA rollovers to RWM Advisory/Money
Management services. The Client(s) acknowledge(s) they are seeking active management of their
respective Qualified plans/IRAs and want the professional services RWM provides as the Client does
not want to self-manage above mentioned accounts or are not happy with the current advice they are
receiving.
Workshops
We may conduct complimentary educational workshops in the coming year. The topics will include
issues related to asset/wealth management services, such as financial planning, investment
advisory/portfolio management planning, pension or retirement planning, and/or various other
economic and investment topics.
The information covered in a workshop is not based on the individual needs of the attendees. We do
not provide personalized investment advice to attendees unless engaged independently, and only
where the attendee's individualized financial information, investment goals, and objectives are
provided.
Types of Investments
We primarily offer advice on Equity and Debt securities, including Exchange Traded Funds (ETFs),
Individual Stocks, Bonds and Mutual Funds.
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.
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Assets Under Management
As of February 5, 2024, we manage $345,501,995 in client assets on a discretionary basis, and
$1,948,263 in client assets on a non-discretionary basis.