Description of Firm
Nova R Wealth, Inc. is a registered investment adviser based in Overland Park, Kansas. We are
organized as a corporation under the laws of the State of Kansas. We have been providing investment
advisory services since August 2014. We are owned by Timothy Ray Rodgers.
The following paragraphs describe our services and fees. Refer to the description of each investment
advisory service listed below for information on how we tailor our advisory services to your individual
needs. As used in this brochure, the words "we," "our," "Firm," and "us" refer to Nova R Wealth, Inc.
and the words "you," "your," and "client" refer to you as either a client or prospective client of our Firm.
Wealth Management Services
We provide our clients with wealth management services, which generally includes discretionary
management of investment portfolios in connection with a broad range of financial planning and
consulting services.
Investment Management Services
We provide customized investment management solutions through continuous personal client contact
and interaction while providing discretionary investment management and financial planning services.
We may also provide both of these services as a wealth management offering.
We work with you to identify your investment goals and objectives as well as risk tolerance and
financial situation in order to create a portfolio strategy. We will then construct a portfolio, consisting of
primarily of diversified mutual funds and/or exchange-traded funds ("ETFs") to achieve your investment
goals. We may also utilize individual stocks and bonds as well as independent third-party managers,
as appropriate, to meet the needs of certain clients.
Where appropriate, we will recommend investments in the privately-offered securities of certain
issuers, including early-stage and growth-stage companies. Typically, such securities are only offered
to investors that satisfy investor eligibility criteria, including the fact that such issuers will typically
require investors to be "accredited investors" as defined in Rule 501(a) under Regulation D under the
Securities Act of 1933. There are significant risks associated with investments in such privately-offered
securities, only some of which are described below in Methods of Analysis, Investment Strategies and
Risk of Loss section - Item 8. The risk factors and conflicts of interest pertaining to investments in such
privately-offered securities are often found in the private placement memoranda or other risk disclosure
documents distributed by such issuers. It is imperative for investors to whom such securities are
recommended to read such offering materials to familiarize themselves with the specific risks
associated with each such investment. In certain circumstances, conflicts of interest exist when we
recommend an investment in such privately-offered securities, particularly where one or more of our
principals or employees maintains an existing ownership stake in the securities of such issuers. In
such circumstances, we have an incentive to recommend an investment in such privately-offered
securities in order to promote the success of the company, which, in turn, will benefit any investment in
such company made by any of our principals or employees.
Where appropriate, we may also provide advice regarding legacy holdings or securities not maintained
at the primary custodian, such as retirement plans, education savings plans and insurance products. In
such instances, we may not have the authority to direct the trading or allocation of these assets. You
may be required to implement any recommendations made by us.
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Our investment strategy is primarily long-term focused, but we may buy, sell or re-allocate positions
that have been held less than one year to meet your objectives due to market conditions. We will
construct, implement and monitor the portfolio to ensure it meets the goals, objectives, circumstances,
and risk tolerance agreed to by you. Each client will have the opportunity to place reasonable
restrictions on the types of investments to be held in their respective portfolio, subject to acceptance by
our Firm.
We evaluate and select investments for inclusion in client portfolios only after applying our internal due
diligence process. We may recommend, on occasion, redistributing investment allocations to diversify
the portfolio. We may also recommend specific positions to increase sector or asset class
weightings. Additionally, we may recommend employing cash positions as a possible hedge against
market movement. Lastly, we may recommend selling positions for reasons that include, but are not
limited to, harvesting capital gains or losses, business or sector risk exposure to a specific security or
class of securities, overvaluation or overweighting of the positions in the portfolio, a change in your risk
tolerance, generating cash to meet your needs, or any risk deemed unacceptable based on your risk
tolerance.
If you participate in our discretionary investment management services, we require you to grant our
Firm discretionary authority to manage your account. Discretionary authorization will allow us to
determine the specific securities, and the amount of securities, to be purchased or sold for your
account without obtaining your approval prior to each transaction. We will also have discretion over the
broker or dealer to be used for securities transactions in your account. Discretionary authority is
typically granted by the investment advisory agreement you sign with our Firm and the appropriate
trading authorization forms.
We may also offer non-discretionary investment 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.
If (i) the Client has certain legacy positions that it would like to transfer and retain in their account or (ii)
during the term of this Agreement, the Adviser purchases specific individual securities for the account
at the direction of the Client (i.e., the request to purchase was initiated solely by the Client), the Client
acknowledges that the Adviser shall do so as an accommodation only, and that the Client shall
maintain exclusive ongoing responsibility for monitoring any and all such individual securities, and the
disposition thereof, whether or not such securities are included on any performance reports.
Financial Planning
We may provide a variety of complimentary financial planning services to clients as part of our wealth
management services as stated in our wealth management agreement. Services are offered in several
areas based on your financial situation, depending on your goals, objectives and financial situation.
Generally, such financial planning services will involve preparing a financial plan or rendering a
financial consultation based on your financial goals and objectives. This planning or consulting may
encompass one or more areas of need, including, but not limited to:
Savings and Distribution StrategyGifting and Philanthropy
Tax ManagementLegacy Planning
Social Security and/or Pension StrategyBusiness Succession and Liquidation
Insurance: Life, Disability, LTCParental Care
Special PurchasesDebt Management
Education PlanningSpecial Family Health Needs Planning
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As part of our investment management services, we may use one or more independent third-party
managers to manage a portion of your account on a discretionary basis. The independent third-party
managers may use one or more of their model portfolios to manage your account. Please see
the Selection of Other Advisers sub-section below for complete details.
Selection of Other Advisers
We may recommend that you use the services of a third party money manager ("TPMM") to manage
all, or a portion of, your investment portfolio. After gathering information about your financial situation
and objectives, we may recommend that you engage a specific TPMM or investment program. Factors
that we take into consideration when making our recommendation(s) include, but are not limited to, the
following: the TPMM's performance, methods of analysis, fees, your financial needs, investment goals,
risk tolerance, and investment objectives. We will monitor the TPMM(s)' performance to ensure its
management and investment style remains aligned with your investment goals and objectives.
The TPMM(s) will actively manage your portfolio and will assume discretionary investment authority
over your account. We will assume discretionary authority to hire and fire TPMM(s) and/or reallocate
your assets to other TPMM(s) where we deem such action appropriate.
We have entered into a contractual relationship with Dynasty Financial Partners, LLC ("Dynasty"),
which provides us with operational and back office support including access to a network of service
providers. Through the Dynasty network of service providers, we may receive preferred pricing on
trading technology, reporting, custody, brokerage, compliance and other related services. Dynasty
charges a "Platform Fee," which, unless otherwise disclosed, is included in our annual investment
management fee described in Item 5 below. In addition, Dynasty's subsidiary, Dynasty Wealth
Management, LLC ("DWM") is an SEC registered investment adviser,
that provides access to a range
of investment services including: separately managed accounts ("SMA"), mutual fund and ETF asset
allocation strategies, and unified managed accounts ("UMA") managed by external third party
managers (collectively, the "Investment Programs"). We may separately engage the services of
Dynasty and/or its subsidiaries to access the Investment Programs. Under the SMA and UMA
programs. We will maintain the ability to select the specific, underlying third party managers that will, in
turn, have day-to-day discretionary trading authority over the requisite client assets.
DWM sponsors an investment management platform (the "Platform" or the "TAMP") that is available to
the advisers in the Dynasty Network, such as us. Through the Platform, DWM and Dynasty collectively
provides certain technology, administrative, operations and advisory support services that allow us to
manage our own client portfolios and access independent third-party managers that provide
discretionary services in the form of traditional managed accounts and investment models. We can
allocate all or a portion of client assets among the different independent third-party managers via the
Platform. We may also use the model management feature of the TAMP by creating our own asset
allocation model and underlying investments that comprise the model. Through the model
management feature, we may be able to outsource the implementation of trade orders and periodic
rebalancing of the model when needed.
We will maintain the direct contractual relationship with you and obtain, through such agreements, the
authority to engage independent third-party managers, DWM and/or Dynasty, as applicable, for
services rendered through the Platform in service to you. We may delegate discretionary trading
authority to DWM and/or independent third-party managers to effect investment and reinvestment of
client assets with the ability to buy, sell or otherwise effect investment transactions and allocate client
assets. If you are participating in certain Investment Programs, DWM or the designated manager, as
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applicable, is also authorized without prior consultation with either us or you to buy, sell, trade or
allocate your assets in accordance with your designated portfolio and to deliver instructions to the
designated broker-dealer and/or custodian of your assets.
Financial Planning and Consulting Services
For financial planning or consulting engagements that fall outside the wealth management services, we
offer these advisory services on an à la carte basis. These single subject planning and consulting
services include, but are not limited to, the same topics listed in the Financial Planning sub-section
above.
A financial plan or financial consultation rendered to a client will usually include general
recommendations for a course of actions or a specific activity to be taken by the client. For example,
recommendations may be made that you engage an investment program or revise a current
investment program, commence or alter retirement savings, establish education savings and/or
charitable giving programs. We may also refer you to an accountant, attorney or another specialist, as
appropriate for your unique situation. For certain financial planning engagements, we will provide a
written summary of your financial situation, observations, and recommendations. For consulting or ad-
hoc engagements, we may not provide a written summary. Plans or consultations are typically
completed within six months of contract date, assuming all information and documents requested are
provided promptly.
Financial planning and consulting recommendations may pose a conflict of interest. For example, a
recommendation to engage us for investment management services or to increase your level of
investment assets with us would pose a conflict, as it would increase the advisory fees paid to our
Firm. You are not obligated to implement any recommendations made by us or maintain an ongoing
relationship with us. If you elect to act on any of the recommendations made by us, you are under no
obligation to implement the transaction through us. Moreover, you may act on our recommendations by
placing securities transactions with any brokerage firm.
Pension Consulting Services
We offer pension consulting services to employee benefit plans and their fiduciaries based upon the
needs of the plan and the services requested by the plan sponsor or named fiduciary. In general, these
services may include an existing plan review and analysis, plan-level advice regarding fund selection
and investment options, education services to plan participants, investment performance monitoring,
and/or ongoing consulting. 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.
We may also assist with participant enrollment meetings and provide investment-related educational
seminars to plan participants on such topics as:
•Diversification;
•Asset allocation;
•Risk tolerance; and
•Time horizon.
Our educational seminars may include other investment-related topics specific to the particular plan.
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We may also provide additional types of pension consulting services to plans on an individually
negotiated basis. All services, whether discussed above or customized for the plan based upon
requirements from the plan fiduciaries (which may include additional plan-level or participant-level
services) shall be detailed in a written agreement and be consistent with the parameters set forth in the
plan documents.
Either party to the pension consulting agreement may terminate the agreement upon 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.
Held Away Accounts
Certain client accounts subject to the Firm's services are held at a custodian that are not directly
accessible by the Firm ("Held Away Accounts"). These are primarily 401(k) accounts, 403(b) accounts,
457 plans, and profit sharing plans. We have the ability to, but are not required to, manage these Held
Away Accounts using a third party order management system that allows us to view and manage these
assets. Using the third party order management system will give the Adviser the ability to effect trades
in the held away account and view account information. You acknowledge that we are limited in
investment choices by what is available in your plan.
Types of Investments
We offer advice on mutual funds, exchange traded funds ("ETFs"), equity securities (including those of
private issuers) and corporate debt securities. 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. Since our investment strategies and advice are based on each client's specific
financial situation, the investment advice we provide to you may be different or conflicting with the
advice we give to other clients regarding the same security or investment.
Wrap Fee Programs
We do not participate in any wrap fee program.
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
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•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 our
advisory fees. In contrast, we receive less or no compensation if assets remain in the current plan or are
rolled over to another Company plan in which you may participate.
Assets Under Management
As of December 31, 2023, we provide continuous management services for $382,789,736 in client
assets on a discretionary basis, and $9,104,511 in client assets on a non-discretionary basis.