Form ADV Part 3: Relationship Summary
Summit Wealth Management Group, Inc. (“SWMG” or “we”) is an investment adviser registered with the U.S. Securities and Exchange Commission. We offer our clients investment advisory services. Clients should understand that the services we provide and fees we charge are different than those of a broker-dealer, and that it is important to understand the difference between the two. Free and simple tools are available to research firms and financial professional at https://www.investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers and investing.
What Investment Services and Advice Can You Provide me?
Description of Services: We offer investment advisory services to retail investors. Our investment advisory services include: Asset Management Services and Financial Planning and Consulting Services.
Asset Management Services: SWMG provides asset management services which involves us managing and trading your designated account(s). SWMG will discuss your investment goals and design a strategy to try and achieve your investment goals. SWMG will continuously monitor your account when providing asset management services and contact you at least annually to discuss your portfolio. We offer asset management services through both wrap fee programs and non-wrap fee programs. For more information please see Item 4 of our Form ADV Part 2A.Asset management services are provided on a discretionary basis, meaning we will have the authority to determine the type and amount of securities that can be bought or sold for your portfolio without obtaining your consent for each transaction. For more information please see Item 16 of our Form ADV Part 2A.
Financial Planning & Consulting Services: We also provide financial planning and consulting services. Financial planning services involve us creating a written financial plan for you which covers mutually agreed upon topics. Financial consulting is used when a written financial plan is not needed. It involves one time and/or ongoing meetings to discuss your financial situation. Please see Item 4 of our Form ADV Part 2A.
Limited Investment Offerings: We do not primarily recommend one type of security to clients. Instead, we recommend any product that may be suitable for each client relative to that client’s specific circumstances and needs. However, we are limited in investment selection in that we can only invest your account in securities which are available on our custodian/broker-dealer’s platform. When providing you services, we do not recommend or offer advice on any proprietary products.
Account & Fee Minimums: SWMG typically requires a minimum of $500,000 in order to open an account. To reach this account minimum, clients can aggregate all household accounts. The minimum fee generally charged for financial planning or consulting services provided on an hourly basis is $300.The minimum fixed fee generally charged for financial planning or consulting services on a fixed fee basis is $2,000.
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?
Description of Principal Fees & Costs: Fees charged for our asset management services are charged based on a percentage of assets under management will range up to a maximum of 1.85% and varies dependent upon the Asset Management Platform selected to manage your assets. The fees are billed in advance on a quarterly calendar basis and calculated based on the fair market value of your account as of the last business day of the previous billing period. Because our fee is based upon the value of your account we have an incentive to recommend that you increase the level of assets in your account. We utilize wrap fee and non-wrap fee programs. Under a wrap fee program the fee you pay us covers both our advisory services and the transaction fees imposed by the broker-dealer. Under a non-wrap fee program you will be charged transaction costs separately. Since a wrap fee covers transaction expenses it tends to be higher than non-wrap fee programs. You may also be charged management fees by the funds we invest in, within your account. For more information about the fees we will charge you and expenses you may incur please see Item 5 of our Form ADV Part 2A.
Financial Planning and Consulting Services are provided under an hourly fee arrangement. An hourly fee of $300 per hour is charged by SWMG for Financial Planning and Consulting Services under this arrangement. SWMG also provides Financial Planning and Consulting Services under a fixed fee arrangement. The minimum fixed fee is generally $2,000, and the maximum fixed fee is generally no more than $10,000. You will pay in advance a mutually agreed upon retainer that will be available for SWMG to bill hourly fees against for our financial planning services We will bill our financial planning fees to you on a monthly basis.
Any fees we charge for Financial Planning and Consulting Services will not cover the costs associated with implementing any recommendations we may make. For more information please see Item 5 of our Form ADV Part 2A.
Additional Information: You will pay fees and costs whether you 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.
Conversation Starters: 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 Adviser? How Else Does Your Firm Make Money and What Conflicts of Interest Do You Have?
Standard of Conduct: When we act as your investment adviser, we have to 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 you.
Here are some examples to help you understand what this means. When we provide asset management services, we will ask that you establish an account with LPL Financial to maintain custody of your assets and to effect trades for your account. Our recommendation to use LPL Financial is not based solely on your interest of receiving the best execution possible. We also recommend LPL Financial because they provide us with research, products and tools that help us manage and further develop our business operations. As a result, we do not have to pay for such benefits, which save us money; however, these arrangements create a conflict of interest. See Item 12 of our Form ADV Part 2A for more information about our arrangements with LPL Financial. We actively manage our own personal accounts while at the same time managing your accounts and other client accounts. This creates different conflicts of interest for which we have developed procedures to mitigate and control for those conflicts. For more information see Item 11 of Form ADV Part 2A.When we recommend that you utilize a third-party money manager we will receive a percentage of the fee which they collect from you. This creates a conflict of interest as we have an incentive to recommend managers who have such arrangements with us. Some of our investment adviser representatives also serve as insurance agents. Through their role as such they may sell, for commissions, various insurance products. We have a conflict of interest in recommending these products to you because of the potential for additional revenue.
Conversation Starters: How might your conflicts of interest affect me, and how will you address them?
How Do Your Financial Professionals Make Money?
Description of Salary/Payment of IARs: Description of Salary/Payment of IARs: We compensate our investment adviser representatives based on a percentage of the advisory fee of the assets that the representative has under management. This creates a conflict of interest as it gives your representative an incentive to recommend you invest more in your account with us due to the potential for an increase in the overall advisory fees paid.
Our representatives also serve as licensed insurance agents. When acting in this capacity, the representative will receive commissions for selling insurance products. This creates a conflict of interest when the representative recommends you purchase insurance products through him or her. Our representatives also serve as registered representatives of LPL Financial, an SEC registered broker- dealer. Your representative may offer you brokerage services through LPL and/or investment advisory services through SWMG. When acting in this separate capacity, the representative will receive transaction-based compensation for selling securities which creates conflicts of interest. You are encouraged to learn more about LPL by reviewing https://www.lpl.com/disclosures.html and having a discussion with your Financial Professional.
Additional Information: For more information about our conflicts of interests and the ways we are compensated please see Item 5 and Item 10 of our Form ADV Part 2A.
Do You or Your Financial Professionals Have Legal or Disciplinary History?
Neither us, nor our investment adviser representatives have a legal or disciplinary history to report. You can look up more information about us and our investment adviser representatives at https://www.investor.gov/CRS.
Conversation Starters: As a financial professional, do you have any disciplinary history? For what type of conduct?
Additional Information About Summit Wealth Management Group, Inc.
Additional information about us and a copy of this relationship summary are available on the Internet at www.yoursummitwealth.com. You can also find our disclosure brochures and other information about us at https://adviserinfo.sec.gov/firm/summary/170029. If you have any questions or want an up-to-date copy of this relationship summary, we can be reached by phone at (805) 384-1186.
Conversation Starters: Who is my primary contact person? Is he or she a representative of an investment adviser or a broker- dealer? Who can I talk to if I have concerns about how this person is treating me?