Client Relationship Summary
(Form CRS)
May 4, 2022
Wells Financial Management, LLC is registered with the Securities and Exchange Commission as an investment adviser and, as such, we provide advisory services rather than brokerage services. Brokerage and investment advisory services and fees differ and it is important for you, our client, to understand the differences. Additionally, free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing. This document is a summary of the services and fees we offer to "retail" investors, which are natural persons who seek or receive services primarily for personal, family, or household purposes. Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.
What investment services and advice can you provide me?
We offer Investment Portfolio Management and Financial Planning Services to retail investors. Detailed information regarding our services, fees and other disclosures can be found in our Form ADV Part 2A Items 4, 7, and 8.
Account Monitoring: If you open an investment account with our firm, as part of our standard service we will monitor your investments on a daily basis.
Investment Authority: We manage investment accounts on a discretionary basis whereby we will decide which investments to buy or sell for your account. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased or sold for your account) by providing our firm with your restrictions and guidelines in
writing.
Investment Offerings: We primarily offer advice on Mutual Funds, ETF's and individual stocks and bonds.
Account Minimums and Requirements: In general, we require a minimum account size to open and maintain an advisory account, which may be waived at our discretion.
>>> Key Questions to Ask Your Financial Professional
- Given my financial situation, should I choose an investment advisory service? Why or Why Not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education and other qualifications?
- What do these qualifications mean?
What Fees Will I Pay?
The following summarizes the principal fees and costs associated with engaging our firm for investment advisory services. For detailed information, refer to our Form ADV Part 2A, Items 5 and 6.
- For Investment Portfolio Management Services, we charge Asset Based Fees that are payable quarterly in advance. Since the fees we receive are asset-based (i.e. based on the value of your account), we have an incentive to increase your account value which creates a conflict especially for those accounts holding illiquid or hard-to-value assets;
- For Financial Planning Services we generally charge fixed fees that are payable as invoiced;
- Clients may pay other costs including: custodial fees; account maintenance fees; fees related to mutual funds and exchange-traded funds; transaction charges when purchasing or selling securities; and other product-level fees associated with your investments.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
>>> Key Questions to Ask Your Financial Professional
- Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
- Because our revenue is derived from asset-based fees, we have an incentive to grow your account as much as possible. This could cause us to take overly aggressive positions in conflict with your interests in an attempt to grow your account, or could incentivize us to inflate the valuations of illiquid investments held in your account.
Refer to our Form ADV Part 2A to help you understand what conflicts exist.
>>> Key Questions to Ask Your Financial Professional
- How might your conflicts of interest affect me, and how will you address them?
How do your financial professionals make money?
The financial professionals servicing your account(s) are compensated primarily in the form of a salary. Their compensation is based on the amount of client assets they service; and the revenue the firm earns from the person's services or recommendations.
Do you or your financial professionals have legal or disciplinary history?
No, our firm and our financial professionals currently do not have any legal or disciplinary history to disclose. Visit Investor.gov/CRS for a free and simple research tool.
>>> Key Questions to Ask Your Financial Professional
- As a financial professional, do you have any disciplinary history? For what type of conduct?
You can find additional information about your investment advisory services and request a copy of the relationship summary at
>>> Key Questions to Ask Your Financial Professional
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker-dealer?
- Who can I talk to if I have concerns about how this person is treating me?