Hippocratic Financial Advisors, LLC is an investment adviser registered with the Securities and Exchange Commission ("SEC"). Investment advisory services and fees are different than the services and fees provided by a broker-dealer and it is important for you to understand the differences. There are free and simple tools available allowing you to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers and investing in general.
Effective April 2024
WHAT INVESTMENT SERVICES AND ADVICE CAN YOU PROVIDE ME?
We provide investment advisory services to retail investors, primarily focused on physicians and their families, trusts, and closely held businesses. These services include, but are not limited to, wealth management, financial planning, tax planning, insurance services, estate planning, and retirement planning. We offer advisory services for individual and joint brokerage accounts, as well as 401(k) plans and defined benefit plans. We can help you decide which type of investment advisory services to choose based on your financial situation. Our advisory services are offered on a discretionary basis, whereas we have the authority to execute investment decisions on your behalf. Portfolios are primarily invested in ETFs and mutual funds. We may use other security types when necessary. We monitor your account on an ongoing basis as part of our standard services and will confer with you via phone, email, or meetings to discuss your investments and any changes to your financial situation. We do not have a minimum account size.
More information about our services can be found in Item 4 of our Disclosure Brochure at https://adviserinfo.sec.gov/firm/brochure/169 481
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?
Asset management fees are charged at the beginning of each calendar quarter based on the market value of the assets in your account on the last day of the previous quarter.
Our standard fee schedule is found in our Form ADV Part 2A. Fees are subject to negotiation. Your fee may vary from the standard schedule to reflect circumstances that apply specifically to your account. Your fee schedule is stated in your investment advisory agreement.
Financial planning, estate management, and other services are charged according to a fixed or asset-based fee arrangement. Fees are determined on a case-by-case basis and dependent on the scope of services we provide to you. If we recommend any insurance products, we will receive a commission directly from the insurance company.
The types of fees we receive may create a conflict of interest. Asset-based fees incentivize us to encourage you to add more assets to your account. You will also incur other fees directly or indirectly. These may include but are not limited to custodian fees, account maintenance fees, mutual fund expenses, transaction costs, trade-away fees, account transfer fees, wire transfer fees, interest, and taxes. You will pay these 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.
Our standard fee schedule is found in our Form ADV Part 2A. Fees are subject to negotiation. Your fee may vary from the standard schedule to reflect circumstances that apply specifically to your account. Your fee schedule is stated in your investment advisory agreement.
Financial planning, estate management, and other services are charged according to a fixed or asset-based fee arrangement. Fees are determined on a case-by-case basis and dependent on the scope of services we provide to you. If we recommend any insurance products, we will receive a commission directly from the insurance company.
The types of fees we receive may create a conflict of interest. Asset-based fees incentivize us to encourage you to add more assets to your account. You will also incur other fees directly or indirectly. These may include but are not limited to custodian fees, account maintenance fees, mutual fund expenses, transaction costs, trade-away fees, account transfer fees, wire transfer fees, interest, and taxes. You will pay these 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.
More information about our fees can be found in Item 5 of our Disclosure Brochure at https://adviserinfo.sec.gov/firm/brochure/169 481
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?
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. If we recommend insurance products, we receive a commission based on the product you purchase. The receipt of insurance commissions gives us incentive to recommend products based on compensation rather than your needs.
We receive services from the custodians we recommend that include investment-related research, quotes, and market data; technology that allows us to service your account including trading and access to your account data; compliance and/or practice management-related publications; free or discounted conferences, meetings, and other educational and/or social events; marketing support; and/or other products and services that assist us in operating our business. The economic benefit we receive creates a conflict of interest and may influence our choice of custodian for custody and brokerage services.
Our investment professionals attend conferences, receive research and educational services sponsored by financial institutions at little or no cost to Hippocratic. These financial institutions also manage some of the ETFs and mutual funds we select. This presents a potential conflict of interest because it may appear that Hippocratic selected those funds to gain access to the research conferences.
We receive a portion of the fee paid to the CPA firm to which we refer clients. This may cause a conflict of interest by incentivizing us to recommend working with these CPAs as opposed to others.
We may receive compensation from third parties for referring to them such as for referring to a mortgage broker for physician-specialized mortgages. This may cause a conflict of interest by incentivizing us to recommend to these third parties.
We receive services from the custodians we recommend that include investment-related research, quotes, and market data; technology that allows us to service your account including trading and access to your account data; compliance and/or practice management-related publications; free or discounted conferences, meetings, and other educational and/or social events; marketing support; and/or other products and services that assist us in operating our business. The economic benefit we receive creates a conflict of interest and may influence our choice of custodian for custody and brokerage services.
Our investment professionals attend conferences, receive research and educational services sponsored by financial institutions at little or no cost to Hippocratic. These financial institutions also manage some of the ETFs and mutual funds we select. This presents a potential conflict of interest because it may appear that Hippocratic selected those funds to gain access to the research conferences.
We receive a portion of the fee paid to the CPA firm to which we refer clients. This may cause a conflict of interest by incentivizing us to recommend working with these CPAs as opposed to others.
We may receive compensation from third parties for referring to them such as for referring to a mortgage broker for physician-specialized mortgages. This may cause a conflict of interest by incentivizing us to recommend to these third parties.
More information about our conflicts of interest can be found in Items 10, 12 and 14 of our Disclosure Brochure at https://adviserinfo.sec.gov/firm/brochure/169 481
CONVERSATION STARTERS
- How might your conflicts of interest affect me, and how will you address them?
HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?
Our financial professionals are compensated in different ways, which may include salary, bonus, amount of assets brought into the firm, amount of assets they service, or some combination of the foregoing. Our financial professionals do not receive brokerage transaction commissions from any third parties. Insurance commissions are paid to Hippocratic, not directly or indirectly to any employee.
DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?
No. Our financial professionals do not have any legal or disciplinary history. There are free and simple tools available allowing you to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing in general.
CONVERSATION STARTERS
- As a financial professional, do you have any disciplinary history? For what type of conduct?
FOR ADDITIONAL INFORMATION ABOUT OUR SERVICES
If you would like additional information about our advisory services, or a copy of this relationship summary, please call us at 866−447−2380. You can also visit our website at Hippocratic.com.
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?