Firm Description
Summit Financial Consulting LLC DBA Summit Financial Working With People You Trust,
("Summit Financial") is a Registered Investment Advisor with the Securities Exchange
Commission. Summit Financial is a portfolio management, advisory, and financial services
firm. Summit Financial also provides formal written financial plans that can provide
retirement income planning, investment planning, college planning, investment tax
planning, college planning, insurance planning, family planning, and business planning.
Summit Financial offered services to the public starting in 2003. The owner of Summit
Financial is Robert L. Wink, Jr.
Summit Financial primarily utilizes no-load mutual funds and exchange traded funds (ETF)
within its investment strategies for clients. These funds form the basis of model portfolios
designed by Summit Financial, specifically for the investment strategies and risk tolerances
of a particular client. The model portfolios run the gamut from conservative to aggressive
and include a mix of cash, bond and stock investments to serve a spectrum of clientele and
their investment needs and goals. For example, the Conservative portfolio is more
conservative in nature and normally holds 75% of its portfolio positions in bonds and
inverse bonds (depending upon interest rate fluctuations), and 25% in stocks. Such a
portfolio might be appropriate for a conservative client who is concerned about preservation
of their principal, or earning the interest income that a bond position traditionally affords.
At the other end of the investment spectrum, the Stock Rotation portfolio is the most
aggressive model, with a position traditionally holding 100% stocks and 0% in bonds and
currencies. Such a portfolio might be appropriate for an investor who is not adverse to risk,
and who might seek a greater return on their investment over a period of time. Note: Asset
allocation and diversification do not guarantee a profit, but are instead a tool to help manage
risk. Past performance cannot predict future performance.
Summit Financial concentrates its practice on preservation of principal for its clients, in that
a large percentage of Summit Financial clients are retirees or pre-retirees. The model
portfolios and their respective positions and makeup are derived from comprehensive
research, from sources such as Morningstar, Hedgeye Risk Management, Riskalyze, Ycharts,
Sherman Portfolios, All Star Charts, and Kimble Charting Solutions.
Summit Financial also offers insurance based product services including life insurance, long
term care insurance, disability insurance and annuities.
Summit Financial will tailor our advisory services to the individual needs of the client.
Through a thorough fact finding process, and taking advantage of our large portfolio of
services offered, Summit Financial aims to tailor our advisory services to the clients unique
wants and needs.
Summit Financial accomplishes this by asking the clients about past experiences with
brokers and the markets, as well as their risk tolerance. Summit Financial realizes each client
has unique wants and needs.
Other professionals (e.g., lawyers, accountants, tax preparers, insurance agents, etc.) are
engaged directly by the client on an as-needed basis and may charge fees of their own. For
example, tax preparation and to the extent your estate plan needs to be updated, the tax
preparer and/or attorney will bill the client separately. Conflicts of interest will be disclosed
to the client in the event they should occur.
Types of Advisory Services
Summit Financial provides investment supervisory services, also known as asset
management services, furnishes financial planning and investment advice through
consultations and referrals.
ASSET MANAGEMENT
Summit Financial offers discretionary direct asset management services to advisory clients.
Summit Financial will offer clients ongoing portfolio management services through
determining individual investment goals, time horizons, objectives, and risk tolerance.
Investment strategies, investment selection, asset allocation, portfolio monitoring and the
overall investment program will be based on the above factors. The client will authorize
Summit Financial discretionary authority to execute selected investment program
transactions as stated within the Investment Advisory Agreement.
When deemed appropriate for the client, Summit Financial may hire sub-advisors to manage
all or a portion of the assets in the client account. Summit Financial has full discretion to hire
and fire sub-advisors as they deem suitable. Sub-advisors will maintain the models or
investment strategies agreed upon between Sub-advisor and Summit Financial. Sub-
advisors execute all trades on behalf of Summit Financial in client accounts. Summit
Financial will be responsible for the overall direct relationship with the client. Summit
Financial retains the authority to terminate the Sub-advisor relationship at Summit
Financial’s discretion.
Summit Financial has also entered into a Co-Advisor relationship with Gradient Investments,
LLC (GI). Summit Financial will provide information to each client regarding the services
offered by GI as the portfolio manager. Summit Financial will assist the Client to determine
the appropriate model selection based on the Client’s investment objectives and risk
tolerance. Summit Financial will have full discretion on an ongoing basis to select suitable
models to maintain client’s risk tolerance. Summit Financial will share in the management
fees charged by GI as described in Item 5 of this brochure.
Orion Portfolio Solutions (Orion)
Summit Financial may recommend that certain clients authorize the active nondiscretionary
management of a portion of their assets by and/or among certain independent investment
manager(s) either directly or through a program sponsored by Orion. The terms and
conditions under which the client shall engage Orion shall be set forth in separate written
agreements between (1) the client and the Registrant and (2) the client and Orion. Summit
Financial shall continue to render advisory services to the client relative to the ongoing
monitoring and review of account performance, for which the Summit Financial shall receive
an annual advisory fee which is based upon a percentage of the market value of the assets
being managed by Orion. Factors that the Registrant shall consider in recommending Orion
include the client’s stated investment objective(s), management style, performance,
reputation, financial strength, reporting, pricing, and research. The investment management
fees charged by Orion are exclusive of, and in addition to, the Registrant’s investment
advisory fee set forth above. In addition to the Summit Financial’s written disclosure
statement, the client shall also receive the written disclosure statement of Orion. Clients
should review Orion’s ADV Part 2 or Terms of Use for additional details regarding services.
Envestnet Fund Strategist Network
Summit Financial also has an agreement with Envestnet allowing Summit Financial to use
their Third Party Strategist network. Through this network, Summit Financial will have
access to numerous Third Party Money Managers and their portfolios. Using suitability forms
and questionnaires, Summit Financial will be able to determine which Third Party Manager
and Portfolio's should be used for a specific client. The client's funds will be sent to Charles
Schwab & Co., Inc.. Envestnet will execute the orders to invest in the selected portfolios. The
Third Party Money Manager will manage the underlying investments within the selected
portfolio. Summit Financial has discretion to change managers and portfolios if we feel they
aren't performing or no longer fit our client's needs. Fees are billed quarterly in advance.
Envestnet’s billing services calculates the fees for Envestnet, Summit Financial, the custody
fee, and the manager fee. Monthly prorates are run to capture additional deposits or
withdrawals and intra quarter account opening and closings.
C2P Capital Advisory Group d/b/a Valor Capital Management
Summit Financial also has an agreement with C2P Capital Advisory Group d/b/a Valor
Capital Management to provide sub-advisor services. Summit Financial will be responsible
for (1) assisting the sub-advised client in determining the initial and ongoing suitability for
Valor Capital Management investment portfolios and/or strategies; and (2) for
receiving/ascertaining the Client’s directions, notices and instructions and forwarding them
to Valor Capital Management. Valor Capital Management is authorized to exercise full
discretion and act for the assets invested in the Program in the same manner with the same
force and effect as Summit Financial might or could do with respect to such purchases, sales
or other transactions.
ASSETS HELD AWAY
Summit Financial offers asset advisory services to individuals on their 401Ks, 403bs, tax
sheltered annuities, and thrift savings plan investment assets. Summit Financial will work
with individuals on determining their individual investment goals, time horizons, objectives,
and risk tolerance. Investment strategies, investment selection, and asset allocation are
based on the above factors. The accounts will be monitored on a quarterly basis. This service
includes the option to meet face to face in our office, or set up a screen sharing session over
the internet to assist in making the necessary investment changes, quarterly.
ERISA PLAN SERVICES
Summit Financial provides service to qualified retirement plans including 401(k) plans,
403(b) plans, pension and profit sharing plans, cash balance plans, and deferred
compensation plans. Summit Financial may act as either a 3(21) or 3(38) advisor:
Limited Scope ERISA 3(21) Fiduciary. Summit Financial may serve as a limited
scope ERISA
3(21) fiduciary that can advise, help and assist plan sponsors with their investment decisions
on a non-discretionary basis. As an investment advisor Summit Financial has a fiduciary duty
to act in the best interest of the client. The plan sponsor is still ultimately responsible for the
decisions made in their plan, though using Summit Financial can help the plan sponsor
delegate liability by following a diligent process.
1. Fiduciary Services are:
• Provide non-discretionary investment advice to the Client about asset classes and
investment alternatives available for the Plan in accordance with the Plan’s investment
policies and objectives. Client will make the final decision regarding the initial selection,
retention, removal and addition of investment options. Summit Financial acknowledges
that it is a fiduciary as defined in ERISA section 3 (21) (A) (ii).
• Assist the Client in the development of an investment policy statement (“IPS”). The IPS
establishes the investment policies and objectives for the Plan. Client shall have the
ultimate responsibility and authority to establish such policies and objectives and to
adopt and amend the IPS.
• Provide non-discretionary investment advice to the Plan Sponsor with respect to the
selection of a qualified default investment alternative for participants who are
automatically enrolled in the Plan or who have otherwise failed to make investment
elections. The Client retains the sole responsibility to provide all notices to the Plan
participants required under ERISA Section 404(c) (5) and 404(a)-5.
• Assist in monitoring investment options by preparing periodic investment reports that
document investment performance, consistency of fund management and conformance
to the guidelines set forth in the IPS and make recommendations to maintain, remove or
replace investment options.
• Meet with Client on a periodic basis to discuss the reports and the investment
recommendations.
2. Non-fiduciary Services are:
• Assist in the education of Plan participants about general investment information and the
investment alternatives available to them under the Plan. Client understands Summit
Financial’s assistance in education of the Plan participants shall be consistent with and
within the scope of the Department of Labor’s definition of investment education
(Department of Labor Interpretive Bulletin 96-1). As such, Summit Financial is not
providing fiduciary advice as defined by ERISA 3(21)(A)(ii) to the Plan participants.
Advisor will not provide investment advice concerning the prudence of any investment
option or combination of investment options for a particular participant or beneficiary
under the Plan.
• Assist in the group enrollment meetings designed to increase retirement plan
participation among the employees and investment and financial understanding by the
employees.
Advisor may provide these services or, alternatively, may arrange for the Plan’s other
providers to offer these services, as agreed upon between Advisor and Client.
3. Summit Financial has no responsibility to provide services related to the following types of
assets (“Excluded Assets”):
• Employer securities;
• Real estate (except for real estate funds or publicly traded REITs);
• Stock brokerage accounts or mutual fund windows;
• Participant loans;
• Non-publicly traded partnership interests;
• Other non-publicly traded securities or property (other than collective trusts and similar
vehicles); or
• Other hard-to-value or illiquid securities or property.
Excluded Assets will not be included in calculation of Fees paid to Summit Financial on the
ERISA Agreement.
Specific services will be outlined in detail to each plan in the 408(b)2 disclosure.
FINANCIAL PLANNING AND CONSULTING
Summit Financial offers the following financial planning and consulting services: as outlined
below:
Full Financial Plan
Financial planning services include a complete evaluation of an investor's current and future
financial state and will be provided by using currently known variables to predict future cash
flows, asset values and withdrawal plans. Summit Financial will use current net worth, tax
liabilities, asset allocation, and future retirement and estate plans in developing financial
plans.
Typical topics reviewed in a financial plan may include but are not limited to:
• Financial goals: Based on an individual's or a family's clearly defined financial goals,
including funding a college education for the children, buying a larger home, starting
a business, retiring on time or leaving a legacy. Financial goals should be quantified
and set to milestones for tracking.
• Personal net worth statement: A snapshot of assets and liabilities serves as a
benchmark for measuring progress towards financial goals.
• Cash flow analysis: An income and spending plan determines how much can be set
aside for debt repayment, savings and investing each month.
• Retirement strategy: A strategy for achieving retirement independent of other
financial priorities. Including a strategy for accumulating the required retirement
capital and its planned lifetime distribution.
• Comprehensive
risk management plan: Identify all risk exposures and provide the
necessary coverage to protect the family and its assets against financial loss. The risk
management plan includes a full review of life and disability insurance, personal
liability coverage, property and casualty coverage, and catastrophic coverage.
• Long-term investment plan: Include a customized asset allocation strategy based
on specific investment objectives and a risk profile. This investment plan sets
guidelines for selecting, buying and selling investments and establishing benchmarks
for performance review.
• Tax reduction strategy: Identify ways to minimize taxes on personal income to the
extent permissible by the tax code. The strategy should include identification of tax-
favored investment vehicles that can reduce taxation of investment income.
• Estate preservation: Help update accounts, review beneficiaries for retirement
accounts and life insurance, provide a second look at your current estate planning
documents, and prompt you to update your plan when the legal environment changes
or you have major life events such as a marriage, death, or births. Additionally, offer
administrative and support services in connection with an estate plan. Services
include, but are not limited to; establishing accounts, navigation of online tools,
general inquiries, notary services, and coordination with staff of estate planning
service to help execute agreed services.
Consultation Services
This service is appropriate for clients who need assistance with individual topics. This is not
a detailed financial review and will not provide/result in a complete financial plan. Client
may select individual topics above, or other topics as may be deemed appropriate. The
individual topics that will be included in this service will be outlined and agreed upon on the
financial planning and consulting agreement.
If a conflict of interest exists between the interests of Summit Financial and the interests of
the Client, the Client is under no obligation to act upon Summit Financial’s recommendation.
If the Client elects to act on any of the recommendations, the Client is under no obligation to
effect the transaction through Summit Financial. Financial plans will be completed and
delivered inside of six months contingent upon timely delivery of all required
documentation.
REFERRAL ARRANGEMENTS
For legacy clients, Summit Financial acted as a referrer for third-party money managers to
manage client accounts. This is no longer offered to clients. In such circumstances, Summit
Financial receives referral fees from the third-party money manager. Summit Financial acts
as the liaison between the client and the third-party money manager in return for an ongoing
portion of the advisory fees charged by the third-party money manager. Summit Financial
helps the client complete the necessary paperwork of the third-party money manager,
provides ongoing services to the client, will provide the third-party money manager with any
changes in client status as provided to Summit Financial by the client and review the
quarterly statements provided by the third-party money manager. Summit Financial will
deliver the Form ADV Part 2, Privacy Notice and Referral Disclosure Statement of the third-
party money manager. Clients placed with third-party money managers will be billed in
accordance with the third-party money manager’s fee schedule which will be disclosed to
the client prior to signing an agreement. This is detailed in Item 5 of this brochure.
EDUCATIONAL WORKSHOPS AND SEMINARS
Summit Financial holds seminars and workshops to educate the public on different types of
investments and the different services they offer. The seminars are educational in nature and
no specific investment or tax advice is given. Summit Financial does not charge a fee for
attendance for these seminars.
Client Tailored Services and Client Imposed Restrictions
The goals and objectives for each client are documented in our client files. Investment
strategies are created that reflect the stated goals and objectives. Clients may impose
restrictions on investing in certain securities or types of securities.
Agreements may not be assigned without written client consent.
Wrap Fee Programs
Summit Financial does not sponsor any wrap fee programs.
Client Assets under Management
Summit Financial has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$98,328,110 $6,241,312 December 31, 2023