Introduction
Rhame & Gorrell Wealth Management, LLC (“R&GWM” 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 professionals 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:
R&GWM offers Wealth Management services to retail investors.
Wealth Management Services:
We provide investment management services and financial planning and consulting services as part of our Wealth Management services, which involves us managing and trading your designated account(s). We will discuss your investment goals and design a strategy to try and achieve your investment goals. We will continuously monitor your account when providing investment management services and contact you at least annually to discuss your portfolio. For more information, please see Item 4 of our Form ADV Part 2A. When engaging us for Wealth Management services, you can choose whether you’d like us to provide services on a discretionary basis (we will have the authority to determine the type and amount of securities to be bought or sold in your account) or a non-discretionary basis (we will have to confirm any trades in your account with you before we place them). For more information about investment authority, please see Item 16 of our Form ADV Part 2A.
Limited Investment Offerings:
We do not primarily recommend one type of security to clients. Instead, we recommend investment portfolios designed to 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 your custodian/broker-dealer’s platform. When providing you services, we do not recommend or offer advice on any proprietary products.
Account & Fee Minimums:
We require a minimum quarterly fee of $1,000 in order to open an account managed by us. We may elect to waive this minimum fee based upon certain criteria. See Item 7 of ADV Part 2A for more information.
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 Wealth Management services are charged based on a percentage of assets under management, 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. The annual fee for Wealth Management services will be based upon a tiered fee schedule which ranges between 0.55% and 1.30%. 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. When engaging us for Wealth Management services, you will also incur other fees and expenses. The broker-dealer/custodian on your account will charge you transaction fees for executing trades in your account. You will also be charged internal fees and expenses by the funds we invest in within your account.
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. For more information about the fees we charge and the other fees and expenses you will incur, please see Item 5 of Form ADV Part 2A.
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.
- To the extent we recommend you roll over your account from a current retirement plan to an individual retirement account (“IRA”) managed by us and subject to our asset-based investment advisory fees, this is a conflict of interest because we have a financial incentive to recommend that you move your IRA to us even if it is not in your best interest.
- When we provide Wealth Management services, we will ask that you establish an account with Charles Schwab & Co., Inc. or Fidelity Brokerage Services, LLC to maintain custody of your assets and to effect trades for your account. This recommendation is not based solely on your interest of receiving the best execution possible, but they also provide us with research, products and tools that help us manage and further develop our business operations.
- 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?
Additional Information:
For more information about our conflicts of interests and the ways we are compensated, please see Item 5, Item 10 and Item 12 of our Form ADV Part 2A.
How Do Your Financial Professionals Make Money?
Description of Salary/Payment of IARs:
Our financial professionals are generally compensated on a salary basis and are eligible for bonuses. Bonuses are based on the overall profitability of the firm and the amount of assets that the representative brings in. 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 increased payments.
Do You or Your Financial Professionals Have Legal or Disciplinary History?
No. 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 R&GWM
Additional information about us and a copy of this relationship summary are available on the Internet at www.rgwealth.com. You can also find our disclosure brochures and other information about us at https://adviserinfo.sec.gov/firm/summary/283027. If you have any questions or want an up-to-date copy of this relationship summary, we can be reached by phone at 832-789-1100.
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?
