FORM CRS – CLIENT RELATIONSHIP SUMMARY 2021
INTRODUCTION
Our firm, Sun Group Wealth Partners, LLC, 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.
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
We are a registered investment adviser that offers investment advisory services to clients. Our advisory services include Comprehensive Wrap Portfolio Management and Financial Planning & Consulting. If you open an advisory account with our firm, we’ll meet with you to understand your current financial situation, existing resources, goals, and risk tolerance. Based on what we learn, we’ll recommend a portfolio of investments that is monitored at least quarterly, and if necessary, rebalanced to meet your changing needs, stated goals and objectives. We’ll offer you advice on a regular basis and contact you at least quarterly to discuss your portfolio.
You can select in our agreement whether we are allowed to buy and sell investments in your account without asking you in advance (“discretion”) or buy and sell investments in your account only after receiving your permission (“non-discretion”). If you select non-discretion, you make the ultimate decision regarding the purchase or sale of investments. Any limitations will be described in the signed advisory agreement. We will have discretion or non-discretion until the advisory agreement is terminated by you or our firm.
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.
Financial Planning & Consulting is included in our Comprehensive Wrap Portfolio Management service for no additional fee. Financial Planning & Consulting is also offered as a standalone service for a flat or hourly fee. 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 and Item 5 of our Wrap Brochure, which are available online at www.adviserinfo.sec.gov/firm/brochure/166372.
Questions to Ask Us: 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 those qualifications mean?
WHAT FEES WILL I PAY?
You will be charged an ongoing quarterly fee based on the value of the investments in your account. Our maximum annual fee for Comprehensive Wrap Portfolio Management is 3.00%. The more assets you have in your advisory account, the more you will pay us. We therefore have an incentive to increase the assets in your advisory account in order to increase our fees. Our 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. Our firm’s fees will be automatically deducted from your advisory account, which will reduce the value of your advisory account.
Our maximum flat fee is $5,000 and our hourly rate is $350 for our Financial Planning & Consulting service. We charge an upfront retainer when you sign an agreement and charge you when we provide a financial plan or consultation.
We pay the broker-dealer’s transaction fees charged to you for our Comprehensive Wrap Portfolio Management service. The fees for our wrap fee programs are therefore higher than a typical asset-based advisory fee.
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 separate account managers who will assist us with managing your account. If selected, they will charge you a fee, which will be described to you in their Form ADV and/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 and Item 4 of our Wrap Brochure, which are available online at www.adviserinfo.sec.gov/firm/brochure/166372.
Questions to Ask Us: Help me understand how these fees and costs may 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?
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 disclosure page (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 www.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. They have an incentive to recommend insurance products to you in order to increase their compensation.
For our wrap services, we pay the broker-dealer’s transaction fees charged to you for most types of assets. As a result, we have an incentive to limit trading in order to reduce the amount of the broker-dealer’s transaction fees that we will have to pay on your behalf.
Additional information about our conflicts of interest is in Item 10 of our Firm Brochure and Item 9 of our Wrap Brochure, which are available online at www.adviserinfo.sec.gov/firm/brochure/166372.
Questions to Ask Us: How might your conflicts of interest affect me, and how will you address them?
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
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.
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
No, our firm and financial professionals do not have any legal and disciplinary history to disclose. Visit www.investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals.
Questions to Ask Us: As a financial professional, do you have any disciplinary history? For what type of conduct?
ADDITIONAL INFORMATION
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 #166372. You may also contact our firm at 949-625-6800 to request a copy of this relationship summary and other up-to-date information.
Questions to Ask Us: 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?