ADV Part 2A – Firm Brochure Page 5 Strata Wealth Advisors, LLC
Investment management:
As part of our Investment Management service, a portfolio is created for the client, consisting of
individual stocks, bonds, exchange traded funds (“ETFs”), options, mutual funds and other public and
private securities or investments. The client’s individual investment strategy is tailored to their specific
needs and may include some or all of the previously mentioned securities. Portfolios will be designed to
meet a particular investment goal, determined to be suitable to the client’s circumstances. Once the
appropriate portfolio has been determined, portfolios are continuously and regularly monitored, and as
necessary, rebalanced based upon the client’s individual needs, stated goals and objectives.
In certain cases, our firm may utilize the sub-advisory services of a third-party investment advisory
firm to aid in the implementation of an investment portfolio. Before selecting a firm or individual, our
firm will ensure that the chosen party is properly licensed or registered.
Financial Planning & Consulting:
Our firm provides a variety of standalone financial planning and consulting services to clients based
upon an analysis of current situation, goals, and objectives. Financial planning services typically
involve preparing a financial plan or rendering recommendations through a financial consultation for
clients based on the client’s financial goals and objectives. This planning or consulting may encompass
Business and Personal Financial Planning, Investment Planning, Retirement Planning, Estate
Planning, Charitable Planning, Education Planning, Corporate and Personal Tax Planning, Cost
Segregation Studies, Corporate Structure, Real Estate Analysis, Mortgage/Debt Analysis, Insurance
Analysis, and Lines of Credit Evaluation.
Financial plans rendered to clients usually include general recommendations for a course of activity
or specific actions to be taken by the clients. Implementation of the recommendations will be at the
discretion of the client and Strata may assist with this implementation if agreed upon by the client.
Our firm provides clients with a summary of their financial situation and recommendations for
financial planning engagements. Assuming that all the information and documents requested from
the client are provided promptly, plans or consultations are typically completed within 6 months to 1
year of the client signing a contract with our firm.
Cash Management Program:
We also offer a cash management program which is made available to certain clients with cash
positions earmarked for a specific non-investment purpose or maintained separately as an emergency
fund. Our cash management services are focused on principal preservation and invest in treasury bills,
money markets, and high-quality short-term bonds or bond-like investments and are designed to
meet clients' liquidity and cash flow needs. The administrative fee charged for this service is separate
from any fees assessed on the investment portfolio and shall be billed at a flat rate of 0.30% per
annum.
The above does not apply to the cash component maintained within our actively managed investment
strategy (the cash balances for which shall generally remain in the custodian designated cash sweep
account or money market), an indication from the client of a need for access to such cash, assets
allocated to an unaffiliated investment manager and cash balances maintained for fee billing
purposes.
ADV Part 2A – Firm Brochure Page 6 Strata Wealth Advisors, LLC
Retirement Plan Consulting:
Our firm provides retirement plan consulting services to employer plan sponsors on an ongoing basis.
Generally, such consulting services consist of assisting employer plan sponsors in establishing,
monitoring and reviewing their company's retirement plan. Retirement Plan Consulting services
typically include:
• Establishing an Investment Policy Statement – Our firm will assist in the development of a
statement that summarizes the investment goals and objectives along with the broad
strategies to be employed to meet the objectives.
• Investment Options – Our firm will work with the Plan Sponsor to evaluate existing
investment options and make recommendations for appropriate changes.
• Asset Allocation and Portfolio Construction – Our firm will develop strategic asset allocation
models to aid in developing strategies to meet investment objectives, time horizon, financial
situation and tolerance for risk.
• Investment Monitoring – Our firm will monitor the performance of the investments and
notify the client in the event of over/underperformance and in times of market volatility.
In providing services for retirement plan consulting, our firm does not provide any advisory services
with respect to the following types of assets: employer securities, real estate (excluding real estate
funds and publicly traded REITS), participant loans, non-publicly traded securities or assets, other
illiquid investments, or brokerage window programs (collectively, “Excluded Assets”). All retirement
plan consulting services shall be in compliance with the applicable state laws regulating retirement
consulting services. This applies to client accounts that are retirement or other employee benefit plans
(“Plan”) governed by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
If the client accounts are part of a Plan, and our firm accepts appointment to provide services to such
accounts, our firm acknowledges its fiduciary standard within the meaning of Section 3(21) or 3(38) of
ERISA as designated by the Retirement Plan Consulting Agreement with respect to the provision of
services described therein.
Limitations of Financial Planning and Non-Investment Consulting/Implementation Services:
As indicated above, to the extent requested by a client, we will generally provide financial planning
and related consulting services inclusive of its advisory fee as set forth in Item 5 below (exceptions
may occur based upon assets under management, special projects, etc. for which we may charge a
separate fee). However, neither we nor our investment adviser representatives assist clients with the
implementation of any financial plan, unless they have agreed to do so. We do not monitor a client’s
financial plan, and it is the client’s responsibility to revisit the financial plan with us, if desired.
Furthermore, although we may provide recommendations regarding non-investment related matters,
such as estate planning and tax planning, we do not serve as an attorney or accountant, and no portion
of our services should be construed as legal or accounting services. Accordingly, we do not prepare
estate planning documents or tax returns.
To the extent requested by a client, we may recommend the services of other professionals for certain
non-investment implementation purposes (e.g., attorneys, accountants, insurance agents, etc.),
including certain representatives of ours in their individual capacities as licensed insurance agents
(See disclosure at Item 10.C below). The client is under no obligation to engage the services of any
such recommended professional. The client retains absolute discretion over all such implementation
decisions and is free to accept or reject any recommendation from us and/or our representatives. If
the client engages any recommended unaffiliated professional, and a dispute arises thereafter relative
to such engagement, the client agrees to seek recourse exclusively from and against the engaged
ADV Part 2A – Firm Brochure Page 7 Strata Wealth Advisors, LLC
professional. At all times, the engaged licensed professional(s) (e.g., attorney, accountant, insurance
agent, etc.), and not us, shall be responsible for the quality and competency of the services provided.
Non-Discretionary Service Limitations: Clients that determine to engage us on a non-discretionary
investment advisory basis must be willing to accept that we cannot effect account transactions
without obtaining prior consent to any such transaction(s) from the client. Thus, in the event of a
market correction during which the client is unavailable, we will be unable to effect any account
transactions (as it would for its discretionary clients) without first obtaining the client’s consent.
Nonetheless, Strata shall be able to undertake rebalancing of existing positions in the Account without
receiving prior consent from the client.
Use of Mutual and Exchange Traded Funds: Most mutual funds and exchange traded funds are
available directly to the public. Therefore, a prospective client can obtain many of the funds that may
be utilized by us independent of engaging us as an investment advisor. However, if a prospective client
determines to do so, he/she will not receive our initial and ongoing investment advisory services. In
addition to our investment advisory fee described below, and transaction and/or custodial fees
discussed below, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g., management fees and other fund expenses).
eMoney Advisor Platform: We may provide our clients with access to an online platform hosted
by “eMoney Advisor” (“eMoney”). The eMoney platform allows a client to view a list of their assets,
including certain assets that we
do not manage (the “Excluded Assets”). We do not provide
investment management, monitoring, or implementation services for the Excluded Assets. Unless
otherwise specifically agreed to, in writing, our service relative to the Excluded Assets is limited to
reporting only. Therefore, we shall not be responsible for the investment performance of the
Excluded Assets. Rather, the client and/or their advisor(s) that maintains management authority
for the Excluded Assets, and not us, shall be exclusively responsible for such investment allocation
and performance. Without limiting the above, we shall not be responsible for any implementation
error (timing, trading, etc.) relative to the Excluded Assets. The client may choose to engage us to
manage some or all of the Excluded Assets pursuant to the terms and conditions of an advisory
agreement between us and the client.
The eMoney platform also provides access to other types of information and applications including
financial planning concepts and functionality, which should not, in any manner whatsoever, be
construed as services, advice, or recommendations provided by us. Finally, we shall not be held
responsible for any adverse results a client may experience if the client engages in financial planning
or other functions available on the eMoney platform without our assistance or oversight.
Portfolio Activity: We have a fiduciary duty to provide services consistent with the client’s best
interest. As part of our investment advisory services, we will review client portfolios on an ongoing basis
to determine if any changes are necessary based upon various factors, including, but not limited to,
investment performance, fund manager tenure, style drift, account additions/withdrawals, and/or a
change in the client’s investment objective. Based upon these factors, there may be extended periods of
time when we determine that changes to a client’s portfolio are neither necessary nor prudent. Clients
nonetheless remain subject to the fees described in Item 5 below during periods of account inactivity.
Cash Positions: We continue to treat cash as an asset class. As such, unless determined to the contrary
by us, all cash positions (money markets, etc.) shall continue to be included as part of assets under
management for purposes of calculating our advisory fee. Depending upon current yields, at any point
in time, our advisory fee could exceed the interest paid by the client’s money market fund.
ADV Part 2A – Firm Brochure Page 8 Strata Wealth Advisors, LLC
Retirement Rollovers-Potential for Conflict of Interest: A client or prospective client 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) roll
over 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). If we recommend that a client
roll over their retirement plan assets into an account to be managed by us, such a recommendation
creates a conflict of interest if we will earn new (or increase our current) compensation as a result of
the rollover. If we provide a recommendation as to whether a client should engage in a rollover or not,
we are acting as a fiduciary 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.
No client is under any obligation to roll over retirement plan assets to an account managed by us.
Client Obligations: In performing our services, we shall not be required to verify any information
received from the client or from the client’s other professionals and are expressly authorized to rely
thereon. Moreover, each client is advised that it remains their responsibility to promptly notify us if
there is ever any change in their financial situation or investment objectives for the purpose of
reviewing, evaluating or revising our previous recommendations and/or services.
Cybersecurity Risk: The information technology systems and networks that we and our third-party
service providers use to provide services to our clients employ various controls, which are designed
to prevent cybersecurity incidents stemming from intentional or unintentional actions that could
cause significant interruptions in our operations and result in the unauthorized acquisition or use of
clients’ confidential or non-public personal information. We and Clients are nonetheless subject to the
risk of cybersecurity incidents that could ultimately cause them to incur losses, including for example:
financial losses, cost and reputational damage to respond to regulatory obligations, other costs
associated with corrective measures, and loss from damage or interruption to systems. Although we
have established procedures to reduce the risk of cybersecurity incidents, there is no guarantee that
these efforts will always be successful, especially considering that we do not directly control the
cybersecurity measures and policies employed by third-party service providers. Clients could incur
similar adverse consequences resulting from cybersecurity incidents that more directly affect issuers
of securities in which those clients invest, broker-dealers, qualified custodians, governmental and
other regulatory authorities, exchange and other financial market operators, or other financial
institutions.
Disclosure Statement: A copy of our written Brochure and Client Relationship Summary, as set forth
on Part 2 of Form ADV and Form CRS respectively, shall be provided to each client prior to or at the
time of execution of any advisory agreement.
*Use of Pontera Platform: Our firm uses an investment platform made available by Pontera
Solutions, Inc. (“Pontera”), a third-party online platform, to assist with management of clients’ “held-
away” accounts, including 401(k)s, 403(b)s, annuities, and 529 education savings plans. The Pontera
platform permits advisers to manage held-away assets, on discretionary basis, without having to
reflect that it has custody of such assets on Part 1 of Form ADV. Our firm leverages their Order
Management System to implement tax-efficient asset location and opportunistic rebalancing
strategies on behalf of the client. We periodically review the available limited investment options as
selected by the product provider in these accounts, monitor them, rebalance, and implement our
strategies taken into consideration the client’s related investment accounts managed by us.
ADV Part 2A – Firm Brochure Page 9 Strata Wealth Advisors, LLC
The advisory fee charged by our firm for the management of held-away assets is established in the
client’s Investment Advisory Agreement or Comprehensive Advisory Agreement. Other than the
advisory fee, clients do not pay any additional fee to Pontera or to our firm in connection with the use
of Pontera platform.
Tailoring of Advisory Services
Our firm offers individualized investment advice and management to our Investment Management
and Comprehensive Advisory Services clients. General investment advice may be offered to our
Financial Planning & Consulting and Retirement Plan Consulting clients. Each Investment
Management and Comprehensive Advisory Services client has the opportunity to place reasonable
restrictions on the types of investments to be held in the portfolio. Restrictions on investments in
certain securities or types of securities may not be possible due to the level of difficulty this would
entail in managing the account.
Participation in Wrap Fee Programs
Our firm does not offer or sponsor a wrap fee program.
Regulatory Assets Under Management
As of December 31, 2023, our firm manages a total of $795,489,375 worth of assets ($777,321,998 on
a discretionary basis and $18,167,377 on a non-discretionary basis).
Compensation for Our Advisory Services
Strata’s standard fee, based on a percentage (%) of the market value, is calculated from a fee schedule
ranging from 0.30% to 1.25% depending on Assets Under Management. The fees to be assessed will be
outlined in the Agreement to be signed by the Client. Annual fees shall be prorated and paid quarterly,
in advance, based on the market value of the Assets on the last business day of the previous quarter
(based upon beginning market value of initial engagement quarter). Fees will be deducted from client
account(s). In certain circumstances, our firm will agree to directly invoice the client. Unless otherwise
noted in writing, our firm bills on cash and cash equivalents. As part of this process, Clients understand
the following:
a) The client’s independent custodian sends statements showing the market values for each
security included in the Assets and all account disbursements, including the amount of the
advisory fees paid to our firm; and
b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
firm will send an invoice directly to the custodian.
Strata’s standard fee for the Comprehensive Advisory Agreement is the greater of the calculated fee
as outlined in the fee schedule within Exhibit A of the signed agreement or a fixed annual fee minimum
described below.