Freedom Wealth Alliance (hereinafter “FWA” or the “firm”) is a registered investment adviser based in Brookfield,
Wisconsin. We are a limited liability company, organized under the laws of the state of Wisconsin. We have been
providing investment advisory services since 2014. Kurt R. Rozman is the principal owner of FWA.
As used in this Brochure, the term "Associated Person" refers to anyone from our firm who is an officer, an
employee, and all individuals providing investment advice on behalf of our firm. Where required, such persons are
properly registered as investment adviser representatives.
Our Associated Persons are restricted to providing services and charging fees based on the disclosures detailed in
this document and the agreement(s) signed by the Client with the firm. However, the exact services and fees
charged to a Client are dependent upon each Associated Person’s relationship with his or her Client and may vary
in scope and amount. Associated Persons are instructed to consider the individual needs of each Client when
recommending a service or a portfolio management platform. Investment strategies and recommendations are
tailored to the individual needs of each Client.
Currently, we offer the following investment advisory services, personalized for each individual Client:
• Financial Planning Services
• Full Service Wealth Management Services (Wrap and Non-Wrap Programs)
• Web Based Portfolio Management Services (Digital Portfolio Solutions)
• Referrals to Third Party Investment Advisers
• Pension Consulting Services
Financial Planning Services
FWA offers various financial planning related services, which assist Clients in the management of their financial
resources. Financial planning services are based upon an analysis of the Client’s individual needs beginning with
one or more information gathering consultations. Once the firm has collected and analysed all documentation
gathered during these consultations, FWA provides a written financial plan designed to achieve the Client’s
financial goals and objectives. FWA then assists Clients in developing a strategy for the successful management of
income, assets, and liabilities. In general, financial planning services may include any one or all of the following:
• Cash Flow Analysis – Assessment of present financial situation by collecting information regarding net
worth and cash flow statements, tax returns, insurance policies, investment portfolios, pension plans,
employee benefit statements, etc. The firm advises on ways to reduce risk; and, to coordinate and
organize records and estate information.
• Retirement Analysis – Identification of long-term financial and personal goals and objectives including
advice for accumulating wealth for retirement income or appropriate distribution of assets following
retirement. Tax consequences and implications are identified and evaluated.
• Insurance Analysis – Includes risk management associated with advisory recommendations based on a
combination of insurance types to meet your needs, e.g., life, health, disability, and long-term care
insurance. This will necessitate an analysis of cash needs of the Client’s family at death, income needs of
surviving dependents, and potential disability income needs.
• Portfolio Analysis/Investment Planning – Presentation of investment alternatives, including asset
allocation and its effect on the Client’s portfolio; evaluation of economic and tax characteristics of existing
investments as well as their suitability for the Client; and, identification and evaluation of tax
consequences and their implications.
• Estate Analysis – Advising Clients with respect to property ownership, distribution strategies, estate tax
reduction, and tax payment techniques.
The recommendations and solutions are designed to achieve the Client’s desired goals, subject to periodic
evaluation of the financial plan, which may require revision to meet changing circumstances. Financial plans are
based on your financial situation based on the information provided to the firm. We should be notified promptly of
any change to your financial situation, goals, objectives, or needs.
Clients can also request financial planning services that cover a specific area, such as retirement or estate planning,
asset allocation analysis, manager due diligence, and 401(k) platform due diligence. Clients may choose to accept
or reject our recommendations. If you decide to proceed with our recommendations, you may do so by engaging
us for investment advisory services or by using any advisory, brokerage, or insurance provider you choose.
Important Note: Information related to tax and legal consequences that is provided as part of the financial plan is
for informative purposes only. Clients are instructed to contact their tax or legal advisers for personalized advice.
Full Service Wealth Management Services
FWA provides broad-based wealth management services to Clients. At the start of the service, an Associated
Person will have one or more consultations with the Client to determine the Client’s investment objectives, risk
tolerance, and other relevant information (the “suitability information”). We will also use the information we
gather from our consultation(s) to create an investment plan. Clients participating in this program are also offered
a complementary planning meeting along with regular planning reviews and updates. FWA encourages clients to
work with the firm to obtain these planning services because the firm believes this planning service is beneficial in
achieving the Client’s long term financial goals. However, Clients are not obligated to utilize these planning
services.
FWA implements investment recommendations as part of its ongoing portfolio management service by developing
a strategy that enables us to give the Client continuous and focused investment advice. As part of our portfolio
management services, we customize an investment portfolio in line with the Client’s risk tolerance and investing
objectives. We can also invest assets using a predefined strategy, or one or more model portfolios developed by
our firm or third party advisers. Once we construct an investment portfolio or select a model portfolio, we will
monitor your portfolio’s performance on an ongoing basis, and will rebalance the portfolio as required by changes
in market conditions and/or the Client’s financial circumstances.
Our portfolio management services are offered on a discretionary or non-discretionary basis. Discretionary
portfolio management means we will make investment decisions and place buy or sell orders in your account
without contacting you for prior approval of each transaction. These decisions are made based upon your stated
investment objectives. You may impose reasonable restrictions on investing in certain securities, types of
securities, or industry sectors. Non-discretionary portfolio management service means that we must obtain your
approval prior to making any transactions in your account.
FWA does not recommend one particular type of security over other types of securities, but we do provide advice
on various types of securities, such as mutual funds, exchange-traded funds (“ETFs”), variable annuity subaccounts,
real estate investment trusts (“REITs”), equities, and fixed income securities. Additionally, we will provide advice
on existing investments you may hold at the inception of the advisory relationship or on other types of
investments for which you ask advice.
Asset allocation models diversified among investment styles and/or asset classes are developed and managed by
us based on research conducted by FWA. We also use portfolio models developed by third party investment
advisers. Some of our Associated Persons may also use customized portfolio models developed by them. Once the
Client portfolio is constructed, FWA provides continuous supervision of the portfolio as changes in the market
conditions and Client circumstances may require. Investments and allocations are determined based upon the
Clients’ predefined objectives, risk tolerance, time horizons, financial horizons, financial information, and other
various suitability factors. Further restrictions and guidelines imposed by Clients may affect the composition and
performance of a Client’s portfolio. As such, different Clients of our firm may have significant differences in their
asset allocation. For these reasons, performance of one Client’s portfolio might not be identical with another
Client’s even if both Clients have similar risk parameters. We review the Clients’ financial circumstances and
investment objectives on a regular basis and make adjustments to Clients’ portfolios or allocation models as may
be necessary in an effort
to achieve the desired results. At all times, our firm requires each Associated Person to
uphold their fiduciary duty by providing advice that in our judgement is in the Client’s best interest.
However we construct your investment portfolio, we will monitor your portfolio’s performance on a continuous
basis, and rebalance the portfolio whenever necessary, as changes occur in market conditions, your financial
circumstances, or both.
Portfolio Management Services - Wrap Fee Program
FWA is the portfolio manager and sponsor of the Freedom Wealth Alliance Wrap Fee Program. A wrap fee program
combines portfolio management, advisory services, and trade execution for a single fee. FWA, as portfolio
manager is responsible for the research, security selection, and implementation of transaction orders in the
Client's account. The transactions in the Client's account will be executed by and held at LPL Financial, LLC (“LPL”),
a FINRA-registered broker-dealer, member SIPC. The Client pays FWA an all-inclusive Wrap fee. FWA pays LPL a
portion of this fee for trade execution expenses. Detailed information about the Freedom Wealth Alliance Wrap
Fee Program and program fees is provided in the Form ADV Part 2A, Appendix 1 (Wrap Brochure) that is attached
to this Form ADV Part 2A Disclosure Brochure.
A minimum account value of $100,000 is generally required for wealth management services. In certain instances,
FWA may permit a lower minimum account size.
Web-Based Portfolio Management Services
Digital Portfolio Solutions
FWA provides portfolio management services through Institutional Intelligent Portfolios™, (“IIP” or “Program”) an
automated, online investment management platform sponsored by Charles Schwab (“Program Sponsor”). The IIP
offers an electronic algorithms platform designed to align Client portfolios with the Client’s investment objective
and risk tolerance using model portfolios. A Client may choose to invest in a portfolio that is either more or less
conservative or aggressive than is shown by the outcome of the initial online questionnaire. This program is
formally called Digital Portfolio Solutions, or “DPS.”
Under DPS, trading and rebalancing is determined by algorithms based on numerous model portfolios created by
FWA. The Program Sponsor provides FWA with the technology needed to automate activity with portfolios of
securities and acts in a discretionary capacity to the Client’s account. The portfolio account is opened at Charles
Schwab & Co. and Schwab will serve as the custodian of the assets in that account.
A Client does not have the ability to make trades in their Program account and restrictions on investments in
specific securities may not be possible due to some inherent limitations of the Program. A minimum account value
of $5,000 is generally required for the IIP. In certain instances, FWA may permit a lower minimum account size.
The Program is also further described in the Program Disclosure Brochure, which the Client will receive in the
online enrollment process from the Program Sponsor.
Recommendation of Third Party Investment Advisers
We may also recommend other third party investment advisers or programs to manage all or a portion of your
account. All third party investment advisers recommended by our firm must be registered as investment advisers
or exempt from registration requirements. Factors that we take into consideration when making our
recommendations include, but are not limited to, the following: the third party investment adviser’s performance,
methods of analysis, fees, your financial needs, investment goals, risk tolerance, and investment objectives. We
will periodically monitor the third party investment adviser’s performance to ensure its management and
investment style remains aligned with your investment goals and objectives.
The third party investment adviser may offer wrapped or non-wrapped pricing options. Wrap pricing structures
allow the Client to pay an all-inclusive fee for management, brokerage, clearance, custody, and administrative
services. In a non-wrap pricing structure, the third party investment adviser’s fee may be separate from the
advisory fee charged by FWA. Transaction costs may also be charged for the execution and clearance of advisory
transactions directed by such third party investment advisory services. A complete description of the programs and
services provided, account minimums, the amount of total fees, the payment structure, termination provisions and
other aspects of each program are detailed and disclosed in: i) the third party investment adviser’s Form ADV Part
2A; ii) the program wrap brochure (if applicable) or other applicable disclosure documents; iii) the disclosure
documents of the portfolio manager(s) selected; and/or, iv) the third party investment adviser’s account opening
documents. A copy of all relevant disclosure documents of the third party investment adviser and of the individual
portfolio manager(s) will be provided to anyone interested in these programs/managers.
Pension Consulting Services
FWA provides several pension consulting related services. While the primary Clients for these services will be
pension, profit sharing, and 401(k) plans, FWA will also offer these services, where appropriate, to individuals,
trusts, estates, and charitable organizations. Pension Consulting Services are comprised of the following
components. Clients may choose to use any or all of these services.
Investment Policy Statement Preparation (''IPS''):
FWA will meet with the Client (in person, over the telephone, or online) to determine an appropriate investment
strategy that reflects the plan sponsor's stated investment objectives for management of the overall plan. FWA
then prepares a written IPS detailing those needs and goals, including an encompassing policy under which these
goals are to be achieved. The IPS also lists the criteria for selection of investment vehicles as well as the procedures
and timing interval for monitoring of investment performance.
Selection of Investment Vehicles
FWA will create or review the plan’s investment lineup, primarily consisting of mutual funds (both index and
managed) and Clients will select the lineup that is most appropriate for their investment needs. The plan’s
investment lineup may also include individual equities, bonds, and other investment products. The number of
investments to be recommended will be determined by the plan, based on the plan’s stated goals.
Monitoring of Investment Performance
Client investments will be monitored and reviewed based on the procedures and timing intervals outlined in the
agreement with the Client. Where FWA has no access to Client account statements, the Client is instructed to
make such statements available to the firm. Although FWA will not be involved in any way in the purchase or sale
of these investments, FWA will make recommendations to the Client as market factors and the Client's needs
dictate.
Employee Communications
For pension, profit sharing and 401(k) plans where the individual account participant exercises control over assets
in their own account (hereinafter ''self-directed plans''), FWA also provides educational support designed for the
plan participants. The nature of the topics to be covered will be determined by FWA and the Client under the
guidelines established in Employee Retirement Income Securities Act (“ERISA”). Educational support services will
NOT provide plan participants with individualized, tailored investment advice or individualized, tailored asset
allocation recommendations.
Other pension consulting services are available on request. All of our pension consulting services, whether general
or customized, will be outlined in an agreement that shows the services that will be provided and the fees that will
be charged for those services.
In providing pension consulting services, our firm does not provide advice 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 ERISA and applicable state
laws. Our firm represents that it is not subject to any disqualification as set forth in ERISA. To the extent FWA
performs Fiduciary Services, FWA acts as a fiduciary of the plan as defined in Section 3(21) or 3(38) of ERISA.
Assets Under Management
As of December 31, 2022, we managed approximately $278,671,972 in Client assets on a discretionary basis and
approximately $1,138,562 in Client assets on a non-discretionary basis.