Destiny Wealth Partners , LLC (the “Registrant”) is a limited liability company formed on November
6, 2012 in the State of Florida. The Registrant became registered as an Investment Adviser Firm in
May 2014. As of February 2, 2021, The Registrant has changed its legal name to Destiny Wealth
Partners, LLC. As of January 1, 2021, the Registrant is now owned by Panormos Capital, Inc.
Panormos Capital, Inc. is owned by Thomas H. Ruggie, as Trustee of the Thomas H. Ruggie
Revocable Trust, Dated January 18, 2001, As Amended and Robert L. Clark, Trustee of the Robert
L. Clark Revocable Trust, Dated September 29, 2014, As Amended. Registrant also conducts
advisory business under the following DBA names: Ruggie Wealth Management, Destiny 401(K),
Destiny 401K, Destiny Family Office, Destiny Wealth Management, and Destiny Wealth Partners.
Our firm also offers services through our network of investment adviser representatives (“Advisor
Representatives” or “IARs”). Certain of our IARs may have their own legal business entities whose
trade names and logos are used for marketing purposes and may appear on marketing materials or
client statements. Clients should understand that the businesses are legal entities of the respective IAR
and not of Destiny Wealth Partners. The IARs are under the supervision of Destiny Wealth Partners
and the advisory services of the IAR are provided through our firm. Destiny Wealth Partners currently
maintains such an arrangement described above with Nichols Wealth Partners and their respective
representatives.
A. As discussed below, the Registrant offers to its clients (individuals, pension and profit sharing plans,
business entities and trusts, etc.) Registrant’s, investment advisory services, which services typically
include financial planning and related consulting services.
TYPES OF ADVISORY SERVICES
Wealth Management and Financial Planning Services
Registrant’s Wealth Management services consist of managing portfolios for its clients in accordance
with their investment objectives. The Registrant transacts business in mutual funds, ETF’s, stocks,
bonds, options, private and public partnerships, variable annuities, real estate investment trusts,
insurance and other investment products. The client can determine to engage Registrant to provide
discretionary or non-discretionary investment advisory services on a wrap or non-wrap fee basis. (See
discussion below). To the extent specifically requested by the client, financial planning and
consulting services will be included in our services. In the event that the client requires extraordinary
planning and/or consultation services (to be determined in the sole discretion of Registrant),
Registrant may determine to charge for such additional services, the dollar amount of which shall be
set forth in a separate written notice to the client.
If a client determines to engage Registrant on a wrap fee basis, the client will pay a single fee for
bundled services (i.e. investment advisory, brokerage, custody). The services included in a wrap fee
agreement will depend upon each client’s particular need. If the client determines to engage Registrant
on a non-wrap fee basis, the client will select individual services on an unbundled basis, paying for
each service separately (i.e. investment advisory, brokerage, custody).
To commence the investment advisory process, Registrant will ascertain each client’s investment
objective(s) and then allocate the client’s assets consistent with the client’s designated investment
objective(s). Once allocated, Registrant provides ongoing supervision of the account(s). Before
engaging Registrant to provide investment advisory services, clients are required to enter into an
Investment Advisory Agreement with Registrant setting forth the terms and conditions of the
engagement (including termination), describing the scope of the services to be provided, and the fee
that is due from the client.
Please Note: Registrant believes that it is important for the client to address financial planning issues
on an ongoing basis. Registrant’s advisory fee, as set forth at Item 5 below, will remain the same
regardless of whether or not the client determines to address financial planning issues with Registrant.
Destiny Family Office – Wealth Management and Financial Planning Services
Destiny Family Office (“DFO”) is offered by the Registrant to provide family office services to high-
net-worth families, which offering typically includes Registrant’s wealth management services. The
Registrant’s wealth management services consist of managing portfolios for its clients in accordance
with their stated investment objectives. The Registrant may oversee mutual funds, ETF’s, stocks,
bonds, options, private and public partnerships, variable annuities, real estate investment trusts,
insurance and other investment products. The DFO client can engage the Registrant to provide
discretionary investment advisory services on a wrap fee basis. (See discussion below). If a client
determines to engage Registrant on a wrap fee basis, the client will pay a single fee for bundled
services (i.e. investment advisory, brokerage, custody). The services included in a wrap fee agreement
will depend upon each client’s particular need. To the extent engaged to do so and specifically
requested by a client, financial planning and related consulting services will be provided as part of
the engagement. DFO offers its services as a counselor and investment specialist. By working closely
with family members, DFO designs a customized investment plan to suit the unique needs of each
client. When developing the investment strategy, DFO takes into account all of the objectives,
constraints and risk tolerances that are indicated by the clients. DFO’s goal is to provide substantial
value to its clients’ lives in specific areas. Registrant’s Family Office services include developing
asset allocation and diversification strategies, asset management, investment reporting, and certain
administrative duties.
Registrant believes that it is important for the client to address financial planning issues on an ongoing
basis. Registrant’s advisory fee, as set forth at Item 5 below, will remain the same regardless of
whether or not the client determines to address financial planning issues with Registrant.
Non-Wrap Fee Basis
The client can determine to engage the Registrant to provide discretionary and/or non-discretionary
investment advisory services on a fee basis. Registrant’s annual investment advisory fee shall be
based upon a percentage (%) of the market value and type of assets placed under Registrant’s
management, generally negotiable to 2.0% (See Fee Differential disclosure below)
Destiny Wealth Partners Wrap Fee Program
The Registrant provides investment management services on a wrap fee basis in accordance with
Registrant’s investment management wrap fee program (the “Program”). The services offered under,
and the corresponding terms and conditions pertaining to, the Program are discussed in the Wrap Fee
Program Brochure, a copy of which is presented to all prospective Program participants. Under the
Program, Registrant, as a wrap sponsor, is able to offer participants discretionary investment
management services for a single specified annual Program fee, inclusive of trade execution, custody,
reporting, and Registrant’s investment management fees. However, clients may incur additional fees
as set forth below. The current annual Program fee ranges from negotiable (see fee schedule below)
to 1.80% (See Fee Differential disclosure below), depending upon the amount and type of the Program
assets. The terms and conditions for client participation in the Program are set forth in detail in the
Wrap Fee Program Brochure, which is presented to all prospective Program participants in accordance
with the disclosure requirements of Part 2A, Appendix 1 of Form ADV. All prospective Program
participants should read both Registrant’s Brochure and the Wrap Fee Program Brochure, and ask any
corresponding questions that they may have, prior to participation in the Program.
Please Note: As indicated in the Wrap Fee Program Brochure, participation in the Program may cost
more or less than purchasing such services separately. As also indicated in the Wrap Fee Program
Brochure, the Program fee charged by Registrant for participation in the Program may be higher or
lower than those charged by other sponsors of comparable wrap fee programs.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent Requested by the Client, Registrant may be engaged to provide financial planning and/or
consulting services (regarding investment and non-investment related matters, including estate
planning, insurance planning, etc.) on a stand-alone separate fee basis. Registrant’s planning and
consulting fees are negotiable, but will generally be a minimum of $10,000 on a fixed fee basis,
depending upon the level and scope of the service(s) required and the professional(s) rendering the
service(s). Based upon the complexity of the engagement, additional fees may be charged based upon
an hourly rate ranging from $100 to $1500. Prior to engaging Registrant to provide planning or
consulting services, clients are generally required to enter into a Financial Planning and Consulting
Agreement with Registrant setting forth the terms and conditions of the engagement (including
termination), describing the scope of the services to be provided, and the portion of the fee that is due
from the client prior to Registrant commencing services. Neither the Registrant, nor its investment
adviser representatives, assist clients with the implementation of any financial plan, unless they have
agreed to do so in writing. In addition, the Registrant does not monitor a client’s financial plan, and
it is the client’s responsibility to revisit the financial plan with the Registrant, if desired If requested
by the client, Registrant may recommend the services of other professionals for implementation
purposes, including certain of the Registrant’s principals and representatives in their individual
capacities as licensed insurance agents. (See disclosure at Item 10.C). The client is under no obligation
to engage the services of any such recommended professional. The client retains absolute discretion
over all such implementation decisions and is free to accept or reject any recommendation from the
Registrant. Please Note: If the client engages any such recommended professional and a dispute arises
thereafter relative to such engagement, the client agrees to seek recourse exclusively from and against
the engaged professional. At all times, the engaged licensed professional[s] (i.e. attorney, accountant,
etc.), and not the Registrant, shall be responsible for the quality and competency of the services
provided. Please Also Note: It remains the client’s responsibility to promptly notify the Registrant if
there is ever any change in their financial situation or investment objectives for the purpose of
reviewing, evaluating or revising Registrant’s previous recommendations and/or services.
EMPLOYER-SPONSORED RETIREMENT PLANS
The Registrant also provides retirement plan consulting/management services, pursuant to which it
assists sponsors of self-directed retirement plans organized under the Employee Retirement Security
Act of 1974 (“ERISA”). The terms and conditions of the engagement shall be set forth in an
investment advisory agreement between the Registrant and the plan sponsor. Accordingly, investment
management and advisory services are also provided to qualified employer-sponsored retirement
plans where the Registrant may serve as a fiduciary under ERISA§3(21) or 3(38).
As an ERISA §3(21) fiduciary, the Registrant acts in a non-discretionary capacity making
recommendations to the plan sponsor regarding the plan investments, assisting in the development of
an investment policy statement based upon the plan’s goals and objectives; providing participant
education designed to assist participants in identifying the appropriate investment strategy for their
retirement plan accounts; advising the plan regarding its fiduciary obligations; and assisting with
ongoing plan operations, as needed. The Registrant will also assist with the selection and/or
monitoring of investment options from which plan participants shall choose in self-directing the
investments for their individual plan retirement accounts.
Where the Registrant has been appointed an investment manager under ERISA §3(38), the Registrant
possesses discretionary authority to select, monitor and replace the investment options made available
to the plan participants according to the goals and investment objectives of the plan. The Registrant
will also design and maintain asset allocation model portfolios comprised of designated investment
alternatives available to the plan participants. Plan participants have the option to select an asset
allocation model portfolio or construct their own customized portfolio of funds. Registrant may also
provide the same services as described above, but may also create specific asset allocation models
that Registrant manages on a discretionary basis, which plan participants may choose in managing
their individual accounts. Registrant may also modify the investment options made available to plan
participants on a discretionary basis.
Trustee Directed Plans. Registrant may be engaged to provide investment advisory services to
ERISA retirement plans, whereby the Firm shall manage Plan assets consistent with the investment
objective designated by the Plan trustees. In such engagements, Registrant will serve as an investment
fiduciary as that term is defined under The Employee Retirement Income Security Act of 1974
(“ERISA”). Registrant will generally provide services on an “assets under management” fee basis per
the terms and conditions of an Investment Advisory Agreement between the Plan and the Firm.
MISCELLANEOUS
Limitations of Financial Planning and Non-Investment Consulting/Implementation Services
As indicated above, to the extent requested by the client, Registrant may provide financial planning
and related consulting services regarding non-investment related matters, such as estate planning tax
planning, insurance, etc. Registrant will generally provide such consulting services inclusive of its
advisory fee set forth at Item 5 below (exceptions may occur based upon assets under management,
special projects, etc. for which Registrant may charge a separate stand-alone fee). Neither Registrant,
nor any of its representatives, serve as an attorney or accountant and no portion of Registrant’s
services should be construed as same. Please Note: Registrant believes that it is important for the
client to address financial planning issues on an ongoing basis. Registrant’s advisory fee, as set forth
at Item 5 below, will remain the same regardless of whether or not the client determines to address
financial planning issues with Registrant.
Please Note: Registrant does not serve as an attorney or accountant and no portion of our services
should be construed as legal or accounting services. Accordingly, Registrant does not prepare estate
planning document or other legal documents, or tax returns, To the extent requested by a client,
Registrant may recommend the services of other professionals for certain non-investment
implementation purposes (i.e. attorneys, accountants, etc.), including representatives of Registrant in
their separate individual capacities as licensed insurance agents, the client is under no obligation to
engage the services of any such recommended professional. The client retains absolute discretion
over all such implementation decisions and is free to accept or reject any recommendation from
Registrant and/or its representatives.
Please Also Note: If the client engages any recommended unaffiliated professional, and a dispute
arises thereafter relative to such engagement, the client agrees to seek recourse exclusively from and
against the engaged professional. Please Also Note- Conflict of Interest: The recommendation by
Registrant’s representative that a client purchase an insurance commission product through
Registrant’s representative in their separate and individual capacity as an insurance agent, presents a
conflict of interest, as the receipt of commissions may provide an incentive to recommend insurance
products based on commissions to be received, rather than on a particular client’s need. No client is
under any obligation to purchase insurance commission products through such a representative.
Clients are reminded that they may purchase insurance products recommended by Registrant through
other, non-affiliated insurance agents. At all times, the engaged licensed professional[s] (i.e. attorney,
accountant, insurance agent, etc.), and not Registrant, shall be responsible for the quality and
competency of the services provided. If, and when, the Registrant is involved in a specific matter
(i.e. estate planning, accounting-related engagement, etc.), it is the engaged licensed professionals
(i.e. attorney, accountant, etc.), and not the Registrant, that is responsible for the quality and
competency of the services provided.
ANY QUESTIONS: Registrant’s Chief Compliance Officer, Thomas H. Ruggie, remains
available to address any questions that a client or prospective client may have regarding the
potential for conflict of interest presented.
Use of Mutual Funds and Exchange Traded Funds
While Registrant may recommend allocating investment assets to mutual funds and exchange traded
funds that are not available directly to the public, Registrant may also recommend that clients allocate
investment assets to publicly-available mutual funds or exchange traded funds that the client could
obtain without engaging Registrant as an investment advisor. However, if a client or prospective
client determines to allocate investment assets to publicly available mutual funds or exchange traded
funds without engaging Registrant as an investment advisor, the client or prospective client would
not receive the benefit of Registrant’s initial and ongoing investment advisory services. Please Note:
In addition to Registrant's investment advisory fee described below, and transaction and/or custodial
fees discussed below, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g. management fees and other fund expenses). Please
Note-Use of DFA Mutual Funds: Other mutual funds, such as those issued by Dimensional Fund
Advisors (“DFA”), are generally only available through selected registered investment advisers.
Registrant may allocate client investment assets to DFA mutual funds. Therefore, upon the
termination of Registrant’s services to a client, restrictions regarding transferability and/or additional
purchases of, or reallocation among DFA funds will generally apply.
Borrowing Against Assets/Risks.
A client who has a need to borrow money could determine to do so by using Pledged Assets Loans.
In consideration for a lender (i.e., a bank, etc.) to make a loan to the client, the client pledges its
investment assets held at the account custodian as collateral. These collateralized loans are generally
utilized because they typically provide more favorable interest rates than standard commercial loans.
These types of collateralized loans can assist with a pending home purchase, permit the retirement of
more expensive debt, or enable borrowing in lieu of liquidating existing account positions and
incurring capital gains taxes. However, such loans are not without potential material risk to the
client’s investment assets. The lender (i.e. custodian, bank, etc.) will have recourse against the client’s
investment assets in the event of loan default or if the assets fall below a certain level. For this reason,
Registrant does not recommend such borrowing unless it is for specific short-term purposes (i.e. a
bridge loan to purchase a new residence). Registrant does not recommend such borrowing for
investment purposes (i.e. to invest borrowed funds in the market). Regardless, if the client was to
determine to utilize margin or a pledged assets loan, the following economic benefits would inure to
Registrant:
• by taking the loan rather than liquidating assets in the client’s account, Registrant continues
to earn a fee on such Account assets; and
• if the client invests any portion of the loan proceeds in an account to be managed by
Registrant, Registrant will receive an advisory fee on the invested amount; and,
Please Note: The Client must accept the above risks and potential corresponding consequences
associated with the use of pledged assets loans.
Variable Annuity Sub-Account Management
The Registrant offers management of a no-load fee-based RIA Variable Annuity (owned by the
client) which allows Registrant to manage client assets in the investment sub-accounts. Registrant,
through its IARs, manages variable annuity sub-accounts in accordance with strategies similar to its
other models. Registrant’s representatives may provide guidance to the client with respect to the
selection of an appropriate variable annuity. The insurance company that issues the variable annuity,
or its outside custodian, will maintain custody of the client’s funds and securities at all times.
Subsequent to purchase of the variable annuity product, the client has the option to have Registrant’s
representative provide investment management services on a discretionary or non-discretionary basis.
The type of discretionary authority authorized by the client will be reflected in the Registrant Client
Agreement. The IAR’s authority is limited to exchanges among the variable annuity investment sub-
accounts. At no time will the IAR have authority to withdraw funds and/or securities from the client’s
variable annuity account. The Client Agreement will specifically state which variable annuity policies
are being managed. Registrant’s IAR will not receive commission compensation with respect to
Client’s purchase of the variable annuity product. Registrant, however, will charge a separate
management fee with respect to the variable annuity assets.
Destiny Private Trust: Participation in National Advisors Trust Company (“NATC”) Trust
Services Program
Registrant participates in the NATC Private Trust program made available by NATC and its affiliate
National Advisors Trust of South Dakota (“NATSD”) through Destiny Private Trust. Registrant’s
clients who engage in this program receive trust administration services from NATC and NATSD.
NATC and NATSD are, respectively, federally- and state chartered trust companies that provide
corporate trustee and asset custody services to clients. NATC and NATSD are third party providers
and not affiliated with the Registrant. Registrant serves as the investment manager of the trust assets
through the NATC program where trust assets have been referred to NATCO for trust administration
services. Thus, Registrant remains responsible for asset management decisions regarding trust assets.
In connection with program participation, certain representatives of Registrant act as Trust
Representative Officers (“TROs”) of Destiny Private Trust. TROs serve as liaisons between NATC
and Registrant. While TROs do not serve in a trustee capacity, they may support the program by
introducing qualified clients to NATC and marketing the Destiny Private Trust program. TROS may
also assist NATC by providing various administrative support services to facilitate the delivery of
NATC trust services. NATC charges a trustee fee directly to participating clients and Registrant does
not share in this fee.
Use of Independent Managers
Registrant may allocate (and/or recommend that the client allocate) a portion of a client’s investment
assets among unaffiliated independent investment managers (“Independent Manager(s)”) in
accordance with the client’s designated investment objective(s). In such situations, the Independent
Manager[s] shall have day-to- day responsibility for the active discretionary management of the
allocated assets. Registrant shall continue to render investment supervisory services to the client
relative to the ongoing monitoring and review of account performance, asset allocation and client
investment objectives. Factors which Registrant shall consider in recommending Independent
Manager[s] include the client’s designated investment objective(s), management style, performance,
reputation, financial strength, reporting, pricing, and research.
Please Note: The investment management fee charged by the Independent Manager[s]is separate
from, and in addition to, Registrant’s advisory fee as set forth in the fee schedule at Item 5 below and
which will be disclosed to the client before entering into the Independent Manager engagement and/or
subject to the terms and conditions of a separate agreement between the client and the Independent
Manager(s).
Shareholder Servicing Provider to Closed-End Fund. The Registrant provides shareholder
services to Destiny Alternative Fund I, LLC, which is a closed end fund managed and sponsored by
First Trust Capital Management, L.P. (SEC No. 801122924), an unaffiliated investment adviser
registered under the Investment
Adviser Act of 1940. In connection with this service, the Registrant
provides various shareholder supporting services, including educational support and fund
information, to fund investors who are also Registrant’s investment management clients and also
serves to address various fund investor inquiries and issues. Shareholder services may also include
assistance with subscription agreement support and handling related tender offers. Registrant will
also assist with distribution of performance reports to fund shareholders. Registrant is compensated
0.25% annually based upon assets under management within the fund. Registrant also includes this
fund, to the extent that it is maintained as a holding in managed client accounts, as asset under
management for purposes of advisory fee billing.
Sub-Adviser to Private Investment Fund. The Registrant has been engaged as a sub-adviser to the
Destiny Alternative Fund II, LLC, (open to qualified purchasers) a private investment fund (the
“private fund”) sponsored by First Trust Capital Management, L.P. (SEC No. 801122924), an
unaffiliated investment adviser registered under the Investment Adviser Act of 1940. The Registrant,
on a non-discretionary basis, may recommend that eligible clients consider allocating a portion of
their investment assets to this private fund. The terms and conditions for participation in the private
fund, including management and incentive fees, conflicts of interest, and risk factors, are set forth in
the private fund’s offering documents. Persons and entities (the "Subscribers") wishing to subscribe
to the private funds are required to complete and sign the Subscription Agreement, Form W-9 and
Anti-Money Laundering Supplement. Clients who maintain fund positions in their managed account
will not be billed a separate management fee on those fund positions.
The Fund’s investment program aims to achieve capital appreciation by (i) investing in various hedge
funds, private equity funds, growth equity funds, venture capital funds, credit funds, real estate funds,
co-investment vehicles, managed accounts or other types of investment vehicles (collectively, the
“Underlying Funds”), each of which is managed by a third party investment advisor (including the
Sub-Advisor, if authorized by the Manager) or by the Manager or an affiliate of the Manager, each of
which is an investment adviser, (ii) acquiring an economic interest in one or more entities that engage
in the business of providing investment advisory services or asset management services (whether via
separately managed accounts, hedge funds, private equity funds, commodity pools, mutual funds,
closed-end funds or other similar public or private collective investment vehicles or otherwise) , each
entity being an asset manager, whether in the form of an equity interest in such asset manager, through
a revenue share arrangement with such asset manager or otherwise, and (iii) making such other
investments as the Fund Manager deems appropriate for the Private Fund. The Fund may invest
directly in the Underlying Funds, or indirectly through other private investment funds operated by the
Manager or its affiliates that invest in such Underlying Funds (each such other private investment
fund is considered an intermediary fund).
Unaffiliated Private Investment Funds
Registrant may also provide investment advice regarding unaffiliated private investment funds.
Registrant, on a non-discretionary basis, may recommend that certain qualified clients consider an
investment in unaffiliated private investment funds. Registrant’s role relative to the private
investment funds shall be limited to its initial and ongoing due diligence and investment monitoring
services. If a client determines to become a private fund investor, the amount of assets invested in the
fund(s) shall be included as part of “assets under management” for purposes of Registrant calculating
its investment advisory fee. Registrant’s clients are under absolutely no obligation to consider or
make an investment in a private investment fund(s).
Please Note Risk Factors: Private investment funds generally involve various risk factors, including,
but not limited to, potential for complete loss of principal, liquidity constraints and lack of
transparency, a complete discussion of which is set forth in each fund’s offering documents, which
will be provided to each client for review and consideration. Unlike liquid investments that a client
may own, private investment funds do not provide daily liquidity or pricing. Each prospective client
investor will be required to complete a Subscription Agreement, pursuant to which the client shall
establish that he/she is qualified for investment in the fund and acknowledges and accepts the various
risk factors that are associated with such an investment.
Please Also Note Valuation: In the event that Registrant references private investment funds owned
by the client on any supplemental account reports prepared by Registrant, the value(s) for all private
investment funds owned by the client shall reflect the most recent valuation provided by the fund
sponsor. However, if subsequent to purchase, the fund has not provided an updated valuation, the
valuation shall reflect the initial purchase price. If subsequent to purchase, the fund provides an
updated valuation, then the statement will reflect that updated value. The updated value will continue
to be reflected on the report until the fund provides a further updated value. Please Also Note: As
result of the valuation process, if the valuation reflects initial purchase price or an updated value
subsequent to purchase price, the current value(s) of an investor’s fund holding(s) could be
significantly more or less than the value reflected on the report. Unless otherwise indicated, the
client’s advisory fee shall be based upon the value reflected on the report.
Custodian Charges-Additional Fees
As discussed below at Item 12 below, when requested to recommend a broker-dealer/custodian for
client accounts, Registrant generally recommends that Fidelity Brokerage Services and National
Financial Services (collectively “Fidelity”), and Charles Schwab & Co., Inc. and its affiliates
(“Schwab”) serve as the broker- dealer/custodian for investment management assets. Broker-dealers
such as Fidelity and Schwab charge transaction fees for effecting certain securities transactions (i.e.,
including transaction fees for certain mutual funds, and mark-ups and mark-downs charged for fixed
income transactions, etc.). The types of securities for which transaction fees, commissions, and/or
other type fees (as well as the amount of those fees) shall differ depending upon the broker-
dealer/custodian (while certain custodians, including Schwab and Fidelity, do not currently charge
fees on individual equity and ETF transactions, others do). There can be no assurance that Schwab
or Fidelity will not change their transaction fee pricing in the future. When beneficial to the client,
individual fixed‐income and/or equity transactions may be effected through broker‐dealers with
whom Registrant and/or the client have entered into arrangements for prime brokerage clearing
services, including effecting certain client transactions through other SEC registered and FINRA
member broker‐dealers (in which event, the client generally will incur both the transaction fee
charged by the executing broker‐dealer and a “trade-away” fee charged by Schwab and/or Fidelity).
These fees/charges are in addition to Registrant’s investment advisory fee at Item 5 below. Registrant
does not receive any portion of these fees/charges. In addition to Registrant’s investment advisory
fee referenced in Item 5 below, the client will also incur transaction fees to purchase securities for
the client’s account (i.e., mutual funds and fixed income securities, etc.). ANY QUESTIONS:
Registrant’s Chief Compliance Officer, Thomas H. Ruggie, remains available to address any
questions that a client or prospective client may have regarding the above.
However, Schwab (as do its primary competitors that provide similar pricing arrangements) require
that cash proceeds to be automatically swept into a Schwab proprietary or affiliated money market
mutual funds or cash sweeps accounts, which proprietary/affiliated Schwab funds/accounts do not
provide the highest return available.
Exception: If Registrant executes transactions in conjunction with a wrap program, transaction fees
shall generally be included in the wrap advisory fee paid to the wrap program sponsor.
Please Note Non-Discretionary Service Limitations: Clients that determine to engage Registrant
on a non-discretionary investment advisory basis must be willing to accept that Registrant cannot
effect any account transactions without obtaining prior consent to any such transaction(s) from the
client. Thus, in the event that Registrant would like to make a transaction for a client’s account,
(including in the event of an individual holding or general market correction) and client is
unavailable, Registrant will be unable to effect the account transaction (as it would for its
discretionary clients) without first obtaining the client’s consent.
eMoney and Orion
In conjunction with the services provided by eMoney and Orion, Registrant may also provide its
clients access to account aggregation services, which can incorporate all of the client’s investment
assets, including those investment assets that are not part of the assets that we manage (the “Excluded
Assets”). The eMoney and Orion platforms allow a client to view their complete asset allocation,
including those assets that Registrant does not manage Excluded Assets. Registrant does not provide
investment management, monitoring, or implementation services for the Excluded Assets. Therefore,
Registrant shall not be responsible for the investment performance of the Excluded Assets. The client
and/or his/her/its other advisors that maintain trading authority, and not the Registrant, shall
be exclusively responsible for the investment performance of the Excluded Assets. Registrant
does not provide investment management, monitoring or implementation services for the Excluded
Assets. If Registrant is asked to make a recommendation as to any Excluded Assets, the client is
under absolutely no obligation to accept the recommendation, and Registrant shall not be responsible
for any implementation error (timing, trading, etc.) relative to the Excluded Assets. The client may
engage Registrant to provide investment management services for the Excluded Assets pursuant to
the terms and conditions of the Investment Advisory Agreement between Registrant and the client.
Finally, eMoney provides access to other types of information, including financial planning concepts,
which should not, in any manner whatsoever, be construed as services, advice, or recommendations
provided by Registrant. Registrant shall not be held responsible for any adverse results a client may
experience if the client engages in financial planning or other functions available on the eMoney
platform without Registrant’s assistance or oversight.
Portfolio Activity
Registrant has a fiduciary duty to provide services consistent with the client’s best interest. As part
of its investment advisory services, Registrant will review client portfolios on an ongoing basis to
determine if any changes are necessary based upon various factors, including, but not limited to,
investment performance, market conditions fund manager tenure, style drift, account
additions/withdrawals, and/or a change in the client’s investment objective. Based upon these factors,
there may be extended periods of time when Registrant determines that changes to a client’s portfolio
are neither necessary nor prudent. Of course, as indicated below, there can be no assurance that
investment decisions made by Registrant will be profitable or equal any specific performance level(s).
Clients nonetheless remain subject to the fees described in Item 5 below during periods of account
inactivity.
Please Note-Cash Positions: Registrant continues to treat cash as an asset class. As such, unless
determined to the contrary by Registrant, all cash positions (money markets, etc.) shall continue to
be included as part of assets under management for purposes of calculating Registrant’s advisory fee.
At any specific point in time, depending upon perceived or anticipated market conditions/events
(there being no guarantee that such anticipated market conditions/events will occur), Registrant may
maintain cash positions for defensive purposes. In addition, while assets are maintained in cash, such
amounts could miss market advances. Depending upon current yields, at any point in time,
Registrant’s advisory fee could exceed the interest paid by the client’s money market fund. Please
Further Note: When the account is holding cash positions, those cash positions will be subject to the
same fee schedule as set forth below. The Registrant’s Chief Compliance Officer, Thomas H. Ruggie,
remains available to address any questions that a client or prospective client may have regarding the
above fee billing practice.
Please Note-Retirement Rollovers- No Obligation/ Conflict of Interest: A client or prospective
client leaving an employer typically has four options regarding an existing retirement plan (and may
engage in a combination of these options): (i) leave the money in the former employer’s plan, if
permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers are
permitted, (iii) roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the account
value (which could, depending upon the client’s age, result in adverse tax consequences). If the
Registrant provides a recommendation as to whether a client should engage in rollover or not, we are
acting as an ERISA fiduciary by making such recommendation. If the Registrant recommends that a
client roll over their retirement plan assets into an account to be managed by Registrant (whether it
is from an employer’s plan or an existing IRA), such a recommendation creates a conflict of interest.
Registrant will earn new (or increase its current) compensation as a result of the rollover. No client
is under any obligation to rollover retirement plan assets to an account managed by Registrant,
whether it is from an employer’s plan or an existing IRA. ANY QUESTIONS: Registrant’s Chief
Compliance Officer, Thomas H. Ruggie, remains available to address any questions that a client
or prospective client may have regarding the potential for conflict of interest presented by such
rollover recommendation.
Please Note Fee Differentials: As discussed below at Item 5, we shall generally price our retirement
plan advisory services up to 2.00% of assets under management based upon various objective and
subjective factors. As a result, our clients could pay diverse fees based upon the market value of their
assets, the representative assigned to the account, the complexity of the engagement, anticipated
additional assets to be managed and the level and scope of the overall investment advisory services
to be rendered, related or employee accounts, future additional assets and negotiations with the client.
As a result of these factors, similarly situated clients could pay diverse fees, and the services to be
provided by Registrant to any particular client could be available from other advisers at lower fees.
All clients and prospective clients should be guided accordingly. Before engaging Registrant to
provide investment advisory services, clients are required to enter into a discretionary or non-
discretionary Investment Advisory Agreement, setting forth the terms and conditions of the
engagement (including termination), which describes the fees and services to be provided. ANY
QUESTIONS: Registrant’s Chief Compliance Officer, Thomas H. Ruggie, remains available to
address any questions regarding Fee Differentials.
Structured Notes. Registrant may purchase Structured Notes for client accounts. A Structured Note
is a financial instrument that combines two elements, a debt security and exposure to an underlying
asset or assets. It is essentially a note, carrying counter party risk of the issuer. However, the return
on the note is linked to the return of an underlying asset or assets (such as the S&P 500 Index or
commodities). It is this latter feature that makes structured products unique, as the payout can be
used to provide some degree of principal protection, leveraged returns (but usually with some cap on
the maximum return), and be tailored to a specific market or economic view. Structured Notes will
generally be subject to liquidity constraints, such that the sale thereof before maturity will be limited,
and any sale before the maturity date could result in a substantial loss. There can be no assurance that
the Structured Notes investment will be profitable, equal any historical performance level(s), or prove
successful. Please Note: If the issuer of the Structured Note defaults, the entire value of the investment
could be lost. See additional Risk Disclosure at Item 8 below. In the event that a client has any
questions regarding the purchase of Structured Notes for their account, or would like to place
restrictions on the purchase of Structured Notes for their accounts, Registrant can address their
concerns. See additional disclosure at Item 8 below. In the event that he client seeks to prohibit
or limit the purchase of structured notes for the client’s account, the client can do so, in writing,
addressed to Registrant’ Chief Compliance Officer. In the event that a client has any questions
regarding structured notes, Registrant’s Chief Compliance Officer, Thomas H. Ruggie,
remains available to address them. See Risks Associated with Structured Notes at Item 8 below.
Cash Sweep Accounts. Account custodians generally require that cash proceeds from account
transactions or cash deposits be swept into and/or initially maintained in the custodian’s sweep
account. The yield on the sweep account is generally lower than those available in money market
accounts. To help mitigate this issue, Registrant shall generally purchase a higher yielding money
market fund available on the custodian’s platform with cash proceeds or deposits, unless Registrant
reasonably anticipates that it will utilize the cash proceeds during the subsequent 30-day period to
purchase additional investments for the client’s account. Exceptions and/or modifications can and
will occur with respect to all or a portion of the cash balances for various reasons, including, but not
limited to, the amount of dispersion between the sweep account and a money market fund, the size
of the cash balance, an indication from the client of an imminent need for such cash, or the client has
a demonstrated history of writing checks from the account.
Please Note: The above does not apply to the cash component maintained within the Registrant’s
actively managed investment strategy (the cash balances for which shall generally remain in the
custodian designated cash sweep account), an indication from the client of a need for access to such
cash, assets allocated to an unaffiliated investment manager, and cash balances maintained for fee
billing purposes. Please Also Note: The client shall remain exclusively responsible for yield
dispersion/cash balance decisions and corresponding transactions for cash balances maintained in any
of the Registrant’s unmanaged accounts.
Cybersecurity Risk. The information technology systems and networks that Registrant and its third-
party service providers use to provide services to Registrant’s clients employ various controls, which
are designed to prevent cybersecurity incidents stemming from intentional or unintentional actions
that could cause significant interruptions in Registrant’s operations and result in the unauthorized
acquisition or use of clients’ confidential or non-public personal information. Clients and Registrant
are nonetheless subject to the risk of cybersecurity incidents that could ultimately cause them to incur
losses, including for example: financial losses, cost and reputational damage to respond to regulatory
obligations, other costs associated with corrective measures, and loss from damage or interruption to
systems. Although Registrant has established its processesto reduce the risk of cybersecurity
incidents, there is no guarantee that these efforts will always be successful, especially considering
that Registrant does not directly control the cybersecurity measures and policies employed by third-
party service providers. Clients could incur similar adverse consequences resulting from
cybersecurity incidents that more directly affect issuers of securities in which those clients invest,
broker-dealers, qualified custodians, governmental and other regulatory authorities, exchange and
other financial market operators, or other financial institutions.
Pontera. The Registrant uses Pontera, a third party platform to facilitate the management of held
away assets such as defined contribution plan participant accounts, with discretion. Those clients who
choose to engage the Registrant to service their held away accounts will be provided a link to connect
their outside accounts to the platform. Once the client’s account(s) is connected to the platform,
Registrant will review the client’s current account allocations. Registrant will rebalance the
connected outside accounts consistent with the client’s investment goals and risk tolerance. Client
account(s) will be reviewed at least quarterly Clients are not charged an additional fee in relation to
Pontera program usage.
Client Obligations
In performing its services, Registrant shall not be required to verify any information received from
the client or from the client’s other professionals and is expressly authorized to rely thereon.
Moreover, each client is advised that it remains their responsibility to promptly notify the Registrant
if there is ever any change in their financial situation or investment objectives for the purpose of
reviewing, evaluating, revising Registrant’s previous recommendations and/or services.
Disclosure Statement
A copy of the Registrant’s written Brochure as set forth on Part 2A of Form ADV, along with Form
CRS, shall be provided to each client prior to, or contemporaneously with, the execution of the
Investment Advisory Agreement or Financial Planning and Consulting Agreement.
Please Note: Investment Risk. Different types of investments involve varying degrees of risk, and
it should not be assumed that future performance of any specific investment or investment strategy
(including the investments and/or investment strategies recommended or undertaken by Registrant)
will be profitable or equal any specific performance level(s).
C. Tailored Relationships: The Registrant shall provide investment management services specific to
the needs of each client. Prior to providing investment advisory services, an investment adviser
representative will ascertain each client’s investment objective(s). Thereafter, the Registrant shall
allocate and/or recommend that the client allocate investment assets consistent with the designated
investment objective(s). The client may, at any time, impose reasonable restrictions, in writing, on
the Registrant’s services.
D. There is no significant difference between how Registrant manages wrap fee accounts and non-wrap
fee accounts. However, as stated above, if a client determines to engage Registrant on a wrap fee
basis, the client will pay a single fee for bundled services (i.e. investment advisory, brokerage,
custody) (See Item 4.B). The services included in a wrap fee agreement will depend upon each
client’s particular need. If the client determines to engage Registrant on a non-wrap fee basis the
client will select individual services on an unbundled basis, paying for each service separately (i.e.
investment advisory, separate account manager fees, brokerage, custody, etc.).
Wrap Program - Conflict of Interest: Under Registrant’s wrap program, the client generally
receives investment advisory services, the execution of securities brokerage transactions, custody and
reporting services for a single specified fee. Participation in a wrap program may cost the client more
or less than purchasing such services separately. The terms and conditions of a wrap program
engagement are more fully discussed in Registrant’s Wrap Fee Program Brochure. Conflict of
Interest: Because wrap program transaction fees and/or commissions are being paid by Registrant to
the account custodian/broker-dealer, Registrant could have an economic incentive to maximize its
compensation by seeking to minimize the number of trades in the client's account. See separate Wrap
Fee Program Brochure. Registrant’s Chief Compliance Officer, Thomas H. Ruggie, remains
available to address any questions that a client or prospective client may have regarding a wrap
fee arrangement and the corresponding conflict of interest.
E. As of December 31, 2023, the Registrant had $996,817,258 in assets under management on a
discretionary basis and $39,654,333 in assets under management on a non-discretionary basis.