Form ADV Part 2A

 

Part 2A of Form ADV: Firm Brochure

 

Beck Financial Strategies, Inc.

 

5825 N Post Road Indianapolis, IN 46216

 

Telephone: 317-547-1200

Email: Nancy.Beck@BeckFS.com Web Address: www.BeckFS.com

 

1/5/17

 

 

This brochure provides information about the qualifications and business practices of Beck Financial Strategies, Inc. If you have any questions about the contents of this brochure, please contact us at 317-547-1200 or Nancy.Beck@BeckFS.com. 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.

 

Registration with the SEC or with any state securities authority does not imply a certain level of skill or training.

 

Additional information about Beck Financial Strategies, Inc. also is available on the SEC’s website at www.adviserinfo.sec.gov. You can search this site by a unique identifying number, known as a CRD number. Our firm's CRD number is 122640.

 

 

Item 2      Material Changes   

This Firm Disclosure Brochure, dated 03/01/2017, provides you with a summary of Beck Financial Strategies, Inc.’s advisory services and fees, professionals, certain business practices and policies, as well as actual or potential conflicts of interest, among other things. This Item is used to provide our clients with a summary of new and/or updated information; we will inform clients of the revision(s) based on the nature of the information as follows.

 

Annual Update: We are required to update certain information at least annually, within 90 days of our firm’s fiscal year end (FYE) of December 31.  If our firm has made revisions that would affect a client’s decision making when doing business with us, “material changes”, we will provide our clients with either a summary of any materially revised information with an offer to deliver the fully revised Disclosure Brochure within 120 days of our FYE. Alternatively we will provide you with our revised Disclosure Brochure that will include a summary of those changes in this Item. Non-material revisions are not delivered to clients, but can be viewed on the SEC investment adviser info site, as noted on the cover sheet of this brochure.

 

Material Changes: Should a material change in our operations occur, depending on its nature, we will promptly communicate this change to clients (and it will be summarized in this Item). "Material changes" requiring prompt notification will include changes of ownership or control; location; disciplinary proceedings; significant changes to our advisory services or advisory affiliates – any information that is critical to a client’s full understanding of who we are, how to find us, and how we do business.

 

To obtain our firm brochure and brochure supplements (information regarding each of our financial advisors), our Code of Ethics, or our Privacy Policy, please visit our website at www.BeckFS.com, e-mail us at Nancy.Beck@BeckFS.com, telephone us at (317) 547-1200 or mail your request to the address below.

 

Beck Financial Strategies, Inc.

Attn: Nancy L Beck

5825 N Post Road

Indianapolis, IN. 46216

Main Phone: 317-547-1200

Fax Number: 317-547-1201

Website address: www.BeckFS.com

 

The following summarizes new or revised disclosures based on information previously provided in our Firm Brochure dated February 3, 2016.

 

There are no new changes to this brochure.

 

Item 3     Table of Contents                                                                     Page

Item 1     Cover Page                                                                                                                       1

Item 2     Material Changes                                                                                                             2

Item 3     Table of Contents                                                                                                             3

Item 4     Advisory Business                                                                                                            4

Item 5     Fees and Compensation                                                                                                   6

Item 6     Performance-Based Fees and Side-By-Side Management                                              7

Item 7     Types of Clients                                                                                                                7

Item 8     Methods of Analysis, Investment Strategies and Risk of Loss                                       7

Item 9     Disciplinary Information                                                                                                 7

Item 10    Other Financial Industry Activities and Affiliations                                                    8

Item 11    Code of Ethics, Participation or Interest in Client Transactions and Personal Trading 9 Item 12                 Brokerage Practices                                                                                                       10

Item 13    Review of Accounts                                                                                                      10

Item 14    Client Referrals and Other Compensation                                                                  11

Item 15    Custody                                                                                                                          11

Item 16    Investment Discretion                                                                                                   11

Item 17    Voting Client Securities                                                                                                 11

Item 18    Financial Information                                                                                                   11

Item 19    Requirements for State-Registered Advisers                                                                12

 

Item 4     Advisory Business

Beck Financial Strategies, Inc. is an Indiana state-registered investment adviser with its principal place of business located in Indianapolis, Indiana. Beck Financial Strategies, Inc. began conducting business in 2014.

 

Listed below are the firm's principal shareholders (i.e., those individuals and/or entities controlling 25% or more of this company).

 

  • Nancy L Beck, Owner

 

Beck Financial Strategies, Inc. offers the following advisory services to our clients:

 

FINANCIAL PLANNING

 

We provide financial planning services. Financial planning is a comprehensive evaluation of a client’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Through the financial planning process, all questions, information and analysis are considered as they impact and are impacted by the entire financial and life situation of the client.

Clients purchasing this service receive a written report which provides the client with a detailed financial plan designed to assist the client achieve his or her financial goals and objectives.

 

In general, the financial plan can address any or all of the following areas:

 

  • PERSONAL: We review family records, budgeting, personal liability, estate information and financial goals.

 

 

  • TAX & CASH FLOW: We analyze the client’s income tax and spending and planning for past, current and future years; then illustrate the impact of various investments

on the client's current income tax and future tax liability.

 

 

  • INVESTMENTS: We analyze investment alternatives and their effect on the client's portfolio.

 

 

  • INSURANCE: We review existing policies to ensure proper coverage for life, health, disability, long-term care, liability, home and automobile.

 

 

  • RETIREMENT: We analyze current strategies and investment plans to help the client achieve his or her retirement goals.

 

  • DEATH & DISABILITY: We review the client’s cash needs at death, income needs of surviving dependents, estate planning and disability income.

 

 

  • ESTATE: We assist the client in assessing and developing long-term strategies, including as appropriate, living trusts, wills, review estate tax, powers of attorney, asset protection plans, nursing homes, Medicaid and elder law.

 

We gather required information through in-depth personal interviews. Information gathered includes the client's current financial status, tax status, future goals, returns objectives and attitudes towards risk. We carefully review documents with the client, including a questionnaire completed by the client, and prepare a written report. Should the client choose to implement the recommendations contained in the plan, we suggest the client work closely with his/her attorney, accountant, insurance agent, and/or stockbroker. Implementation of financial plan recommendations is entirely at the client's discretion. Our firm does not implement the recommendations in the financial plans or actively manage client assets.

 

We also provide general non-securities advice on topics that may include tax and budgetary planning, estate planning and business planning.

 

  • Securities

 

  • Certificates of deposit

 

  • Variable life insurance

 

  • Variable annuities

 

  • Mutual fund shares

 

  • United States governmental securities

 

Typically the financial plan is presented to the client within six months of the contract date, provided that all information needed to prepare the financial plan has been promptly provided.

 

Beck Financial Strategies does not provide investment advisory services; therefore, we have no regulatory assets under management.

 

LIMITATIONS: Nancy Beck, President of Beck Financial Strategies, Inc. is a registered representative of J.W.Cole Financial Inc., Member FINRA/SIPC, and is an insurance agent of various insurance companies. However, recommendations made in these financial plans are not limited to only those products offered through these companies. Clients should be aware that Nancy Beck receives additional compensation when a client buys securities or insurance products through Nancy Beck.

 

Item 5     Fees and Compensation

FINANCIAL PLANNING FEES

 

Beck Financial Strategies, Inc.'s Financial Planning fee is determined based on the nature of the services being provided and the complexity of each client’s circumstances. All fees are agreed upon prior to entering into a contract with any client. Fees are negotiated with the client prior to acceptance of the contract and will vary upon services offered, the complexity and size of the plan.

 

Our Financial Planning fees are calculated and charged on a fixed fee basis, as negotiated with the client depending on the specific arrangement reached with the client. After the initial plan is delivered, clients may choose to have an annual review, for which they are charged an annual review fee of $500, in arrears.

 

We may request a retainer upon completion of our initial fact-finding session with the client; however, advance payment will never exceed $500 for work that will not be completed within six months. The balance is due upon completion of the plan.

 

All clients receiving financial planning pay the fees for plans at the time service is delivered, by sending a check to the adviser's office or in-person at the adviser's office.

 

Fees Offset By Commissions: If a Financial Planning client executes recommended securities transactions through associated persons of our firm in their separate capacities as registered representatives of a broker dealer, these individuals will earn commissions which are separate and distinct from fees charged for advisory services.

In some instances, depending on the size of the transaction, advisory fees will be discounted, at our discretion, for commissions earned. Commissions will not be credited towards future advisory fees. These activities are outlined in Item 10 of this Firm Disclosure Brochure.

 

The client is billed quarterly in arrears based on actual hours accrued.

 

GENERAL INFORMATION

 

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either party, for any reason upon receipt of five (5) days. Upon termination of any account, any prepaid, unearned fees will be promptly refunded.

 

Advisory Fees in General: Clients should note that similar advisory services may (or may not) be available from other registered investment advisers for similar or lower fees.

 

Limited Prepayment of Fees: Under no circumstances do we require or solicit payment of fees in excess of $500 more than six months in advance of services rendered.

 

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

Beck Financial Strategies, Inc. does not charge performance-based fees.

 

Item 7     Types of Clients

Beck Financial Strategies, Inc. provides financial planning services to the following types of clients:

 

  • Individuals (other than high net worth individuals)

 

  • High net worth individuals

 

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

 

METHODS OF ANALYSIS

 

We use the following methods of analysis in formulating our investment advice and/or managing client assets:

 

Financial Planning Fundamental Analysis. We attempt to measure the intrinsic value of a sector of asset classes by looking at economic and financial factors (including the client's risk tolerance, goals and objectives, overall economy, and

industry conditions) to determine if the client's overall financial state is balanced. We do not provide advice on specific securities, but on asset sectors.

 

Fundamental analysis does not attempt to anticipate market movements. This presents a potential risk, as the price of a security can move up or down along with the overall market regardless of the economic and financial factors considered in evaluating the overall holdings of a client.

 

Risks for all forms of analysis. Our analysis methods rely on the assumption that the rating agencies that review these securities, and other publicly available sources of information about these securities, are providing accurate and unbiased data. While we are alert to indications that data may be incorrect, there is always a risk that our analysis may be compromised by inaccurate or misleading information.

 

INVESTMENT STRATEGIES

 

We do not provide active management of client accounts.

 

Item 9     Disciplinary Information

We are required to disclose any legal or disciplinary events that are material to a client's or prospective client's evaluation of our advisory business or the integrity of our management.

 

Our firm and our management personnel have no reportable disciplinary events to disclose.

 

Item 10    Other Financial Industry Activities and Affiliations

Nancy Beck is a licensed life and health insurance agent and receives commissions from sales of certain products (e.g. life insurance, health insurance, long term care insurance, and annuities). Ms. Beck may sell insurance products to advisory clients.

Ms. is separately licensed as a registered representative J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC Inc. Ms. Beck, in her separate capacity, can effect securities transactions for which she will receive separate, yet customary compensation.

 

While Beck Financial Strategies. Inc. and Ms. Beck endeavor at all times to put the interest of the clients first as part of our fiduciary duty, clients should be aware that the receipt of additional compensation itself creates a conflict of interest, and may affect the judgment of these individuals when making recommendations.

 

Ms. Beck is also separately licensed as an investment adviser representative of J.W. Cole Advisors, Inc. In that capacity, she provides advisory services through J.W. Cole Advisors, Inc. The advisory services delivered by J.W. Cole Advisors, Inc. are distinct from those provided by our firm and are provided for separate compensation. J.W. Cole Advisors, Inc.'s advisory services may be recommended to our clients for whom it is appropriate. There are no referral fee arrangements between our firm and J.W. Cole Advisors, Inc. However, a conflict of interest is created by this arrangement to the extent that this individual recommends that a Beck Financial Strategies. Inc. client open an advisory account through which this individual will receive additional compensation. No Beck Financial Strategies. Inc. client is obligated to use J.W. Cole Advisors, Inc. or any of its products or services. Clients choosing to implement Beck Financial Strategies, Inc.'s recommendations through J.W. Cole Advisors, Inc.'s advisory services should refer to J.W. Cole Advisors, Inc.'s Firm Brochure or other disclosure document for details regarding that firm's services and fees.

 

As this affiliation with J.W. Cole Advisors, Inc. may present potential conflicts of interest, we have established written policies and procedures for insider trading that prohibit Beck Financial Strategies, Inc. and any other member, officer or employee of our firm, from buying, selling or recommending the securities of companies bought, sold or recommended by J.W. Cole Advisors, Inc. where the decision is substantially derived, in whole or in part, by reason of access to the recommendations of J.W. Cole Advisors, Inc. to its clients.

 

As required, any affiliated investment advisers are specifically disclosed in Section 7.A.

on Schedule D of Form ADV, Part 1. (Part 1 of our Form ADV can be accessed by following the directions provided on the Cover Page of this Firm Brochure.)

 

Management personnel of our firm, in their individual capacities, are agents for various insurance companies. As such, these individuals are able to receive separate, yet customary commission compensation resulting from implementing product transactions on behalf of advisory clients. Clients, however, are not under any obligation to engage these individuals when considering implementation of advisory recommendations. The implementation of any or all recommendations is solely at the discretion of the client.

 

Clients should be aware that the receipt of additional compensation by Beck Financial Strategies. Inc. and its management persons or employees creates a conflict of interest that may impair the objectivity of our firm and these individuals when making advisory recommendations. Beck Financial Strategies, Inc. endeavors at all times to put the interest of its clients first as part of our fiduciary duty as a registered investment adviser; we take the following steps to address this conflict:

 

  • we disclose to clients the existence of all material conflicts of interest, including the potential for our firm and our employees to earn compensation from advisory clients in addition to our firm's advisory fees;

 

  • we disclose to clients that they are not obligated to purchase recommended investment products from our unaffiliated companies;

 

  • we collect, maintain and document accurate, complete and relevant client background information, including the client’s financial goals, objectives and risk tolerance;

 

  • our firm's management conducts regular reviews of each client account to verify that all recommendations made to a client are suitable to the client’s needs and circumstances;

 

  • we educate our employees regarding the responsibilities of a fiduciary, including the need for having a reasonable and independent basis for the investment advice provided to clients.

 

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

 

Our firm has adopted a Code of Ethics which sets forth high ethical standards of business conduct that we require of our employees, including compliance with applicable federal securities laws.

 

Beck Financial Strategies, Inc. and our personnel owe a duty of loyalty, fairness and good faith towards our clients, and have an obligation to adhere not only to the specific

 

provisions of the Code of Ethics but to the general principles that guide the Code.

 

Our Code of Ethics includes policies and procedures for the review of quarterly securities transactions reports as well as initial and annual securities holdings reports that must be submitted by the firm’s access persons. Among other things, our Code of Ethics also requires the prior approval of any acquisition of securities in a limited offering (e.g., private placement) or an initial public offering. Our code also provides for oversight, enforcement and record-keeping provisions.

 

Beck Financial Strategies, Inc.'s Code of Ethics further includes the firm's policy prohibiting the use of material nonpublic information. While we do not believe that we have any particular access to nonpublic information, all employees are reminded that such information may not be used in a personal or professional capacity.

 

A copy of our Code of Ethics is available to our advisory clients and prospective clients. You may request a copy by email sent to Nancy.Beck@BeckFS.com, or by calling us at 317-547-1200.

 

Beck Financial Strategies, Inc. does not make specific recommendations, as Beck Financial Strategies Inc. investment advisers or actively manage client accounts.

 

As disclosed in the preceding section of this Brochure (Item 10), related persons of our firm are separately registered as securities representatives of   J.W. Cole Advisors, Inc., investment adviser representatives of another registered investment adviser, and/or licensed as an insurance agent/broker of various insurance companies. Please refer to Item 10 for a detailed explanation of these relationships and important conflict of interest disclosures.

 

Item 12    Brokerage Practices

Beck Financial Strategies, Inc. only provides consulting services through financial planning; therefore, our adviser does not participate in any brokerage activities.

 

Beck Financial Strategies, Inc. does not have any soft-dollar arrangements and does not receive any soft-dollar benefits.

 

Item 13    Review of Accounts

FINANCIAL PLANNING SERVICES

 

REVIEWS: While reviews may occur at different stages depending on the nature and

 

terms of the specific engagement, typically no formal reviews will be conducted for Financial Planning clients unless otherwise contracted for. Ms. Nancy Beck reviews the plans, where contracted or requested by the client.

 

REPORTS: Financial Planning clients will receive a completed financial plan. Additional reports will not typically be provided unless otherwise contracted for.

 

Item 14    Client Referrals and Other Compensation

Nancy Beck is a licensed life and health insurance agent and receives commissions from sales of certain products (e.g. life insurance, health insurance, long term care insurance, and annuities). Ms. Beck may sell insurance products to advisory clients.

Beck Financial Strategies, Inc. may provide some financial planning clients discounts for the referral of new clients. If an existing client of Beck Financial Strategies, Inc. refers a client to the company and that referral becomes a client, the referring client will receive a $100 reduction on their next annual renewal fee.

 

In addition, Ms. Beck may receive cash and incentive awards from J.W. Cole Financial, Inc. or various insurance companies for the sale of securities and insurance products.

 

Item 15    Custody

Our firm does not have actual or constructive custody of client accounts. Our firm does not provide active management of any client's accounts.

 

Item 16    Investment Discretion

The advisory services provided by our firm do not include managing client assets. Accordingly, we do not accept investment discretionary authority nor will we manage client accounts on a discretionary basis.

 

Item 17    Voting Client Securities

As a matter of firm policy, we do not vote proxies on behalf of clients. Therefore, although our firm may provide consulting services relative to client's financial planning, clients maintain exclusive responsibility for: (1) directing the manner in which proxies solicited by issuers of securities beneficially owned by the client shall be voted, and (2) making all elections relative to any mergers, acquisitions, tender offers, bankruptcy proceedings or other type events pertaining to the client’s investment assets. Clients are responsible for instructing each custodian of the assets, to forward to the client copies of all proxies and shareholder communications relating to the client’s investment assets.

 

We do not offer any consulting assistance regarding proxy issues to clients.

 

 

Item 18    Financial Information

 

Our firm does not provide investment management services to clients.

 

Our firm has no financial condition that is reasonably likely to impair our ability to meet our contractual obligations. Beck Financial Strategies, Inc. has no other financial circumstances to report.

 

Under no circumstances do we require or solicit payment of fees in excess of $500 per client more than six months in advance of services rendered. Therefore, we are not required to include a financial statement.

 

Beck Financial Strategies, Inc. has not been the subject of a bankruptcy petition at any time during the past ten years.

 

Item 19      Requirements for State-Registered Advisers

 

The following individuals are the principal executive officers and management persons of Beck Financial Strategies. Inc.:

 

NANCY L. BECK, CFP (1960) Owner, BECK FINANCIAL STRATEGIES, INC.

Certified Financial Planner©

Licensed (Life & Health) Insurance Agent Series 6, 7 and 63 Securities License

Indiana Long Term Care State Accredited Agent

Nancy L. Beck holds a Series 6, 7 & 63 securities license and is registered representative with J.W. Cole Advisors, Inc., member FINRA/SIPC.

Ms. Beck has passed the academic requirements to become a Certified Financial Planner.

Information regarding the formal education and business background for each of these individuals is provided in their respective Form ADV Part 2B Brochure Supplements.

 

We are required to disclose all material facts regarding certain legal or disciplinary events pertaining to arbitration awards or other civil, regulatory or administrative proceedings in which our firm or management personnel were found liable or against whom an award was granted.

 

Our firm and our management personnel have no reportable disciplinary events to disclose.

 

As previously disclosed in "Other Financial Industry Activities and Affiliations" (Item 10), neither Beck Financial Strategies, Inc. nor our management personnel have a relationship or arrangement with any issuer of securities.