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A. Acorn Wealth Advisors, LLC
Acorn Wealth Advisors, LLC (“Acorn Wealth” and/or “the firm”) is a Michigan limited liability
company. The firm is owned by Todd Tarantino (100%). The firm has been offering investment
advisory services since May 2014.
B. Advisory Services Offered
Acorn Wealth is an independent asset management and financial planning firm offering a
variety of financial services to individuals and high-net-worth individuals, trusts, corporations,
partnerships, pension and profit sharing plans, charitable organizations, tax exempt and other
legal entities. Acorn Wealth’s services include discretionary and non-discretionary asset
management services, financial planning, and recommendation of third-party managers.
B.1. Discretionary Asset Management Services
For its discretionary asset management services, Acorn Wealth receives a limited power of
attorney to effect securities transactions on behalf of its clients that include securities and
strategies described in Item 8 of this brochure.
Acorn Wealth’s discretionary asset management services are predicated on the client's
investment objectives, goals, tolerance for risk, and other personal and financial circumstances.
Acorn Wealth will analyze each client's current investments, investment objectives, goals, age,
time horizon, financial circumstances, investment experience, investment restrictions and
limitations, and risk tolerance and implement a portfolio consistent with such investment
objectives, goals, risk tolerance and related financial circumstances Acorn Wealth’s objective is
to review the client’s tax, financial, and estate planning objectives and goals in connection with
the client’s investment objectives, goals, tolerance for risk, and other personal and financial
circumstances and make appropriate recommendations and implementation decisions. Acorn
Wealth may engage third-party service providers to assist with the tax and estate planning
portion of the services provided to clients. In addition, Acorn Wealth may utilize third-party
software to analyze individual security holdings and separate account managers utilized within
the client’s portfolio.
Acorn Wealth’s investment advisory services to clients take into account a client's personal
financial circumstances, investment objectives and tolerance for risk (e.g., cash-flow, tax and
estate). Acorn Wealth’s engagement with a client will include, as appropriate, the following:
Providing assistance in reviewing the client's current investment portfolio against the
client's personal and financial circumstances as disclosed to Acorn Wealth in response to
a questionnaire and/or in discussions with the client and reviewed in meetings with
Acorn Wealth.
Analyzing the client's financial circumstances, investment holdings and strategy, and
goals.
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Providing assistance in identifying a targeted asset allocation and portfolio design.
Implementing and/or recommending individual equity and fixed income securities,
mutual funds and ETFs.
Reporting to the client on a quarterly basis or at some other interval agreed upon with
the client, information on contributions and withdrawals in the client's investment
portfolio, and the performance of the client's portfolio measured against appropriate
benchmarks (including benchmarks selected by the client).
Proposing changes in the client's investment portfolio in consideration of changes in the
client's personal circumstances, investment objectives and tolerance for risk, the
performance record of any of the client's investments, and/or the performance of any
fund retained by the client.
If the client’s portfolio and personal circumstances, investment objectives, and tolerance
for risk make such advice appropriate, providing recommendations to hedge a client’s
portfolio through the use of derivative strategies, to generate additional income through
the use of covered call option writing strategies involving exchange listed or OTC
options, and/or to monetize or hedge concentrated stock positions.
In addition to providing Acorn Wealth with information regarding their personal financial
circumstances,
investment objectives and tolerance for risk, clients have the right to provide the
firm with any reasonable investment restrictions that should be imposed on the management of
their portfolio, and to promptly notify the firm in writing of any changes in such restrictions or in
the client's personal financial circumstances, investment objectives, goals and tolerance for risk.
On a quarterly basis, Acorn Wealth’s reports to clients will remind clients of their obligation to
inform the firm of any such changes or any restrictions that should be imposed on the
management of the client’s account. Acorn Wealth will also contact clients at least annually to
determine whether there have been any changes in a client's personal financial circumstances,
investment objectives and tolerance for risk.
Acorn Wealth may recommend third-party asset managers for appropriately suitable
clients. The client must enter into a separate advisory agreement with the third-party asset
managers. The client will be required to establish accounts at Schwab and provide trading
authorization to the third-party asset manager to effect trades on the client's behalf. Subject to
prior written authorization, Acorn Wealth, the third-party asset managers, and the custodian will
be responsible for deducting their fees from the client's account.
B.2. Financial Planning Services
Clients will receive a written or oral report (depending on the client’s preference) providing a
basic financial plan designed to help achieve their stated financial goals and objectives. Based
on the client’s needs, financial planning services may include (but are not limited to) the
following:
Preparation of a recommended asset allocation that serves to diversify the client's
portfolio among different categories of investments, such as domestic and international
small, medium, and large capitalization securities; corporate and government fixed
income (short-, intermediate-, and long-term maturities); emerging market securities (i.e.,
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foreign issuers); real estate investment trusts; and such other alternative asset categories
that are suitable in light of the client's investment goals, objectives, and risk tolerance.
Preparation of an investment policy statement setting forth the client’s investment plan,
with specific direction in terms of diversification requirements, tax issues, estate planning
issues, risk tolerance, retirement, and other identified objectives of the client, including a
targeted rate-of-return objective.
Preparation of a retirement plan that serves to identify whether the client is saving
enough and investing in a way that meets retirement objectives in light of the client's
financial circumstances and risk tolerance.
Preparation of cash flow projections to ensure that the client can meet daily living
expenses and obligations.
Insurance planning to meet the needs of the client, taking into account family, business,
and other financial objectives of the client.
Acorn Wealth gathers required information through in-depth personal interviews and
questionnaires. Information gathered includes a client's current financial status, investment
objectives, future goals, and attitudes toward risk. Related documents supplied by the client are
carefully reviewed, and a report is prepared covering one or more of the above-mentioned
topics as directed by the client.
C. Client-Tailored Services and Client-Imposed Restrictions
Each client’s account will be managed on the basis of the client’s financial situation and
investment objectives and in accordance with any reasonable restrictions imposed by the client
on the management of the account—for example, restricting the type or amount of security to
be purchased in the portfolio.
D. Wrap Fee Programs
Acorn Wealth does not participate in wrap fee programs. (Wrap fee programs offer services for
one all-inclusive fee.)
E. Client Assets Under Management
As of December 31, 2023, Acorn Wealth had $366,192,569 in discretionary assets under
management and $11,027,718 in non-discretionary assets under management.
Item 5: Fees and Compensation