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STA Wealth Management, LLC (“STA” or “we”) is registered with the U.S. Securities and Exchange Commission (SEC) as an investment adviser. Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences. 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.
What investment services and advice can you provide me?
We offer a range of investment advisory, financial planning, and consulting services to retail investors. We also provide investment management services on a wrap fee basis in accordance with our investment management wrap fee program (this program is currently closed to new relationships). We primarily manage investment accounts on discretionary, however, in limited circumstances, we will provide non-discretionary management services. A discretionary account allows us to buy and sell investments in your account without asking for your approval in advance. A non-discretionary account means that you decide what investments to buy and sell. STA requires a client (aggregate account) minimum of $500,000.00 for its discretionary managed account services. Households under the minimum will generally be referred to the STA’s Robo Platform named the START Platform (this is a separate service and is not actively managed). The minimum asset level required for our Hedged Tactical Equity Strategy is $1 million. We may waive any account minimum in our sole discretion. As part of your portfolio management services, we will continuously monitor your investments and provide advice. We do not limit the types of investments that we recommend.
For additional information, please see our Form ADV Part 2A, Items 4, 7, 13, and 16.
• Given my financial situation, should I choose and 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?
We are customarily compensated on the basis of fees calculated as a percentage of assets under management. The table below shows STA’s maximum fee structure for managed accounts, not participating in the Hedged Tactical Equity Strategy, or being serviced on a wrap fee basis. STA does not generally consider its advisory fees to be negotiable, although we may do so in our sole discretion based on the size and scope of the client’s overall relationship with STA and its affiliates, the complexity of the client’s portfolio or their individual requirements, and the fees that the client’s account was charged at another firm prior to transferring to STA. STA does not charge performance fees. The more assets there are in your account, the more you will pay in fees, so we have an incentive to encourage you to increase the assets in your account.
|Asset Range||Annual Fee|
|$500,000 – $749,999||1.50%|
|$750,000 – $999,999||1.35%|
|$1,000,000 and up||1.25%|
Financial Planning and Consulting Fees. To the extent specifically requested by a client, STA may determine to provide financial planning and/or consulting services (including investment and non-investment related matters, business, estate, insurance planning, etc.) on a stand-alone fee basis. These fees are negotiable, but generally range from $2,000 to $30,000 on a fixed fee basis, and from $150 to $350 on an hourly rate basis, depending upon the level and scope of the service(s) required and the professional(s) rendering the service(s).
Hedged Tactical Equity Strategy. Lavaca Capital (Lavaca), the sub-adviser for the Hedged Tactical Equity Strategy, will receive an annual, asset-based fee of 0.9% based on the amount of assets in a client’s account investing in the strategy. In addition to the fees a client will pay to both Lavaca and their account’s custodian, clients will also pay to STA an annual, asset-based fee of 0.9% based on the amount of assets in their account investing in the strategy.
STA Wrap Fee Program (Program). The Program fee ranges from .25% to 1.50%, depending upon the amount and type of the Program assets (this program is no longer available to new relationships).
START Platform Accounts. Clients with an asset range of $25,000-$50,000 shall be billed an annual fee of $250 per client household. Clients with an asset range of $50,001-$500,000 shall be billed an annual fee of 0.50% of account value per client household.
Clients may pay other expenses in addition to the fees paid to us. For example, clients may pay costs such as bank fees, margin interest, national securities exchange fees, clearing fees, brokerage commissions, transaction fees, custodial fees, transfer taxes, wire transfer fees, and other fees and taxes charged to accounts and securities transactions, which are unrelated to the fees collected by us. Mutual funds, partnerships, REITS and other collective investment vehicles also charge internal management fees, which are disclosed in the vehicle’s offering documents.
You 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.
For additional information, please see our Form ADV Part 2A brochure Items 5 and 6.
• 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 affect the recommendations, we provide you. Here are some examples to help you understand what this means.
More detailed information can be found on our Form ADV Part 2 Items 11, 12, and 18.
• 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 primarily compensated by receiving a percentage of the management fee that STA collects on a managed account (see “What fees will I pay” above). There is no compensation linked to the investments offered. Additional compensation may be received for financial planning services. Some of our Advisors are licensed insurance agents and as such may receive commissions should a client purchase an insurance product, no management/advisory fee will associated with such a purchase other than .
Do your financial professionals have legal or disciplinary history?
Yes. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
• As a financial professional, do you have any disciplinary history? For what type of conduct?
Additional Information For additional information about our services or to request a copy of Form CRS, please contact us at: City Centre One, 800 Town and Country Blvd., Suite 410, Houston, TX 77024 or telephonically at (281) 822-8800.
• Who is my primary contact person? Is he or she a representative of an investment adviser or broker-dealer? Who can I talk to if I have concerns about how this person is treating me?