Alliance Wealth Advisors, LLC
Alliance Wealth Advisors, LLC, (“Alliance”), a Delaware limited liability company, was organized in 2017 to
provide wealth management and financial planning services to individual clients, and business owners as
well as investment and consulting services for Retirement Plans.
As of December 31, 2023, Alliance had the following Regulatory Assets Under Management:
• $363,348,705 in Discretionary Regulatory Assets Under Management;
• $61,956,140in Non-Discretionary Regulatory Assets Under Management; and
• $425,304,845 in Total Regulatory Assets Under Management.
Financial Planning
As wealth advisors, we tailor our investment advice for each client to address his/her financial goals,
objectives and risk tolerance. We endeavor to consider the client’s complete financial outlook when
making investment recommendations and planning for his/her future. Therefore, we may structure our
investment advice in view of any outside investments held by the client, considering each investment’s
effect on the client’s total portfolio. At the request of a client, we may perform due diligence and furnish
advice on current or potential outside investments or provide investment management services for
certain outside investments, which may include ongoing research and analysis, benchmarking and
rebalancing. Our financial planning service includes:
● Taking financial inventory (Personal balance sheet)
● Cash flow projections
● Capital allocation recommendations
● Retirement planning
● Goals based planning
● Education planning
● Insurance planning
● Estate planning & wealth transfer
● Charitable giving strategies
● Business succession planning
● Investor education
These services may be undertaken on a comprehensive or modular basis. Clients may impose reasonable
restrictions or mandates on the management of their accounts if we determine, in our sole discretion, the
conditions will not materially impact the performance of a portfolio strategy or prove overly burdensome
to the Firm’s management efforts.
Investment Management Program
As described in Item 8, Alliance offers a discretionary asset management programs known as the Alliance
Investment Management Program that utilizes Alliance asset management and passes through
transaction and other fees to the client.
For clients in the Alliance Investment Management Program, Alliance currently utilizes multiple strategies
as the basis for implementing a client’s investment plan. The strategies range from conservative,
moderate, moderately aggressive and aggressive, and each portfolio may be further customized using
varying degrees of asset categories. Each portfolio is then reviewed with the client prior to
implementation and periodically thereafter. Clients in the Alliance Investment Management Program may
impose reasonable restrictions or mandates on the management of their accounts if we determine, in our
sole discretion, the conditions will not materially impact the performance of a portfolio strategy or prove
overly burdensome to the Firm’s management efforts. In addition, we may modify our investment
strategy to accommodate special situations including but not limited to low basis stock, stock options,
legacy holdings, inheritances, closely held businesses, collectibles, or special tax situations. (Please refer
to Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss for more information.)
Clients in the Alliance Investment Management Program may authorize Alliance to periodically rebalance
their investments as necessary. For these clients Alliance will generally make appropriate adjustments by
buying and selling portfolio securities based on an assessment of relevant factors affecting the account,
including situation where the client’s asset allocation deviates by approximately 20% or more from the
desired strategy. Alliance will also periodically revise the strategies and make corresponding portfolio
adjustments.
It is each client’s responsibility to promptly notify us if there is ever any change in their financial or
personal situation or investment objectives for the purpose of reviewing our previous recommendations.
Clients should be aware that there will be periods of time when the firm determines that changes to a
client’s portfolio are neither necessary nor prudent, but clients will still be subject to the fees described
in their client agreement.
Retirement Plan Services
Alliance is a fiduciary under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
with respect to investment management services and investment advice provided to ERISA plan clients,
including ERISA plan participants. Alliance is also a fiduciary under the Internal Revenue Code (the “IRC”)
with respect to investment management services and investment advice provided to ERISA plans, ERISA
plan participants, IRAs and IRA owners. As such, Alliance is subject to specific duties and obligations under
ERISA and the IRC that include, among other things, prohibited transaction rules which are intended to
prohibit fiduciaries from acting on conflicts of interest. When a fiduciary gives advice in which it has a
conflict of interest, the fiduciary must either avoid or eliminate the conflict or rely upon a prohibited
transaction exemption (a “PTE”).
Services for Plan Participants
Alliance may establish a separate client relationship with one or more plan participants or beneficiaries.
Such client relationships develop in various ways, including, without limitation:
• as a result of a decision by a plan participant or beneficiary to purchase services from Alliance not
involving the use of plan assets;
• as part of an individual or family financial plan for which any specific recommendations concerning the
allocation of assets or investment recommendations relating to assets held outside of the plan; and/or
• through a rollover of an Individual Retirement Account ("IRA Rollover").
If a plan participant or beneficiary desires to affect an IRA Rollover from the plan to an account advised or
managed by Alliance, or if we make a recommendation to affect a rollover, we will have a conflict of
interest given that our IRA advisory fees can reasonably be expected to be higher than those we receive
in connection with the Retirement Plan Services due to the individualized nature of our IRA-related
services. To mitigate such conflicts, Alliance will disclose relevant information about the applicable fees
we charge for advising or managing an IRA prior to opening an account to receive the IRA rollover. The
decision as to whether to take a distribution from any retirement account rests solely with the individual
participant and beneficiaries
Department of Labor Acknowledgement of Fiduciary Duty - When we provide investment advice to you
regarding your retirement plan account or individual retirement account, we are 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. The way we make money creates some
conflicts with your interests, so we operate under a special rule that requires us to act in your best interest
and not put our interest ahead of yours. Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent
advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Non-Discretionary Retirement Plan Services under ERISA 3(21)
Alliance may provide non-discretionary services to a Retirement Plan that does not include the authority
to control management of the plan or management or disposition of its assets or have any discretionary
authority or discretionary responsibility in the administration of the plan. For these Plans Alliance is not a
"fiduciary", pursuant to ERISA except to the extent it renders "investment advice" to the plan within the
meaning of section 3(21) of ERISA and Department of Labor regulations there under. The participants are
responsible for any individual investment selections made under the plan. Under ERISA 3(21), Alliance
acts as the advisor making investment recommendations, but it is ultimately up to the plan sponsor to
decide whether and how to implement these recommendations. Furthermore, under ERISA 3(21), the
participants are responsible for any individual investment selections made under the plan.
Discretionary Retirement Plan Services under ERISA 3(38)
Alliance may serve as the investment manager for a Retirement Plan exercising discretionary authority
with regard to the mutual funds and other investment vehicles that it selects for investment under the
Plan. Under ERISA 3(38), these services allow the plan sponsor to transfer liability under his code section
for selecting, monitoring, and replacing the investment options to Alliance.
Option Strategies
For certain clients Alliance will utilize the following option strategies:
Covered Call Writing – Alliance will sell fully covered call options against stocks, with the intention of
generating income. In this strategy (i) the stock may be sold at any time prior to expiration, or (ii) the stock
will be sold at expiration, if the market price of the stock is greater than the option’s strike price. As a
result, the Client will have to sell the underlying stock at the strike price, potentially causing the Client to
miss out on price appreciation of the stock in excess of the strike price.
Cash Secured Uncovered Equity Put Writing- Alliance will sell put options fully covered by cash or available
margin in the Client’s account. with the intention of generating income. In this strategy (i) the Client may
be required to purchase the stock at any time prior to expiration, or (ii) must purchase the underlying
stock at the strike price if the market price of the stock is less than the option’s strike price, which may be
substantially above the current market price. The writer of a put bears the risk of a decline in the price of
the underlying stock - potentially to zero.
Purchases to Hedge – Alliance will purchase put options for a Client to hedge stocks held in the account
against the risk of a decline in the market price of those stocks. In this strategy the Client’s put option will
expire worthless if the price of the underlying stock (or index) is greater than the strike price at expiration.
Long Call or Put Purchase - Alliance will purchase put and/or call options (including index options that
settle in cash). In this strategy the Client’s profit or loss is usually determined by selling (closing) the
position. However, if the position is not closed or exercised, it may expire worthless on expiration date.
Spreads - Alliance will purchase or sell a combination of put or call options within the same class on the
same underlying security. Additionally, some index options carry the risk of early assignment without a
corresponding opportunity to exercise.
Fixed Income Portfolios
Alliance offers two fixed income portfolio programs to clients whose financial profile and risk tolerance
indicate that a portion of their investments should be allocated to individual fixed income securities.
Alliance Fixed Income Portfolio Program
In the Alliance Fixed Income Portfolio Program, Alliance is directly responsible for selecting and monitoring
the securities in the client’s fixed income portfolio. The securities are selected based on the client’s
financial profile and risk tolerance from the inventory available through the client’s custodian.
Consequently, the composition and size of portfolios manage directly by Alliance may be limited. Alliance
does not charge a separate fee for the Alliance Fixed Income Portfolio Program.
Third-Party Fixed Income Portfolio Program
In this program the client directly engages the services of an unaffiliated third-party portfolio manager to
assist with the management of the fixed income portfolio. Thereafter the unaffiliated third-party portfolio
manager will be responsible for building and maintaining a portfolio of fixed income securities consistent
with the client’s investment profile. This includes the purchase and sale of securities on a discretionary
basis and monitoring of portfolio positions in accordance with its investment criteria. Alliance works
alongside the Fixed Income Portfolio Manager to monitor the portfolio in accordance with the client’s
investment needs.
Pacific Investment Management Company LLC (“PIMCO”) is currently the only investment advisor in the
Third-Party Fixed Income Portfolio Program. PIMCO is a leading global investment management firm
founded in Newport Beach, California in 1971. They are an indirect subsidiary of Allianz SE ("Allianz"), a
global financial services company based in Germany, although its operations are separate from and
autonomous of Allianz. Clients interested in participating in the Alliance Fixed Income Portfolio will be
given a copy of PIMCO’s Form ADV Part 2A Disclosure Brochure, which they should read carefully for
additional information.
As described below in Item 5, Fees and Compensation, in Exhibit B of PIMCO’s Investment Management
Agreement and in PIMCO’s Form ADV Part 2A Disclosure Brochure, PIMCO charges a separate fee for its
management services that is in addition to the fee charged by Alliance for the assets managed by PIMCO.
Alliance Center for Investor Education
The Alliance Center for Investor Education was created with the goal of partnering with families,
businesses, organizations, and thought leaders in Northeastern Pennsylvania to help improve financial
outcomes for more people in our region. Our aim is to improve financial confidence and teach the core
foundations of personal finance in an engaging way. This will allow people to feel more empowered and
make better decisions with their money. For additional information please contact us at 570-961-1516.
