ryan financial advisory services, llc firm brochure - form ... · this brochure provides...

This brochure provides information about the qualifications and business practices of Ryan Financial Advisory Services, LLC. If you have any questions about the contents of this brochure, please contact us at (773) 775-6899 or by email at: [email protected]. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

Additional information about Ryan Financial Advisory Services, LLC is also available on the SEC’s website at www.adviserinfo.sec.gov. Ryan Financial Advisory Services, LLC’s CRD number is: 165916

7215 N. Olcott Avenue Chicago, Illinois, 60631

Phone: (773) 775-6899 Fax: (877) 712–6899

[email protected]

Registration does not imply a certain level of skill or training.

Version Date: 03/28/2016

Ryan Financial Advisory Services, LLC

Firm Brochure - Form ADV Part 2A

mailto:[email protected]

http://www.adviserinfo.sec.gov/

mailto:[email protected]

Ryan Financial Advisory Services, LLC has no material changes to report.

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Item 2: Material Changes

Item 1: Cover Page

Item 2: Material Changes ................................................................................................................................................................................................................................... i

Item 3: Table of Contents ............................................................................................................................................................................................................................... ii

Item 4: Advisory Business ................................................................................................................................................................................................................................ 1

A. Description of the Advisory Firm ................................................................................................................................................................................................... 1

B. Types of Advisory Services ................................................................................................................................................................................................................... 1

Financial Planning ................................................................................................................................................................................................................................. 1

Services Limited to Specific Types of Investments .................................................................................................................................................................... 5

C. Client Tailored Services and Client Imposed Restrictions ....................................................................................................................................................... 5

D. Wrap Fee Programs ................................................................................................................................................................................................................................ 6

E. Amounts Under Management ........................................................................................................................................................................................................... 6

Item 5: Fees and Compensation .................................................................................................................................................................................................................. 6

A. Fee Schedule .............................................................................................................................................................................................................................................. 6

Financial Planning Fees ...................................................................................................................................................................................................................... 6

Customized Financial Plans: ............................................................................................................................................................................................................. 6

B. Payment of Fees ...................................................................................................................................................................................................................................... 8

Payment of Financial Planning Fees ............................................................................................................................................................................................. 8

C. Clients Are Responsible For Third Party Fees .......................................................................................................................................................................... 8

D. Prepayment of Fees ................................................................................................................................................................................................................................ 9

E. Outside Compensation For the Sale of Securities to Clients .............................................................................................................................................. 9

Item 6: Performance-Based Fees and Side-By-Side Management .................................................................................................................................................... 9

Item 7: Types of Clients ................................................................................................................................................................................................................................... 9

Minimum Account Size ........................................................................................................................................................................................................................ 9

Item 8: Methods of Analysis, Investment Strategies, and Risk of Investment Loss ............................................................................................................ 9

A. Methods of Analysis and Investment Strategies ........................................................................................................................................................... 9

Methods of Analysis .............................................................................................................................................................................................................................. 9

Fundamental analysis .......................................................................................................................................................................................................................... 9

Technical analysis ................................................................................................................................................................................................................................... 9

Investment Strategies ......................................................................................................................................................................................................................... 10

B. Material Risks Involved............................................................................................................................................................................................................ 10

Methods of Analysis ........................................................................................................................................................................................................................... 10

Fundamental analysis ....................................................................................................................................................................................................................... 10

Technical analysis ................................................................................................................................................................................................................................ 10

Investment Strategies ......................................................................................................................................................................................................................... 10

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Item 3: Table of Contents

C. Risks of Specific Securities Utilized ..................................................................................................................................................................................... 10

Item 9: Disciplinary Information ............................................................................................................................................................................................................. 12

A. Criminal or Civil Actions ........................................................................................................................................................................................................ 12

B. Administrative Proceedings................................................................................................................................................................................................. 12

C. Self-regulatory Organization (SRO) Proceedings ...................................................................................................................................................... 12

Item 10: Other Financial Industry Activities and Affiliations .................................................................................................................................................... 12

A. Registration as a Broker/Dealer or Broker/Dealer Representative ...................................................................................................................... 12

B. Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor ..................... 12

C. Registration Relationships Material to this Advisory Business and Possible Conflicts of Interests .................................................. 12

D. Selection of Other Advisers or Managers and How This Adviser is Compensated for Those Selections ........................................ 12

Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal T r a d i n g ................................................................................ 13

A. Code of Ethics ............................................................................................................................................................................................................................. 13

B. Recommendations Involving Material Financial Interests ................................................................................................................................... 13

C. Investing Personal Money in the Same Securities as Clients...................................................................................................................................... 13

D. Trading Securities At/Around the Same Time as Clients’ Securities ................................................................................................................. 13

Item 12: Brokerage Practices ....................................................................................................................................................................................................................... 14

A. Factors Used to Select Custodians and/or Broker/Dealers.................................................................................................................................. 14

1. Research and Other Soft-Dollar Benefits ................................................................................................................................................................. 14

2. Brokerage for Client Referrals ......................................................................................................................................................................................... 14

3. Clients Directing Which Broker/Dealer/Custodian to Use ............................................................................................................................. 14

B. Aggregating (Block) Trading for Multiple Client Accounts ................................................................................................................................... 14

Item 13: Reviews of Accounts ................................................................................................................................................................................................................... 14

A. Frequency and Nature of Periodic Reviews and Who Makes Those Reviews ............................................................................................. 14

B. Factors That Will Trigger a Non-Periodic Review of Client Accounts ............................................................................................................. 15

C. Content and Frequency of Regular Reports Provided to Clients ........................................................................................................................ 15

Item 14: Client Referrals and Other Compensation ........................................................................................................................................................................ 15

A. Economic Benefits Provided by Third Parties for Advice Rendered to Clients (Includes Sales Awards or Other Prizes) ....... 15

B. Compensation to Non – Advisory Personnel for Client Referrals ............................................................................................................................ 15

Item 15: Custody ............................................................................................................................................................................................................................................. 15

Item 16: Investment Discretion .................................................................................................................................................................................................................. 15

Item 17: Voting Client Securities (Proxy Voting) ................................................................................................................................................................................. 16

Item 18: Financial Information ................................................................................................................................................................................................................... 16

A. Balance Sheet ............................................................................................................................................................................................................................... 16

B. Financial Conditions Reasonably Likely to Impair Ability to Meet Contractual Commitments to Clients ..................................... 16

C. Bankruptcy Petitions in Previous Ten Years ............................................................................................................................................................... 16

Item 19: Requirements for State Registered Advisers ....................................................................................................................................................................... 16

A. Principal Executive Officers and Management Persons; Their Formal Education and Business Background.............................. 16

B. Other Businesses in Which This Advisory Firm or its Personnel are Engaged and Time Spent on Those (If Any) ......................... 16

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C. How Performance-based Fees are Calculated and Degree of Risk to Clients ...................................................................................................... 17

D. Material Disciplinary Disclosures for Management Persons of this Firm ...................................................................................................... 17

E. Material Relationships That Management Persons Have With Issuers of Securities (If Any) .............................................................. 17

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Ryan Financial Advisory Services, LLC is a Limited Liability Company organized in the state of Illinois. The firm was formed in October of 2012, and the principal owner is Mary Kay Ryan.

Ryan Financial Advisory Services, LLC (hereinafter “RFAS”) offers the following

services to advisory clients:

Financial Planning

Customized Financial Plans:

The issues typically covered in the financial plan include cash flow planning and debt management, investment planning, income tax planning, risk management analysis, retirement planning, estate planning, education planning, and stock option analysis. The issues covered depend upon the client needs or requests. The first step in the process is to determine the scope of the financial plan, the complexity of the client’s

situation, and the timeframe for the plan preparation. This is accomplished via telephone calls, emails, in most instances, a face to face meeting with the prospective client, and a preliminary review of their documents. The preliminary meeting and document review is complimentary. Once this is complete, the planner makes a recommendation of what issues should be covered in the plan, an estimate of the total hours to complete the plan, the expected cost of the plan preparation and time frame for completion. Once the client decides to engage RFAS, the client is required to sign a client service agreement which specifies what will be covered in the financial plan, and the projected fee for the plan preparation. The plan preparation work includes entering data into one or more computer systems, phone calls and emails to the client regarding assumptions and data questions, generating reports, and preparing analysis, and projections. A meeting is held during the process with the client to confirm the preliminary financial snapshot, and to determine the client’s goals, objectives, risk

tolerance, and key assumptions for the projections and analysis. The financial plan is presented to the client in one or more meetings.

Cash Flow Planning & Debt Management starts by identifying the sources of all cash inflows and cash outflows. The cash inflows are categorized by type, such as wages, investment income, asset sales, and gifts received, etc. The cash outflows are broken down into expenses, investments, income taxes and one time expenditures, Expenses are further broken down into fixed expenses and discretionary expenses. Percentages are

Form ADV 2A Version: 03/28/2016

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B. Types of Advisory Services

A. Description of the Advisory Firm

Item 4: Advisory Business

computed for the various categories and the excess cash flow or cash flow deficit is

calculated. This information is presented on exhibits that show the current year information and then project it out for future years. The base case cash flow exhibits reflecting the current situation are then modified to determine the impact of paying off or refinancing the current debt and or adding new debt, if appropriate for the client. The information from these exhibits may be used to determine what expenses are out of normal range relative to client’s income level, what amount to recommend for an emergency fund, what is the client’s current spending level, what is available to save,

what is the current withdrawal rate from the investment portfolio, what amount of financing is appropriate for a home purchase, and what strategies to consider for the payoff debt, or the refinancing of debt. The figures and percentages accumulated during the cash flow planning process provide the information needed for many financial recommendations and provide a foundation for risk management analysis and also

retirement planning.

Investment Planning includes an analysis of the client’s current portfolio and

recommendations for an overall asset allocation for the portfolio. The recommendations are customized to reflect the choices the client have available to them in their retirement plans and when applicable, their concentrated low basis stock positions. The recommendations are based upon the client’s need for income, their plans for taking

withdrawals from the portfolio, their current and projected income taxes, their targeted return level, the expected duration of their investment portfolio and their risk tolerance. As part of the investment planning process, a discussion of the key concepts for portfolio construction occurs and illustration of the impact of taxes, inflation and costs on investment returns, and historical returns of the various asset classes are reviewed with the client. The asset allocation recommendations are provided for both retirement accounts as well as for taxable accounts.

Income Tax Planning starts with a review of the client’s prior year tax returns. Once that

is complete, tax projections are prepared for the current year and also the following 2 years. The projections are, based not only on the client’s current situation but also

planned changes in their life such as retirement, sale of a business, etc. Strategies are recommended to minimize the taxes payable for the client. Discussions of each strategy and how to accomplish the strategy occur during the planning process.

Risk Management Planning begins with a review of the client’s current policies to

determine the amount of the current coverage, and the cost and features of the current coverage. A summary is prepared of the insurance coverage and discussed with the client. The scope of work done with respect to Risk Management planning depends upon the client’s age, family situation, level of wealth and life style. An analysis may be prepared to determine the amount of disability insurance, life insurance, and long term care insurance needed and a property insurance coverage review is provided. A long term care insurance analysis usually will not be prepared for young clients with families, and disability analysis is not prepared for retired clients. Discussions include the amounts and types of insurance coverage needed on business partners and buy sell agreements for clients who are small business owners. Recommendations are made not


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only as to the amount of coverage needed, but also as to the types of coverage to purchase i.e. term versus permanent life insurance coverage, the types of features to buy for disability and long term care policies, and what coverage to buy from the client’s

employer versus individual policies.

Retirement Planning consists of developing projections of cash flow and wealth levels based upon various living expense levels, investment returns and retirement dates. The process involves discussing with the client what they anticipate their retirement living expense level and retirement date will be and the key assumptions to utilize. Data is gathered regarding the client’s current living expense level, projected retirement income from retirement plans and social security, current assets and liabilities, current savings level and current contributions to retirement plans. The client’s employee benefit plan

documents, estate planning documents and buy/sell agreements, if applicable, are reviewed

as part of the process. Projected outflows for the education expenses are factored in the projections. The base retirement case provides an estimate of the annual level of savings and rate of return on investments needed to retire at client’s targeted retirement living expense level and targeted retirement date. Additional projections are used to determine

the impact of modifying key assumptions and variables. During the retirement planning process, the impact of changing the amount of contributions to various qualified and non-

qualified retirement plans, various scenarios for monetizing the client’s interest in a closely

business if applicable, the impact of changing the client’s investment returns and what that means with respect to the asset allocation of the client’s investment portfolio is

discussed.

Estate Planning begins with a discussion of what the client wants to occur with respect to their assets after their death. Conversations include a discussion of the client’s goals

for addressing any special needs of the client’s loved ones as well as any distributions to

charities that they wish to fund after their death. Data is gathered with respect to the client’s assets, liabilities, life insurance coverage, account titling and beneficiary designations. A review is made of the client’s estate planning documents and the titling

of assets. Projected estate taxes are calculated based upon the current asset base and current estate planning documents. Computations are made of the amount of wealth available to the client’s loved ones and designated charities after the payoff of liabilities,

estate taxes and estate administration expenses. Flowcharts are prepared to illustrate

what will be distributed to the client’s loved ones and trusts. Additional flowcharts are prepared reflecting strategies that could be implemented to minimize estate taxes and the use of trusts, if appropriate to accomplish the client’s objectives. As part of the estate

planning process, the level of liquidity of the projected estate tax is discussed and the use of second to die insurance may be recommended. The estate planning process

addresses the issues and special strategies that are applicable to small business owners, if applicable.

Education Funding Planning starts with gathering data as to the current assets

earmarked for this goal, information as to the date the education expenses are expected to be begin, and the targeted annual education expense in today’s dollars. Projections

are prepared to determine the amount of capital needed to fund the goal, the amount of


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annual savings needed based upon various assumptions as to investment return and inflation. During the education funding planning process, the use of Section 529 and Coverdell accounts are discussed.

Stock Option Planning starts with a review of the option plan documents, grant letters, and beneficiary designations and ownership documents. An exhibit is prepared which provides a snapshot of the option portfolio by option type, vesting schedule, current

value, and estimated income taxes due on the exercise. Projections are made of the future value of the options based upon various assumptions as to when the options are exercised, the future stock price appreciation or depreciation, and expected income tax rates. Illustrations are prepared of various strategies for the exercise and timing of such strategies. The illustrations reflect the client’s parameters on when to exercise and other

aspects of the client’s personal circumstances such as the percentage of their wealth which is composed of the options, the percentage of the client’s wealth invested in the company stock, the client’s proximity to retirement, their tax situation and position in

the corporation.

The number of hours required to complete each of the financial planning modules will vary depending upon the complexity of the client’s situation. The financial planning agreement between the client and RFAS identifies the modules to be included in the plan and the projected hours and cost for completion.

Ongoing Implementation Services:

These services are offered to clients who have retained Ryan Financial Advisory Services to create their Financial Plan. RFAS works with the client’s existing team of advisors to

implement the recommendations contained in the client’s financial plan. Examples include collaborating with their investment managers to implement the asset allocation strategy, working with the client’s attorney to implement estate planning changes

requested by the client, collaborating with the client’s accountant on tax planning, and working with the client’s insurance agents to modify insurance coverage. Once the initial implementation is complete, RFAS works with the client on a continuing basis throughout

the year to help them stay on course with their plan. Saving and spending levels are computed and discussed with the client. Updates of the client’s net worth and

investment portfolio analysis are provided at least semiannually as part of this service. In addition, other sections of their plan are periodically updated as needed, including cash

flow projections and income tax projections. The client’s investment accounts are

reviewed and the performance is benchmarked and discussed with the client at least semiannually. RFAS reviews product proposals offered to the client by their investment

managers and insurance agents, and assists with employee benefit choices as requested by the client. Income tax projections are updated and relevant estate and income tax law changes are communicated to the client on an ongoing basis, as well. Guidance is provided with respect to strategies for gifting to family and charities. Assistance in selecting mortgage products and stock option exercise guidance is also provided upon request as part of this service.


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Financial Checkups:

This service is offered to clients who have previously engaged RFAS to prepare a financial plan. The client meets with or has a teleconference with the planner to discuss the changes in their lives since the plan was prepared and what their current goals and objectives are and to define the scope of the plan update. The client provides current data regarding their resources, debts, income and expenses, recent tax return and current estate documents. Once again, a determination is made of the issues to be addressed in the plan update and the client is provided with an estimate of the time needed for the project. The client signs a Service Agreement identifying the areas to be covered in the plan and the expected cost for the plan update work. The information provided by the client is entered into various computer systems, to generate reports, analysis and projections based upon the updated information. The plan recommendations are presented to the client at a meeting.

The final fee structure for financial planning services is documented in Exhibit II of the Financial Planning Agreement.

Services Limited to Specific Types of Investments

RFAS generally limits its investment advice to mutual funds, equities, bonds, fixed income, debt securities, ETFs, real estate, REITs, insurance products including annuities, and government securities. RFAS may use other securities as well to help diversify a portfolio when applicable.

RFAS offers the same suite of services to all of its clients. However, specific client financial plans and their implementation are dependent upon the client Investment Policy Statement which outlines each client’s current situation (income, tax levels, and

risk tolerance levels) and is used to construct a client specific plan to aid in the selection

of a portfolio that matches restrictions, needs, and targets.

The financial recommendations made are tailored to the client based upon their need for income, level of liquidity desired, their current level of income from employment, business interests and investments versus their living expenses level, their debt and support obligations, their income tax bracket, and level of knowledge with respect to investments.

Clients may impose restrictions in investing in certain securities or types of securities in accordance with their values or beliefs. However, if the restrictions prevent RFAS from properly servicing the client account, or if the restrictions would require RFAS to deviate from its standard suite of services, RFAS reserves the right to end the relationship.


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C. Client Tailored Services and Client Imposed Restrictions

A wrap fee program is an investment program where the investor pays one stated fee that includes management fees, transaction costs, fund expenses, and any other administrative fees. RFAS does not participate in any wrap fee programs.

RFAS only provides financial planning services to clients; there are no assets under management.

Financial Planning Fees

Customized Financial Plans:

Once the client decides to engage RFAS, the client is required to sign a client service agreement which specifies what will be covered in the financial plan, and the projected fee for the plan preparation. The fee is based on the estimated hours and is billed 50% at the commencement of the plan preparation and the remainder after presentation of the plan. The client is given a list of information to gather and furnish to the planner. The plan preparation work includes entering data into one or more computer systems, phone calls and emails to the client regarding assumptions and data questions, generating reports, and preparing analysis, and projections. A meeting is held during the process with the client to confirm the preliminary financial snapshot, and to determine the client’s goals, objectives, risk tolerance, and key assumptions for the

projections and analysis. The financial plan is presented to the client in one or more meetings.

The number of hours needed to create a financial plan is dependent upon the scope of the plan and the complexity of the client’s situation. The number of meetings held, the length of the meetings, and the amount of time required getting the data from the client, the amount of analysis needed, and the amount of follow-up work (calls, emails, and meeting) varies from client to client. The hourly charge for the Senior Planner time is $350. The minimum charge for this service is $7,500.

Clients are billed for the time spent by the Senior Planner creating the plan, developing recommendations as well as time spent in meetings and phone conversations related to their situation.


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A. Fee Schedule

Item 5: Fees and Compensation

E. Amounts Under Management

D. Wrap Fee Programs

In instances where the client is not able to or does not want to take the time to provide the data for the plan preparation in an organized fashion, they will be charged a fee for the hours spent by an administrative assistant to complete the data gathering and data organizing on their behalf. The hourly fee for the Financial Planning Assistant is $75.00. Clients will be billed for the time spent by the Financial Planning Assistant for house calls made to assist the client in setting up online access for their accounts. A discussion will be occurring with clients of the cost of using the Financial Planning Assistant before the appointment is made. The use of Financial Planning Assistant for the setup of online access will only be offered to clients who utilize Ryan Financial Advisory Service LLC for Implementation Services. The number of hours needed for an appointment with the Financial Planning Assistant will typically range from 1-3 hours.

Fixed fees will be offered exclusively to clients who utilize RFAS for Implementation services. The fixed fee for the calendar year will be based upon the hours spent on that client for the prior year but may be adjusted if the hours are expected to change materially in the current calendar year.

The hourly fee charged for services will be the same irrespective of whether the client is an individual or a corporation.

Fees are paid in in advance, but never more than six months in advance, with the remainder due upon presentation of the plan. Fees that are charged in advance will be refunded based on the prorated amount of work completed at the point of termination. The fees are negotiable and the final fee schedule will be attached as Exhibit II of the Financial Planning Agreement. Clients may terminate their contracts without penalty within five business days of signing the advisory contract.

The fee refunded will be the balance of the fees collected in advance minus the hourly rate times the number of hours of work that has been completed up to and including the day of termination.

Ongoing Implementation Services:

These services are offered to clients who have retained Ryan Financial Advisory Services to create their Financial Plan. Clients are charged a quarterly retainer in advance for this service. The quarterly retainer is based on the estimated hours that will be utilized during the course of the calendar year for phone calls & emails with the client and their advisory team, periodic account reviews and the hours needed for meeting prep and meetings. Annual reviews of time reports will be made to determine if an adjustment is needed to the retainer. Clients receive a catchup billing in the first quarter if previous year’s hours significantly exceed hours paid for via retainer. Special projects for implementation clients, such as divorce planning or estate administration assistance are billed separately and will be discussed and agreed upon before the project commences. In certain instances, the client may be billed a one-time setup charge for the hours spent by the Financial Planning Assistant to set their accounts up on the Data Aggregator system. If this is assistance is necessary, the fee will be discussed with the client in advance.


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Financial Checkups:

This service is offered to clients who have previously engaged RFAS to prepare a financial plan. The plan recommendations are presented to the client at a meeting. The fee is based on the estimated hours needed for the project and is billed 50% at the commencement of the plan update and the remainder after the plan update meeting.



Payment of Financial Planning Fees

All RFAS bills are invoiced directly to the client and are paid via check. RFAS does not accept cash or charge card payments, nor does it have the authority to debit client accounts for bills dues. All RFAS bills are due and payable within 30 days of the invoice date. RFAS may, at its discretion, charge simple interest at a rate of 12% per year on bills not paid within 30 days. This interest charge is called a finance charge.

Clients are responsible for the payment of all third party fees (i.e. custodian fees, brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged by RFAS. Please see Item 12 of this brochure regarding broker/custodian.


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C. Clients Are Responsible For Third Party Fees

B. Payment of Fees

RFAS collects fees in advance. Fees that are collected in advance will be refunded based on the prorated amount of work completed at the point of termination and the total days during the billing period. Fees will be returned within fourteen days to the client via mailed check.

Neither RFAS nor its supervised persons accept any compensation for the sale of securities or other investment products, including asset-based sales charges or services fees from the sale of mutual funds.

RFAS does not accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client.

RFAS generally provides investment advice to the following types of clients:

Individuals High-Net-Worth Individuals

Minimum Account Size

There is no account minimum.

Methods of Analysis

RFAS’s methods of analysis include fundamental analysis and technical analysis.

Fundamental analysis involves the analysis of financial statements, the general financial health of companies, and/or the analysis of management or competitive advantages.

Technical analysis involves the analysis of past market data; primarily price and volume.


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A. Methods of Analysis and Investment Strategies

Item 8: Methods of Analysis, Investment Strategies, and Risk of Investment Loss

Item 7: Types of Clients

Item 6: Performance-Based Fees and Side-By-Side Management

E. Outside Compensation For the Sale of Securities to Clients

D. Prepayment of Fees

Investment Strategies

RFAS uses long term trading, short term trading, margin transactions, and options writing (including covered options, uncovered options, or spreading strategies).

Investing in securities involves a risk of loss that you, as a client, should be prepared to bear.

Methods of Analysis

Fundamental analysis concentrates on factors that determine a company’s value and

expected future earnings. This strategy would normally encourage equity purchases in stocks that are undervalued or priced below their perceived value. The risk assumed is that the market will fail to reach expectations of perceived value.

Technical analysis attempts to predict a future stock price or direction based on market

trends. The assumption is that the market follows discernible patterns and if these patterns can be identified then a prediction can be made. The risk is that markets do not always follow patterns and relying solely on this method may not work long term.

Investment Strategies

Long term trading is designed to capture market rates of both return and risk. Frequent trading, when done, can affect investment performance, particularly through increased brokerage and other transaction costs and taxes.

Short term trading, margin transactions, and options writing generally hold greater risk and clients should be aware that there is a material risk of loss using any of those strategies.

Investing in securities involves a risk of loss that you, as a client, should be prepared to bear.

RFAS generally seeks investment strategies that do not involve significant or unusual risk beyond that of the general domestic and/or international equity markets. However, it will utilize margin transactions and options writing. Short sales, margin transactions, and options writing generally hold greater risk of capital loss and clients should be aware that there is a material risk of loss using any of those strategies.

Mutual Funds: Investing in mutual funds carries the risk of capital loss. Mutual funds

are not guaranteed or insured by the FDIC or any other government agency. You can lose money investing in mutual funds. All mutual funds have costs that lower investment returns. They can be of bond “fixed income” nature (lower risk) or stock “equity” nature (mentioned above).


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C. Risks of Specific Securities Utilized

B. Material Risks Involved

Equity investment generally refers to buying shares of stocks by an individual or firms

in return for receiving a future payment of dividends and capital gains if the value of the stock increases. There is an innate risk involved when purchasing a stock that it may decrease in value and the investment may incur a loss.

Treasury Inflation Protected/Inflation Linked Bonds: The Risk of default on these bonds

is dependent upon the U.S. Treasury defaulting (extremely unlikely); however, they carry a potential risk of losing share price value, albeit rather minimal.

Fixed Income is an investment that guarantees fixed periodic payments in the future

that may involve economic risks such as inflationary risk, interest rate risk, default risk, repayment of principal risk, etc.

Debt securities carry risks such as the possibility of default on the principal, fluctuation

in interest rates, and counterparties being unable to meet obligations.

Stocks & Exchange Traded Funds (ETF): Investing in stocks & ETF's carries the risk of

capital loss (sometimes up to a 100% loss in the case of a stock holding bankruptcy). Investments in these securities are not guaranteed or insured by the FDIC or any other government agency.

Real Estate funds face several kinds of risk that are inherent in this sector of the market.

Liquidity risk, market risk and interest rate risk are just some of the factors that can influence the gain or loss that is passed on to the investor. Liquidity and market risk tend to have a greater effect on funds that are more growth-oriented, as the sale of appreciated properties depends upon market demand. Conversely, interest rate risk impacts the amount of dividend income that is paid by income-oriented funds.

REITs have specific risks including valuation due to cash flows, dividends paid in stock rather than cash, and the payment of debt resulting in dilution of shares.

Precious Metal ETFs (Gold, Silver, Palladium Bullion backed “electronic shares” not

physical metal): Investing in precious metal ETFs carries the risk of capital loss.

Long term trading is designed to capture market rates of both return and risk. Due to

its nature, the long-term investment strategy can expose clients to various other types of risk that will typically surface at various intervals during the time the client owns the investments. These risks include but are not limited to inflation (purchasing power) risk, interest rate risk, economic risk, market risk, and political/regulatory risk.

Short term trading risks include liquidity, economic stability and inflation.

Margin transactions use leverage that is borrowed from a brokerage firm as collateral.

Options writing involve a contract to purchase or sell a security at a given price, not necessarily at market value, depending on the market.

Past performance is not a guarantee of future returns. Investing in securities involves a risk of loss that you, as a client, should be prepared to bear.


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There are no criminal or civil actions to report.

There are no administrative proceedings to report.

There are no self-regulatory organization proceedings to report.

Neither RFAS nor its representatives are registered as or have pending applications to become a broker/dealer or as representatives of a broker/dealer.

Neither RFAS nor its representatives are registered as or have pending applications to become a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor.

Neither RFAS nor its representatives have any material relationships to this advisory business that would present a possible conflict of interest.

RFAS does not utilize nor select other advisers or third party managers.


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D. Selection of Other Advisers or Managers and How This Adviser is Compensated for Those Selections

C. Registration Relationships Material to this Advisory Business and Possible Conflicts of Interests

B. Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor

A. Registration as a Broker/Dealer or Broker/Dealer Representative

Item 10: Other Financial Industry Activities and Affiliations

C. Self-regulatory Organization (SRO) Proceedings

B. Administrative Proceedings

A. Criminal or Civil Actions

Item 9: Disciplinary Information

We have a written Code of Ethics that covers the following areas: Prohibited Purchases and Sales, Insider Trading, Personal Securities Transactions, Exempted Transactions, Prohibited Activities, Conflicts of Interest, Gifts and Entertainment, Confidentiality, Service on a Board of Directors, Compliance Procedures, Compliance with Laws and Regulations, Procedures and Reporting, Certification of Compliance, Reporting Violations, Compliance Officer Duties, Training and Education, Recordkeeping, Annual Review, and Sanctions. Our Code of Ethics is available free upon request to any client or prospective client.

RFAS does not recommend that clients buy or sell any security in which a related person to RFAS or RFAS has a material financial interest.

From time to time, representatives of RFAS may buy or sell securities for themselves that they also recommend to clients. This may provide an opportunity for representatives of RFAS to buy or sell the same securities before or after recommending the same securities to clients resulting in representatives profiting off the recommendations they provide to clients. Such transactions may create a conflict of interest. RFAS will always document any transactions that could be construed as conflicts of interest and will always transact client business before their own when similar securities are being bought or sold.

From time to time, representatives of RFAS may buy or sell securities for themselves at or around the same time as clients. This may provide an opportunity for representatives of RFAS to buy or sell securities before or after recommending securities to clients resulting in representatives profiting off the recommendations they provide to clients. Such transactions may create a conflict of interest. RFAS will always transact client’s

transactions before its own when similar securities are being bought or sold.


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D. Trading Securities At/Around the Same Time as Clients’ Securities

C. Investing Personal Money in the Same Securities as Clients

B. Recommendations Involving Material Financial Interests

A. Code of Ethics

Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading

RFAS is not affiliated with any custodian or brokerage firm, nor will RFAS recommend a single custodian to clients. Clients may use the brokerage firm of their choosing to custody their assets.

1. Research and Other Soft-Dollar Benefits

RFAS receives no research, product, or services other than execution from a broker- dealer or third-party in connection with client securities transactions (“soft dollar

benefits”).

2. Brokerage for Client Referrals

RFAS receives no referrals from a broker-dealer or third party in exchange for using that broker-dealer or third party.

3. Clients Directing Which Broker/Dealer/Custodian to Use

RFAS allows clients to direct brokerage: however, RFAS may recommend custodians. However, RFAS does not make any decisions on which brokers or custodians will be used by the client.

RFAS does not make trades for clients.

Client accounts are reviewed at least quarterly by Mary Kay Ryan, Managing Member. All financial planning accounts are reviewed upon financial plan creation and plan delivery by Mary Kay Ryan, Managing Member.


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A. Frequency and Nature of Periodic Reviews and Who Makes Those Reviews

Item 13: Reviews of Accounts

B. Aggregating (Block) Trading for Multiple Client Accounts

A. Factors Used to Select Custodians and/or Broker/Dealers

Item 12: Brokerage Practices

Reviews may be triggered by material market, economic or political events, or by changes in client's financial situations (such as retirement, termination of employment, physical move, or inheritance).

Each client will receive at least quarterly from the custodian, a written report that details

the client’s account including assets held and asset value which will come from the

custodian.

RFAS does not receive any economic benefit, directly or indirectly from any third party for advice rendered to RFAS clients.

RFAS does not directly or indirectly compensate any person who is not advisory personnel for client referrals.

RFAS does not take custody of client accounts at any time. Clients will receive account statements from the custodian and should carefully review those statements.

RFAS does not have discretion over client accounts at any time.


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Item 16: Investment Discretion

Item 15: Custody

B. Compensation to Non – Advisory Personnel for Client Referrals

A. Economic Benefits Provided by Third Parties for Advice Rendered to Clients (Includes Sales Awards or Other Prizes)

Item 14: Client Referrals and Other Compensation

C. Content and Frequency of Regular Reports Provided to Clients

B. Factors That Will Trigger a Non-Periodic Review of Client Accounts

RFAS will not ask for, nor accept voting authority for client securities. Clients will receive proxies directly from the issuer of the security or the custodian. Clients should direct all proxy questions to the issuer of the security.

RFAS does not require nor solicit prepayment of more than $500 in fees per client, six months or more in advance and therefore does not need to include a balance sheet with this brochure.

Neither RFAS nor its management have any financial conditions that are likely to reasonably impair our ability to meet contractual commitments to clients.

RFAS has not been the subject of a bankruptcy petition in the last ten years.

RFAS currently has only one management person/executive officer; Mary Kay Ryan. Mary Kay Ryan’s education and business background can be found on the Supplemental ADV Part 2B form.

Mary Kay Ryan is not engaged in any investment-related business or occupation (other than this advisory firm).


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B. Other Businesses in Which This Advisory Firm or its Personnel are Engaged and Time Spent on Those (If Any)

A. Principal Executive Officers and Management Persons; Their Formal Education and Business Background

Item 19: Requirements For State Registered Advisers

C. Bankruptcy Petitions in Previous Ten Years

B. Financial Conditions Reasonably Likely to Impair Ability to Meet Contractual Commitments to Clients

A. Balance Sheet

Item 18: Financial Information

Item 17: Voting Client Securities (Proxy Voting)

RFAS does not accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client.

No management person at RFAS or RFAS has been involved in an arbitration claim or been found liable in a civil, self-regulatory organization, or administrative proceeding that is material to the client’s evaluation of the firm or its management.

Neither RFAS, nor its management persons, has any relationship or arrangement with issuers of securities.


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E. Material Relationships That Management Persons Have With Issuers of Securities (If Any)

D. Material Disciplinary Disclosures for Management Persons of this Firm

C. How Performance-based Fees are Calculated and Degree of Risk to Clients

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