A. Description of Firm Block Wealth Management, Inc. (“BWM” or the “Firm”) is a registered investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”) and founded in 2008. The Firm’s principal place of business is in North Carolina. As further detailed in Item 4.B below, BWM offers services covering the areas of financial planning, portfolio construction, asset management, portfolio tracking services, and fiduciary services to retirement plan sponsors. The Firm typically provides its services to individuals, including high net worth individuals, trusts, estates, and pension and profit-sharing plans. Some of the investment instruments BWM advises its clientele on include, among other things, mutual funds, exchange traded funds ("ETFs"), equities, bonds, options, treasuries, certificates of deposit and private placements.
BWM’s principal owner is Kirk Block, who also serves as the Firm’s President and Chief Compliance Officer. For information on his qualifications and business background, please refer to his Form ADV Part 2B Brochure Supplement.
B. Types of Advisory Services Offered BWM provides four types of advisory services: Financial Planning Services, Investment Advisory Services, Fiduciary Services to Retirement Plan Sponsors and Portfolio Tracking Services, each of which is more fully described below.
1. Financial Planning Services BWM provides customizable services that can include a broad range of financial planning services (including non-investment related matters). Depending on each client’s needs, BWM will review one or more of the following aspects (“Aspects”) of a client’s current and anticipated financial position: Business Planning Education Expense Planning Estate Planning Fringe Benefit Planning Income Tax Planning Investment Planning Retirement Planning Risk Management Planning Cash Management Planning BWM’s approach to providing this service typically starts with gathering information, as applicable, regarding the client’s current and anticipated income and income tax levels, current investment and non-investment assets, current and anticipated cash flow, investment risk tolerance, family situation, fringe benefits, business interests, and any other necessary financial and personal information. BWM will perform an initial review of each selected Aspect individually in such order as BWM and the client agree. BWM then gives the client written recommendations in relation to each selected Aspect.
Once each Aspect has been reviewed and initial recommendations provided, BWM will provide periodic reviews thereafter and if necessary, update the written recommendations given to the client in relation to each Aspect. Generally, each periodic review will be completed every twelve (12) months.
In regards to BWM’s financial planning services, clients should be aware of the following: (a) a conflict exists between our interests and the interests of our clients; (b) clients are under no obligation to act upon BWM’s recommendations; and (c) if a client elects to act on any of our recommendations, such client is under no obligation to utilize BWM to implement the recommendations.
In performing its services, BWM entrusts that the client will provide accurate information and BWM will not be obligated to verify any information received from the client or from the client’s other professionals.
Moreover, clients are advised that it remains their responsibility to promptly notify BWM if there is ever any change in their financial situation during the financial planning process.
Prior to engaging BWM to provide financial planning services, the client is required to enter into an Investment Advisory Services Agreement with BWM setting forth the terms and conditions of the engagement, the scope of the services to be provided and associated fees that clients will pay.
Financial planning clients retain full discretion over all implementation decisions and are free to accept or reject any recommendations made by BWM. Clients also have the option of having BWM implement any or all investment recommendations. In addition, if requested by a client, BWM will at times, recommend the services of other professionals for purposes of implementing the written recommendations. Clients are under no obligation to engage the services of any such recommended professional and are free to select any professional of their choosing.
2. Investment Advisory Services BWM also provides clients, including ERISA clients, with ongoing investment advisory services on a percentage fee basis. The Firm’s diversified portfolio strategies typically consist of equities, fixed-income and/or cash management instruments, including mutual funds, stocks and bonds. We customize clients’ portfolios according to their individual risk tolerance, time horizon and specific goals. Our equity-based securities selection emphasizes a long-term time horizon with growth and value management styles for all capitalizations. In addition to large-, mid- and small-cap stocks, international equities can be included to provide further diversification. For fixed-income securities, BWM utilizes mutual funds, bonds (US Treasuries, mortgage-backed bonds, municipal bonds, high quality or high yield corporate securities, foreign bonds), money market funds, and bank instruments with short-, intermediate- and long-term maturities.
Generally, a short to intermediate-term time frame is selected for U.S Treasuries, mortgage-backed bonds, municipal bonds, high quality or high yield corporate securities, foreign bonds, and various bank instruments such as CDs.
Prior to engaging BWM to provide investment advisory services, the client is required to enter into an Investment Advisory Services Agreement with BWM setting forth the terms and conditions of the engagement, as well as describing the scope of the services to be provided.
These services can include: ● Establishing an Investment Policy Statement – BWM will create an investment statement to provide for the client’s investment goals and objectives including the strategies to be used that are designed with a goal to meet these objectives. We will provide the client with specific information on investment time frame, risk tolerance and asset allocation strategies that will be used and monitored based on changing economic climates and investor objectives.
● Determining Portfolio Asset Allocation – BWM will formulate a long-term asset allocation strategy that specifies the percentage of assets to be invested between equity and fixed-income securities, money market funds, tangible assets and other securities. Equities will be further diversified based on company cap size and classification of domestic versus foreign, while fixed income will be selected based on maturities and “quality” of paper (high quality or high yield).
● Establishing New Accounts – BWM will assist clients in opening accounts by preparing initial applications and transfer forms, as well as help coordinate the transfer of cash and securities to the new accounts.
● Reporting by BWM – BWM will provide quarterly and year-end performance investment reviews detailing the client’s portfolio activities and tracking client basis and investment returns.
Throughout this process, BWM will attempt to comply with the contents of the IPS in accordance with normal industry practice. In the event any securities are purchased outside of the criteria established by the IPS, BWM will take reasonable steps to bring the plan back within the guidelines outlined in the IPS.
Due to market fluctuations and other variables, the plan will not always correspond with the criteria established by the IPS. However, BWM will periodically rebalance the holdings in the client's portfolio(s) to attempt to keep it within the client's stated investment objectives.
Investment Advisory Services clients are allowed to impose reasonable restrictions on the types of securities and/or industries they do not want to be included in their portfolio. Once this information is gathered, each client is responsible for informing BWM in writing of any changes to these restrictions or to their overall investment objectives.
Upon request from an advisory client, BWM can provide a one-time review of certain client investments, which are not being managed by BWM. This review is billed at an hourly rate, which is negotiated with the client at the time of the request.
3. Portfolio Tracking Services For Portfolio Tracking Services, BWM provides tax basis and performance tracking for investment portfolios not actively managed by BWM. The client retains full responsibility for making investment decisions in relation to the assets of any portfolio not managed by BWM. The accounts to be tracked are noted in a schedule to the Investment Advisory Services Agreement called the Schedule of Tracked Assets (“Tracked Assets”).
Prior to engaging in Portfolio Tracking Services, the client is required to enter into an Investment Advisory Services Agreement with BWM setting forth the terms and conditions of the engagement, as well as describing the scope of the services to be performed. Under the terms of this agreement, BWM’s services can include: ● Detailing the performance and tax basis of the Tracked Assets; ● Producing and uploading onto a website maintained by a third-party service provider a password protected electronic statement setting out the client’s holdings and the estimated individual and consolidated values of the Tracked Assets; and ● Producing and uploading onto a website maintained by a third-party service provider a password protected investment report setting forth the client’s holdings, the tax basis of those holdings, transactions and any expenses incurred during the preceding calendar quarter together with the individual and consolidated values of the Tracked Assets as of the last business day of the calendar quarter.
4. Fiduciary Services to ERISA Retirement Plans BWM offers both discretionary and non-discretionary services to ERISA Plans. Upon entering into a written agreement with BWM, the ERISA Plan client will select one or more of the following services: DISCRETIONARY SERVICES: Discretionary Investment Advice for Plan Menu: BWM will evaluate and prudently designate the specific investments to be offered as investment options to participants under the Plan consistent with the Plan’s investment policy statement (“IPS”) or other relevant guidelines, as applicable, monitor such investments, and prudently remove or add investments as deemed appropriate by BWM in its discretion as the Plan’s investment manager.
Model Portfolios: BWM will establish and maintain the following range of asset allocation model portfolios (“Model Portfolios”): Conservative, Moderately Conservative, Moderate, Moderately Aggressive, and Aggressive.
The Model Portfolios only utilize the designated investment alternatives made available to participants under the Plan (the “Menu Options”). The allocations of asset classes within the various Model Portfolios will be based on generally accepted investment theories, and seek to achieve varying degrees of long-term appreciation and capital preservation through different

mixes of equity and fixed income exposures. If a participant selects a Model Portfolio as the investment for his or her account under the Plan, BWM will invest the assets of the participant’s account in a mix of the Plan’s Menu Options in accordance with the selected Model Portfolio and will rebalance the investments to maintain the desired mix in its discretion.
Participant Advice Services – Onsite Meetings: BWM will offer to meet with Plan participants during scheduled onsite meetings on an annual or semi-annual basis. Based on the information provided by the participant concerning his or her retirement investments, time horizon, risk tolerance and investment goals, BWM will provide investment advice in the form of a recommendation to invest in a particular Model Portfolio.
Participant Advice Services – Interactive Web Tool: BWM will offer an interactive web-based tool to ERISA Plan participants which, based on the information provided by the participant concerning his or her retirement investments, time horizon, risk tolerance and investment goals, will provide investment advice in the form of a recommendation to invest in a particular Model Portfolio.
QDIA Portfolio Designation: BWM will designate one of its Model Portfolios as a qualified default investment alternative (“QDIA Portfolio”). The QDIA Portfolio will be constructed using the options in the ERISA Plan investment line-up and managed with a goal to achieve long term appreciation and capital preservation through a mix of equity and fixed income exposures.
Preparation of IPS: In consultation with client concerning the applicable investment objectives, policies, and constraints for the Plan and its related trust, Adviser will assist Client or other authorized fiduciary in developing an IPS that is consistent with the requirements of ERISA. Adviser cannot guarantee that Client will achieve the investment objectives in the IPS.
NON-DISCRETIONARY SERVICES Non-Discretionary Investment Advice for Plan Menu: BWM will recommend, for selection by the client or other authorized fiduciary, specific investments to be offered as investment options to participants under the ERISA Plan consistent with the Plan’s IPS or other relevant guidelines, as applicable. BWM will recommend, for selection by client or other authorized fiduciary, investment replacements if an existing investment is no longer suitable, and will assist in the transition to the replacement investment if requested by client or such fiduciary.
Performance Monitoring: BWM will assist client with respect to its duties to perform ongoing monitoring of the ERISA Plan’s investment alternatives in accordance with the Plan’s IPS or other relevant guidelines, as applicable, and ERISA. Such assistance will include reviews of the relevant portfolio’s historical performance and investment characteristics, and the applicable asset manager’s investment processes and philosophy.
Preparation of IPS: In consultation with client concerning the applicable investment objectives, policies, and constraints for the ERISA Plan and its related trust, BWM will assist client or other authorized fiduciary in developing an IPS that is consistent with the requirements of ERISA.
BWM also offers the following non-fiduciary consulting services to ERISA Plans: Performance Reports: BWM will prepare reports providing performance information for the ERISA Plan’s investment alternatives as well as comparing the performance thereof to benchmarks set forth in the IPS or as otherwise determined in consultation with client. The information used to generate the reports will be derived from statements provided by or through the client.
Fee Monitoring and Review: BWM will assist client with respect to its duties to evaluate the reasonableness of the fees and expenses of the ERISA Plan’s investment manager(s) or investments in accordance with the Plan’s IPS or other relevant guidelines, as applicable, and ERISA. Upon request, BWM will also assist a client with respect to its evaluation of the Plan’s fees and expenses for administrative services.
Education Services to Plan Committee: BWM will provide education and training for selected employees of client who are serving a fiduciary role under the ERISA Plan (e.g., members of an investment committee selected by the Plan Sponsor). Such education and training will include guidance concerning their fiduciary roles on any applicable committee, including their investment-related duties under the Plan, at times mutually agreeable to the parties.
Participant Education Services: BWM will offer to meet with ERISA Plan participants during scheduled onsite meetings on an annual or semi-annual basis to provide investment education. In accordance with the Department of Labor’s Interpretative Bulletin 96-1, BWM can provide Plan participants with information about the Plan, general financial and investment information and information and materials relating to asset allocation models available through the Plan. BWM can also provide Plan participants with interactive investment materials to assist Plan participants in assessing their future retirement income needs and the impact of different asset allocations on retirement income.
Plan Search and Conversion Support: In the event client chooses to select a new record-keeper or other administrative service provider to the ERISA Plan, BWM will assist client in the preparation, distribution and evaluation of Request For Proposals, finalist interviews, and conversion support.
The ERISA Plan client can also elect to receive certain additional services as negotiated between client and BWM. All such services will be clearly outlined in the agreement executed by the client.
5. IRA Rollover Recommendations Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02 ceases to be in effect), 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. The way we make money creates some conflicts with your interests, so we operate under a special rule that requires us to act in your best interest and not put our interest ahead of yours. 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.
We benefit financially from the rollover of your assets from a retirement account to an account that we manage or provide investment advice, because the assets increase our assets under management and, in turn, our advisory fees.
As a fiduciary, BWM only recommends a rollover when we believe it is in your best interest.
C. Wrap-Fee Programs BWM does not provide its services to any wrap fee programs, as that term is defined in the instructions to Form ADV Part 2.
D. General Information about BWM’s Advisory Services As indicated above, advisory services provided by BWM are customizable based upon the individual needs, objectives, and other financial goals of the client. Early on in the relationship, BWM will typically memorialize each client’s investment objectives, risk tolerance, time horizons and other important and necessary information, including any investment guidelines, in an IPS. This information, together with any other information relating to the client’s overall financial circumstances, will be used by the Firm to determine the most appropriate asset allocation and investment strategy to best meet the client’s financial goals. There can be times when certain restrictions are placed by a client which prevent the Firm from accepting or continuing to service the client’s account. BWM reserves the right to not accept and/or terminate a client’s account if it feels that the client imposed restrictions would limit or prevent the Firm and/or the client from meeting and/or maintaining its objectives.
BWM will not assume any responsibility for the accuracy of the information provided by the client. The Firm is not obligated to verify any information received from the client or from the client’s other professionals (e.g., attorney, accountant, etc.) and is expressly authorized to rely on such information. Under all circumstances, clients are responsible for promptly notifying the Firm in writing of any material changes to the client’s financial situation, investment objectives, time horizon, tax status, risk tolerance or other material information that BWM will have relied upon in rendering its services. In the event that a client notifies the Firm of such changes, BWM will review the changes and will at times recommend revisions to the client’s financial plan and/or portfolio.
E. Amount of Client Assets Managed As of December 31, 2023, the following represents the amount of client assets under management by BWM on a discretionary and non-discretionary basis: Type of AccountAssets Under Management ("AUM") Discretionary$127,454,510 Non-Discretionary$0 Total:$127,454,510 F. Education and Business Standards of BWM’s Representatives BWM requires that associates involved in the creation and review of financial plans and/or providers of advisory services demonstrate technical competency through accredited studies, recognized licensing requirements and industry experience. At a minimum, associates must either hold or be in pursuit of obtaining a Certified Financial Planning™ (CFP®), Certified Public Accountant (CPA) or other professional designations.
G. Client Agreements As mentioned above, prior to engaging BWM to provide the services outlined in Item 4.B above, clients are required to enter into a written agreement with BWM, which sets forth the terms and conditions of the engagement, the fees to be paid and the scope of the services to be provided.
A client or BWM can terminate the agreement by providing the other party with written notice. Upon the effective date of termination, BWM will cease to actively manage the client’s account and will cease assessment of our fees as of that date. BWM will not liquidate the client’s account(s), unless written instruction is provided with termination notice.
Neither BWM nor the client can assign the written agreement without the consent of the other party.
Transactions that do not result in a change of actual control or management of BWM shall not be considered an assignment.