Item 1. Introduction
Heritage Retirement Advisors LLC
June 25, 2020
Form Customer Relationship Summary (CRS)
Heritage Retirement Advisors LLC is registered with the Securities and Exchange Commission (SEC) as an investment adviser.
Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. BD may refer to FINRA or Securities Investor Protection Corporation. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Item 2. Relationships and Services:
What investment services and advice can you provide me?
We offer financial planning and investment advisory services to retail investors. We do not offer brokerage services. We do not accept commissions from the sale of investment products. Our investment advisory services are offered through an ‘assets under management’ arrangement. An assets under management arrangement is also known as a ‘wrap fee’ program.
We make the following types of accounts available through custodians such as Charles Schwab: various types of retirement accounts such as IRA’s, SEP-IRA’s, pensions and small business 401(k)’s. Taxable (non-IRA) accounts are also offered, with different ownership titles such as JTWROS (joint tenants with rights of survivorship) or CP (community property).
We also make available some non-publically traded investments such as BDC’s (business development companies) or non-public REIT’s (real estate investment trusts). These non-public investments can occasionally be held at major custodians such as Schwab for little or no cost. If this arrangement is not available, we have relationships with other custodians such as CNB Custody, which specialize in holding investments such as BDC’s and non-public REIT’s.
We monitor your investments by looking at your accounts and individual holdings no less than quarterly, and this a part of our standard service.
Our firm has discretionary authority over your account(s). Having discretionary authority allows us to place trades in your account(s). The most common circumstances that would trigger this authority are changes in the fund management or investment style, or changes in the overall outlook for the economy. There is a material limitation in this arrangement, in that we typically do not attempt to make frequent (typically not more often than monthly) reallocations to your account(s).
Our firm offers an extensive menu of investment offerings such ETF’s (exchange traded funds), mutual funds, UIT’s (unit investment trusts), no-load variable annuities, structured products, money market funds, and individual stocks and bonds, through our primary custodian Charles Schwab. Our investment offerings are limited to the ability of Schwab being able to hold an investment, and/or our ability to find a custodian that will hold an investment in what we have determined to be a cost effective arrangement for you.
Account Minimums and Other Requirements: Our firm does not have a minimum account size to open or maintain an account.
Asset-based fees associated with wrap-fee program will include most transaction costs and fees to a custodian that has custody of these assets, and therefore are higher than typical asset-based advisory fees. We attempt to use investments that are on Schwab’s no-load, no-transaction fee platform whenever possible, to minimize the occurrence of ‘ticket charges’, which are usually in the $5-$25 range.
Our firm has a potential conflict, in that the more assets there are in your advisory account(s), the more you will pay in fees. We may therefore have an incentive to encourage you to increase the assets in your account(s).
Item 3. Fees, Costs, Conflicts, and Standard of Conduct:
What fees will I pay?
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.
You will pay custodian fees (if assets are held outside of Schwab or TD Ameritrade), transactional fees to buy or sell securities (if an investment isn’t on the custodian’s no-load, no-transaction fee platform), expense ratios for mutual funds, variable annuity sub-accounts and ETF’s, and mortality and expense charges for no-load variable annuities.
You will pay investment advisory fees according to the following ‘tiered’ schedule, unless your fee schedule has been discounted by us:
$0 to $250,000 – 2%; $250,001 to $500,000 – 1.500%; $500,001 to $1,000,000 – 1.250%
$1,000,001 to $1,500,000 – 1.000%; $1,500,001 to $2,000,000 – 0.800%;
$2,000,001 to $4,000,000 – 0.650%; $4,000,001 and up – 0.600%
Item 4. Disciplinary History
Do you or your financial professionals have legal or disciplinary history?
None of our advisors have legal or disciplinary histories. Visit Investor.gov/CRS for a free and simple search tool to research your financial professionals.
Item 5. Additional Information
For additional information about our services, please request a copy of our Form ADV Part 2A (our firm brochure). If you would like additional, up-to-date information or a copy of this disclosure, please call Greg Hutto, Chief Compliance Officer at 817-503-0100 or email us at info@heritage- retirement.com.