A. Firm Information
ForthRight Wealth Management, LLC (“FRWM” or the “Advisor”) is a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”). The Advisor is organized as a Limited Liability Company (LLC)
under the laws of the State of Georgia, was founded in 2015.
FRWM is owned and operated by TJ Austreng, LLC, which is wholly owned by Anthony J. Austreng, Managing
Partner, Chief Financial Officer and Chief Compliance Officer; BP Johnston, LLC, which is wholly owned by Brian
P. Johnston, Managing Partner and Chief Investment Officer; JR Wills, LLC, which is wholly owned by Jeff R.
Wills, Managing Partner and Chief Operating Officer; and JJ Ellis, LLC, which is wholly owned by John J. Ellis,
Managing Partner and Chief Technology Officer. These individuals are the principal owners of FRWM. This
Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory
services provided by FRWM.
B. Advisory Services Offered
FRWM offers investment advisory services to individuals, high net worth individuals, trusts, estates and
businesses (each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. FRWM’s fiduciary commitment is further described in the Advisor’s Code of Ethics. For more
information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading.
Wealth Management Services
FRWM may provide Clients with wealth management services, which generally includes a broad range of
comprehensive financial planning and consulting services in connection with discretionary management of
investment portfolios. These services may also be offered on a stand-alone basis and are described below.
Investment Management Services - FRWM provides customized investment advisory solutions for its Clients.
This is achieved through continuous personal Client contact and interaction while providing discretionary and
non-discretionary investment management and related advisory services. As a discretionary investment adviser,
FRWM will have the authority to supervise and direct the portfolio without prior consultation with the client.
Clients who choose a non-discretionary arrangement must be contacted prior to the execution of any trade in the
account(s) under management. This may result in a delay in executing recommended trades, which could
adversely affect the performance of the portfolio. This delay also normally means the affected account(s) will not
be able to participate in block trades, a practice designed to enhance the execution quality, timing and/or cost for
all accounts included in the block. In a non-discretionary arrangement, the client retains the responsibility for the
final decision on all actions taken with respect to the portfolio. FRWM works closely with each Client to identify
their investment goals and objectives as well as risk tolerance and financial situation in order to create a portfolio
strategy. FRWM will then construct an investment portfolio, consisting of various investments, including but not
limited to mutual funds and/or exchange-traded funds (“ETFs”); individual stocks, bonds or option contracts. The
client’s portfolio will be constructed in an effort to meet the needs of the Client and in an effort to achieve the
Client’s investment goals. The Advisor may retain certain types of investments based on a Client’s legacy
investments based on portfolio fit and/or tax considerations.
FRWM will select, recommend and/or retain mutual funds on a fund-by-fund basis. Due to: specific custodial
and/or mutual fund company constraints; specific selling agreements between the custodian(s) and the mutual
fund and/or ETF –“exchange traded fund” providers; material tax consideration; and/or other factors, FRWM will
select, recommend and/or retain certain investments that may carry a higher internal expense than other share
classes offered by the investment provider. All investment costs are continuously evaluated and monitored by
FRWM and are all disclosed to the client. FRWM will work to select the lowest cost investment options that are
available to them/their clients with all of the aforementioned factors considered in an effort to keep investment
costs low and to work toward achieving the Client’s financial objectives and stated investment guidelines.
Page 5
FRWM’s investment strategy is primarily long-term focused, but the Advisor may buy, sell or re-allocate positions
that have been held for less than one year to meet the objectives of the Client or due to market conditions.
FRWM will construct, implement and monitor the portfolio based on the client’s goals, objectives, circumstances,
and risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable restrictions
on the types of investments to be held in their respective portfolio, subject to acceptance by the Advisor.
FRWM evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. FRWM may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. FRWM may recommend specific positions to increase sector or asset class weightings. The Advisor
may recommend employing cash positions as a possible hedge against market movement. FRWM may
recommend selling positions for reasons that include, but are not limited to, harvesting capital gains or losses,
business or sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the
position[s] in the portfolio, change in risk tolerance of the Client, generating cash to meet Client needs, or any
risk deemed unacceptable for the Client’s risk tolerance.
At no time will
FRWM accept or maintain custody of a Client’s funds or securities, except for the limited authority
as outlined in Item 15 - Custody. All Client assets will be managed within the designated account[s] at the
Custodian, pursuant to the terms of the advisory agreement. Please see Item 12 – Brokerage Practices.
Retirement Accounts – When deemed to be in the Client’s best interest, the Advisor will provide investment
advice to a Client regarding a distribution from an ERISA sponsored plan or to roll over the assets to an
Individual Retirement Accounts (“IRAs”), or recommend a similar transaction including rollovers from one ERISA
sponsored Plan to another, one IRA to another IRA, or from one type of account to another account (e.g.
commission-based account to fee-based account). In such instances, the Advisor will serve as an investment
fiduciary as that term is defined under The Employee Retirement Income Security Act of 1974 (“ERISA”) and/or
the Internal Revenue Code (“IRC”), as applicable, which are laws governing retirement accounts. Such a
recommendation creates a conflict of interest if the Advisor will earn a new (or increase its current) advisory fee
as a result of the transaction. No client is under any obligation to roll over a retirement account to an account
managed by the Advisor.
Use of Independent Managers – FRWM will recommend that Clients utilize one or more unaffiliated investment
managers or investment platforms (collectively “Independent Managers”) for all or a portion of a Client’s
investment portfolio, based on the Client’s needs and objectives. In certain instances, the Client may be required
to authorize and enter into an investment management agreement with the Independent Manager[s] that defines
the terms in which the Independent Manager[s] will provide its services. The Advisor will perform initial and
ongoing oversight and due diligence over each Independent Manager to ensure the strategy remains aligned
with Clients investment objectives and overall best interests. The Advisor will also assist the Client in the
development of the initial policy recommendations and managing the ongoing Client relationship. The Client,
prior to entering into an agreement with an Independent Manager, will be provided with the Independent
Manager's Form ADV Part 2A - Disclosure Brochure (or a brochure that makes the appropriate disclosures).
Financial Planning Services – FRWM offers financial planning and consulting services to clients in conjunction
with Investment Management Services. FRWM’s financial planning services are offered in several areas of a
Client’s financial situation, depending on their goals, objectives and financial circumstance and normally address
areas such as general cash flow planning, investment planning, retirement planning, insurance analysis,
corporate succession and education planning. The goal of this service is to assess the financial circumstances of
the client in order to more effectively develop the client’s Investment Plan. Financial Planning is typically not
offered as a stand-alone service or for a separate fee but is more often provided in conjunction with the
management of the portfolio.
A financial plan developed for, or financial consultation rendered to the Client will usually include general
recommendations for a course of activity or specific actions to be taken by the Client. For example,
recommendations may be made that the Client start or revise their investment programs, commence or alter
retirement savings, establish education savings and/or charitable giving programs.
Page 6
FRWM may also refer Clients to an accountant, attorney or other specialists, as appropriate for their unique
situation. For certain financial planning engagements, the Advisor will provide a written summary of the Client’s
financial situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may
not provide a written summary.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for investment management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of advisory fees paid to the Advisor. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects
to act on any of the recommendations made by the Advisor, the Client is under no obligation to implement the
transaction through the Advisor.
C. Client Account Management
Prior to engaging FRWM to provide investment advisory services, each Client is required to enter into one or
more agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor
and the Client. These services may include:
• Establishing an Investment Strategy – FRWM, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
• Asset Allocation – FRWM will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation and tolerance for risk for each Client.
• Portfolio Construction – FRWM will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
• Investment Management and Supervision – FRWM will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
FRWM does not manage or place Client assets into a wrap fee program.
E. Assets Under Management
As of February 7, 2023, FRWM manages $515,147,737 in Client assets, $509,247,784 of which are managed on
a discretionary basis and $5,899,953 on a non-discretionary basis. Clients may request more current information
at any time by contacting the Advisor.