Strategic Wealth Management Group (SWMG) is owned by Mr. Lawrence E. May. SWMG has been
providing advisory services since 1999. Lawrence E. May has been in the advisory business since
1994.
As of December 31, 2022, we provide continuous management services for $568,738,295 in client
assets on a discretionary basis, and $0 in client assets on a non-discretionary basis. We also
manage $167,155,531 in client assets on a non-continuous basis.
Additionally, as of December 31, 2022, SWMG had the following additional assets, which are not
included in the amounts listed above:
Ascensus Trust: SWMG consults on $13,254,745 of 401(k) assets
Brinker Capital: SWMG acts as a solicitor for $1,427,041 of personal assets.
Alerus: SWMG consults on $14,354,920 of 401(k) assets.
Fidelity: SWMG consults on $11,254,158 of Profit Sharing Plan assets
Schwab Institutional: SWMG consults on $2,986,240 of 401(k) assets.
Discretionary Accounts Held Away (JP Morgan Chase): $123,878,427.
Portfolio Management Services
We offer discretionary portfolio management services. Our investment advice is tailored to meet our
clients' needs and investment objectives.
If you participate in our discretionary portfolio management services, we require you to grant our firm
discretionary authority to manage your account. Discretionary authorization will allow us to determine
the specific type and amount of securities to be purchased or sold for your account without your
approval prior to each transaction. Discretionary authority is typically granted by the investment
advisory agreement you sign with our firm and the appropriate trading authorization forms.
We will not accept accounts that limit our discretionary authority (for example, limiting the types of
securities that can be purchased or sold for your account) by providing our firm with your restrictions
and guidelines in writing.
We may also offer non-discretionary portfolio management services. If you enter into non-discretionary
arrangements with our firm, we must obtain your approval prior to executing any transactions on behalf
of your account. You have an unrestricted right to decline to implement any advice provided by our firm
on a non-discretionary basis.
As part of our portfolio management services, in addition to other types of investments (see
disclosures below in this section), we may invest your assets according to one or more
model portfolios developed by our firm. These models are designed for investors with varying degrees
of risk tolerance ranging from a more conservative investment strategy to a more aggressive
investment approach. Clients whose assets are invested in model portfolios may not set restrictions on
the specific holdings or allocations within the model, nor the types of securities that can be purchased
in the model.
As part of our portfolio management services, we may use one or more sub-advisers to manage a
portion of your account on a non-discretionary basis. The sub-adviser(s) may use one or more of their
model portfolios to manage your account. We will periodically monitor the performance of your
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accounts managed by sub-adviser(s). 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.
In providing account management services, we do not accept client restrictions on the specific
securities or the types of securities that may be held in your account.
Investment Management Services:
SWMG manages investment portfolios for individuals, pension, profit-sharing and 401(k) plans, trusts,
estates, charitable organizations and corporations. SWMG provides continuous advice regarding
investments based on individual needs of clients. Through personal discussions in which goals and
objectives based on a client's particular circumstances are established, SWMG creates and manages
a portfolio based on that information. SWMG manages these advisory accounts on either a
discretionary or non-discretionary basis. Account supervision is guided by the stated objectives of the
client (i.e., maximum capital appreciation, growth, income, or growth and income). Clients are actively
encouraged to maintain constant contact with SWMG regarding their circumstances and any changes
in financial condition, investment strategy or any other issue that may affect the way SWMG manages
the client's account.
SWMG will create portfolios consisting of a combination of any of the following, included but not limited
to: individual common stock and preferred stock, corporate & municipal bonds, exchange-traded funds
("ETFs"), no- load/load-waived or low transaction fee mutual funds, certificates of deposit, US Treasury
or Agency securities, equity options, money market funds or any other public traded security. SWMG
will allocate the client's assets among various investments based upon the advisor's knowledge of the
client's needs. The ETFs or mutual funds will be selected on the basis of any or all of the following
criteria: the fund's performance history, the industry sector in which the fund invests, the track record of
the fund's manager, the fund's investment objectives, the fund's management style and philosophy,
and the fund's management fee structure. Portfolio weighting between funds and market sectors will be
determined by each client's individual needs and circumstances.
Additionally, we may advise you on various types of investments based on your stated goals and
objectives. We may also provide advice on any type of investment held in your portfolio at the inception
of our advisory relationship.
Clients will retain individual ownership of all securities. Each investment management account is
assigned to an SWMG investment adviser representative. Investment management accounts are
managed on an individual client basis based on that client relationship and that investment adviser
representative's investment decisions. As such, each SWMG investment adviser representative will
make different investment decisions for clients (within client investment objectives) and account
performance may vary among the different SWMG investment adviser representatives and client
accounts. Due to the fact that each investment model is run by a separate portfolio manager in a
separate master account, there will be instances in which individual clients in separate models may
receive different prices
on the same security traded on the same day.
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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, we only recommend a rollover when we believe it is in
your best interest.
I. Participation with Charles Schwab & Company, Inc. ("Schwab") Advisor Services
SWMG has custodial and brokerage relations with Schwab, a FINRA Member broker-dealer (member
FINRA/SIPC) through its Schwab Advisory Services ("SAS") to financial advisors. Schwab provides on-
line services for account administration and operational support, including electronic trading, account
forms and applications, trading authorization, accounting and reporting and other relevant
administration and support services. The overall majority of our clients have their accounts with
Schwab acting as the custodian.
II. Brinker Capital Management Programs:
In certain client situations SWMG acts as a solicitor with Brinker Capital Management which offers a
separate account program providing clients with access to independent money management firms
through the Core Asset Manager and Destinations wrap-fee programs ("the Programs") offered by
Brinker Capital Management, Inc. ("BCM"), an unaffiliated investment adviser.
III. Retirement Plan Consulting Services:
SWMG provides several advisory services separately or in combination. While the primary clients for
these services will be pension, profit sharing and 401(k) plans, SWMG will also offer these services,
where appropriate, to individuals and trusts, estates and charitable organizations.
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Pension Consulting Services are comprised of four distinct services. Clients may choose to use any or
all of these services. These pension consulting services will generally be non-discretionary and
advisory in nature. The ultimate decision to act on behalf of the plan shall remain with the plan sponsor
or other named fiduciary.
1. Investment Policy Statement Preparation (hereinafter referred to as "IPS"):
SWMG will meet with the client (in person or over the telephone) to determine the client's investment
needs and goals. SWMG may prepare a written IPS stating those needs and goals and discuss a
target asset allocation for managing the assets.
2. Selection of Investment Vehicles:
SWMG will review various investments, to determine which of these investments are appropriate to
implement the client's IPS. The number of investments to be recommended will be determined based
upon the advisors knowledge of the client's needs reflected on the Investment Policy Statement.
3. Monitoring of Investment Performance:
Client investments will be monitored periodically based on the procedures and timing intervals
delineated, in the event we have prepared an Investment Policy Statement. Although SWMG will not
be involved in any way in the purchase or sale of these investments, SWMG will supervise the client's
portfolio and will make recommendations to the client as market factors and the client's needs dictate.
4. Employee Communications:
For pension, profit sharing and 401(k) plan clients where there are individual accounts with participants
exercising control over assets in their own account ("self-directed plans"), SWMG may assist with
participant enrollment meetings and also may provide educational support for the Plan participants on
such topics as:
•Diversification
•Asset allocation
•Risk tolerance
•Time horizon
Our educational seminars may include other investment-related topics specific to the particular plan.
The nature of the topics to be covered will be determined by SWMG and the client under the guidelines
established in ERISA Section 404(c). The educational support and investment workshops will NOT
provide Plan participants with individualized, tailored investment advice or individualized, tailored asset
allocation recommendations.
We may also provide additional types of pension consulting services to plans on an individually
negotiated basis.
Either party to the pension consulting agreement may terminate the agreement upon verbal or written
notice to the other party in accordance with the terms of the agreement for services. The pension
consulting fees will be prorated for the quarter in which the termination notice is given and any
unearned fees will be refunded to the client, unless the fees are billed in arrears, in which case the
client will be billed a pro-rated portion of their fee.
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IV. Consulting Services:
Clients can also receive investment advice on a more limited basis. This may include advice on only an
isolated area(s) of concern such as estate planning, retirement planning, reviewing a client's existing
portfolio, or any other specific topic. SWMG also provides specific consultation and administrative
services regarding investment and financial concerns of the client.