As of June 30, 2020, investment advisors are required to provide investors with a disclosure form known as Form CRS. Form CRS is intended to be an easy-to-read client relationship summary and discloses the following…
OAK WEALTH ADVISORS, LLC
836 Skokie Blvd. Northbrook IL 60062 || 847-945-8888 || [email protected] || oakwealth.com
INTRODUCTION: Oak Wealth Advisors is registered as an investment advisor with the Securities & Exchange Commission. Brokerage and investment advisory services and fees differ and it is important for you to understand the differences. Our fee schedule is explained at the bottom of this page. Free and simple tools are available to research firms and financial professionals at https://investor.gov/crs, which also provides educational materials about investing, investment advisors, and broker-dealers.
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME? Oak Wealth Advisors provides fiduciary financial planning, special needs planning, and investment management services to families and individuals. As part of our standard investment management services, we provide ongoing monitoring of client accounts through portfolio reviews conducted at least quarterly. The monitoring involves evaluating the performance of the investments held by each client and ensuring that their mix of investments remains appropriate based on their goals and risk tolerance. We base our investment decisions on each client’s custom investment policy which is developed with client input and approved by the client. Each client’s investment policy grants us full discretion and responsibility for investing their portfolio. This means that we can make purchases and sales in client accounts without getting client authorization prior to each transaction. Clients can revoke our authority at any time and also retain the ability to make their own investments within their accounts. We invest in a wide variety of investment products from a large number of firms. We seek to buy the least expensive version of all mutual funds and other investments when purchasing them in client accounts. We receive no compensation from any of the investment firms for investing in their products. While we have no minimum account size or number of accounts that a client must have, our client relationships are each subject to our minimum fee of $5,000 per year. More details about our services can be found on our Form ADV Part 2A in sections 4 and 7.
Conversation Starters: Given my financial situation, should I choose an investment advisory service? Why or why not?
How will you choose investments to recommend to me? What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
WHAT FEES WILL I PAY? Our minimum advisory fee is $5,000 per year. Our fee is calculated as a fraction of one percent of the money we manage for our clients. Our minimum fee is reached when we are managing at least $550,000 for a client. We charge 0.90% on the first million dollars. For assets between one million and three million, we charge 0.75%. For assets between three million and five million, we charge 0.60%. For assets between five million and ten million, we charge 0.40%. For assets between ten million and twenty million, we charge 0.30%. For assets over twenty million dollars, we charge 0.20% until the annual fee reaches $100,000 which is our maximum fee charged per client. Fees paid by our clients are our only source of compensation.
The fees are collected at the start of each quarter and are recalculated every quarter based on the value of the portfolio on the last day of the prior quarter. As such, if the value of your portfolio declines during a quarter, you will pay a lower fee the next quarter. If your portfolio increases in value during the quarter, you will pay a higher fee the next quarter. We have an incentive to encourage you to increase the amount of your assets that you entrust to our management since our fee is based on the amount of money we manage for you.
Oak Wealth Advisors never has custody of your money or investments. Your money and investments are held by independent custodial firms. None of the custodial firms used by Oak Wealth Advisors charge a separate fee for holding your money or investments. The custodial firms may charge you a fee when investments are purchased or sold. Many securities can be bought at no cost while others will incur a transaction fee by the custodian that will be no more than $20 per transaction. Any fees collected by the custodial firms are not shared with Oak Wealth Advisors. In addition, mutual funds and exchange traded funds, which we may purchase in your accounts, also have fees associated with them which vary among the different funds. You will be provided with a prospectus for every fund purchased in your accounts which will detail the specific fee for the fund.
You will pay fees and costs whether your make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
More details about our services can be found on our Form ADV Part 2A in section 5.
Conversation Starter: Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs and how much will be invested for me?
WHAT ARE YOUR LEGAL OBLIGATIONS TO ME WHEN ACTING AS MY INVESTMENT ADVISOR? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE? When we act as your investment advisor, we must act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide to you. Here are some examples to help you understand what this means.
Since Oak Wealth Advisors is paid fees based on how much money we invest for you, we have an incentive to encourage you to add to your investment portfolio rather than withdraw funds from your portfolio to pay for your expenses. We also may have an incentive to trade less frequently in your accounts because trading increases your expenses and the higher expenses would lead to you having less money invested on which we would charge our fees. We receive no compensation from any source other than our clients.
Conversation Starter: How might your conflicts of interest affect me, and how will you address them?
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY? Our financial professionals are paid salaries. There are no sales incentives or other compensation paid for bringing in more client assets or investing in specific investment products. Client satisfaction and the ability to serve more clients in an effective manner are the two primary ways in which our financial professionals can increase their salaries.
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY? No employees in the history of Oak Wealth Advisors have ever had any legal or disciplinary action taken against them. You should review the website https://investor.gov/CRS to verify our disciplinary history.
Conversation Starter: As a financial professional, do you have any disciplinary history? For what type of conduct?
ADDITIONAL INFORMATION: You are welcome to contact Michael Walther anytime for more information about our firm and our professionals. We can be reached at (847) 945-8888 or by email at [email protected]. You can CLICK HERE for a link to our SEC Form ADV Part 2A that provides additional information about our firm and our services. You can also email or call us if you would like to receive a hard copy of our Form ADV Part 2A or this relationship summary document.
Conversation Starters: Who is my primary contact person? Is he or she a representative of an investment advisor or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?