Part 2 of Form ADV: Firm Brochure and Supplements 

 

 

Part 2A, Item 1: Cover Page 

 

Winslow Financial LLC

222 Wisconsin Ave, Suite 214

Lake Forest, IL 60045

 

dan.winslow@winslow-financial.com 

847-217-0366

 

February 19, 2020

 

 

 

 

This brochure provides information about the qualifications and business practices of Winslow Financial LLC. If you have any questions about the contents of this brochure, please contact us at 847-217-0366. 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.

Additional information about Winslow Financial LLC also is available on the SEC’s website at www.adviserinfo.sec.gov.  Registration does not imply a certain level of skill or training.

 

 

 

Item 2: Material Changes

 

Since the last annual amendment dated 2019-02-25, no material changes have been made. 

Item 3: Table of Contents

 

Item 4: Advisory Business    4

Item 5: Fees and Compensation    5

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

Item 7: Types of Clients    6

Item 8: Methods of Analysis, Investment Strategies and Risk of Loss    6

Item 9: Disciplinary Information    7

Item 10: Other Financial Industry Activities and Affiliations    7

Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading    7

Item 12: Brokerage Practices    8

Item 13: Review of Accounts    8

Item 14: Client Referrals and Other Compensation    9

Item 15: Custody    9

Item 16: Investment Discretion    9

Item 17: Voting Client Securities    9

Item 18: Financial Information    9

Item 19: Requirements for State-Registered Advisers    9

Part 2B Brochure Supplements    11

 

Item 4: Advisory Business 

 

4A Winslow Financial LLC has been in business since 2005.  Daniel E. Winslow is the principal owner.

 

Winslow Financial LLC (Winslow) is an investment adviser registered with the State of Illinois. Winslow provides investment advisory services to individuals, trusts, estates, charitable organizations, corporations and retirement plans. The services offered by Winslow are described below.

 

4B Winslow offers financial planning services, on a comprehensive or limited basis, depending upon the client’s wishes. Fees for financial planning services are billed at an hourly or fixed rate. Comprehensive financial planning includes a review of all aspects of a client’s current financial situation, including, but not limited to the following

components:

 

Cash management;

    Risk management;

Insurance;

Education funding;

Goal setting;

Retirement planning;

Estate and charitable giving planning;

Tax planning; and

Capital needs planning

 

Completion of a comprehensive plan which includes all of the above components generally takes 3-6 months to complete, and involves several meetings with the client, other family members as appropriate, and other professionals such as accountants and attorneys, review of related documents and data supplied by the client. Upon completion, an implementation schedule is reviewed with the client to determine which steps

will be pursued, and with whom the steps may be accomplished. The client is under no obligation to utilize additional services of Winslow, and is under no obligation to implement the advice or plan. Clients may to choose all or certain components of advice and recommendations and can implement the recommendations through the service providers of their choice.

 

4C Winslow Financial LLC provides investment management services based on the individual needs of the client. Through personal discussions, goals and objectives are established based on a client’s particular circumstances. Winslow assists the client in developing the client’s personal investment policy, and then creates and manages a portfolio based on that policy.

 

Winslow Financial LLC develops portfolios based upon a client’s goals, objectives, investment time horizon and risk tolerance, as well as their core financial related values. Investment strategies generally include long-term and short-term purchases depending upon the individual needs of the client. Winslow Financial LLC uses asset allocation, or spreading investments among a number of asset classes and sectors (domestic stocks vs. foreign stocks; large cap stocks vs. small cap stocks; corporate bonds vs. government securities) for most client accounts.

 

Clients may choose investment restrictions.

 

4D Winslow Financial LLC does not participate in any wrap fee arrangements at this time.

 

4E Winslow Financial LLC does not manage client assets on a discretionary basis at this time.  Winslow Financial LLC manages $48.5 million on a non-discretionary basis as of 2019-12-31.

 

Item 5: Fees and Compensation

 

5A & B Fees may be charged on an hourly or fixed fee basis. Once determined, the exact fee arrangement is set forth in the Financial Planning Agreement. Hourly fees range from $50 to $400 per hour based upon the knowledge and experience of the individual providing the work.

 

Fixed fees are determined by estimating the number of hours to be spent preparing the plan and then quoting a fixed price. Total costs for financial plans, whether per hour or on a fixed basis, may range from $250 to as much as $40,000 or more. There is no typical plan, as plans are customized to the specific needs of the client.

 

Investment Management fees are payable quarterly and in advance, with the initial invoice calculated based upon the fair market value of the account, including cash at the time the agreement is executed through the end of the current quarter. Thereafter, fees are calculated based upon the market value of the portfolio as of the last business day of the previous quarter. Investment Management fees are billed as a percentage of assets under management ranging from 0.00% to 1.50% annually, depending upon the nature and

complexity of the services.  Fees are deducted from the account managed unless arrangements are made in advance for direct billing.  All fees are negotiable. 

 

In certain circumstances, fees, account minimums and payment terms are negotiable within reason.  Related accounts may be linked for purposes of fee calculation if all parties agree; meaning certain accounts, approved by Winslow may be grouped for fee calculations. The fee charged is calculated as described above, and is not charged on the basis of a share of capital gains upon or capital appreciation of the funds or any portion of the funds of an advisory client.

 

5C All fees paid to Winslow for investment advisory services are separate and distinct from the fees and expenses charged by mutual funds or exchange traded funds to their shareholders. These fees will generally include a management fee, other fund expenses and a possible distribution fee. Mutual funds purchased by Winslow for a client account will be executed at NAV. Accordingly, the client should review the prospectus of a mutual fund or exchange traded fund regarding fees charged by the funds in conjunction with fees charged by Winslow to fully understand the total amount of fees to be paid by the client, and to thereby evaluate the advisory services being provided.

 

The custodian may have other fees, such as annual account fees or brokerage trading fees.  Winslow Financial LLC is not a broker/dealer and has no registered representatives.

 

5D A client agreement may be canceled at any time by either party, for any reason upon written notice. Upon termination of any account, any prepaid, unearned fees will be promptly refunded and any earned, unpaid fees will be due and payable.

 

5E Winslow does not accept compensation for the sale of securities or other investment products at this time.

 

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

 

Winslow Financial LLC does not do Performance-Based Fees or Side-By-Side Management at this time.

 

Item 7: Types of Clients

 

Winslow Financial LLC has no minimum account size.  Winslow Financial LLC advises individuals, families, estates, trusts, corporations and retirement plans.

 

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

 

8A Winslow Financial LLC uses the Modern Portfolio Theory method of analysis and investment strategy.  Understanding the national and global economic situation and forecasts and demographic trends is key to forecasting.  Modern Portfolio Theory includes diversification and efficient portfolios as fundamental elements.  Credit analysis works to ensure that risk premiums commensurate with the risk of default for fixed income securities are targeted.

 

Asset allocation explains 90% of portfolio performance over time for an efficient portfolio, so suiting the asset allocation to client needs is key.

 

International investments are sought for clients with an appropriate risk tolerance.

 

Generally portfolio trading is lower and reflects changes in the economic situation such as changing yield curves, inflation expectations and the cycle of the stock market. 

 

8B Investing in securities involves risk of loss that clients should be prepared to bear.  There are material risks to all stock investments, such as temporary or permanent declines in value.  Fixed income (bond) investments may decline in value due to default risks or changing interest rate or inflation environments.

8C We primarily recommend diversified mutual funds or Exchange Traded Funds. These carry the market risks of stocks and bonds. Individual stocks have much higher volatility compared to diversified investments.

 

Item 9: Disciplinary Information

 

Winslow Financial LLC has no disciplinary information.

 

Item 10: Other Financial Industry Activities and Affiliations

 

10A Winslow Financial LLC and its management persons are not registered and do not have an application pending to register, as a broker-dealer or a registered representative of a broker-dealer.

 

10B Winslow Financial LLC and its management persons are not registered and do not have an application pending to register, as a futures commission merchant, commodity pool operator, a commodity trading advisor, or an associated person of the foregoing entities.

 

10C 

1.  Winslow Financial LLC generally uses Fidelity as the broker-dealer and custodian, municipal securities dealer, or government securities dealer or broker for its clients.   Fidelity fees are fairly small and competitive for the services provided.  Fidelity pays no fees to Winslow Financial LLC and clients may direct that other providers are used.

2.  Winslow Financial LLC has no relationship with any investment company or other pooled investment vehicle (including a mutual fund, closed-end investment company, unit investment trust, private investment company or “hedge fund,” and offshore fund)

3.  Winslow Financial LLC has no relationship with any other investment adviser or financial planner

4.  Winslow Financial LLC has no relationship with any futures commission merchant, commodity pool operator, or commodity trading advisor

5.  Winslow Financial LLC has no relationship with any banking or thrift institution

6.  Winslow Financial LLC sometimes has management persons provide accounting services to clients.

7.  Winslow Financial LLC has no relationship with any lawyer or law firm     

8.  Winslow Financial LLC has no ownership relationship with any insurance company or agency.  Winslow Financial LLC sometimes has management persons act as an insurance agent for clients.  If so, the commission relationship is disclosed to the client. Winslow Financial LLC sometimes has management persons act as consultants to insurance companies.

9.  Winslow Financial LLC has no relationship with any pension consultant

10.  Winslow Financial LLC has no relationship with any real estate broker or dealer

11.  Winslow Financial LLC has no relationship with any sponsor or syndicator of limited partnerships

 

10D Winslow Financial LLC does not recommend or select other investment advisers for clients at this time.

 

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

 

11A Winslow Financial LLC has a Code of Ethics and will provide it to clients upon request.

 

11B Winslow Financial LLC does not recommend or have related persons recommend to clients, or buy or sell for client accounts, securities in which Winslow Financial LLC or a related person has a material financial interest.

 

11C & D Winslow Financial LLC or its management and personnel do invest in the same securities (or related securities, e.g., warrants, options or futures) that Winslow Financial LLC or a related person recommends to clients.  This aligns our interests with clients’.  Our trading volume and timing of trades is low enough and different enough that client trades are not affected by our trades.  We are a very small part of a very large stock and bond market.

 

Item 12: Brokerage Practices

 

12A Winslow Financial LLC generally uses Fidelity as the broker-dealer and custodian, municipal securities dealer, or government securities dealer or broker for its clients.   Fidelity broker and custodian fees are fairly small and competitive for the services provided.  Many trading transactions have no fees.  Fidelity pays no fees to Winslow Financial LLC and clients may direct that other providers are used.  

 

Winslow Financial LLC receives research and software from Fidelity.  This is not tied to any client securities transactions or client commissions.  The software is used for all Fidelity accounts.  Research benefits all clients.  

 

Winslow Financial LLC does not cause clients to pay commissions (or markups or markdowns) higher than those charged by other broker-dealers in return for soft dollar benefits (known as paying-up).  Winslow Financial LLC does not acquire any products or services with client brokerage commissions.

 

Winslow Financial LLC does not receive any client referrals from Fidelity.

 

12B Winslow Financial LLC does not aggregate the purchase or sale of securities for various client accounts.  Our trading frequency and volume are too low and the non-discretionary basis of the accounts is not amenable to trade aggregation.  Since most client accounts have zero to $100 in brokerage fees per year, this does not seem to be a significant issue.  It is possible that a client with a large account could run somewhat higher fees.

 

Item 13: Review of Accounts

 

13A & B Winslow Financial LLC reviews accounts periodically, generally quarterly for smaller accounts and more frequently for larger accounts by a registered investment advisor.  Significant changes in the economic environment or stock or bond markets may trigger account reviews.

 

13C The custodian of client assets provides written monthly reports and daily internet access to account values.  Winslow Financial LLC may provide supplemental analysis of performance based upon client request and client account balances.

 

Item 14: Client Referrals and Other Compensation

 

14A Winslow Financial LLC does not receive sales prizes or other benefits from anyone who is not a client.

 

14B Winslow Financial LLC or a related person does not directly or indirectly compensate any person who is not our supervised person for client referrals.

 

Item 15: Custody 

 

Regulations defining custody vary across jurisdictions. In its home state, Winslow Financial LLC’s operations do not constitute custody because Winslow Financial LLC uses outside qualified custodians for client investments and accounts. In other states where Winslow Financial LLC is registered,  Winslow Financial LLC may have custody solely due to direct fee deduction.

At this time, all transactions in client accounts are authorized in writing.

 

A qualified custodian sends quarterly, or more frequent, account statements directly to clients.   Clients will receive account statements from the broker-dealer, bank or other qualified custodian.  Clients should carefully review those statements.

 

Item 16: Investment Discretion

 

Winslow Financial LLC only does non-discretionary authority for client investments at this time.

 

Item 17: Voting Client Securities

 

Winslow Financial LLC does not vote client securities.  Clients will receive their proxies or other solicitations directly from their custodian or a transfer agent.  Client may contact us via email or telephone with any questions.

 

Item 18: Financial Information 

 

18A Winslow Financial LLC does not require or solicit prepayment of more than $500 in fees per client, six months or more in advance and therefore is not providing a balance sheet.

 

18B At this time, there is no financial condition that would reasonably impair Winslow's contractual commitments to clients.

 

18C Winslow Financial LLC has not been the subject of a bankruptcy petition.

 

Item 19: Requirements for State-Registered Advisers 

 

19A Daniel Winslow and Rafi Herzfeld are the management persons for Winslow Financial LLC. Their formal education and business background may be found in their brochure supplements, located later in this same document.

 

19B These management persons' other business activities are listed in their brochure supplements, located later in this same document.

 

19C Winslow Financial LLC does not have any performance-based fees at this time.

 

19D There are none of the following at this time.  1.) An award or otherwise being found liable in an arbitration claim alleging damages in excess of $2,500, involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices. 2.) An award or otherwise being found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices.

 

19E Winslow Financial LLC has no relationship with any issuer of securities at this time.

 

Part 2B Brochure Supplement: Daniel E. Winslow

 

Item 1: Cover Page 2020-02-19

 

Daniel E. Winslow 

Winslow Financial LLC

222 Wisconsin Ave, Suite 214

Lake Forest, IL 60045

847-217-0366

dan.winslow@winslow-financial.com 

 

This brochure supplement provides information about Daniel E. Winslow that supplements the Winslow Financial LLC brochure. You should have received a copy of that brochure. Please contact Winslow Financial LLC if you did not receive its brochure or if you have any questions about the contents of this supplement. Additional information about Daniel E. Winslow is available on the SEC's website at https://www.adviserinfo.sec.gov.

 

Item 2: Educational Background and Business Experience 

 

Mr. Winslow was born in 1961. 

 

Education: 

Northwestern University, BA, Economics, 1984 

 

Business Background: 

Winslow Financial LLC 2005 - Present

Managing Member and Chief Compliance Officer 

Trustmark Insurance Company 1987-2005

Vice President and Actuary 1992-2005

Head of Actuarial Department and Group Underwriting 

Western and Southern Life Insurance Company 1985-1987

Actuarial Analyst

 

Professional Designations and Licenses: 

•    CPA, Certified Public Accountant (requires 150 hours of college credit including 10 accounting classes, 4 accounting exams, and relevant accounting experience)

•    FSA, Fellow of the Society of Actuaries (5 years of exams covering actuarial math, insurance, investments and pensions)

•    Florida & Illinois Insurance Agent (requires State insurance examination)

 

Item 3: Disciplinary Information 

 

None.

 

Item 4: Other Business Activities

 

4A Mr. Winslow is not engaged in any investment-related business or occupation, and is not registered as nor has pending an application to register as a broker-dealer, futures commission merchant, commodity pool operator, commodity trading adviser, or as any such representative or associated person.

 

4B Mr. Winslow is an FSA and CPA. Mr. Winslow does tax preparation and accounting work for some clients and may perform actuarial consulting for insurance companies. Mr. Winslow is paid on a project basis for consulting. Mr. Winslow is licensed and registered with the insurance department of the States of Illinois and Florida. He may enter into agreements with various insurance companies to provide fee based variable annuities or variable life products for which he will not receive any commission compensation from the insurance companies. In addition, Mr. Winslow may provide fixed insurance products, such as whole life, term life, and health for which he may receive a commission from the insurance companies.

 

Item 5: Additional Compensation

 

Winslow Financial LLC pays business profits to the owners.

 

Item 6: Supervision

 

Mr. Winslow is the supervisor.

 

Item 7: Requirements for State-Registered Advisers

 

7A There are none of the following at this time.  1.) An award or otherwise being found liable in an arbitration claim alleging damages in excess of $2,500, involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices. 2.) An award or otherwise being found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices.

 

7B Mr. Winslow has not been the subject of a bankruptcy petition.

Part 2B Brochure Supplement: Rafi Herzfeld

 

Item 1: Cover Page 2020-02-19

 

Rafi Herzfeld 

Winslow Financial LLC

222 Wisconsin Ave, Suite 214

Lake Forest, IL 60045

773-909-4870

rafi@winslow-financial.com 

 

This brochure supplement provides information about Rafi Herzfeld that supplements the Winslow Financial LLC brochure. You should have received a copy of that brochure. Please contact Winslow Financial LLC if you did not receive its brochure or if you have any questions about the contents of this supplement. Additional information about Rafi Herzfeld is available on the SEC's website at https://www.adviserinfo.sec.gov.

 

Item 2: Educational Background and Business Experience

 

Mr. Herzfeld was born in 1968. 

 

Education: 

Vanderbilt University, BA, Mathematics and English, 1990

Georgia State University, MAS, Actuarial Science, 1994

 

Business Background: 

Principal and Founder, ActualWise Consulting 

2019 - present 

Senior Actuary, Centene 

2018 - 2019 

Actuarial Consultant Associate Director, Optum 

2013 - 2018 

Advanced Analytics Consultant, HMC  

2009 - 2013

Director of Data & Actuarial Services, Valence Health

2008 - 2009

Associate Actuary, HCSC (BCBS of IL, TX, NM, & OK) 

2002 - 2008

Actuarial Consultant, PVI, 2000 - 2002

 

Professional Designations and Licenses: 

•    FSA, Fellow of the Society of Actuaries (5 years of exams covering actuarial math, insurance, investments and pensions)

•    IAR, Investment Advisor Representative (requires passing SEC Series 65 exam on investments, economics, and securities regulations)

 

Item 3: Disciplinary Information 

 

None.

 

Item 4: Other Business Activities

 

4A Mr. Herzfeld is not engaged in any investment-related business or occupation, and is not registered as nor has pending an application to register as a broker-dealer, futures commission merchant, commodity pool operator, commodity trading adviser, or as any such representative or associated person.

 

4B Mr. Herzfeld is an FSA and performs actuarial services for consulting companies, insurance companies, and health providers. Mr. Herzfeld is paid for these actuarial services. Mr. Herzfeld may work for other firms.

 

Item 5: Additional Compensation

 

A percentage of fees for client accounts that are assigned to Mr. Herzfeld.

 

Item 6: Supervision

 

Mr. Daniel Winslow, member, 847-217-0366, supervises Mr. Herzfeld by reviewing client accounts, trades and transactions, and by discussing investment advice for clients.

 

Item 7: Requirements for State-Registered Advisers

 

7A There are none of the following at this time.  1.) An award or otherwise being found liable in an arbitration claim alleging damages in excess of $2,500, involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices. 2.) An award or otherwise being found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following: (a) an investment or an investment-related business or activity; (b) fraud, false statement(s), or omissions; (c) theft, embezzlement, or other wrongful taking of property; (d) bribery, forgery, counterfeiting, or extortion; or (e) dishonest, unfair, or unethical practices.

 

7B Mr. Herzfeld has not been the subject of a bankruptcy petition.

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