Carrano Financial Planning, LLC

 

CRD # 287989

Item 1

Item 1 – Cover Page

 

June 26, 2021

 

Item 1-B

This brochure provides information about the qualifications and business practices of Carrano Financial Planning, LLC If you have any questions about the contents of this brochure, please contact us by phone at 925-457-0275 and/or email info@carranofinancial.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 Carrano Financial Planning, LLC also is available on the SEC’s website at www.adviserinfo.sec.gov.

 

Item 1-C

Carrano Financial Planning, LLC is a registered investment adviser. Registration does not imply a certain level of skill or training.

Item 2 - Material Changes

Item 2 – Material Changes

Summary of Material Changes

 

Carrano Financial Services, Inc. is now Carrano Financial Planning, LLC.

 

Fees for Services are as follows:

 

Financial Planning Services - $750.00, of which $125.00 is due at the first planning session. The balance is paid upon delivery of financial plan. This plan does not include implementation, coordination with other financial professionals or monitoring. Carrano Financial Planning, LLC reserves the right to request additional fees to compensate for additional time needed on a case by case basis. The firm also reserves the right to cancel the contract and return the initial payment of $125.00 if the work will require additional time beyond what is reasonable for the standard fee of $750.00, and the client does not agree to pay additional fees for additional time needed. Additional fees are based solely on the firm's own judgement of the time required to complete the work. Additional time needed will be estimated and agreed upon prior to or during the DATA GATHERING stage. Additional time will be billed in two hour blocks at a rate of $125.00 per two hour block with a maximum of 8 hours of additional time.

 

 

Ongoing Planning/Advice Services - $900.00/year, which is paid monthly or quarterly in arrears. This service includes advice for assets held away as well as coordination with other financial professionals as needed and ongoing monitoring of financial plan and investments. This plan also includes year round access to the live financial planning document on the financial planning software company's secure third party website. This plan does not include service for assets under management.

 

Ongoing Planning/Advice & Investment Management Services - Negotiable, up to $4500.00/year, which is paid quarterly in arrears from the trading account(s) under management. This service includes investment management services, advice for assets held away as well as coordination with other financial professionals as needed and ongoing monitoring of financial plan. This plan also includes year round access to the live financial planning document on the financial planning software company's secure website.

 

Single Session Planning - $125.00 for a 60 minute session, which is paid prior to beginning services. This service includes one topic (retirement planning, insurance planning, college planning, etc.). Service also includes brief analysis of current financial situation, future goals regarding the topic and a Monte Carlo assessment as needed to gage probability of meeting future goals. General guidance is provided.

 

Insurance Planning - $195.00 - A comprehensive review and analysis of risk management needs and to determine client's ability to self insure for various insurance objectives.

 

Small Group Financial Planning Services - $600.00 per household with a minimum of 3 households. $125 due at first planning session. The balance is paid upon delivery of financial plan. This plan also includes year round access to the live financial planning document on the financial planning software company's secure website. This plan does not include implementation, coordination with other financial professionals or monitoring.

 

Small Business Risk Management Assessment - Complimentary

Financial Planning and Advisory Services

FINANCIAL PLANNING SERVICES

Financial Planning Services - 750.00, of which $125.00 is due at the first planning session. The balance is paid upon delivery of financial plan. This plan does not include implementation, coordination with other financial professionals or monitoring. Carrano Financial Planning, LLC reserves the right to request additional fees to compensate for additional time needed on a case by case basis. The firm also reserves the right to refuse service and return the initial payment of $125.00 if the work will require additional time beyond what is reasonable for the standard fee of $750.00, providing that the client does not agree to pay additional fees for additional time needed. Additional fees are based solely on the firm's own judgement of the time required to complete the work. Additional time needed will be estimated and agreed upon prior to or during the DATA GATHERING stage. Additional time will be billed in two hour blocks at a rate of $125.00 per two hour block with a maximum of 8 hours of additional time. The firm also reserves the right to reduce our fees at our own discretion.

ONGOING PLANNING/ADVICE SERVICES

Ongoing Planning/Advice Services - $900.00/year, which is paid monthly or quarterly in arrears. This service includes advice for assets held away as well as coordination with other financial professionals as needed and ongoing monitoring of financial plan and investments. This plan also includes year round access to the live financial planning document on the financial planning software company's secure third party website. This plan does not include service for assets under management.

ONGOING PLANNING/ADVICE & INVESTMENT MANAGEMENT SERVICES

Ongoing Planning/Advice & Investment Management Services - Negotiable, up to $4500.00/year, which is paid quarterly in arrears from the trading account(s) under management. This service includes investment management services, advice for assets held away as well as coordination with other financial professionals as needed and ongoing monitoring of financial plan. This plan also includes year round access to the live financial planning document on the financial planning software company's secure website.

SINGLE FINANCIAL PLANNING SESSION

Single Session Planning - $125.00 for a 60 minute session, which is paid prior to beginning services. This service includes one topic (retirement planning, insurance planning, college planning, etc.). Service also includes brief analysis of current financial situation, future goals regarding the topic and a Monte Carlo assessment as needed to gage probability of meeting future goals. General guidance is provided.



INSURANCE PLANNING SERVICES

Insurance Planning Services - $195.00 - A comprehensive review and analysis of risk management needs and to determine client's ability to self insure for various insurance objectives.

 

SMALL GROUP FINANCIAL PLANNING SERVICES

Small Group Financial Planning Services - $600.00 per household with a minimum of 3 households. $125 due at first planning session. The balance is paid upon delivery of financial plan. This plan also includes year round access to the live financial planning document on the financial planning software company's secure website. This plan does not include implementation, coordination with other financial professionals or monitoring.

SMALL BUSINESS RISK MANAGEMENT ASSESSMENT

Small Business Risk Management Assessment - Complimentary

This amendment to the Firm Brochure dated June 26, 2021 is prepared in accordance with the SEC and state of California requirements and rules.

 

Future Changes

From time to time, we may amend this Firm Brochure to reflect changes in our business practices, changes in regulations and routine annual updates as required by the securities regulators. This complete Firm Brochure or a Summary of Material Changes will be provided to each client annually and upon any material change in our business practices.

At any time, you may view the current Firm Brochure online at the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov.

To review the firm information for Carrano Financial Planning, LLC:

·Click Investment Adviser Search in the left navigation menu.

·Select the option for Investment Adviser Firm and enter 287989 (our firm’s CRD number) in the field labeled “Firm IARD/CRD Number”.

·This will provide access to Form ADV Part 1 and Part 2.

·Item 11 of the ADV Part 1 lists legal and disciplinary questions regarding the advisor.

·In the left navigation menu, Form ADV Part 2 is located near the bottom.

You may also request a copy of this Firm Brochure at any time by contacting us at 925-457-0275 or by email at info@carranofinancial.com

Table of Contents

Item 1Cover Page

Item 2 Summary of Material Changes...............................................................................................3

Item 3 Table of Contents.....................................................................................................................4

Item 4 Advisory Business……………………………………..............................................…………………………5

Item 5 Fees and Compensation……………………………………………........................................................6

Item 6 Performance-Based Fees and Side-By-Side Management……….......................……….……..9

Item 7 Types of Clients………………………………………………………….….............................................…..10

Item 8 Methods of Analysis, Investment Strategies and Risk of Loss……………......................…..10

Item 9 Disciplinary Information…………………………………………………..........................................….…12

Item 10 Other Financial Industry Activities and Affiliations…………..........................……..………….12

Item 11 Code of Ethics, Participation in Client Transactions and Personal Trading…................13

Item 12 Brokerage Practices………………………………………………………….............................................15

Item 13 Review of Accounts………………………………………………….........................................……........17

Item 14 Client Referrals and Other Compensation…………………….............................………………..17

Item 15 Custody……………………………………………………………...............................................….………..18

Item 16 Investment Discretion…………………………………………...........................................…….………19

Item 17 Voting Client Securities………………………………………….........................................…….……….20

Item 19 Requirements for State Registered Advisers……………............................……………..……….21

Brochure Supplement (Part 2B of Form ADV)

Item 1Cover Page

Item 2 Education and Business Experience……………..................................…..…………………………….5

Item 3 Disciplinary Information..…………………………………………..........................................................6

Item 4 Other Business Activities………………………………..……………….……............................................9

Item 5 Additional Compensation……………………………………………….……...........................................10

Item 6 Supervision…………………………………………………..................................................…………….…..10

Item 7 Requirements for State Registered Advisers……………...........................…….....…………….…12

Item 4 - Advisory Business

Item 4-A Description of Advisory Firm

Carrano Financial Planning, LLC is an independent financial planning and investment advisory firm that intends to serve individuals and families. We will provide the following services, described in further detail below:

 

Financial Planning Services

Investment Advisory Services

Insurance Services

 

Founded in October 2011, Carrano Financial Planning, LLC originally operated as an insurance services business under the name Carrano Insurance Services, Inc. The company name changed to Carrano Financial Services, Inc. in February 2017 in order to offer investment advisory services. In May 2021, we changed our name to Carrano Financial Planning, LLC. The principal owner and CEO is Joseph Carrano.

 

Carrano Financial Planning, LLC is a privately held company headquartered in Concord, California. Additional information about Carrano Financial Planning products, structure and directors is provided on Part 1 of Carrano Financial Planning, LLC Form ADV which is available online at http://www.adviserinfo.sec.gov. We encourage visiting our website https://www.carranofinancial.com or for additional information.

 

Item 4-B Types of Advisory Services Offered

Carrano Financial Planning, LLC offers financial planning, investment management and insurance services to individuals and families. We provide investment advice only with respect to limited types of investments. Our advice is limited to stocks, bonds, preferred stocks, index funds, exchange traded funds and basic options strategies such as long and short calls and puts.

 

Item 4-C Tailored Advisory Services

We will tailor advice and recommendations to best suit our client’s needs by conducting a needs based analysis and gaining a complete understanding of our client’s current financial situation and goals. With a complete understanding of our client’s needs and goals, we can then offer financial planning services tailored to our client’s goals and investment advisory services to implement the strategy laid out in the financial plan. Financial planning clients are not obligated to work with Carrano Financial Planning, LLC for investment advisory or insurance services.

 

Providing tailored financial planning services means we will run calculations using financial planning software based on the input provided by our clients. We will propose changes in the plan assumptions as needed in order to meet the clients’ planning goals. We will also conduct annual reviews for clients wanting ongoing advice services.

 

Item 4-D Wrap Fee Programs

Carrano Financial Planning, LLC does not participate in wrap fee programs.

 

Item 4-E Assets Under Management

Carrano Financial Planning, LLC plans to manage client assets on a non-discretionary basis, but does not have any assets under management at this time. Carrano Financial Planning, LLC has $0.00 under management on a non-discretionary basis as of June 26, 2021. Carrano Financial Planning, LLC has $0.00 under management on a discretionary basis as of June 26, 2021.

 

 

Financial Planning Conflict of Interest Statement

Financial Planning Conflict of Interest Statement

As per the California Code of Regulations, Carrano Financial Planning, LLC makes the following Financial Planning Conflict of Interest Statement:

A conflict of interest exists between the interests of Carrano Financial Planning, LLC and our clients due to the fact that we receive compensation in the form of commissions from the sale of annuities and other insurance products such as; life insurance, disability insurance and long-term care insurance. Carrano Financial Planning, LLC also receives compensation in the form of fees for investment advisory services for assets under management or assets under advisement. The commissions received from the sale of insurance products are in addition to the compensation received in the form of fees for financial planning services. Clients are under no obligation to act upon the investment adviser’s recommendation. If the client elects to act on any of the recommendations, the client is under no obligation to effect the transaction through Carrano Financial Planning, LLC.

 

Providing tailored portfolio advisory services means we will consider each client’s current financial situation, risk tolerance and time horizon as well as examine their financial plan to understand how to develop an investment strategy that is suitable to the client’s needs. With the permission of my clients and if necessary, we will consult with other advisors of our clients in order to gain a better understanding of the investments which may be suitable to their situation.

 

Clients of Carrano Financial Planning, LLC may impose restrictions on investing in certain securities or certain types of securities.

Item 5 - Fees and Compensation

Item 5 – Fees and Compensation

 

Item 5-A How We Are Compensated

We offer our services for a flat fee. We do not make commissions on investment accounts. We do make commissions on insurance products. You are under no obligation to utilize Carrano Insurance Services to implement your insurance objectives within your financial plan. You are under no obligation to utilize Carrano Financial Planning, LLC as your investment adviser or manager.

 

Lower fees for comparable services are available from other sources.

 

Investment advisory fees are negotiable at our sole discretion and are specifically outlined in the client’s Ongoing Advice Agreement. We reserve the right to reduce and/or waive our fees based upon special client circumstances, a pre-existing relationship (e.g., family or client) or other conditions.

 

We also offer commission based products such as fixed and indexed annuities and other insurance such as; life insurance, disability insurance and long-term care insurance. We receive commissions from the sale of these insurance products, which is separate compensation from financial planning and advisory fees. Receiving commissions from the sale of insurance products is a conflict of interest between Carrano Financial Planning, LLC and our clients. We address this conflict of interest by only recommending products that are in the best interest of our clients.

 

Item 5-B Method of Payment of Investment Advisory Fees

Fees for Ongoing Advice services may be paid from the investment accounts under management with Carrano Financial Planning, LLC. Clients may also elect to pay from outside accounts. We do not bill clients in advance for investment management or advisory fees.

 

Item 5-C Other Fees

In addition to the advisory fees paid to us, clients pay transaction fees to the custodian of their account. All fees paid to Carrano Financial Planning, LLC for investment management or advisory services are separate from the fees and expenses charged to shareholders of mutual fund shares by the fund companies, or by the investment manager of the fund. Complete explanations of the expenses charged by mutual funds are contained in each fund’s prospectus. Investors are encouraged to read any offering document or prospectus before investing in these funds. We receive no portion of these fees.

 

Item 5-D When Fees are Deducted and How to Obtain a Refund

Investment management or advisory fees are paid quarterly in arrears. These fees cannot be pre-paid so there are no refunds. Investment management and advisory services are ongoing, but clients and the firm can terminate the Ongoing Advice Agreement at any time with written notice.

 

Item 5-E Compensation for the Sale of Securities or Other Investment Products

Carrano Financial Planning, LLC receives compensation in the form of commissions for the sale of fixed and indexed annuities, life insurance, disability insurance and long-term care insurance under the name Carrano Insurance Services. We do not receive compensation for the sale of any other investment products, including asset-based sales charges and fees from the sale of mutual funds.

Item 6 - Performance Based Fees and Side by Side Management

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

 

Performance-Based Fees

Neither Carrano Financial Planning, LLC nor any of its supervised persons (employees) charges any performance-based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client). We do not use a performance-based fee structure because of the potential conflict of interest. Performance-based compensation may create an incentive for the advisor to recommend an investment that may carry a higher degree of risk to the client.

 

Side-By-Side Management

Since Carrano Financial Planning, LLC does not charge performance-based fees, there is no potential conflict of interest regarding side-by-side management of performance-based fee accounts and non-performance-based fee accounts.

Item 7 - Types of Clients

Item 7 – Types of Clients

 

Types of Clients

Carrano Financial Planning, LLC will provide financial planning, investment advisory and insurance services to individuals, families and small businesses. We have no investment advisory clients at this time.

 

Minimum Requirements for Advisory Services

There are no minimum asset requirements to be a client of Carrano Financial Planning, LLC.

Item 8 - Methods of Analysis and Investment Strategies

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

 

Item 8-A Methods of Analysis and Investment Strategies

Carrano Financial Planning, LLC uses fundamental analysis and technical analysis when considering recommendations for clients. We will recommend individual stocks, bonds, indexed funds, exchange traded funds as well as basic call and put strategies for long term capital growth objectives. Recommendations are specific to each client’s needs, risk tolerance and time horizon. We do not recommend trading stocks for short term gains. We may seek out individual stocks, bonds, preferred stocks or covered calls in order to meet the needs of our clients who are looking for income generating investments. Investing in securities involves risk of loss and clients should be prepared to bear this risk.

 

Item 8-B Material Risks Involved in Active Management and Asset Allocation Strategies

Active management involves continuous monitoring of portfolios in order to meet the long term objectives for growth and income for clients. This style of investing involves market risk. Market risk is the risk that the overall market will perform poorly. This style of investing also involves unsystematic risk, which is specific to individual securities or industries.

 

We will utilize Asset Allocation Strategies to reduce risk and provide diversification to client portfolios. There can be no assurance that an asset allocation strategy will meet its investment objectives and may suffer losses. Furthermore, an asset allocation strategy may not participate in sharp increases in a particular security, industry, or market sector. Another risk is that the ratio of equities (stocks), fixed income (bonds) and cash will change over time due to market movements and, if not corrected, will no longer be appropriate for the client’s goals.

 

Item 8-C Types of Securities Typically Recommended

We will typically recommend a diversified portfolio of stocks and bonds, call and put options, exchange traded funds, indexed funds or no-load mutual funds. The risks involved in investing in these instruments includes market risk. Market risk is the risk that the overall market will perform poorly.

 

 

Risk of Loss

All investment programs have certain risks that are borne by the investor, including the possible loss of principal. Our investment approach constantly keeps the risk of loss in mind. Nonetheless, investors face a number of investment risks including the following:

 

Market Risk: The price of a security, bond, or mutual fund may drop in reaction to tangible and intangible events and conditions. This type of risk is caused by external factors independent of a security’s particular underlying circumstances.

 

Interest Rate Risk: Fluctuations in interest rates may cause investment prices to fluctuate.

 

Inflation Risk: When any type of inflation is present, a dollar today will not buy as much as a dollar next year, because purchasing power is eroding at the rate of inflation.

 

Currency Risk: Overseas investments are subject to fluctuations in the value of the dollar against the currency of the investment’s originating country. This is also referred to as exchange rate risk.

 

Reinvestment Risk: This is the risk that future proceeds from investments – primarily fixed income securities – may have to be reinvested at a potentially lower rate of return (i.e. interest rate).

 

Business Risk: These risks are associated with a particular industry or a particular company within an industry.

 

Liquidity Risk: Liquidity is the ability to readily convert an investment into cash. Generally, assets are more liquid if many traders are interested in a standardized product.

 

Item 9 - Disciplinary Information

Item 9 - Disciplinary Information

 

Neither Carrano Financial Planning, LLC nor its employees have been involved in any legal or disciplinary events related to past or present clients.

Item 10 - Other Financial Industry Activities and Affiliations

Item 10-A Registration as Broker-Dealer or Registered Representative

Carrano Financial Planning, LLC is an independent, fee-based investment advisory firm. Neither the firm nor its employees are registered as a broker/dealer or as representatives of a broker/dealer firm. We do not participate in fee-sharing agreements with any of our service providers.

 

Item 10-B Registration as a Futures Commission Merchant, Commodity Pool Operator or Commodity Trading Advisor or an Associated Person of the Foregoing Entities

Neither Carrano Financial Planning, LLC nor any of its employees are registered or have an application pending to become a Futures Commission Merchant, Commodity Pool Operator or Commodity Trading Advisor or an associated person of the foregoing entities.

 

Item 10-C Relationships or Arrangements Material to Our Advisory Business

Neither Carrano Financial Planning, LLC nor any management person has any relationship with any issuer of any securities.

 

Joseph Carrano holds an active California Life & Health Insurance License and offers insurance solutions as an Endorsed Agent of Carrano Financial Planning, LLC, DBA Carrano Insurance Services. Carrano Insurance Services is the name we use to offer fixed and indexed annuities and other insurance products such as; life insurance, disability insurance and long-term care insurance to our clients. This creates a material conflict of interest with our clients. We address this material conflict of interest by only recommending solutions that suit the needs of our clients.

 

Item 10-D Compensation from Recommendation or Selection of Other Investment Advisers for our Clients

Not Applicable. We do not recommend or select other investment advisers for our clients.

Item 11 - Code of Ethics

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

Item 11-A

We recognize that the personal investment transactions of members and employees of our firm demand the application of a high Code of Ethics and require that all such transactions be carried out in a way that does not endanger the interest of any client.

 

At the same time, we believe that if investment goals are similar for clients and for members and employees of our firm, it is logical and even desirable that there be common ownership of some securities. Therefore, in order to prevent conflicts of interest, we have in place a set of procedures with respect to transactions effected by our members, officers and employees for their personal accounts. In order to monitor compliance with our personal trading policy, we have a quarterly securities transaction reporting system for all of our associates. Furthermore, our firm has established a Code of Ethics which applies to all of our associated persons.

 

Carrano Financial Planning, LLC has adopted a Code of Ethics for all employees describing the firm’s high standard of business conduct and fiduciary duties to its clients. We accept the obligation not only to comply with the mandates and requirements of all applicable laws and regulations, but also to act in an ethical and professionally responsible manner in all professional services and activities. An investment adviser is considered a fiduciary. As a fiduciary, it is an investment adviser’s responsibility to provide fair and full disclosure of all material facts and to act solely in the best interest of each of our clients at all times. We have a fiduciary duty to all clients. Our fiduciary duty is considered the core underlying principle for our Code of Ethics which also includes Insider Trading and Personal Securities Transactions Policies and Procedures. We require all of our supervised persons to conduct business with the highest level of ethical standards and to comply with all federal and state securities laws at all times. Upon employment or affiliation and at least annually thereafter, all supervised persons will sign an acknowledgement that they have read, understand, and agree to comply with our Code of Ethics. Our firm and supervised persons must conduct business in an honest, ethical, and fair manner and avoid all circumstances that might negatively affect or appear to affect our duty of complete loyalty to all clients. This disclosure is provided to give all clients a summary of our Code of Ethics. However, if a client or a potential client wishes to review our Code of Ethics in its entirety, a copy will be provided promptly upon request.

 

Items 11-B

Neither Carrano Financial Planning, LLC nor its employees or related persons recommend, buys or sells for client accounts, securities in which we have material financial interest.

 

Items 11-C

Related persons of our firm may buy or sell securities for themselves at or about the same time they buy or sell the same securities for client accounts. In order to minimize this conflict of interest, our related persons will place client interests ahead of their own interests and adhere to our firm’s Code of Ethics, a copy of which is available upon request. Further, our related persons will refrain from buying or selling the same securities within 48 hours prior to buying or selling for our clients. If related persons’ accounts are included in a block trade, our related persons will always trade personal accounts last.

 

Items 11-D

Related persons of our firm may buy or sell securities for themselves at or about the same time they buy or sell the same securities for client accounts. In order to minimize this conflict of interest, our related persons will place client interests ahead of their own interests and adhere to our firm’s Code of Ethics, a copy of which is available upon request. Further, our related persons will refrain from buying or selling the same securities within 48 hours prior to buying or selling for our clients.

Item 12 - Brokerage Practices

Item 12 - Brokerage Practices

 

Item 12-A

Carrano Financial Planning does not direct brokerage, but does have an established brokerage relationship with Shareholders Service Group and Charles Schwab, registered broker-dealers, Members FINRA/SIPC/Registrant of the MSRB for brokerage and custodial services. Clients who use Carrano Financial Planning investment management services will enter into a separate agreement with Shareholders Service Group, Charles Schwab or the custodian of their choice to custody their assets. Carrano Financial Planning, LLC is independently owned and operated, and unaffiliated with Shareholders Service Group, Charles Schwab or any other custodian.

 

Advisor is not affiliated with any brokerage firm. No brokerage firm supervises the advisor, its agents or activities. We do not require our clients to direct us to execute transactions through any particular brokerage firm or custodian. Although not a material consideration when determining whether to recommend that a client utilize the services of a particular broker-dealer/custodian, we may receive from Shareholders Service Group without cost (and/or at a discount) support services and/or products, certain of which assist us to better monitor and service client accounts maintained at such institutions. Prospective clients are hereby advised that lower brokerage fees for comparable services may be available from other sources.

Our preferred custodians (Shareholders Service Group and Charles Schwab) assist us in managing and administering clients’ accounts by providing software and other technology that:

 

  1. Provide access to client data (such as trade confirmations and account statements)

  2. Facilitate trade execution, payment of fees from clients’ accounts

  3. Provide pricing information and other market data, investment-related research, compliance and/or practice management-related publications

  4. Assist with back-office functions, recordkeeping and client reporting

 

Support services that may be obtained by us from Shareholders Service Group and/or Charles Schwab are:

 

  1. Discounted or gratis consulting services and marketing support

  2. Discounted and/or gratis attendance at conferences and other educational and/or social events

  3. Computer hardware and/or software and/or other products used by us in furtherance of its investment supervisory business operations.

Shareholders Service Group offers other services intended to help advisers manage and further develop its business enterprise. These services may include: (i) compliance, legal and business consulting; (ii) publications and conferences on practice management and business succession, and (iii) third-party investment research on their website. We do not select client custodians based on these features. Carrano Financial Planning, LLC clients do not pay more for investment transactions effected and/or assets maintained at Shareholders Service Group as a result of this arrangement. There is no corresponding commitment made by us to Shareholders Service Group or any other entity to invest any specific amount or percentage of client assets in any specific mutual funds, securities or other investment products as a result of the above arrangement. Our policy is to restrict any non-cash compensation, or “soft dollars,” that we may receive from a service provider to that which enhances our ability to render quality advice and service to the client.

 

Carrano Financial Planning, LLC does not aggregate orders. Consequently, certain client trades may be executed before others, at a different price. Additionally, our clients may not receive volume discounts available to advisers who aggregate client trades.

Item 13 - Review of Accounts

Item 13 - Review of Accounts

 

Joseph Scott Carrano, CEO will conduct all reviews of client accounts.

We periodically review client accounts and financial plans. Investment accounts are reviewed no less than quarterly and financial plans are reviewed no less than annually.

 

While the underlying securities within client accounts are monitored on an ongoing basis, client accounts are reviewed quarterly at a minimum. Accounts are reviewed in the context of each client’s stated investment objectives and guidelines. More frequent reviews may be triggered by material changes in variables such as the client’s individual circumstances, the market, and the political or economic environment. Additionally, we are happy to review the client’s portfolio at any time upon their request.

 

Item 14 - Client Referrals and Other Compensation

Item 14 - Client Referrals and Other Compensation

 

Item 14-A

Carrano Financial Planning, LLC does not receive any economic benefit, directly or indirectly, from any third party for advice rendered to the firm’s clients.

 

Item 14-B

Carrano Financial Planning, LLC does not directly or indirectly compensate any person who is not part of the firm’s personnel in exchange for client referrals.

Item 15 - Custody

Item 15 - Custody

 

Carrano Financial Planning, LLC does not take custody of client accounts at any time. Custody of client’s accounts is held at Shareholders Service Group, Charles Schwab, as discussed in item 12 above, or the client’s selected custodial firm. However, with a client’s consent, we may be provided with the authority to seek deduction of our fees from a client’s account(s). Clients will receive account statements from the custodian and should carefully review those statements. Advisor is not affiliated with the custodian. The custodian does not supervise the advisor, its agents or activities.

The following safeguards are in place to ensure compliance with Safekeeping of client funds….

 

A - Carrano Financial Planning, LLC will have custody of the funds and securities solely as a consequence of its authority to make withdrawals from client accounts to pay its advisory fee.

 

(B) Carrano Financial Planning, LLC will obtain written authorization from the client to deduct advisory fees from the account held with the qualified custodian.

 

(C) Each time a fee is directly deducted from a client account, Carrano Financial Planning, LLC concurrently:

 

1. Sends the qualified custodian an invoice or statement of the amount of the fee to be deducted from the client's account; and

 

2. Sends the client an invoice or statement itemizing the fee. Itemization includes the formula used to calculate the fee, the value of the assets under management on which the fee is based, and the time period covered by the fee.

 

(D) Carrano Financial Planning, LLC will notify the Commissioner in writing that the investment adviser (Carrano Financial Planning, LLC) intends to use the safeguards provided in this paragraph (b)(3) of the California Code of Regulations 260.237. Custody or Possession of Funds or Securities of Clients.

 

A qualified custodian maintains all funds and securities under the advisory services of Carrano Financial Planning, LLC.

 

Funds are kept in a separate account for each client under that client’s name.

 

Notice to clients. If the investment adviser opens an account with a qualified custodian on the investment adviser's client's behalf, under the client's name, under the investment adviser's name as agent or trustee, the investment adviser shall notify the client in writing of the qualified custodian's name and address, and the manner in which the funds or securities are maintained, promptly upon the opening of the account and following any changes to this information. If the investment adviser sends an account statement to a client to which the investment adviser is required to provide this notice, the investment adviser shall include in the notice provided to that client and in any subsequent account statement sent to that client, a statement urging the client to compare the account statements from the custodian with those from the investment adviser.

 

Account statements. The investment adviser has a reasonable basis, after due inquiry, for believing that the qualified custodian sends an account statement, at least quarterly, to each client for which it maintains funds or securities, identifying the amount of funds and of each security in the account at the end of the period and setting forth all transactions in the account during that period including investment advisory fees.

Item 16 - Investment Discretion

Item 16 - Investment Discretion

 

Carrano Financial Planning, LLC will secure clients’ permission prior to effecting securities transactions on non-discretionary accounts.

 

Carrano Financial Planning, LLC provides NON-DISCRETIONARY SERVICES ONLY. Carrano Financial Planning, LLC does not have trading authority to manage portfolio accounts.

 

Carrano Financial Planning, LLC does not have discretionary authority to determine the:

 

(1)Securities to be bought or sold for a client’s account

 

(2)amount of securities to be bought or sold for a client’s account

 

(3)broker or dealer to be used for a purchase or sale of securities for a client’s

account.

 

(4)commission rates to be paid to a broker or dealer for a client’s securities

transactions.

Item 17 - Voting Client Securities

Item 17 - Voting Client Securities

 

Carrano Financial Planning, LLC will not ask for, nor accept voting authority for client securities. The client is responsible for the manner in which proxies are voted, as well as all other elections relative to mergers, acquisitions, tender offers, or other events pertaining to the client’s investments. The client will request receipt of their proxies and other solicitations directly from the custodian or transfer agent for their investments. We do not offer any consulting assistance regarding proxy issues to clients.

Item 18 - Financial Information

Item 18 - Financial Information

 

Carrano Financial Planning, LLC does not require or solicit prepayment of more than $500 in fees per client, six months or more in advance and therefore does not need to include a balance sheet with this brochure.

 

Neither Carrano Financial Planning, LLC, nor its management, have any financial conditions that are likely to reasonably impair our ability to meet contractual commitments to clients. Carrano Financial Planning, LLC has never been the subject of a bankruptcy petition.

Item 19 - Requirements for State Registered Advisers

Item 19 - Requirements for State Registered Advisers

 

Joseph Scott Carrano is the sole member of Carrano Financial Planning, LLC. Information on Joseph Scott Carrano’s business background, education, and qualifications is contained in a supplement to this brochure. You should receive both the brochure and the supplement, Form ADV Part 2B.

 

Item 19-C

Neither Carrano Financial Planning, LLC nor any employees or related persons are compensated for advisory services with performance-based fees. Performance-based compensation may create an incentive for the adviser to recommend an investment that may carry a higher degree of risk to the client.

 

Neither Carrano Financial Planning, LLC nor any management person has been involved in or found liable in any of the events listed below….

 

1. An award or otherwise being 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.

 

2. An award or otherwise being 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

 

Any and all material conflicts of interest have been disclosed.

 

Carrano Financial Planning, LLC maintains a written Business Continuity Plan in the event of emergency or significant business disruption.

Form ADV Part 2B - Brochure Supplement

Form ADV Part 2B - Brochure Supplement

Item 1

 

Item 1A

 

Joseph Scott Carrano, ChFC®

CRD # 2850930

June 26, 2021

 

Carrano Financial Planning, LLC

1616 Placer Drive

Concord, CA 94521

925-457-0275

https://www.carranofinancial.com

Item 1-B

 

This brochure supplement provides information about Joseph Scott Carrano that supplements the Carrano Financial Planning, LLC Firm Brochure. You should have received a copy of that brochure. Please contact Joseph Scott Carrano if you did not receive Carrano Financial Planning brochure or if you have any questions about the contents of this supplement. Additional information about Joseph Scott Carrano is also available on the SEC’s website at www.adviserinfo.sec.gov.

Item 2 - Educational Background and Business Experience

Item 2 - Educational Background and Business Experience

 

Full Name: Joseph Scott Carrano, ChFC®

Born: 1971

Title: Financial Adviser and CEO

Education: University of Phoenix, San Diego, CA, Bachelor of Science

Business - 2005

Experience: Carrano Financial Planning, LLC 2014 - Present

State Farm Financial Services 2014

Allstate Financial Services 2013 – 2014

Carrano Insurance Services, Inc. 2012 – 2013

Item 3 - Disciplinary Information

Item 3 - Disciplinary Information

 

Joseph Scott Carrano has not been the subject of a reportable legal or disciplinary event.

Item 4 - Other Business Activities

Item 4 - Other Business Activities

 

Item 4-A

Not Applicable

 

Item 4-B

Joseph Scott Carrano performs other business activities for compensation.

Joseph Scott Carrano holds an active California Life & Health Insurance License and offers insurance solutions as an Endorsed Agent of Carrano Financial Planning, LLC, DBA Carrano Insurance Services. This business activity involves a substantial amount of time estimated to be approximately 20 hours per month.

Item 5 - Additional Compensation

Item 5 - Additional Compensation

 

Neither Carrano Financial Planning, LLC nor any employees receive any additional compensation or economic benefits for providing advisory services.

Item 6 - Supervision

Item 6 - Supervision

Not applicable as Joseph Scott Carrano is the CEO and only employee at Carrano Financial Planning, LLC.

Item 7 - Requirements for State Registered Advisers

Item 7 - Requirement for State Registered Advisers

 

Item 7-A

Joseph Scott Carrano has not been involved in any arbitration claims, civil, self-regulatory organization or administrative proceedings of any kind.

 

Item 7-B

Joseph Scott Carrano has not been the subject of a bankruptcy petition.