Item 4 – Advisory Business

 

Wightman Financial Network, LLC offers fee-only financial planning services to clients. Steven D. Wightman is the principal owner with no other subsidiaries or intermediate subsidiaries.

Wightman Financial Network, LLC specializes in personalized college planning services, investment planning, retirement planning, risk management, and financial planning. We specialize in working with women and high net-worth individuals. We do tailor our services to fit the individual needs of clients depending on their interest level. We have had clients who chose to focus on just one area of our services, i.e. college planning, and we are happy to help them reach their goals in any area they need our expertise in.

The Registrant estimates that most of the comprehensive financial planning services offered to clients will not involve investment advice. The areas of financial planning other than investment advice include consultations with a client’s attorneys, accountants and other sources; risk management analysis, budgeting, tax planning and estate planning and employee benefits. Once these matters are reviewed, a strategy is proposed and a financial plan draft is written and presented to a client for approval. At the client’s request, the Registrant then works with the client to implement the financial plan with the goal of improving his or her financial situation.

Wightman Financial Network, LLC provides advice in equity securities, warrants, corporate debt securities, commercial paper, Certificates of deposit, municipal securities, variable life insurance, variable annuities, mutual fund shares, and US government securities. He also offers options contracts on securities and commodities, futures contracts on tangibles and intangibles, and interests in investing in real estate and oil and gas interests.

As part of the financial planning process the Registrant will advise clients as to the appropriateness of a specific security or their portfolio as a whole. Such advice will take into account the information gathered by the Registrant, combined with information developed in a current financial plan, should one exist. Analysis is based upon the criteria outlined in a client’s stated goals, risks, investment time horizon, economic environment and valuation of securities using standard valuation models such as price over earnings or cash flow, tax efficiencies, and cash distributions verses price ratio analysis.

Our current assets under management are zero; this includes both discretionary and non-discretionary funds. This is as of March 1, 2011.

Item 5 – Fees and Compensation

 

Rolling Fee Schedule for Managed Clients

1.00% per annum of household net worth defined as a reasonable valuation of all assets minus all liabilities. Determination of net worth is computed by tallying all statements of assets and liabilities issued by independent parties such as appraisers, custodians, insurance companies, and taxing authorities.

How Managed Fees are Accounted

Fees will be billed to the custodian holding client’s investments and deducted from the client’s account and paid on a monthly basis in accordance with the client’s written instructions to the custodian. Management fees are computed based upon 1/12 of 1% of client’s household net worth in accordance with the above fee schedule. Monthly billing statements explaining how fees are computed are sent to clients for all managed accounts. Clients may elect to be billed directly by email and via PayPal, an electronic check and credit card payment system.

Fees

 

Fees are assessed for two distinct services:

1. The creation of a financial plan
2. Ongoing asset management and total wealth management services

1. For authoring a financial plan, Wightman Financial Network, LLC will charge a fee (fixed fee and/or hourly) for financial planning services and consulting services. Registrant’s fees are negotiable, but hourly fees generally range from $250 to $500, depending upon the level and scope of the services required. Registrant’s minimum hourly charge is $250.00. The first hour of consultation is $250.00 The Registrant will require a five thousand dollar ($5,000) retainer paid in advance of providing financial planning services. This retainer will cover the cost of analyzing a client’s financial situation and the authoring of a written financial plan and a planning meeting to fully review the written financial plan by clients. The Registrant charges a flat fee of $5,000 to write a comprehensive financial plan and he will provide monthly statements to clients. If a client’s financial plan is not completed within 150 days from the commencement of the engagement, funds held on account will be returned to the client, after a deduction for services already provided by the Registrant, but not yet billed and credited to the client’s account.

2. Asset management and total wealth management services are charged 1.00% per annum of household net worth defined as a reasonable valuation of all assets minus all liabilities. Determination of net worth is computed by tallying all statements of assets and liabilities issued by independent parties such as appraisers, custodians, insurance companies, and taxing authorities. A minimum $5,000 retainer is charged upon engagement. Thereafter clients may elect monthly, quarterly or annual billing periods. In addition to being invoiced and writing a check directly to Wightman Financial Network, LLC, they also may elect and authorize automatic payment from their accounts under management from their separate asset custodian on a monthly, quarterly, or annual payment schedule.

Financial planning clients and asset management clients may terminate their agreements with the Registrant upon thirty business day’s written notice delivered by certified mail. Fees for work already performed will be deducted from the retainer and the balance returned to the client within thirty days of notice of termination along with a statement of services, fees and any remaining balance or credit due.

Both asset management fees and hourly rates may be negotiable depending upon the complexity of an individual client’s case and/or portfolio. The Registrant further reserves the right to adjust the above referenced fees based upon individual client circumstances.

Clients may incur certain charges imposed by custodians, brokers, third party investment and other third parties such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange traded funds also charge internal management fees, which are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to Registrant’s fee, and Registrant shall not receive any portion of these commissions, fees, and costs.

 

The Registrant offers investment advisory services for clients. For clients who have committed to completing a comprehensive financial plan, or those who seek investment advice, the Registrant will assist clients in implementing their investment strategies. In addition, the Registrant will review managed accounts and suggest any needed changes at least on an annual basis based upon risk tolerances, goals, tax liabilities, and needs identified in the financial planning process. Hourly fees may be waived for clients with assets under management for all financial planning services provided beginning on the date clients engage for asset management services.

 

Item 12 further describes the factors that Wightman Financial Network, LLC considers in selecting or recommending broker-dealers for client transactions and determining the reasonableness of their compensation (e.g., commissions).

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

 

Wightman Financial Network, LLC does not charge any performance-based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client).

Item 7 – Types of Clients

 

Steven D. Wightman provides portfolio management services to individuals and high net worth individuals, and the ability to provide said services to corporate qualified pension and profit-sharing plans.

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

Investing in securities involves risk of loss that clients should be prepared to bear. Methods of analysis include charting, fundamental strategies, and technical strategies. Sources of information include financial newspapers and magazines; corporate rating services; Steele Mutual Fund Database, company press releases; annual reports, prospectuses, filing with the Securities and Exchange Commission; and research materials prepared by others.

 

Investment Strategies used to implement any investment advice given to clients include long term purchases (securities held at least a year), short term purchases (securities sold within a year), trading (securities sold within 30 days), hedging strategies including short sales, margin transactions, and option writing (including covered options, uncovered options, or spreading strategies).

Item 9 – Disciplinary Information

 

Registered investment advisers are required to disclose all material facts regarding any legal or disciplinary events that would be material to your evaluation of Steven D. Wightman or the integrity of Steven D. Wightman’s management. Steven D. Wightman has no information applicable to this Item.

Item 10 – Other Financial Industry Activities and Affiliations

 

The Registrant has established a non-exclusionary business relationship with TD Ameritrade and E-Trade, as an independent investment advisor. These organizations act as a custodian, where clients may establish accounts to hold securities such as stocks, bonds, insurance products, and no-load mutual funds. Both TD Ameritrade and E-Trade also offer retirement account custody and discount brokerage services. For continuing updates, clients may review services and products via their custodian’s website.

Item 11 – Code of Ethics

 

Steven D. Wightman has adopted a Code of Ethics for all supervised persons of the firm describing its high standard of business conduct, and fiduciary duty to its clients. The Code of Ethics includes provisions relating to the confidentiality of client information, a prohibition on insider trading, a prohibition of rumor mongering, restrictions on the acceptance of significant gifts and the reporting of certain gifts and business entertainment items, and personal securities trading procedures, among other things. All supervised persons at Wightman Financial Network, LLC must acknowledge the terms of the Code of Ethics annually, or as amended.

Steven D. Wightman anticipates that, in appropriate circumstances, consistent with clients’ investment objectives, it will cause accounts over which Wightman Financial Network, LLC has management authority to effect, and will recommend to investment advisory clients or prospective clients, the purchase or sale of securities in which Wightman Financial Network, LLC its affiliates and/or clients, directly or indirectly, have a position of interest. Wightman Financial Network’s employees and persons associated with Steven D. Wightman are required to follow Wightman Financial Network’s Code of Ethics. Subject to satisfying this policy and applicable laws, officers, directors and employees of [“ADVISER”] and its affiliates may trade for their own accounts in securities which are recommended to and/or purchased for Wightman Financial Network’s clients. The Code of Ethics is designed to assure that the personal securities transactions, activities and interests of the employees of Wightman Financial Network will not interfere with (i) making decisions in the best interest of advisory clients and (ii) implementing such decisions while, at the same time, allowing employees to invest for their own accounts. Under the Code certain classes of securities have been designated as exempt transactions, based upon a determination that these would materially not interfere with the best interest of Wightman Financial Network’s clients. In addition, the Code requires pre-clearance of many transactions, and restricts trading in close proximity to client trading activity. Nonetheless, because the Code of Ethics in some circumstances would permit employees to invest in the same securities as clients, there is a possibility that employees might benefit from market activity by a client in a security held by an employee. Employee trading is continually monitored under the Code of Ethics, and to reasonably prevent conflicts of interest between Steven D. Wightman and its clients.

Certain affiliated accounts may trade in the same securities with client accounts on an aggregated basis when consistent with Steven D. Wightman's obligation of best execution. In such circumstances, the affiliated and client accounts will share commission costs equally and receive securities at a total average price. Wightman Financial Network will retain records of the trade order (specifying each participating account) and its allocation, which will be completed prior to the entry of the aggregated order. Completed orders will be allocated as specified in the initial trade order. Partially filled orders will be allocated on a pro rata basis. Any exceptions will be explained on the Order.

Wightman Financial Network’s clients or prospective clients may request a copy of the firm's Code of Ethics by contacting Steven D. Wightman.

It is Wightman Financial Network’s policy that the firm will not affect any principal or agency cross securities transactions for client accounts. Steven D. Wightman will also not cross trades between client accounts. Principal transactions are generally defined as transactions where an adviser, acting as principal for its own account or the account of an affiliated broker-dealer, buys from or sells any security to any advisory client. A principal transaction may also be deemed to have occurred if a security is crossed between an affiliated hedge fund and another client account. An agency cross transaction is defined as a transaction where a person acts as an investment adviser in relation to a transaction in which the investment adviser, or any person controlled by or under common control with the investment adviser, acts as broker for both the advisory client and for another person on the other side of the transaction. Agency cross transactions may arise where an adviser is dually registered as a broker-dealer or has an affiliated broker-dealer.

The Registrant may from time to time take positions in his own account in publicly traded equity securities, bonds or mutual funds. It is possible that the registrant may recommend the purchase or sale of the same equity securities, bonds, or mutual funds with respect to his client’s positions. Under no circumstances will the Registrant hold positions in such securities in any magnitude so as to impact on the price or market movement of such securities. Furthermore, while it is extremely unlikely that any transaction the Registrant may consider effecting for his own account will have any impact upon the positions held by his clients, the Registrant will not engage in any trading activity ahead of or in a manner adverse to his client’s interest.

Item 12 – Brokerage Practices

 

The Registrant may suggest discount brokerages to clients with the goal of finding the best service or price. The Registrant has the authority to determine, without obtaining specific client consent, the securities to be bought and sold. The Registrant does not have the authority to determine, without obtaining specific client consent, the amount of the securities to be bought or sold, the broker or dealer to be used, and the commission rates to be paid.

Item 13 – Review of Accounts

 

Reviews are offered quarterly during the first year of services to each client and then at least annually thereafter. The reviews focus on actual risk and performance experienced and the degree to which investments are on track toward reaching client’s stated goals revealed in the first pre-engagement meeting with us. We review the Investment Policy Statement, IPS, annually and compare the asset allocation, the client situation, and the expected investment performance with the actual to determine if any adjustments are needed.

The only reviewer is Steven D. Wightman, CFP who reviews according to the prior criteria and for no more than 30 clients per year.

TD Ameritrade and Nebraska College Savings Plan send statements directly to clients at least quarterly unless the client opts out in accordance with procedures governed by the custodian and between the custodian and the client.

Item 14 – Client Referrals and Other Compensation

 

The Registrant is not paid cash or receives economic benefit from a non-client in connection with giving advice to clients. The Registrant has paid NAPFA and the FPA a fee to have the registrant’s website listed on the NAPFA and FPA websites. This fee is an annual fee and is not dependent upon the number of referrals received as a result of the listing. The only restriction regarding ongoing listing is continued membership in good standing with these organizations. In addition, several other web sites provide free links to the registrant.

Item 15 – Custody

 

Clients should receive at least quarterly statements from the broker dealer, bank or other qualified custodian that holds and maintains client’s investment assets. Steven D. Wightman urges you to carefully review such statements and compare such official custodial records to any account statements that we may provide to you. Our statements may vary from custodial statements based on accounting procedures, reporting dates, or valuation methodologies of certain securities.

Item 16 – Investment Discretion

 

Steven D. Wightman usually receives discretionary authority from the client at the outset of an advisory relationship to select the identity and amount of securities to be bought of sold. In all cases, however, such discretion is to be exercised in a manner consistent with the stated investment objectives for the particular client account.

When selecting securities and determining amounts, Steven D. Wightman observes the investment policies, limitations and restrictions of the clients for which he advises. For registered investment companies, Steven D. Wightman’s authority to trade securities may also be limited by certain federal securities and tax laws that require diversification of investments and favor the holding of investments once made.

Investment guidelines and restrictions must be provided to Steven D. Wightman in writing.

Item 17 – Voting Client Securities

 

As a matter of firm policy and practice, Steven D. Wightman does not have any authority to and does not vote proxies on behalf of advisory clients. Clients retain the responsibility for receiving and voting proxies for any and all securities maintained in client portfolios. Steven D. Wightman may provide advice to clients regarding the clients’ voting of proxies.

Item 18 – Financial Information

 

Registered investment advisers are required in this Item to provide you with certain financial information or disclosures about Steven D. Wightman’s financial condition. Steven D. Wightman has no financial commitment that impairs his ability to meet contractual and fiduciary commitments to clients, and has not been the subject of a bankruptcy proceeding.

Item 19 – Requirements for State-Registered Advisers

Steven D. Wightman, CPF born Feb. 28, 1947 is a Certified Financial Planner, registered with the Board of Certified Financial Planners, Washington DC. www.CFPBOARD.org. He graduated in October 1994. He also received a Bachelor of Science from Rivier College in Nashua NH in 1979.

 

BUSINESS BACKGROUND

1995 – 2003: Principal, Lexington Financial Management. Practicing fee-only financial planning since 1994. Wightman Financial Network, LLC is a Service Disabled Veteran Owned Business (SDVOB). The Registrant is a member of and currently serves as a trustee and Veteran Service Officer for the Lexington MA Veterans of Foreign Wars. He is also serving as a philanthropy chair of an advisory committee for the Hanscom Federal Credit Union and he has provided pro bono financial education to pre and post deployment National Guard and Reserve units from 2003-2010 under the jurisdiction of the Massachusetts Financial Planning Association, FPA. He is founder of Business Network International, Lexington, MA Chapter. He is a veteran member of Toastmasters International. He enjoys speaking on veteran and family financial planning concerns. He is a contributing author to Tips From The Top, Targeted Advice From America’s Top Money Minds, 2003, by Alpha Publishers and author of Women, Wealth and Wisdom, C. 2011. Professional memberships include the National Association of Personal Financial Advisors (NAPFA), www.NAPFA.org. Past affiliations include the Boston Estate Planning Council. National Institute of Certified College Planners the Institute of Certified Financial Planners, the Lexington Chamber of Commerce, and Sports Financial Advisors Association.

Annual Question & Answer Session with Dallas Scoffield and Steven Wightman, CFP, Principal

 

What education and training do you have that qualify you to manage my investments?

 

I started with Bachelor of Science degree in Technology and Teaching. This degree is perfect for someone in my field as technology is very involved in today’s world of financial planning and the teaching side is involved in communicating difficult and confusing information clearly and concisely. I also have earned the Graduate level certification and license of CFP (Certified Financial Planner) in which I passed five written exams on taxation, estate planning, employee benefits, investments, and risk management. This certification also requires ongoing education on the newest and up to date information – all to the benefit of my clients. In addition, I have completed life planning counseling and training with two modern day masters, Mr. George Kinder and Mr. Bill Bachrach. Last, but not least, I have completed professional training in post secondary (college) education advisory services to clients. This commitment to continuing education, training and certifications is further evidence of my dedication to my clients’ well being.

 

Why should I choose your firm over any other?

 

We focus on Values-Based Financial Planning. It is Life Planning blended with Financial Planning for a more well-rounded approach to integrating your finances with client values.

Other distinguishing characteristics include:

• Tax efficient investing. We focus on investments that will lower your taxes. Many clients will see a five digit drop in their taxes.
• We prefer to invest with Exchange-Traded Funds far more than with mutual funds. These funds have far lower fees and trade like stocks producing low tax rates. We pass these substantial savings along to clients in the form of higher reinvested returns than a like asset allocation enjoyed with mutual funds alone.
• Retirement Specialization: We know retirement because we live it. We aspire to “go into the future” to do ourselves what we will later ask clients to do once we are convinced it is a prudent choice. For example, before we ask a client to enter into a private investment, chances are we have done that ourselves and we have a history of its success. We want to walk our talk.
• Low Cost-Platform for investing that you can’t find elsewhere. Our style, like our experience, is unique.
• Alternative Investments often outperform traditional investments. Instead of flat returns, investors often see returns that are asynchronous to standard equity markets. This kind of investing can ad real value in bear or flat markets. These include private placement into real estate, energy investments and conservative managed futures strategies.
• Lower risk- Because of low expenses, we are often able to increase levels of return and thus invest with a lower risk than with mutual funds or stocks.
• Concierge Style of a family office to fully support a wide range of our client’s financial and non financial family needs.
• Fee-only fiduciary- This means that we are not paid on commission so we will never influence you to purchase investments designed to make us money. Also, as a fiduciary, we only have the client’s interest at heart, not a large institution’s.
• NAPFA Registered Advisor- We adhere to NAPFA’s code of ethics and fiduciary oath. For more information on why NAPFA is so highly regarded, please see the article by Kiplinger’s magazine on page 72 and Investment News (Elliot Spitzer Article)
• Lots of hand-holding for families allows them to reach their goals for reasons that are important to them.

 

In summary, clients receive the lowest level of risk for their investments at the lowest tax because we adhere to the highest standards of ethical conduct, continuing education, and professional practice protocols.

Clients come to us because they desire less risk and more certainty that their financial health will be strong and their retirements and their families - secure.

 

What services do you offer?

 

We offer all of the traditional services offered by most financial planning firms (taxes, education planning, investment planning, employee benefit planning, Social Security planning, and insurance planning), while also offering very non-traditional services. These include using alternative investments like precious metals, real estate, oil, and natural gas to name a few. We also offer private placement investment opportunities, like commercial real estate, for those who are interested in choices other than listed investments. We also bring experts in as part of our network to offer clients the best products at the most reasonable price. In addition to these, we also offer a well-diversified list of services to fit a variety of needs. These include: travel arrangements, aviation arrangements (in case you need a private jet), event planning, limo service, etc.

 

What are your rates?

We charge a one flat rate for creating a written comprehensive financial plan and an additional retainer flat rate for ongoing financial and wealth management services. Please see our ADV II for current details and disclosures.

 

Why is a financial plan so beneficial to me?

 

I liken a financial plan to health.   If, after ten years, you had eaten whatever you wanted and never exercised, what would your health be like? On the other hand, what would your life be like if you trained like a Pro athlete? It is the same with your finances. A financial plan makes you feel like a professional athlete. You know what your values and specific goals are and where you are along life’s road. You feel confident and poised. You know that you are better off and have taken necessary actions to be fully prepared for whatever life may bring.

 

How much experience do you have in this field?

 

I have been a practicing fee-only financial planning fiduciary since 1995.

 

Why do you work out of your home?

 

I believe clients hire me, not an office. They seek my guidance, advice, experience and time tested wisdom. The only difference is that I have only one, not two places to manage like some other financial advisors. I enjoy the comfort, convenience, and flexibility of my home office. It allows me to keep meetings that a traditional office may not allow. I don’t’ have to spend the time maintaining both a home and a distant office. I don’t have to pollute the air by commuting daily. This means I have more time to spend with clients and working on their behalf. If I save just 5 hours weekly, that adds up to 250 hours, or 31 days a year more time. I also save clients the expense of having my office costs passed on to them. Finally, today/s technology allows me to perform any function I need to and would do in any office around the world faster and better. My clients all benefit from this.

The Value of Your Personal Financial Advisor

1.Investment management services. Implementing an investment program requires giving careful thought to risk, time frame, goals, taxes, choosing a strategy, doing the investment research, and implementing and monitoring the strategy. Most people who seek out financial advisors don't want to take the time to do this regardless of whether they believe they are capable of doing it or not. Hiring an advisor is a time-saver. 2.Handholding and discipline. Many people seek out advisors because they are not confident in investing by themselves. While there are a growing number of sources of easy-to-follow advice, (e.g. on-line advice, newsletters, and fund company asset allocation services) many people are not confident in assessing whether these are right for them. Our experience suggests that many people really value the human connection they get from the advisor and it is this connection that is the source of the trust and confidence they need to commit to and stick with an investment program. 3.Competitive performance. It is our experience over many years that the majority of clients arewith competitive performance and don't necessarily expect their advisor to deliver consistently market-beating performance, provided that they are properly educated. They recognize that the advisor adds value by delivering competitive performance at appropriate risk levels and by bringing discipline to the table, helps to avoid significant mistakes. Of course, there is some subset of the client market that is very performance oriented. This is why it is so important for clients to make sure they understand our investment philosophy and that they have realistic expectations. We don’t over-promise. We focus on helping clients have the highest degrees of probability of achieving their goals within their time horizons. 4.Fees must be reasonable to allow for competitive performance. Fees on a typical qualified plan are taken from fund performance and not transparent to the consumer. These opaque fees reduce return on investments by up to 10% annually. We believe total investment costs over 3% make it extremely difficult to deliver competitive performance. In our platinum financial advisory practice we charge 1% of net worth. Further, with lower holding costs typically to less than 1% for investments we select. The typical 2% + investment cost savings combined with our confidence of our fund due diligence, tax savings though tax efficient investments, our asset class research and our proactive investment management style can more than make up for the fee over the long run, regardless of the return environment. 5. The value of an advisor is greater in a low-return environment. We realize that clients might not easily recognize this, but nevertheless it is true. It becomes an issue of understanding the difference between what the market is providing and what the advisor is providing. In a high-return environment, the absolute returns easily cover the fees but require little work. When the market isn’t just handing out high returns, the value of investment picking is amplified. Obsessively thorough due diligence conducted with a high level of intellectual integrity is, we believe, even more important and can add more value. In addition, our asset allocation approach, which allows us to look at many asset classes, gives us a fairly wide array of investment opportunities to pursue.   Note that past performance is no guarantee of future results. Further, each client portfolio is unique to that individual’s needs.