4Wealth Advisors, Inc. Summary of Material Changes
February 24, 2016
Item 2 Summary of Material Changes
Form ADV Part 2 requires registered investment advisers to amend their brochure when information becomes materially inaccurate. If there are any material changes to an adviser's disclosure brochure, the adviser is required to notify you and provide you with a description of the material changes.
Since the filing of our last annual updating amendment dated January 21, 2015, we have updated our brochure regarding the following topics.
We no longer offer non-discretionary portfolio management services to new clients. We offer discretionary portfolio management services. Our investment advice is tailored to meet our clients' needs and investment objectives. If you retain our firm for portfolio management services, we will meet with you to determine your investment objectives, risk tolerance, and other relevant information at the beginning of our advisory relationship. We will use the information we gather 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 portfolio management services, we may customize an investment portfolio for you according to 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 rebalance the portfolio as required by changes in market conditions and in your financial circumstances.
As part of our portfolio management services, we may use one or more sub-advisers to manage a portion of your account on a discretionary basis. The sub-adviser(s) may use one or more of their model portfolios to manage your account. We will regularly monitor the performance of your accounts managed by sub-adviser(s), and may hire and fire any sub-adviser without your prior approval. We may pay a portion of our advisory fee to the sub-adviser(s) we use; however, you will not pay our firm a higher advisory fee as a result of any sub-advisory relationships.
RECCHIA PENSION ADVISORY® Fees
Typically, fees will be based on a percentage of the assets in the plan that ranges between 0.15% and 2.00% per annum, payable quarterly in arrears. For smaller plans, e.g., fewer than 20 participants, we will offer a fixed fee payment option and such fee will be negotiated on a case-by-case basis and clearly set forth in the advisory agreement. For fixed fees, we require a retainer of 50% of the initial estimate at the inception of the advisory relationship with the balance due on completion of the contracted services.
Hourly fees range between $150 and $250, dependent on the Associated Person of our firm that is providing the advisory services. For example, where you are working with a principal and/or executive officer of our firm, the hourly rate will be $250. Otherwise, the hourly rate for such services is $150. Such fees are applicable where you request specific consulting related services and/or modular financial planning services only. For modular planning, you shall pay an initial retainer at the inception of the advisory relationship with progress payments due at various milestones throughout the planning process. Any remaining balance shall be due and payable upon completion of the contracted services. For consulting services, hourly fees are due and payable on completion of the consulting session.
Clients who select the Non-Wrap Fee option will pay separate Transaction Charges in addition to the Account Fee. Please see below for the Account Fee schedule:
Maximum Annual Fee
Up to $1,000,000
$1,000,001 - $5,000,000
$5,000,001 and up
If you select the Wrap Fee option, you will pay a single, all-inclusive Account Fee. Please consider that depending upon the level of the Account Fee charged, the amount of portfolio activity in your account, the value of services that are provided under the Program, and other factors, the Account Fee may or may not exceed the aggregate cost of such services if they were to be provided separately. You pay a single fee because we pay the transaction charges for you. Please see below for the associated fee schedule:
Maximum Annual Fee
Up to $5,000,000
$5,000,001 and up
If you would like a current copy of our brochure at any time free of charge, please contact us at 745 McClintock Drive, Suite 150, Burr Ridge, Illinois 60527-6490, or phone us at (708) 695-5300.