Our Form CRS is available to download here.

Introduction

McMahon Financial Advisors, LLC (“MFA Wealth” or “MFA”) is registered with the U.S. Securities and Exchange Commission (“SEC”)
as an Investment Adviser. Brokerage and investment advisory services fees differ. It is important for a retail investor to understand the differences. There are free tools available for investors to research firms and financial professionals at investor.gov/CRS. This site provides educational materials about broker-dealers, investment advisers, and investing.¹

 

What Investment Services and Advice Can You Provide Me?

MFA offers investment advisory services to retail investors. Our services include portfolio management services and financial planning based on your current financial situation, existing resources, goals, and risk tolerance. We sponsor a wrap fee program in which we offer our discretionary portfolio management services. MFA also offers retirement plan consulting to small businesses, including advice to 401(K) plan sponsors. While we typically manage mutual funds, exchange-traded funds (“ETFs”), equities, fixed income securities, and cash equivalents, we do not restrict our advice to limited types of investments. Depending on the model/risk allocation selected, you might receive advice with respect to a broad range of investments or a limited range of investments. For example, we do not make all mutual funds or share classes of mutual funds available for use in our models. As part of our services, we provide ongoing monitoring of your investments. The Investment Policy Committee reviews model portfolio holdings on a weekly basis and individual portfolio holdings for each of our clients no less than annually. While we manage accounts on both discretionary and non-discretionary basis, the majority of our accounts are managed on a discretionary basis. This means that we have the authority to decide which securities to purchase and sell, along with the amount. Where MFA has discretion, you are free to impose reasonable restrictions. Where MFA does not have discretion, you make the ultimate decision whether to implement recommendations made by MFA. MFA does not have a minimum account requirement.

For more detailed information about our services, refer to our Form ADV, Part 2A Brochure and our Form ADV, Wrap Brochure.

 

Questions You Should Ask the Financial Professional:

  • 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 to me?

 

What Fees Will I Pay?

We charge retail clients an annual fees based on the values of the assets managed. Fees are detailed in the management agreement and range from 0.40% to 1.65%. In limited circumstances, 401(K) plan sponsor clients are charged a flat annual fee, rather than a percentage of assets under management. Fees are assessed quarterly, in advance, and are directly debited by the custodian. For wrap fees clients, there are additional fees not included in the wrap fee, for example, underlying fund expenses, commissions, product-specific transaction fees and expenses, required regulatory transactional fees, transfer fees, and service and account type related fees. The more assets there are in your account, the more you will pay for investment management services. Therefore, we have an incentive to encourage you to increase the amount of assets under our management.

For more detailed information about fees and costs, refer to our Form ADV, Part 2A Brochure and our Form ADV, Wrap Brochure.

 

Questions You Should Ask the Financial Professional:

  • Help me understand how these fees and costs might affect my investments. If I can 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 Advisor? 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. Here are some examples to help you understand what this means:

When you are charged an asset-based fee, the more assets there are in your account, the more you will pay in fees. It will benefit MFA to recommend that clients increase the assets managed by MFA.

A number of our firm’s financial professionals are licensed insurance agents who sell insurance products for a commission. As a result, they have an incentive to recommend insurance products to you in order to receive additional income.

Because of our wrap fee program, we have an incentive to recommend assets without transaction fees in order to reduce the amount of fees that we will have to pay on your behalf.

Additional information about our conflicts of interest is located in Items 5 and 10 our firm’s Form ADV, Part 2A Brochure and Item 9 of our Form ADV, Wrap Brochure.

 

Questions You Should Ask the Financial Professional:

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

 

How Do Your Financial Professionals Make Money?

Advisors are compensated based on the revenue our firm earns from their advisory services or recommendations. Other financial professionals, including support staff, are compensated on a salary basis. In addition, certain support staff are eligible to receive discretionary bonuses based on assets under management. Therefore, there is an incentive to encourage you to increase the amount of assets under our management.

 

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

No, MFA does not have any legal or disciplinary history to report. Please see investor.gov/CRS for a free search tool to research MFA and our financial professionals.

 

Questions You Should Ask the Financial Professional:

  • As a financial professional, do you have any disciplinary history? If so, for what type of conduct?

 

Additional Information

You may also find additional information about our firm and your financial professional on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching CRD #171984. Please call us at (800) 234-2374 for up-to-date information about our services or to request a copy of our relationship summary.

 

Questions You Should Ask the Financial Professional:

  • Who is my primary contact person?
  • Is he or she a representative of an investment adviser?
  • Who can I talk to if I have concerns about how this person is treating me?

 


¹Statements in this summary (i) are required by SEC Form CRS, summary in nature and limited in substance and size by SEC Form CRS; (ii) relate only to our obligations under the Investment Advisers Act of 1940, (iii) do not create or modify any agreement, relationship or obligation between you and us or our financial professionals; and (iv) are subject to the more complete terms and conditions of our investment advisory agreements and disclosures (including Form ADV Part 2).