This Disclosure document is being offered to you by Miramar Capital LLC (“Miramar” or
“Firm”) about the investment advisory services we provide. It discloses information about
our services and the way those services are made available to you, the client.
We are an investment management firm located in Northbrook, Illinois. We specialize in
investment advisory services for individuals, high net worth individuals, employee
sponsored retirement plans, institutions, charitable organizations, trusts and estates. Our
Firm became a registered investment adviser in November 2017. Miramar Capital, LLC is a
limited liability company formed in Illinois and is owned by Robert Kalman and Max
Wasserman.
We are committed to helping clients build, manage, and preserve their wealth, and to
provide assistance that helps clients to achieve their stated financial goals. We will offer an
initial complimentary meeting upon our discretion; however, investment advisory services
are initiated only after you and Miramar execute an Investment Management Agreement.
Investment and Wealth Management and Supervision Services
We manage advisory accounts on a discretionary and non-discretionary basis. When
constructing individual investment portfolios, we believe the most important step is
understanding the client's investment objectives and risk tolerance.
We focus on understanding the client's:
• Return Requirements
• Risk Tolerance
Furthermore, we take into account the client's individual:
• Time Horizon
• Liquidity Needs
• Tax Considerations
• Legal or Regulatory Constraints (where applicable)
• Unique Circumstances
Based on aforementioned, we assist the client in establishing the appropriate asset
allocation. Because no two individuals or institutions have exactly the same financial goals
we custom tailor each portfolio. Through meetings and analysis, we work with clients to
determine the appropriate asset mix for them. When we construct individual portfolios
that address their needs, we consider not only the potential return of an investment but
also its risk level. This approach requires us to periodically review your portfolio.
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It is the client’s obligation to notify us immediately if circumstances have changed with
respect to their goals. You will have the ability to leave standing instructions with us to
refrain from investing in particular industries or invest in limited amounts of securities.
If a non-discretionary relationship is in place, recommendation will be communicated, or
we will facilitate a trade requested by you and only upon your authorization will any action
be taken on your behalf.
In all cases, you have a direct and beneficial interest in your securities, rather than an
undivided interest in a pool of securities. We do have limited authority to direct the
Custodian to deduct our investment advisory fees from your accounts, but only with the
appropriate written authorization from you. We may also discuss timing and price of the
order.
Where appropriate, we provide advice about any type of legacy position held in client
portfolios. Typically, these are assets that are ineligible to be custodied at our primary
custodian. Clients will engage us to advise on certain investment products that are not
maintained at their primary custodian, such as variable life insurance, annuity contracts
and assets held in employer sponsored retirement plans and qualified tuition plans (i.e.,
529 plans). If these accounts or positions can be held at a custodian, we may elect to
manage, supervise and charge a fee on the position.
You are advised and are expected to understand that our past performance is not a
guarantee of future results. Certain market and economic risks exist that adversely affect
an account’s performance. This could result in capital losses in your account.
ERISA Section 3(21) Investment Management Services
For employer-sponsored retirement plans with participant-directed investments, Miramar
provides its advisory services as an investment advisor as defined under Section 3(21) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
When serving as an ERISA 3(21) investment advisor, the plan sponsor and Miramar share
fiduciary responsibility. The plan sponsor retains ultimate decision-making authority for
the investments and may accept or reject the recommendations in accordance with the
terms of a separate ERISA 3(21) Investment Advisor Agreement between Miramar and the
plan sponsor. Miramar provides the following services to the plan sponsor:
• Screen investments and make recommendations.
• Monitor the investments and suggests replacement investments when
appropriate.
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Miramar’s goal in identifying the plan’s investment options is to provide a range of options
that will enable plan participants to invest according to varying risk tolerances, savings time
horizons or other financial goals. The plan's investment options may consist of ETFs, CITs,
mutual funds, model portfolios, or other similar investment funds. The investment funds
from which Miramar will select from will be those that are available on the plan record-
keeper’s investment platform.
Disclosure Regarding Rollover Recommendations
A client or prospect 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) rollover 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).
Our Firm may recommend an investor
roll over plan assets to an IRA for which our Firm provides investment advisory services. As
a result, our Firm and its representatives may earn an asset-based fee. In contrast, a
recommendation that a client or prospective client leave their plan assets with their
previous employer or roll over the assets to a plan sponsored by a new employer will
generally result in no compensation to our Firm. Our Firm therefore has an economic
incentive to encourage a client to roll plan assets into an IRA that our Firm will manage,
which presents a conflict of interest. If Miramar recommends that a client roll over their
retirement plan assets or transfer an IRA into an account to be managed by Miramar, and
Miramar will earn an advisory fee on the rolled over assets, that recommendation creates
a conflict of interest. Accordingly, Miramar operates under a special rule that requires
Miramar to act in the client best interest and not put Miramar’s interest ahead of our
client’s. To mitigate the conflict of interest, there are various factors that our Firm will
consider to the best of our ability, before recommending a rollover, including but not
limited to: (i) the investment options available in the plan versus the investment options
available in an IRA, (ii) fees and expenses in the plan versus the fees and expenses in an
IRA, (iii) the services and responsiveness of the plan’s investment professionals versus
those of our Firm, (iv) required minimum distributions and age considerations, and (v)
employer stock tax consequences, if any. All rollover recommendations are reviewed by
our Firm’s Chief Compliance Officer and remains available to address any questions that a
client or prospective client has regarding the oversight.
We are fiduciaries under the Investment Advisers Act of 1940 and when we provide
investment advice to you regarding your retirement plan account or individual retirement
account, we are also 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. 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, which we mitigate or disclose.
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Financial Planning
Through the Financial Planning process, the Miramar team strives to engage our clients in
conversations around the family’s goals, objectives, priorities, vision, and legacy – both for
the near term as well as for future generations. With the unique goals and circumstances
of each family in mind, the Miramar team will offer wealth planning ideas and strategies to
address the client’s holistic financial picture, including estate, income tax, charitable, cash
flow, wealth transfer and family legacy objectives. Miramar does not provide tax or legal
advice. We will work with your independent tax/legal advisor (CPA, Estate Attorney, Insur-
ance broker, etc.) to help create a plan tailored to your specific needs. Such services include
various reports on specific goals and objectives or general investment and/or planning rec-
ommendations, guidance to outside assets and periodic updates.
Our specific services in preparing your plan include:
• Review and clarification of your financial goals.
• Assessment of your overall financial position including cash flow, balance sheet,
investment strategy, risk management and estate planning.
• Creation of a unique plan for each goal you have, including personal and business
real estate, education, retirement or financial independence, charitable giving,
estate planning, business succession and other personal goals.
• Development of a goal-oriented investment plan, with input from various advisors
to our clients around tax suggestions, asset allocation, expenses, risk and liquidity
factors for each goal. This includes IRA and qualified plans, taxable and trust ac-
counts that require special attention.
A written evaluation of each client's initial situation or Financial Plan is typically provided
to the client. An annual review will be provided by the Adviser, if indicated by the Client
and Advisor per the Financial Planning Agreement. More frequent reviews occur but are
not necessarily communicated to the client unless immediate changes are recom-
mended.
Consulting Services
We also provide clients investment advice on a more-limited basis on one-or-more isolated
areas of concern such as variable sub-account management, estate planning, real estate,
retirement planning, or any other specific topic. Additionally, we provide advice on non-
securities matters about the rendering of estate planning, insurance, real estate, and/or
annuity advice or any other business advisory / consulting services for equity or debt
investments in privately held businesses. In these cases, you will be required to select your
own investment managers, custodian and/or insurance companies for the implementation
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of consulting recommendations. If your needs include brokerage and/or other financial
services, we will recommend the use of one of several investment managers, brokers,
banks, custodians, insurance companies or other financial professionals ("Firms"). You must
independently evaluate these Firms before opening an account or transacting business and
have the right to effect business through any firm you choose. You have the right to choose
whether to follow the consulting advice that we provide.
Regulatory Assets Under Management
As of December 31, 2023, we have $469,976,282 in discretionary assets under manage-
ment and $21,354,698 in non-discretionary assets under management.