Our firm, Petix & Botte Financial, is an investment adviser registered with the Securities and Exchange Commission. We feel that it is important for you to understand how advisory and brokerage services and fees differ in order to determine which type of account is right for you. There are free and simple tools available to research firms and financial professionals at www.investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers, and investing.
We are a registered investment adviser that offers investment advisory services, including Asset Management and Financial Planning & Consulting to clients. If you open an advisory account with our firm, we’ll meet with you to understand your current financial situation, existing resources, objectives, and risk tolerance. Based on what we learn, we’ll recommend a portfolio of investments that is monitored at least annually, and if necessary, rebalanced to meet your changing needs and goals. We’ll offer you advice on a regular basis and contact you at least annually to discuss your portfolio. We do not restrict our advice to limited types of products or investments. Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging us.
We manage accounts on a discretionary basis. After you sign an agreement with our firm, we’re allowed to buy and sell investments in your account without asking you in advance. Any limitations will be described in the signed advisory agreement. We will have discretion until the advisory agreement is terminated by you or our firm.
Financial Planning & Consulting is included in our Asset Management service for no additional fee.
Financial Planning & Consulting is also offered as a separate service. We do not monitor your investments for the Financial Planning & Consulting service.
Additional information about our advisory services is in Item 4 of our Firm Brochure, which is available online at https://adviserinfo.sec.gov/firm/summary/170020.
You will be charged an ongoing quarterly fee based on the value of the assets in your account for our Asset Management service:
$0 to $250,000 Assets Under Management = 0.85% - 2.00% Annual Percentage of Assets ChargeAbove $250,000 Assets Under Management = 0.25% - 1.50% Annual Percentage of Assets ChargeOur firm’s fees vary and are negotiable. The amount you pay will depend, for example, on the services you receive and the amount of assets in your account. Since our fees are based on the value of your assets, we have an incentive to increase the value of your assets in order to increase our compensation. Our firm’s fees will be automatically deducted from your advisory account, which will reduce the value of your advisory account. In rare cases, we will agree to send you invoices rather than automatically deduct our fees from your advisory account.
We charge an hourly or flat fee for our Financial Planning & Consulting service. Our hourly fee is $250 and flat fees generally range from $500 to $3,000. The fee is due within 30 days of your financial plan being delivered or consultation delivered to you.
The broker-dealer that holds your assets charges you a transaction fee when we buy or sell an investment for you. Their transaction fees are in addition to our firm’s fees for our Asset Management service. You may also pay charges imposed by the broker-dealer holding your accounts for certain investments and maintaining your account. Some investments, such as mutual funds, index funds, exchange traded funds, and variable annuities, charge additional fees that will reduce the value of your investments over time. In addition, you may have to pay fees such as “surrender charges” to sell variable annuities.
In certain cases, we may select third party money managers to assist us with managing your account. If selected, they will charge you a fee, which will be described to you in their Form ADV or agreement.
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.
Additional information about our fees is in Item 5 of our Firm Brochure, which is available online.
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:
Our firm’s financial professionals are registered representatives of LPL Financial LLC (“LPL”), an SEC registered broker-dealer and investment adviser. Your financial professional may offer you brokerage services through LPL or investment advisory services through our firm. Brokerage services and investment advisory services are different, and the fees our firm and LPL charge for those services are different. It is important that you understand the differences. In particular, your financial professional may earn additional transaction-based compensation and have additional conflicts of interest as a result of providing brokerage services through LPL. You are encouraged to learn more about LPL by reviewing LPL’s relationship summary at https://www.lpl.com/disclosures.html and having a discussion with your financial professional. You can also access free and simple tools to help you research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Our firm’s financial professionals include licensed insurance agents who sell insurance products for a commission and tax preparers who offer tax preparation services. They have an incentive to recommend insurance products and tax preparation services to you in order to increase their compensation.
Additional information about our conflicts of interest is in Item 10 of our Firm Brochure, which is available online.
Our financial professionals are compensated based on the revenue our firm earns from their advisory services or recommendations, the amount of client assets they service, and the time and complexity required to meet a client’s needs.
No. Visit Investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals.
You can find additional information about our firm’s investment advisory services on the SEC’s website at www.adviserinfo.sec.gov by searching CRD #170020. You may also contact our firm at (619) 698-6500 to request a copy of this relationship summary and other up-to-date information.
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