Thrive Wealth Management, LLC - Form CRS
Item 1 – Introduction
Thrive Wealth Management, LLC (“we” or “us”) is registered with the Securities Exchange Commission
(“SEC”) as an investment adviser. Our services and compensation structure differ from a
registered broker-dealer, and it is important for you to understand the differences
between those structures. Free and simple tools are available to research firms and
financial professionals at www.investor.gov/CRS. The site also provides educational materials about
broker-dealers, investment advisers and investing. The italicized sentences appearing in text boxes
below are intended to be “conversation starters” for you to have with us, as required by the
instructions to Form CRS.
Item 2 – Relationships and Services
What investment services and advice can you provide me?
As fiduciaries, we provide investment advisory services that typically include investment
management services combined with initial and routine financial planning and consulting services to
individuals and their trusts and estates (“you,” or “clients”). We begin that process by meeting
with our clients to develop their unique investment objectives, risk tolerance, investment time
horizon, withdrawal requirements, and other special circumstances to formulate an investment
strategy. We then buy and sell securities to implement the strategy, then monitor the portfolios
periodically and make changes to them as we deem necessary. If we manage your portfolio on a
discretionary basis, we have the authority to buy and sell investments in your accounts without
speaking to you before doing so. However, you can place reasonable restrictions on the securities
that we buy by notifying us, in writing. If we manage your portfolio on a non-discretionary basis,
you make the ultimate decision regarding the purchase or sale of investments, and we cannot execute
any account transactions without obtaining your prior consent. We do not have limit the type of
securities we trade for our clients to proprietary products or a limited group or type of
investment, but we generally construct and manage portfolios consisting primarily of mutual funds,
exchange traded funds (“ETFs”), unaffiliated independent investment managers, individual debt
and/or equity securities. In doing so, we may allocate your investment assets into one or more of
our model portfolio strategies as described in Item 8 of our Part 2A Brochure. We do not
necessarily impose a minimum annual investment advisory fee but prefer to work with new clients
seeking management of at least $500,000. We provide initial and routine financial planning and
consulting services as part of the investment advisory service offering, but we may also provide
those services on a stand-alone separate fee basis. When we provide any financial planning and
consulting services to a client, we rely upon the information they provide and do not verify or
monitor that information while or after providing these services unless specifically engaged to do
so. Our financial planning consulting services are completed upon the communication of our
recommendations to the client, delivery of a written financial plan, or termination of
an applicable agreement. For more detailed information about our Advisory Business and the Types
of Clients we generally service, please see Items 4 and 7, respectively in our Part 2A Brochure.
Given my financial situation, should I choose an 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?
Item 3 – Fees, Costs, Conflicts, and Standard of Conduct What fees will I pay?
For investment advisory services, and with certain exceptions described in Item 5 of our Part 2A Brochure,
the annual fee is based upon a percentage of the total market value of assets placed
under our management according to a tiered schedule ranging between 1% on the first $500,000, to
0.40% for the value of all assets under management exceeding $4,000,001. Our negotiable fee for
stand-alone financial planning and consulting services is either $200 per hour, or it ranges
between $1,000 and $100,000 on a fixed fee basis. We either deduct our fees from one or more of
your investment accounts or bill you for our services quarterly in advance. Because our fee is
based upon assets under management, the more assets you designate for our management, the more you
will pay for our services. Therefore, we may have an incentive to encourage you to increase the
amount of assets that you designate for our management. However, under the fee schedule, as the
value of assets under our management increases, the applicable fee percentage decreases
incrementally at each tier.
Your account will be held with a qualified custodian. You will also be responsible for the fees and
expenses charged by qualified custodians and imposed by broker dealers according to their fee
schedules. Those fees and expenses include but are not limited to transaction charges, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts,
securities transactions, or maintaining an account. If your assets are invested in mutual funds,
ETFs, or other registered and unregistered investment companies, you will bear your pro rata share
of the investment management fees and other fees of the funds, which are in addition to the fees
you pay us. These fees and expenses are described in each fund’s prospectus or other
offering documents. If your assets are allocated to unaffiliated independent investment managers, you will
incur an additional charge for their services as stated in the separate agreement you sign with the
independent investment managers. 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 more
detailed information about our fees and costs related to our management of your account, please see
Item 5 in our Part 2A Brochure.
Help me understand how these fees and costs might affect my investments. If I give you $500,000 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. Here are some examples to help you understand what this means:
* Our firm and certain of our financial professionals may offer commission-based insurance
products. This presents conflicts of interest, because we or they can recommend that you
purchase insurance commission-based products based upon the compensation we or they will
receive, rather than your individual need. You are not under any obligation to purchase those
* We may recommend that you engage a particular custodian from whom we receive support services.
This presents a conflict of interest, because our receipt of their support makes us more inclined
to continue using and recommending them.
* We may recommend rollovers out of employer-sponsored retirement plans and into Individual
Retirement Accounts that we manage for an asset-based fee. If we don’t currently manage your
account held with your employer’s plan, this will increase our compensation.
How might your conflicts of interest affect me, and how will you address them?
For more detailed information about our conflicts of interest, please review Items 4, 5, 10, 11, 12, and 14 of Part 2A Brochure.
How do your financial professionals make money?
Some of our financial professionals are compensated on a salary basis and are eligible to receive
ongoing discretionary bonuses that can be but are not necessarily based on the
acquisition of new clients and their growth of assets. Other financial professionals are
compensated based upon the amount of client assets that they manage on behalf of the firm. Finally,
certain of our financial professionals are equity owners of the firm, who stand to receive a share
of the firm’s profits. These payment structures present conflicts of interest, as they could
incentivize our financial professionals to recommend that you place additional assets
under our management. We mitigate that conflict by adhering to our fiduciary duty when making
investment recommendations, so that we make recommendations in conformity with each
client’s investment objectives and savings strategy. You should discuss your financial
professional’s compensation directly with your financial professional.
Item 4 – Disciplinary History
Do you or your financial professionals have legal or disciplinary history?
No. We encourage you to visit www.Investor.gov/CRS for free and simple tools to
research our firm and our financial professionals.
As a financial professional, do you have any disciplinary history? If so, for what type of conduct?
Item 5 – Additional Information
Additional information about our firm is available on the SEC’s website at www.adviserinfo.sec.gov.
You may contact our Chief Compliance Officer to request a current copy of our Part 2A Brochure or
our relationship summary. Our Chief Compliance Officer is available by phone at 215-376-5530.
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?
A copy of our Form ADV Part 2A Brochure is available by selecting “Part 2 Brochures” at: https://adviserinfo.sec.gov/firm/summary/168777