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Customer Relationship Summary

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Item 1: Introduction
Item 2: Relationship Services
Item 3: Fees, Costs, Conflicts, and Standard of Conduct
Item 4: Disciplinary History

 

Item 1 – Introduction: 

Ballast Advisors, LLC (Ballast) is an SEC-registered investment adviser that provides advisory services. Brokerage and investment advisory services and fees differ and it is important for you to understand the differences. This document is a summary of the types of services we provide and how you pay for these services.  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.

Item 2 – Relationship Services

What investment services and advice can you provide me?

Monitoring

As part of its services, Ballast portfolio managers review each client’s investment goals and objectives on an annual basis. The Ballast investment team meets and reviews each investment strategy regularly. The frequency of these  meetings will increase in response to market and economic conditions, and on an as needed basis dependent on a client’s specific circumstances.  Accounts managed through the Wrap Program are done so in substantially the same manner as those  managed under a non-wrap arrangement.

 Investment Authority

Ballast manages client investment portfolios on a discretionary or non-discretionary basis. When we manage your accounts with discretionary authority, this allows us to determine the securities to be bought or sold in your account, the   amount of those securities, the timing transactions are made, the broker or dealer to be used for purchase or sale of securities for your account, and the commission rates to be paid to a broker or dealer for those transactions.  When we   manage your accounts with non-discretionary authority, you make the ultimate decision regarding the purchase or sale of investments in your account.

Investment Offerings

Ballast primarily allocates client assets among various mutual funds, exchange-traded funds (“ETFs”), individual debt and equity securities, and independent investment managers (“Independent Managers”) in accordance with client stated   investment objectives and investment management agreement. Investment strategy for a specific client is based upon a client’s objectives and risk profile.

Requirements

Ballast does not impose a minimum fee or minimum portfolio value for starting and maintaining an investment management relationship. Certain Independent Managers may impose more restrictive account requirements and  billing   practices from the Firm. In these specific instances, Ballast may alter its corresponding account requirements and/or billing practices.

Key questions to ask:

  • 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?

We offer investment advisory services to retail investors. As part of these services, we offer financial planning, consulting and investment management services. Within the scope of our financial advisory and consulting services, clients may choose from a variety of areas such as retirement planning, cash flow management, trust and estate planning, charitable giving, tax planning and more. We also provide portfolio management services through a Wrap Fee Program, which provide clients with the ability to trade in certain investment products without incurring separate brokerage commissions or transaction charges.


Item 3 – Fees, Costs, Conflicts, and Standard of Conduct

What fees will I pay?

We charge our services on a fee basis, including fixed fees, as well as fees based upon assets under management or advisement. For our investment management services, we charge an annual fee based on the amount of assets under management, including participation in our Wrap Program. This fee varies between 50 and 200 basis points. This annual fee is prorated and charged monthly, in advance, based upon the market value of the assets being managed by us on the last day of the previous billing period. The more assets that are in your advisory account, the more you will pay in fees; thus, we may have an incentive to encourage you to increase the assets in your account. Clients in our Wrap Program may pay a higher aggregate fee than if investment management and brokerage services are purchased separately. We charge a fixed fee for providing financial planning and consulting services under a stand-alone engagement, which generally ranges from $750 to $25,000. The advisory fees you pay us, do not include charges imposed by other third parties, such as, securities brokerage commissions, transaction fees, custodial fees, fees charged by the Independent Managers we recommend, charges imposed directly by a mutual fund or ETF in your account, transfer taxes, and wire transfer and electronic fund fees. ou 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.


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? 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 a client requires accounting services or tax services, we will recommend Ballast Tax & Business Services LLC (Ballast Tax). These services are independent of our advisory services and are pursuant to a separate agreement between you and Ballast Tax. We do not receive referral fees, or any portion of the fees paid by you to Ballast Tax. However, one of our Principals, Mr. Paul Parnell, has ownership interest in Ballast Tax and receives distributions relative to his ownership interest. Mr. Parnell’s ownership in Ballast Tax creates a conflict of interest to the extent that Ballast recommends, or engages, the accounting and tax planning services of Ballast Tax. Further, Ballast utilizes the custodial and brokerage services of Schwab Advisor Services (“Schwab”). In return for directing clients to Schwab, Ballast receives investment research, products and services which assist Ballast in its investment decision-making process. Such research generally will be used to service all clients, but brokerage commissions paid by one client may be used to pay for research that is not used in managing that client’s portfolio. The receipt of these services and the allocation of the benefit of such services poses a conflict of interest because Ballast does not pay for the products or services it receives. Thus, we have an incentive to use Schwab based on our interest in receiving research or other services, rather than on the clients’ interest in receiving the lower commission.

  • For more information regarding our services, fees, costs, and conflicts of interest, please see our Form ADV, Part 2 Brochure.

How might your conflicts of interest affect me and how will you address them?         

How do your financial professionals make money?

Our professionals are compensated through management fees paid by our advisory clients. A number of Ballast professionals are licensed insurance agents and may offer certain insurance products on a fully disclosed commissionable basis. A conflict of interest exists when we recommend the purchase of insurance products where our professionals may be entitled to commissions and other compensation. Ballast has procedures in place to ensure that all recommendations are made in its clients’ best interest regardless of any such affiliations.


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


Item 4 – Disciplinary History

Do you or your financial professionals have legal or disciplinary history?

No. A free and simple search tool to research us and our financial professionals is available at investor.gov/CRS.


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?


Additional information about our investment advisory services and an up-to-date copy of the relationship summary is available by contacting us at (651) 200-3110 or the Chief Compliance Officer at rgerczak@ballastadvisors.com.

To learn more about Ballast Advisors, we encourage you to visit our website at https://www.ballastadvisors.com/.

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