Item 1- Cover Page 

Firm Brochure
(Part 2A of Form ADV)

STRATITECH CONSULTING, INC.

39W384 Kurt Court

St. Charles, IL 60175

PHONE: (630) 584-5277

CELL: (630) 248-5277

WEBSITE: www.stratitech.net

EMAIL: john@stratitech.net

 

This brochure provides information about the qualifications and business practices of Stratitech Consulting, Inc. If you have any questions about the contents of this brochure, please contact us at: (630) 248-5277, or by email at: john@stratitech.net.

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.

While  the  Firm  and  its  personnel  are  registered  with  the  State  of Illinois, it does not imply a certain level of skill or training on the part of the Firm or its personnel.

Additional information about Stratitech Consulting, Inc. is available on the SEC’s website at www.adviserinfo.sec.gov.  Click on the “Investment Adviser Search” link and then search for “Investment Adviser Firm” using our Firm’s IARD/CRD #, which is 231787. 

June 26, 2015

 

 

 

 

 

 

 

Item 2 – Material Changes

Material Changes since the Last Annual Update

The Form ADV Part 2A advisory brochure has not required updating.

The Firm may at any time update this document and either send a copy of its updated brochure or provide a summary of material changes to its brochure and an offer to send an electronic or hard copy form of the updated brochure.  Clients are also able to download this brochure from the SEC’s Website: www.adviserinfo.sec.gov or may contact our Firm at (630) 584-5277 to request a copy during normal business hours.

 

As with all Firm documents, Clients and prospective Clients are encouraged to review this brochure in its entirety and are encouraged to ask any questions related to it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

Item 1 - Cover Page                                                                                                

Item 2 - Material Changes                                                                                                

·         Material Changes since the Last Annual Update                                 

Item 3 – Table of Contents                                                                                     

Item 4 - Advisory Business                                                                                    

·         Firm Description                                                                                            

·         Principal Owners                                                                                           

·         Types of Advisory Services                                                                         

·         Tailored Relationships                                                                                  

·         Types of Agreements                                                                                    

·         Termination of Agreement                                                                           

Item 5 - Fees and Compensation                                                                                   

·         Description                                                                                                     

·         Fee Billing                                                                                                       

·         Other Fees                                                                                                      

·         Past Due Accounts and Termination of Agreement                                

Item 6 - Performance-Based Fees and Side-by-Side Management                           

·         Sharing of Capital Gains                                                                             

Item 7 - Types of Clients                                                                                                    

·         Description                                                                                                     

·         Account Minimums                                                                                       

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

·         Methods of Analysis                                                                                      

·         Investment Strategies                                                                                   

·         Risk of Loss                                                                                                    

Item 9 - Disciplinary Information                                                                                      

·         Legal and Disciplinary                                                                                 

Item 10 - Other Financial Industry Activities and Affiliations                            

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

·         Code of Ethics                                                                                               

·         Privacy Policy                                                                                                 

·         Participation or Interest in Client Transactions                                        

·         Personal Trading                                                                                           

Item 12 - Brokerage Practices                                                                               

·         Selecting Brokerage Firms                                                                          

·         Best Execution and Order Aggregation                                                    

Item 13 - Review of Accounts                                                                               

·         Regular Reports                                                                                            

Item 14 - Client Referrals and Other Compensation                                         

·         Incoming Referrals                                                                                        

·         Referrals Out                                                                                                  

Item 15 – Custody                                                                                                   

Item 16 - Investment Discretion                                                                            

·         Discretionary Authority for Trading                                                            

Item 17 - Voting Client Securities                                                                         

·         Proxy Votes                                                                                                    

Item 18 - Financial Information                                                                             

·         Financial Condition                                                                                                             

Item 19 – Requirements for State-Registered Advisors                                     

 

 

 

 

 

 

 

 

 

 

Item 4 – Advisory Business

Stratitech Consulting, Inc. (or “the Firm”) was founded in 2015 and has been registered with the State of Illinois as a Registered Investment Adviser. The shares of the corporation are held equally between John R. Waller, President and Virginia J. Waller, Secretary.

The Firm offers its services in three broad categories:
●   A comprehensive look at family wealth protection and security needs,
●   Financial planning services,
●   Ongoing investment management services.  

The Client always chooses the type and scope of services desired at any given time. Every Client has different wants, needs, risk tolerance and planning horizon. There are no income or asset minimums related to the Firm’s services.

·         A comprehensive look at family wealth protection and security needs.

A comprehensive financial plan constitutes much more than simply creating a portfolio of investments. Through listening to the Clients wants, needs and dreams, Stratitech Consulting, Inc. will suggest seeing some or all three of the following experts:

1.    An attorney for things like appropriate incorporation, wills, estate planning,

2.    An insurance professional to make certain that that both the Client and the assets are protected from damage, liability and loss of income,

3.    A tax accountant to make sure that the related income streams are taxed at optimum levels to minimize the tax burden.

No one can be an expert in all of these areas so independent professionals are used. If the Client has an attorney, an insurance professional and a tax accountant that they are comfortable with, that is fine. If they do not, Stratitech Consulting, Inc. will suggest ones that have proven to be able. If desired by the client, the Firm will generate a list of questions to ask each professional. If requested by the Client, the Firm will accompany the Client to each meeting to make certain that appropriate advice is received. In all cases, the independent professional will invoice the Client directly. Under no circumstances will Stratitech Consulting, Inc. accept a finder fee or a commission from these providers.

·         Financial planning services

I.              Perform a comprehensive review of Client’s current and projected income streams in relationship to their planning horizon

II.            Work with the Client to clarify and solidify their financial goals and objectives

III.           Evaluate where the Client is in relationship to their financial goals and objectives

IV.          Provide options as to how their financial goals and objectives can be achieved

V.           Develop changes to the Client’s existing portfolio and/or suggest new portfolios

VI.          Monitor progress against these financial goals and objectives and work with the Client to agree on corrections as they are needed.

For estimating purposes, a comprehensive financial plan will normally take from 5 to 15 hours to complete depending upon size and complexity.

·          Ongoing investment management services.  

Stratitech Consulting, Inc. is a small Firm. We will not accept more than fifty Clients. However, these fifty Clients receive a high degree of personal service. All Client’s portfolios are reviewed on an item by item basis at least monthly. Communication via phone, email or video conferencing is used to provide Clients with information regarding significant changes within their portfolio. As time goes on, financial needs and goals change and so do the markets. Money may be needed for educational costs, retirement income or other, unexpected needs. The Firm will work with the Client to make these changes expeditiously.

Stratitech Consulting, Inc. encompasses a software application development company that has created a program called GetFinance© that has the capability to assess the fundamental financial health of every stock for which there are complete income statements, balance sheets and statements of cash flow. The output provided includes year-over-year growth of earnings, sales, equity and cash flow. It provides an estimate of the value of the stock and provides a comparison against current price. Once soundness and value have been determined, the annual report, the footnotes and the CEO’s quarterly update are reviewed. The Firm then uses technical analysis such as moving averages and relative strength indices to determine the best time to buy or sell.

Some Clients are not comfortable investing in certain industries. A list of alcohol, tobacco, gambling, defense, crime and sex companies is presented to determine if there are areas that the potential Client would prefer to avoid.

Stratitech Consulting, Inc. provides fee-only, as-needed Financial Planning and Investment Advisory Services to individuals and families. These services may be general in nature or focused on particular areas of interest or need, depending upon each Client’s unique circumstances. The Firm also provides on-going investment management services on an hourly basis and does not impose an account or net worth minimum for any of its services. Clients can choose the level of service that best meets their particular needs and investment management style.

Stratitech Consulting, Inc. holds itself to a fiduciary standard, meaning the Firm and its employees will deliver advice believed to be in the best interest of the Client ahead of all other interests. The Firm does not sell any type of financial products.  The Firm is not affiliated with entities that sell financial products or securities.  No commissions, referral fees or third party payments, in any form, are accepted or paid. 

An initial meeting, preferably in person with all principal Clients, is complementary and is considered an exploratory interview to determine the extent to which financial planning or investment management services may be beneficial to the Client and to mutually determine if there is a good fit between the Client’s needs and the Firm’s methods and services.
 

Item 5 – Fees and Compensation

Stratitech is a fee only investment Firm. The Firm will not accept or pay commissions or finder fees. When we work on the Client’s account, Stratitech will invoice $90.00 per hour billed on a per minute basis. A detailed invoice listing all work performed with a precise start and stop time will be provided. If there are specific expenses related to your account, they will be billed at cost. Invoices will be issued approximately monthly and are payable upon receipt.

Service

Fee

Prepayment Requirement

$0

Fee for Financial Work Provided

$90 / Hour

Assets Under Management less than $500,000

Total fees not to exceed $4,000 in 12 months*

Assets Under Management greater than $500,000

Total fees not to exceed 1% of Assets Under Management in 12 months*

* Unless additional work is specifically authorized by Client

 

In Illinois, unless a client has received the firm’s disclosure brochure at least 48 hours prior to signing the investment advisory contract, the investment advisory contract may be terminated by the client within five (5) business days of signing the contract without incurring any advisory fees.

 

Stratitech Consulting, Inc. has not wrap fee program and is not associated with the broker-dealer. The broker-dealer that is used is the one that has custody of the clients’ funds.
 


Item 6 – Performance-Based Fees and Side-by-Side Management

Stratitech Consulting, Inc. does not accept performance-based fees.

 

 

Item 7 – Types of Clients

The Firm provides investment advice primarily to:

·         Young adults to assist in budgeting and scheduled savings,

·         Adults with both retirement planning and wealth building requirements,

·         Retired people to help plan for income needs and maximizing the estate.

Stratitech Consulting, Inc. has no minimum asset requirement for starting or maintaining an account.


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

The Firm is an equity investor, investing in common stocks. Although funds are sometimes used, bonds, other than Treasuries, are avoided. Stratitech Consulting, Inc. encompasses a software application development company that has created a program called GetFinance© that has the capability to assess the fundamental financial health of every stock for which there are complete income statements, balance sheets and statements of cash flow. The output provided includes year-over-year growth of earnings, sales, equity and cash flow. It provides an estimate of the value of the stock and provides a comparison against current price. Once soundness and value have been determined, the Firm will investigate proxies for excessive management compensation and the annual reports for the CEO’s letter to stockholders. Danger signals can be found in the footnotes such as unfunded or underfunded defined benefit plans and serious environmental and legal issues. When the evaluation is complete, Stratitech will consider recommending or making a purchase using techniques like trading activity, RSI, MACD and SS %K to indicate that the timing is optimal. These tools are used to make certain that a purchase or a sale is made at the time that is most beneficial to the client. These market timing services are offered to all clients are used for all buy and sell transactions. Stratitech has no minimum net worth requirement.

For comparisons and redundancy, Stratitech has professional subscriptions to:

·         Finviz.com

·         Dividendinvestor.com

·         Morningstar.com

Stratitech cannot guarantee that past performance will be indicative of future performance. Stratitech cannot predict what the market will do although it is known that it will go up and it will go down. Stratitech cannot guarantee profits and we cannot guarantee that there will not be loss of capital.

However, Stratitech can guarantee that we will work closely with you to follow your investment profile and maximize you investment objectives.

One of the most difficult concerns is determining the Client’s risk tolerance. Since each individual has his own risk tolerance, it is nearly impossible to compare them. To best estimate risk tolerance Stratitech asks a series of risk related questions. We also look at previous investments that can provide insight into what does risk mean to the Client. This is an area that requires difficult conversation.

Item 9 – Disciplinary Information

Neither the Firm nor any member of its management has been involved in a material criminal or civil action in a domestic, foreign or military jurisdiction, an administrative proceeding, or a self-regulatory organization proceeding.

 Item 10 – Other Financial Industry Activities and Affiliations

Stratitech Consulting, Inc. has no financial industry activities or affiliations that would create a material conflict of interest for our Clients.

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

Stratitech Consulting, Inc. and its employees may buy or sell securities that are also held by Clients.  Employees may not trade their own securities ahead of Client trades.   Neither the Firm nor any of its employees have a material financial interest in any investments it might recommend to Clients. The Firm may also make recommendations or take action with respect to investments for its Clients that may differ in nature or timing from recommendations made to or actions taken for other Clients or for its employees.

Privacy Policy – Stratitech Consulting, Inc. shall not disclose the identity, affairs, or investments of any Client unless required to do so by law or consented to by the Client. Client information must be kept confidential.

 Section 130.849 Consumer Information Privacy Provisions

An investment adviser, registered or required to be registered pursuant to Section 8.D of the Act, shall comply with the privacy provisions of subtitle A of Title V of the federal Gramm-Leach-Bliley Act (15 USC 6801-09) and the Federal Trade Commission regulations at 16 CFR 313 (Privacy of Consumer Financial Information).

Item 12 – Brokerage Practices

Stratitech Consulting, Inc.is not affiliated with any bank, custodian, mutual fund company, insurance company or broker-dealer Firm.  The Firm generally recommends the use of discount brokers such as Fidelity or Vanguard. Clients that engage the Firm for project-based advice are under no obligation to change their existing custodian. Recommendations will be made with full consideration of Client’s desired custodian or broker-dealer.

When engaged to provide ongoing asset management services, the Firm will suggest the use of Fidelity Investments. The Firm believes this provider offers professional services and industry best practices, which includes low transaction costs for the Client and quality overall service to both the Client and the Firm in its efforts to better serve their account.  Such service involves, for example, free electronic distributions or withdrawals, electronic statements, etc. Available research tools are also a modest consideration. Stratitech Consulting, Inc. does not receive fees or commissions from these arrangements.

Item 13 – Review of Accounts

On at least a monthly basis, each Client’s portfolio is reviewed on an investment by investment basis for performance and continued viability. The review is performed by the President of Stratitech Consulting, Inc. If the review generates no need for action, no report is provided. If a recommendation is made, it is made in the form of an email or a telephone call. Communication and questions commenced by the Client are addressed in a timely way and responded to via email or telephone.

 

Item 14 – Client Referrals and Other Compensation

The Firm does not currently engage in solicitation activities as defined by Rule 206(4)-3 of the Investment Adviser Act of 1940, nor does it pay a direct or indirect fee for referrals.

Stratitech Consulting, Inc. does not accept fees or any form of remuneration from other professionals when a prospect or Client referral is made.

Item 15 - Custody

All assets are held at unaffiliated, qualified custodians, which means the custodians provide account statements directly to Clients at their address of record at least quarterly. The Firm does not have custody of Client’s assets and does not send its own account statements.

Item 16 – Investment Discretion

If authorized by the Client, Stratitech will buy and sell securities within Client’s accounts either with or without approval. However, the Firm will not accept the authority to place money into or take money out of those accounts. This is normally called limited power of attorney. If the Client wants to make his/her own transactions, Stratitech will work directly with the Client to facilitate that. However, the Firm must have enough access authority to the accounts to view the holdings.

The Client needs to work directly with their custodian (E.g., Fidelity, Vanguard, Scottrade, etc.) to provide third-party trading authorization. All custodians are glad to present the options and help with this.

Item 17 – Voting Client Securities

Proxy Votes

If desired by the Client and instructed to do so, Stratitech Consulting, Inc. will vote proxies on securities held in accounts where the Firm has appropriate authority to view and vote the proxies. The Firm will read the proxy, review executive pay, and vote against the board members if the compensation is deemed excessive and/or the performance has not been as anticipated. The Client is free to vote any or all proxies as he or she desires. If requested by the Client, Stratitech will answer questions relating to the issues of the proxy.

The Client’s custodian will provide notification through their internal messaging system that a proxy statement has been delivered as well as a method for voting directly on the custodian’s website.

Item 18 – Financial Information

Stratitech Consulting, Inc. does not have any financial impairment that will preclude the Firm from meeting commitments to Clients. The Firm does not have discretionary authority or custody of client funds or securities or require or solicit prepayment of more than $500 in fees per client six months in advance. Therefore, an audited balance sheet is not required nor included in this disclosure. 

Item 19 – Requirements for State-Registered Advisors

Business Background and Professional Experience:

STRATITECH CONSULTING, INC. – St. Charles, Illinois                  2015 -

Investment Advisory Firm  

MARTIN MATTHEWS GROUP, INC. – St. Charles, Illinois                2008 - 2015  

Business and Technology Consulting Services

ROCKFORD PRODUCTS CORPORATION – Rockford, Illinois      1989 – 2008
Manufacturer & Provider of Cold Formed Components

Vice President & Chief Technology Officer                                        2004 – 2008

Vice President – Information Technology & Quality                       1999 – 2004

Vice President – Quality                                                                           1996 – 1999

Corporate Quality Director                                                                      1989 – 1996

Corporate Quality Manager                                                                     1989


Education:  

M.S. – Business Management                                         

Aurora College                                                      Aurora, Illinois

B.S. – Marketing                                                                

Bradley University                                                 Peoria, Illinois 


Achievements & Distinctions:

Ø  Examiner, Malcolm Baldrige National Quality Award – Presidential Distinction (2 years) 

Ø  Examiner, Lincoln Award for Business Excellence (Illinois Quality Award) (2 years)
                

John Waller is a sole practitioner and as such serves in multiple capacities with the firm, including Managing Member, Firm Principal, Data Security Officer, and Investment Adviser Representative

Neither Stratitech Consulting, Inc. nor any of its supervised persons are compensated by performance based fees.

Stratitech Consulting, Inc. or any of its supervised persons has neither had an award nor otherwise been 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.

Stratitech Consulting, Inc. or any of its supervised persons has neither had an award nor been 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.

No management person of Stratitech Consulting, Inc. has a relationship or arrangement with any issuer of securities.