Laraway Financial Advisors, Inc., doing business as LFA effective January 1, 2022, is an SEC- registered investment adviser based in St. Cloud, Minnesota. We are organized as a corporation under the laws of the State of Minnesota. We have been providing investment advisory services since 2001. Our firm was approved with the State of Minnesota 2001 and transitioned its registration to the SEC in 2004. Steven A. Laraway remains as our Founder and Secretary of the firm with our principal owners, Christopher Wayne and James Schmitz. Mr. Wayne is our President and CEO and Mr. Schmitz is our VP and COO. Ms. Kimberly Foster remains as our Chief Compliance Officer.
We provide our clients with a wide range of investment advisory services through our investment management programs, including discretionary and non-discretionary portfolio management, asset allocation services, financial planning, consulting, and selection and monitoring services. Our integrated suite of services may be offered to clients on an all-inclusive or individual basis. Please refer to the description of each investment advisory service listed below for information on how we tailor our advisory services based on an analysis of your individualized needs.
As used in this brochure, the words "we", "our" and "us" refer to LFA and the words "you", "your" and "client" refer to you as either a client or prospective client of our firm. Also, you may see the term Associated Person throughout this brochure. As used in this brochure, our Associated Persons are our firm's officers, employees, and all individuals providing investment advice on behalf of our firm.
Portfolio Management Services We offer discretionary and non-discretionary portfolio management services in accordance with your individual investment objectives. If you retain our firm for portfolio management services, we will meet with you to determine your investment objectives, risk tolerance, and other relevant information at the beginning of our advisory relationship. We will use the information we gather to develop a strategy that enables our firm to give you continuous and focused investment advice and to make investments on your behalf.
We will develop a personal investment policy for you and manage a portfolio based on that policy. For each client, our firm will create a portfolio of no-load, load-waived and front-load mutual funds and fixed income securities. We will allocate you assets among various investments taking into consideration the overall management style you selected. We will select mutual funds for your portfolio on the basis of any or all of the following criteria: the fund's performance history; the industry sector in which the fund invests; the track record of the fund's manager; the fund's investment objectives; the fund's management style and philosophy; and the fund's management fee structure. Portfolio weighting between funds and market sectors will be determined based on your individual needs and circumstances.
If you participate in our discretionary portfolio management services, we require you to grant our firm discretionary authority to manage your account. Discretionary authorization will allow our firm to determine the specific securities, and the amount of securities, to be purchased or sold for your account without your approval prior to each transaction. Discretionary authority is typically granted by the investment advisory agreement you sign with our firm, a power of attorney, or trading authorization forms. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased for your account) by providing our firm with your restrictions and guidelines in writing. If you enter into non-discretionary arrangements with our firm, we must obtain your approval prior to executing any transactions on behalf of your account. You have an unrestricted right to decline to implement any advice provided by our firm on a non-discretionary basis.
4 As part of our portfolio management services, we may use one or more sub-advisers to manage a portion of your account on a discretionary basis. The sub-adviser(s) may use one or more of their model portfolios to manage your account. We will regularly monitor the performance of your accounts managed by sub-adviser(s), and may hire and fire any sub-adviser without your prior approval. We may pay a portion of our advisory fee to the sub-adviser(s) we use; however, you will not pay our firm a higher advisory fee as a result of any sub-advisory relationships.
Asset Allocation Services Included with Portfolio Management We have established and currently manage five model portfolios, with each portfolio designed to meet particular investment goals suitable to a client's circumstances. Once the appropriate portfolio has been determined, it is continuously managed based on the portfolio's goal in combination with each client's individual needs. However, each client will have the opportunity to place reasonable restrictions on the types of investments to be held in the portfolio. For discretionary asset allocation accounts, we will ensure the following conditions are met and maintained: 1. We will manage your individual account on the basis of your financial situation and investment objectives and any reasonable investment restrictions you may impose; 2. We will obtain sufficient information from you to be able to provide individualized investment advice to you. At least annually, we will contact you to determine whether there have been any changes in your financial situation or investment objectives and whether you wish to impose investment restrictions or modify existing restrictions. On a quarterly basis we will request in writing that you notify our firm if there have been changes in your financial situation or investment objectives and whether you wish investment restrictions or modify existing restrictions. 3. We will be reasonably available to consult with you. 4. You will receive a quarterly statement that includes a description of all account activity; and, 5. Each client will retain certain indicia of ownership of the securities and funds in the account, i.e., the ability to withdraw securities, and vote securities, among others. Summary of Model Goals and Strategies Aggressive Growth – This model seeks growth of capital through investments in stocks, mutual funds and fixed income investments. The management of this portfolio is not concerned with current income and has little concern with volatility.
Long Term Growth – This model seeks growth of capital through investments in stocks, mutual funds and fixed income investments. Management of this model reflects the perspective on long term growth, with minimum concern for current income and some concern for volatility.
Balanced Growth – This model seeks growth of capital and some current income through investments in stocks, mutual funds and fixed income investments. Management of this portfolio is focused on building current income and is moderately concerned with volatility.
Conservative Growth and Income – This model seeks current income and some growth of capital through investments in stocks, mutual funds and fixed income investments. As the model's primary goal is current income with a secondary goal of growth, it reflects substantially heightened concern with volatility.
Capital Preservation and Income – This model seeks current income and safety through investments in fixed income assets. As our most conservative model, it reflects more extreme concern for market

volatility while safeguarding client capital.
5 Pension Consulting Services We provide the following advisory services separately or in combination. While the primary clients for these services will be pension, profit sharing and 401(k) plans, we will also offer these services as appropriate to individuals and trusts, estates and charitable organizations. Selection and Monitoring Services are comprised of four distinct services. Clients may choose to use any or all of these services. Investment Policy Statement Preparation – We will meet with you, in person or over the telephone, to determine your investment needs and goals. We will then prepare for you a written policy statement of those goals and the manner in which they will be achieved. Criteria for selecting investment vehicles and the procedures and timing intervals for monitoring investment performance are a part of the policy statement. Selection of Investment Vehicles – We will review mutual funds (index and managed funds) and determine which of these investments are appropriate for implementing your investment policy statement. The number of investments will be determined by you, based on your investment policy statement. Monitoring of Investment Performance – Your investments will be monitored using the procedures and timing intervals in the investment policy statement. We are not involved in the purchase or sale of these investments through this service, but we will supervise your portfolio and make recommendations to you as market conditions and your needs dictate. Employee Communications – For pension, profit sharing and 401(k) plan clients wherein there are individual accounts with participants exercising control over assets in their own account ("self-directed plans"), we also provide quarterly educational support and investment workshops designed for the Plan participants. We will work with you to determine the nature of the topics to be covered under the guidelines established in ERISA Section 404(c). The educational support and investment workshops will NOT provide Plan participants with individualized, tailored investment advice or individualized, tailored asset allocation recommendations.
Financial Planning Services We also offer investment advice and consulting in the form of a Financial Plan. If you engage us for financial planning services, you will receive a written report, providing you with a detailed financial plan designed to achieve your stated financial goals and objectives. In general, our financial plan may address any or all of the following areas of concern:
•Personal – Family records, budgeting, personal liability, estate information and financial goals.
•Tax and Cash Flow – Income tax and spending analysis and planning for past, current and future years. We will illustrate the impact of various investments on your current income tax and future tax liability.
•Death and Disability – Cash needs at death, income needs of surviving dependents, estate planning and disability income analysis.
•Retirement – Analysis of current strategies and investment plans to help you achieve your retirement goals.
•Investments – Analysis of investment alternatives and their effects on your portfolio. 6 If you retain our firm for financial planning services, we will meet with you to gather information about your financial circumstances and objectives through in-depth personal interviews. The information we gather includes your current financial status, future goals and attitude towards risk. As part of the financial planning engagement, we will ask you to complete a client questionnaire and to provide us with documents for our review. Once we review and analyze the information you provide to our firm, we will deliver a written plan to you, designed to help you achieve your stated financial goals and objectives. The financial plan can be prepared within 90 days of the contract date, provided that all the information needed to prepare the plan is promptly provided.
Financial plans are based on your financial situation at the time we present the plan to you, and on the financial information you provide to our firm. You must promptly notify our firm if your financial situation, goals, objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to implement the recommendations in the financial plan, we suggest that you work closely with your attorney, accountant, insurance agent, stockbroker or other financial professional. You are not obligated to implement the financial plan through any of our other investment advisory services. Moreover, you may act on our recommendations by placing securities transactions with any brokerage firm. If you choose to implement the recommendations contained in the plan, we suggest that you work closely with your attorney, accountant, insurance agent, and/or stockbroker.
Types of Investments We primarily offer advice on equity securities (stocks), corporate debt securities (bonds), and investment company securities (mutual funds and variable products). Additionally, we may advise you on any type of investment that we deem appropriate based on your stated goals and objectives. We may also provide advice on any type of investment held in your portfolio at the inception of our advisory relationship.
You may request that we refrain from investing in particular securities or certain types of securities. You must provide these restrictions to our firm in writing.
IRA Rollover Recommendations Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the following acknowledgment to you.
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 out 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 nomore than is reasonable for our services; and
•Give you basic information about conflicts of interest. 7 We benefit financially from the rollover of your assets from an ERISA account to an account that we manage or provide investment advice, because the assets increase our assets under management and our advisory fees. In contrast, we receive less or no compensation if assets remain in the current plan or are rolled over to another Company plan in which you may participate.
Assets Under Management As of December 31, 2023, we provide continuous management services for $268,520,000 in client assets on a discretionary basis, and $11,400,000 in client assets on a non-discretionary basis.