Form ADV Part 3: Relationship Summary

Introduction

Deerfield Financial Advisors, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. We offer our clients investment advisory services. Clients should understand that the services we provide and fees we charge are different than those of a broker-dealer, and that it is important to understand the difference between the two. Free and simple tools are available to research firms and financial professionals at https://www.investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers and investing.

 

What Investment Services and Advice Can You Provide Me?

Description of Services: We offer the following investment advisory services to retail investors. For more information about our services, please see Item 4 of our Form ADV Part 2A.

Wealth Management Services which can be described as a broad range of financial planning, investment management, and investment consulting.  Through this service, we essentially combine our Investment Management Services with consulting on other “non-managed” accounts while also developing financial planning and advice.

Investment Management Services which involves us managing and trading your designated account(s). We will discuss your investment goals and design a strategy to try and achieve your investment goals. We will continuously monitor your account(s) when providing investment management services and contact you at least annually to discuss your portfolio. Furthermore, when engaged on a Discretionary basis, we shall have the authority, without prior consultation with you (unless you impose restrictions on our discretionary authority), to buy, sell, trade and allocate the investments within your accounts(s) consistent with your investment objectives.  When engaged on a Non-discretionary basis, the retail investor makes the ultimate decision regarding the purchase or sale of investments. In either case, our investment authority over your account(s) shall continue until our engagement is terminated. For more information about investment authority, please see Item 16 of our Form ADV Part 2A.

Financial Planning and Consulting Services which can include developing written financial plans, providing financial planning consultations that do not include a written plan, and investment consulting services.  Financial planning services will cover mutually agreed upon topics appropriate for your unique financial situation.  Investment consulting covers advice on accounts not managed or maintained by our firm.  This is similar to Investment Management Services in that we provide you specific recommendations; however, we will not have trading authorization or direct access to the accounts being reviewed under this service so it is your responsibility to make all trades and changes to your accounts.    

Limited Investment Offerings: We do not primarily recommend one type of security to clients.  Instead, we recommend investment portfolios designed to be in the best interest for each client relative to that client’s specific circumstances and needs. However, we are limited in investment selection in that we can only invest your account in securities which are available on your custodian/broker-dealer’s platform.  We do not recommend or offer advice on any proprietary products.

Account & Fee Minimums: There are no minimum investment amounts or conditions required for establishing an account managed by us.

Conversation Starters:  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?

Description of Principal Fees & Costs: Clients receiving our Wealth Management Services are charged a fee that combines a fixed-fee component along with a fee based on a percentage of assets under management. The fixed fee component ranges typically between $2,500 and $15,000 annually depending on your financial planning needs, non-management account consulting needs and the investment adviser representative you work with. The annual fee for asset management services (whether provided as Wealth Management Services or stand-alone Investment Management Services) is based on a percentage of assets under management using a blended fee schedule broken down into tiers that range between 0.45% and 0.75%. Fees are billed in advance on a quarterly calendar basis, and calculated based on the fair market value of your account as of the last business day of the previous billing period.  Because our fee is based upon the value of your account we have an incentive to recommend that you increase the level of assets in your account. When engaging us for asset management services, you will also incur other fees and expenses. The broker-dealer/custodian on your account will charge you transaction fees for executing trades in your account. You will also be charged internal fees and expenses by the funds we invest in within your account. 

Stand-alone Financial Planning and Consulting Services can be billed under an hourly fee arrangement of $400 per hour or a fixed fee that generally ranges from $1,500 to no more than $6,000. You will pay in advance a mutually agreed upon retainer that will be available for us to bill fees against for our financial planning services Any unpaid fees are due immediately upon completion and delivery of the financial plan or completion of the consultative services. Any fees we charge for financial planning services will not cover the costs associated with implementing any recommendations we may make.

Additional Information: 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.  For more information about the fees we charge and the other fees and expenses you will incur, please see Item 5 of Form ADV Part 2A.

Conversation Starters: 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?

Standard of Conduct: 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 interest. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here is an example to help you understand what this means. We will recommend that you establish one or more accounts with a specific custodian, where we have an institutional relationship and receive economic benefits in the way of support services and/or products, certain of which assist us to better monitor and service your account(s).  Receipt of such services create a conflict of interest.  However, you ultimately decide where to open your accounts. 

Conversation Starters: How might your conflicts of interest affect me, and how will you address them?

Additional Information: For more information about our conflicts of interests and the ways we are compensated, please see Item 5 and Item 12 of our Form ADV Part 2A.

Conversation Starters: How might your conflicts of interest affect me, and how will you address them?

Additional Information: For more information about our conflicts of interests and the ways we are compensated, please see Item 5 and Item 12 of our Form ADV Part 2A.

How Do Your Financial Professionals Make Money?

Description of Salary/Payment of IARs: Our senior financial professionals are compensated based on a percentage of managed client revenue and of revenue generated from new business development. Other professionals are compensated based on an annual salary and a discretionary bonus based on overall firm performance, new client relationships and client revenue generated.  This means our financial professionals have an incentive to increase the asset size in a relationship or solicit new business. We believe that the investment advisers’ financial interests are aligned with referred clients. However, we seek to mitigate this conflict of interest by disclosing it to clients.

 

Do You or Your Financial Professionals Have Legal or Disciplinary History?

Neither us, nor our investment adviser representatives have a legal or disciplinary history to report. You can look up more information about us and our investment adviser representatives at https://www.investor.gov/CRS.

Conversation Starters: As a financial professional, do you have any disciplinary history? For what type of conduct?

Additional Information about Deerfield Financial Advisors

Additional information about us and copies of our Form ADV Part 2A disclosure brochure and this relationship summary are available on the Internet at https://deerfieldfa.com/. You can also find our disclosure brochures and other information about us at https://adviserinfo.sec.gov/firm/summary/104964. If you have any questions or want an up-to-date copy of this relationship summary, we can be reached by phone at 317-469-2455.

Conversation Starters: 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?