Form CRS Client Relationship Summary
J.M. Arbour, LLC
April 6, 2022
Item 1 – Introduction: Is an investment advisory account right for you?
J.M. Arbour, LLC is registered with the Securities and Exchange Commission as an investment adviser. Please be aware that brokerage and investment advisory services and fees differ and that it is important for you to understand the 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.
Item 2 – What investment services and advice can you provide me?
We offer investment advisory services to retail investors. Our principal services include portfolio management, financial planning, and retirement plan consulting. As part of our standard portfolio management services, we provide continuous and regular supervisory and/or management services with respect to your account(s). Portfolio management services are provided in conjunction with a sub-adviser. We use model portfolios developed by the sub-adviser and/or other registered investment advisers. These other investment advisers are responsible for the research and security selection, we are responsible for the supervision of the account and direct interaction with the client, and the sub-adviser is also responsible for day-to-day trading, billing calculation, and other back-office operations. Our portfolio management services are offered on a discretionary, and in limited cases, non-discretionary basis. Discretionary authorization allows us to determine the specific securities, and the number of securities, to be purchased or sold for your account without your approval prior to each transaction. Non-discretionary portfolio management service means that we must obtain your approval prior to making any transactions in your account. We do not limit our advice to proprietary products, or a limited menu of products or types of investments. As part of our standard portfolio management services, we monitor client accounts continuously and review them at least annually.
We do not require a minimum amount of assets to establish a relationship with us. Our financial plans cover various topics such as Cash Flow Analysis, Tax Analysis and Planning, Retirement Analysis, Portfolio Analysis/Investment Planning, Insurance Analysis, Education Savings Analysis, and Estate Analysis. We do not monitor the investments made as a result of a financial plan unless you have hired us for portfolio management services. Typical pension consulting services are consultative in nature and do not include ongoing management of client assets.
For additional information, please refer to Items 4, 7, & 13 of our Form ADV Part 2A at the following link: https://adviserinfo.sec.gov/firm/brochure/313352
Conversation Starters. Ask your financial professional—
v Given my financial situation, should I choose an investment advisory service? Why or why not?
v How will you choose investments to recommend to me?
v What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
Item 3 – What fees will I pay?
We are primarily compensated by a percentage of assets under our management, hourly fees, and fixed fees. Our fees vary depending on the services you receive. Portfolio management fees are based upon a percentage of your assets under our management. These fees are payable monthly in arrears and are based on the average daily value of the assets of the month just ended. The more assets there are in your advisory account, the more you will pay in fees. Therefore, we have an incentive to encourage you to increase the assets in your account. When we provide standalone financial planning services, we charge a fixed fee or an hourly fee. 50% of the fee is payable upon execution of the financial planning agreement, with the balance due upon completion of services. All agreed-upon services will be completed within 6 months of execution of the financial planning agreement. Our retirement plan consulting fees are based on a percentage of the plan assets. Our fees are negotiable based on the complexity of client goals and objectives and level of services rendered.
For additional information regarding our fees, please see Item 5 of our Form ADV Part 2A at the following link: https://adviserinfo.sec.gov/firm/brochure/313352
Description of Other Fees and Costs: The fees that you pay to our firm for investment advisory services are separate and distinct from the fees and expenses charged by investment companies (e.g., mutual funds, exchange-traded funds, unit investment trusts, and variable annuities). These fees are described in each fund’s prospectus. These fees will generally include a management fee and other fund expenses. You will also incur transaction charges and/or brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer or custodian that executes the trade. The broker-dealer or custodian may also charge your account for custodial fees, retirement account fees, trust fees, exchange fees, redemption fees that may be assessed on investment company shares, transfer fees, account termination fees, or other special service fees and charges. We do not share in any portion of these fees imposed by the broker-dealer or custodian. To fully understand the total cost you will incur, you should review all the fees charged by investment companies, broker-dealers, our firm, and others. 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 about fees charged by third parties, please refer to Item 5 of Form ADV Part 2A at the following link: https://adviserinfo.sec.gov/firm/brochure/313352
Conversation Starter. Ask your financial professional—
v 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 can affect the investment advice we provide you. All investment advisers face conflicts of interest which are inherent in the business. Our primary source of compensation is through asset-based fees. Therefore, we are incentivized to acquire new clients and to increase assets under management. We engage in other business activities, such as insurance sales; and, we have relationships with third-party service providers, including other financial institutions such as our custodian, TD Ameritrade, Inc., and our sub-adviser, Foundations Investment Advisors LLC, which results in inherent conflicts of interest.
Conversation Starter. Ask your financial professional—
v How might your conflicts of interest affect me, and how will you address them?
Please refer to our Form ADV Part 2A for further information on our conflicts of interest and how we address them at the following link: https://adviserinfo.sec.gov/firm/brochure/313352
How do your financial professionals make money?
Our financial professionals receive salary-based compensation, a percentage of advisory billings, and/or bonuses based on the amount of client assets they bring to our firm. Therefore, our financial professionals have an incentive to encourage you to increase the assets in your account. Additionally, financial professionals who have an ownership interest in our firm share in the profits generated by our firm. Our financial professionals are also insurance agents. This creates a conflict of interest because these persons will receive additional commission-based compensation in connection with the sale of insurance products. You are not required to purchase insurance from our financial professionals.
Item 4 – Do you or your financial professionals have legal or disciplinary history?
No. Our firm or our financial professionals do not have a legal or disciplinary history.
For a free, simple search tool to research us and our financial professionals please visit Investor.gov/CRS.
Conversation Starter. Ask your financial professional—
v As a financial professional, do you have any disciplinary history? For what type of conduct?
Item 5 – Additional Information
For additional information about our advisory services, please refer to our Form ADV Part 2A brochure available at https://adviserinfo.sec.gov/firm/brochure/313352 and the individual Form ADV Part 2B brochure supplement(s) your representative provides. If you have any questions, need up-to-date information, and/or need a copy of this Client Relationship Summary, please call us at (207) 248-6767 or email us at jac@jmarbour.com.
Conversation Starters. Ask your financial professional—
v Who is my primary contact person?
v Is he or she a representative of an investment adviser or a broker-dealer?
v Who can I talk to if I have concerns about how this person is treating me?