This Disclosure document is being offered to you by Vanguard Capital Wealth Advisors,
LLC (“Vanguard Capital” or “Firm”) about the investment advisory services we provide. It
discloses information about our services and the way those services are made available
to you, the client.
Our Firm is registered as an Investment Adviser and is owned by John Borcich, Vincent
Polivka, and Julia Youngblood. We are committed to helping clients build, manage, and
preserve their wealth, and to provide guidance that helps clients to achieve their stated
financial goals. We specialize in counseling our clients to behave in ways that preserve
and accrete wealth. We will offer an initial complimentary meeting upon our discretion;
however, investment advisory services are initiated only after you and Vanguard Capital
execute an Investment Management Agreement.
Investment Management Services
We manage advisory accounts on a discretionary basis. Once we determine a client’s
profile, income need, and investment plan, we execute the day-to-day transactions with
or without prior consent, depending on the client’s agreement with our Firm. Account
supervision is guided by the client’s written profile and investment plan. We may accept
accounts with certain restrictions if circumstances warrant. We primarily allocate client
assets among various equities, Exchanged Traded Funds (“ETFs”), mutual funds and debt
securities in accordance with their stated investment objectives and income needs.
In personal discussions with clients, we determine their date and dollar specific
objectives, time horizons, risk tolerance and liquidity and income needs. As appropriate,
we also review their prior investment history, as well as family composition and
background. Based on client needs and goals, we develop the client’s comprehensive
financial and investment plan. We then create and manage the client’s investments
based on their plan pursuant to achieving their goals. It is the client’s obligation to notify
us immediately if circumstances have changed with respect to their goals and income
needs.
Once we have determined the appropriate strategy for clients or client businesses and
executed the strategy, we will provide ongoing investment review and management
services. This approach requires us to periodically review client portfolios.
With our discretionary relationships, we will make changes to the portfolio, as we deem
appropriate. As a policy we rebalance client portfolios at least annually to keep the target
allocation intact. We tailor our advisory services to meet the needs of our clients and seek
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to ensure that your portfolio is managed in a manner consistent with those needs and
objectives. You will have the ability to leave standing instructions with us to refrain from
investing in particular industries or invest in limited amounts of securities.
Clients may engage us to advise on certain investment products that are not maintained
at their primary custodian, such as annuity contracts and assets held in employer
sponsored retirement plans and qualified tuition plans (i.e., 529 plans).
You are advised and are expected to understand that our past performance is not a
guarantee of future results. Certain market and economic risks exist that adversely affect
an account’s performance. This could result in capital losses in your account.
Consulting Services
We provide investment advice on isolated areas of concern such as estate planning,
real
estate, retirement planning, or any other specific topic. Additionally, we provide non-
securities advice related to estate planning, insurance, real estate, and annuities. In these
cases, you will be required to select your own investment managers, custodians, and
insurance companies to implement consulting recommendations. If you need brokerage
and/or other financial services, we will recommend one of several investment managers,
brokers, banks, custodians, insurance companies or other financial professionals
("Firms"). You must independently evaluate these Firms before opening an account or
transacting business and have the right to effect business through any firm you choose.
You have the right to choose whether to follow the consulting advice that we provide.
Disclosure Regarding Rollover Recommendations
We are fiduciaries under the Investment Advisers Act of 1940 and when we provide
investment advice to you regarding your retirement plan account or individual retirement
account, we are also 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. 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.
A client or prospect leaving an employer typically has four options regarding an existing
retirement plan (and may engage in a combination of these options): (i) leave the money
in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s
plan, if one is available and rollovers are permitted, (iii) rollover to an Individual
Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending
upon the client’s age, result in adverse tax consequences). Our Firm may recommend an
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investor roll over plan assets to an IRA for which our Firm provides investment advisory
services. As a result, our Firm and its representatives may earn an asset-based fee. In
contrast, a recommendation that a client or prospective client leave their plan assets with
their previous employer or roll over the assets to a plan sponsored by a new employer
will generally result in no compensation to our Firm. Our Firm therefore has an economic
incentive to encourage a client to roll plan assets into an IRA that our Firm will manage,
which presents a conflict of interest. To mitigate the conflict of interest, there are various
factors that our Firm will consider before recommending a rollover, including but not
limited to: (i) the investment options available in the plan versus the investment options
available in an IRA, (ii) fees and expenses in the plan versus the fees and expenses in an
IRA, (iii) the services and responsiveness of the plan’s investment professionals versus
those of our Firm, (iv) protection of assets from creditors and legal judgments, (v)
required minimum distributions and age considerations, and (vi) employer stock tax
consequences, if any. Our Firm’s Chief Compliance Officer remains available to address
any questions that a client or prospective client has regarding the oversight.
Wrap Fee Programs
We do not provide a Wrap Fee Program.
Assets
As of December 31, 2023, we managed $ 194,600,840 in client assets on a discretionary
basis. The firm does not manage any non-discretionary assets.