Part 2A of Form ADV: Firm Brochure
March 27, 2017
OMEGA WEALTH MANAGEMENT, LLC
200 North Glebe Road, Suite 730
Arlington, VA 22203
This brochure provides information about the qualifications and business practices of Omega Wealth
Management, LLC. Reference to “Registered Investment Advisor” does not imply any certain level
of skill or training. If you have any questions about the contents of this brochure, please contact us
at 703-387-0919 X 500 or at Lisa@OmegaWealthManagement.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.
Additional information about Omega Wealth Management, LLC 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. The CRD number for Omega Wealth Management, LLC is 132580.
200 North Glebe Road, Suite 730, Arlington, VA 22203
Phone: (703) 387-0919 | Toll Free: (877) 678-8880 | Fax: (703) 387-0918 |
Part 2A of Form ADV: Firm Brochure
Item 2. Summary of Material Changes
This Item discusses specific material changes regarding our firm and services that are
made to the Brochure and provides clients with a summary of such changes.
Pursuant to current SEC Rules, we will ensure that you receive a summary of any
materials changes to this and subsequent Brochures within 120 days of the close of our
business’ fiscal year. We may further provide other ongoing disclosure information
about material changes as necessary.
We have no material changes to report since the filing of our last Firm Brochure dated
January 13, 2017.
Item 3: Table of Contents
Table of Contents
Fees and Compensation
Performance-Based Fees and Side-By-Side Management
Types of Clients
Methods of Analysis, Investment Strategies and
Risk of Loss
Other Financial Industry Activities and Affiliations
Code of Ethics, Interest in Client Transactions &
Review of Accounts
Client Referrals and Other Compensation
Voting Client Securities
Requirements for State-Registered Advisers
Item 4. Advisory Business
Omega Wealth Management, LLC (hereafter “OWM” or “we”) is a Virginia limited
liability corporation and a registered investment adviser with the State of Virginia,
Maryland and Washington DC and has its principal place of business in Arlington, VA.
Our firm has been in business since 1999. The firm is owned by and managed by Lisa A.
Kirchenbauer, President and shareholder.
As of December 31, 2016, OWM was managing $82,530,000 of client assets on a non-
OWM offers the following advisory services, where appropriate, to individuals, trusts,
estates, corporations, and other business entities.
Ongoing Life/Wealth Planning
OWM'S business mission is to advise and guide clients in implementing appropriate
financial and life planning strategies so that they can maximize their financial capacity to
achieve their life and wealth goals.
To accomplish this mission, Omega Wealth Management:
1. leads clients through a formal process to identify their most significant life
and wealth goals,
2. assesses the financial opportunities, obligations, and threats faced by each
3. educates the client about their financial concerns,
4. coordinates action by the client and appropriate professionals (e.g. portfolio
managers, lawyers, accountants, bankers, insurance agents, brokers, book-
keepers) to take care of those concerns.
In general, OWM gathers required information through in-depth client interviews and
coordination with client’s advisors. Information gathered includes a client's current
financial status, future goals and attitudes towards risk, as well as the following areas of
Personal: Family records, budgeting, personal liability, estate information and financial
Tax & Cash Flow: Income tax and spending analysis and planning for past, current and
future years. OWM will illustrate the impact of various investments on a client's current
income tax and future tax liability.
Investment Risk: Completion of a questionnaire and computer analysis to provide
guidance as to clients' attitude and tolerance for investment risk.
Insurance Risk Management: Analysis of areas of risk to a client's financial situation in
case of death, disability or the need for long-term care.
Retirement: Analysis of current strategies and investment plans to help the client achieve
his or her retirement goals.
Portfolio Monitoring: Assisting in the establishment of custodial accounts and investment
management relationships not provided by OWM, review and monitoring of investments
relative to the client's overall investment strategy and appropriate benchmarks, and the
effect of those accounts on a client's overall financial situation.
Financial Life Planning Issues and Advice: A main focus of OWM is to provide financial
education and coaching on life planning issues and concerns. Advice and planning
analysis on various financial and life planning issues includes business, financial and life
Though OWM will support and coordinate action by the client regarding these concerns,
implementation of the appropriate financial strategies depends upon the client taking
action and is entirely at the client's discretion. Recommendations are not limited to any
specific product or service offered by a broker-dealer or insurance company.
Limited Term Advisory Services
Transition Planning Service: OWM offers two six month Transition Planning
engagements; career transition planning and general transition planning which includes
inheritance, divorce, death of loved one or other significant life changing events. The
Transition Planning Service provides analysis and coaching using several "Kolbe"
assessments to determine your "best fits" from a career/job perspective, review of risk
tolerance using the Finametrica risk tolerance profiling system, a written financial / life
plan, and assistance with coordination of your advisors' (accountant, attorney, etc.)
Pro Bono Service: In an effort to create opportunity and success for people who may
not be able to take advantage of our fee based services, OWM offers a one time, general
planning meeting to qualified individuals and couples and to our clients' young adult
children and lower income parents. To qualify income must be under $65,000 for
couples and $40,000 for individuals.
Investment Management Services
In conjunction with its Life/Wealth Planning service, OWM provides investment advice
to clients using a goals-based investment philosophy. Through personal discussions
which identify client’s goals and objectives, OWM creates and manages portfolios based
fundamentally on the time horizon for each goal, investment objective (capital
appreciation, growth, income, or growth and income), the client’s risk tolerance and tax
bracket. The tool used to measure risk tolerance is the Finametrica Risk Profiling
Assessment. Preservation of and prudent long-term growth of capital is at the heart of
our approach; market timing is not.
OWM works with its clients to select appropriate investment strategies that support their
goals, risk tolerance and tax considerations. Our advice is generally limited to exchange-
listed securities, mutual fund shares and bonds (e.g., United States governmental
securities, corporate debt securities, and municipal securities.)
OWM will manage these advisory accounts on a non-discretionary basis. Clients will
have the opportunity to place reasonable restrictions on the types of investments which
will be made on their behalf and will retain individual ownership of all securities.
OWM Mutual Fund Models
Clients may choose to invest in one of 4 Tax-Managed or 4 Non Tax-Managed Socially
Responsible Investment (“SRI”) portfolios which are based on the general investment
philosophy described above. These SRI Models are structured to maintain a diversified
portfolio of stock, bond, alternative and cash mutual funds which support a broad array of
Environmentally Sustainable Governance principles and are rebalanced to the original
allotted allocations annually. The SRI Models in each of the Tax-Managed and Non Tax-
Managed portfolios include four risk profile categories (Conservative, Moderate, Market
Growth and Aggressive).
OWM will manage these SRI Models on a non-discretionary basis with limited time and
price discretion for purposes of periodic rebalancing, additions and withdrawals within
the mutual funds of the OWM SRI Models selected by the client.
SEI Management Program
OWM offers clients access to asset allocation portfolios and managed account solutions
available through selected programs offered by SEI Investments Management
Corporation ("SIMC"), a federally registered investment adviser. Account services are
divided between SEI and OWM. Under these programs, each client enters into a tri-party
agreement with OWM and SIMC which sets forth the terms under which the clients
designated assets will be managed. SIMC constructs portfolios of SEI Funds using
quantitative and qualitative analyses, and continuously monitors the portfolios,
rebalancing and/or reallocating when deemed necessary.
The services that OWM provides in connection with all SIMC programs generally
include the following:
1. Collecting information about clients and assisting them in selecting the
appropriate program and in designating assets to be managed;
2. Assisting client in determining their investment objectives, investment time
horizons, and risk profiles;
3. Assisting clients in selecting an asset allocation policy within the parameters of
the program selected;
4. Making investment recommendations consistent with the asset allocation policy
5. On-going monitoring of the client's portfolio and recommending changes to the
investment strategy as warranted; and
6. Serving as primary client contact, including periodically conferring with clients
about their accounts and responding to client inquiries.
A brief description of each program is as follows. For more information about the
programs generally, about SIMC, and about the fees SIMC charges in connection with
the programs see SIMC's Form ADV, Part 2 Firm Brochure or the applicable program
wrap fee brochure.
Managed Account Program (including ETF portfolios): The Managed Account
Program is a wrap fee program which charges a bundled fee that includes advisory,
brokerage and custody services. In this program, OWM and the Client select an
investment strategy ("Strategy") which is then submitted and reviewed by an SIMC
Investment Adviser Representative. Using the Strategy, SIMC may invest client assets in
mutual funds advised or administered by SIMC or its affiliates ("SEI Funds"); or in
outside money managers ("Sub Advisers") hired by SIMC may invest client assets in
individual securities. Client accounts may invest in a combination of individual securities
and SEI Funds. The Managed Account Program offers a tax-management feature called
("IMAP") under which SIMC selects one sub-adviser to serve as tax manager for the
account. SIMC charges an additional fee for this service. Through the Managed Accounts
Program, clients can utilize the SEI Tactical and Tax-Managed ETF Strategies.
Private Client Model Program: In this program, OWM and the Client select an
investment strategy and choose from one of many mutual fund asset allocation models,
which may be provided by SEI Investments Management Corporation ("SIMC"), or
purchase the individual mutual funds.
The Client, through OWM using limited time and price discretion, may adjust their asset
allocation to help ensure that the mix reflects the objectives of their chosen strategy.
Investment options include SEI's Managed Account Program, Private Client Models and
may also include individual mutual funds. SIMC expects to make changes to the Private
Client Models periodically. Upon consent from OWM (on behalf of the client), the asset
allocation changes will be made to the client's accounts.
Under exceptional circumstances only, clients may also receive advisory services on a
more limited basis. This may include advice on only an isolated area(s) of concern such
as estate planning, retirement planning, or any other specific topic. OWM also provides
specific consultation and administrative services regarding investment and financial
concerns of the client. Additionally, OWM provides advice on non-securities matters.
Generally, this is in connection with estate planning, insurance, and/or annuity advice.
Seminars, Workshops, and Public Speaking
OWM staff members may, from time to time, be engaged to present workshops, seminars
or speak publicly on a range of topics including financial life planning, traditional
financial planning and investments. They may be compensated for their time, travel costs
and cost of materials. They may also charge a fee for participation in the program or
receive a portion of any fee paid by participants.
OWM staff members will not provide specific investment advice to any participants as
part of the public presentation. Specific advice can only be provided through the regular
individual OWM advisory services.
Item 5. Fees and Compensation
Life/Wealth Advisory Fee: OWM’s Life/Wealth Advisory 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.
OWM’s fee is calculated and charged on a fixed fee basis, typically ranging from $7,500
to $30,000 annually. The exact fee is negotiated with the client and is then specified in
the Life & Wealth Planning Agreement.
Clients will be billed quarterly in advance based on the total annual agreed-upon
Life/Wealth Advisory fee. OWM will honor existing fee agreements for clients who have
a prior relationship with Kirchenbauer Financial Management and Consulting, and may
offer special arrangements for related family members.
Transition Planning Fee: Five meetings are scheduled plus interim communications as
needed. The fee for this 6 month engagement is $5,000 and may be adjusted upwards for
added planning complexity, non-standard services and time which may be required as a
result of (but not limited to) complex securities in the portfolio, business ownership,
client special requests, complicated life transitions, etc. Clients will be billed one half of
the fee upon signing the fee agreement, and the remaining half of the fee 3 months later.
Checks are made payable to Omega Wealth Management LLC.
Investment Management Fee: The annual fee for Investment Management services
will be charged as a percentage of assets under management, according to the following
Assets Under Management
Annual Fee (%)
Less than $1,000,000
$1,000,000 - $2,499,999
$2,500,000 - $4,999,999
$5,000,000 - $7,499,999
Clients will be invoiced in arrears at the end of each calendar quarter based upon the
value (market value or fair market value in the absence of market value, plus any credit
balance or minus any debit balance), of the client's account at the end of the previous
quarter. With client approval, fees may be withdrawn directly from client accounts or
paid by check made payable to Omega Wealth Management LLC. Pre-existing advisory
clients who custody their assets at Charles Schwab & Co., Inc. will continue to be
invoiced in advance at the beginning of each calendar quarter. Therefore, our firm’s
billing schedule for Investment Management services will differ among clients.
SEI Management Program Fee: OWM charges an annual asset-based fee for the
services it provides in connection with the SEI programs. The fee rate is subject to
negotiation based on the asset allocation of the portfolios and will vary based on their
complexity, diversification and the total dollar value of the account. The maximum fee
charged by OWM for SIMC’s asset allocation portfolios and managed account solutions
is 1.11%. The fee rate that a client will actually be charged is set forth in the client
agreement. Please refer to SIMC’s Form ADV Part 2 Firm Brochure or the applicable
program wrap fee brochure for additional information on their fees and compensation.
The OWM SEI Management fee will be charged on an arrears basis and will be remitted
quarterly net of any applicable account and performance reporting charges not charged to
the client. SEI Management Fees are withdrawn directly from client accounts on a
Upon written notification, the program agreement may be terminated by
SIMC, OWM or the client. Prorated fees will be charged based on market value on the
date notice is received. OWM may aggregate related accounts for fee calculation
purposes in order to reduce the client fee. The client will pay additional and separate fees
to SIMC for the services provided by SIMC and its affiliates under the program.
Consulting Service Fee: In certain circumstances, fees for specific administrative and
other consulting services will be billed on an hourly basis, ranging from $250 - $350 per
hour, depending on the nature and complexity of each client's circumstances. An estimate
for total hours will be determined at the start of the advisory relationship. All Consulting
fees are due and payable to Omega Wealth Management LLC upon completion of the
Seminars/Workshops/Public Speaking Fee: OWM staff members may, from time to
time, be engaged to present workshops, seminars or speak publicly on a range of topics
including financial life planning, traditional financial planning and investments. If fees
are charged, they will be based on the amount of time to prepare and deliver the
presentation and could range from $500 to $2,500 for a 1 to 4 hour workshop; plus travel
costs and cost of materials. They may also charge a fee for participation in the program or
receive a portion of any fee paid by participants. The amount and timing of fee payments
are negotiated prior to performance of the event and payable to Omega Wealth
General Information on Fees and Services:
Negotiability of Fees and Minimum Requirements: In certain circumstances, all fees may
be negotiable or waived. Under no circumstances will we earn fees in excess of $500
more than six months in advance of services rendered.
Fee Calculation: 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 (Section 205(a)(1) of the Investment Advisers
Act of 1940, as amended).
Termination of Advisory Relationship: A client agreement may be canceled at any time,
by either party, for any reason upon receipt of 30 days prior 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.
The client has the right to terminate an agreement without penalty within five business
days after entering into the agreement.
Mutual Fund Fees and Expenses: All fees paid to OWM for investment advisory services
are separate and distinct from the fees and expenses charged by mutual funds to their
shareholders. The mutual fund fees and expenses are described in each fund's prospectus
and will generally include a management fee, other fund expenses, and a possible
distribution fee. If the fund also imposes sales charges, a client may pay an initial or, in
some cases, a deferred sales charge. A client could invest in a mutual fund directly,
without the services of OWM. In that case, the client would not receive the services
provided by OWM which are designed, among other things, to assist the client
in determining which mutual fund or funds are most appropriate to each client's financial
condition and objectives. Accordingly, the client should review both the fees charged by
the funds and the fees charged by OWM to fully understand the total amount of fees to be
paid by the client and to thereby evaluate the advisory services being provided.
Mutual Fund Risks: Before investing in mutual funds, clients should understand that
mutual funds and annuities are not insured by the FDIC or any other federal government
agency and are not deposits or obligations of, guaranteed by, or insured by, the
depository institution where offered or any of its affiliates. Mutual funds and annuities
involve investment risk and may lose value.