Balanced rock company presentation 2015.4.2

FINANCIAL PLANNING & WEALTH MANAGEMENT

100% Independent, Locally Owned & Operated

Join Us in Our MissionGood financial advice can be a tool for family and community empowerment and economic growth. We created an advisory firm that is accessible to all, completely transparent, and works in the best interests of our clients. We also give our clients the chance to have their personal values reflected in

their investments so that they can make a positive impact on our world.

Too much of the existing industry is built on sales of products that benefit the people selling them more than the people buying them. And too often the best advisors

limit their services to those who have a million dollars or more to invest with them. We think the integrity of your investment advice should be independent of your net worth, and that everyone should have access to reasonably priced financial advice and management. In order to accomplish this, we

needed to break away from the established system and build a more efficient way to connect individuals with the advice, investments and financial products they need to secure their futures.

We call this Flattening the System™.

2 5 2 R O S L I N D A L E A V E N U E , R O S L I N D A L E , M A 0 2 1 3 1 • 6 1 7 9 7 1 8 3 2 3 • W W W . B A L A N C E D R O C K I A . C O M 2

TRADITIONAL MODEL

BALANCED ROCK MODEL

SALES-BASEDADVISOR

BROKER/CUSTODIAN

YOURPORTFOLIO

YOUR GOALS

INSURANCE

INSURANCE

MUTUAL FUNDS

ANNUITIES

US

YOU

YOU

YOUR GOALS

BROKER/CUSTODIAN

YOURPORTFOLIO

Flattening the System™


Our Firm

• Founded in 2011 by Daniel M. Flannery, a CFA Charterholder

• Set out to create a better model for financial advice

• Institutional quality research & management for everyone

• Accessible to people & organizations of all kinds

• Fee-Only (Paid only by our clients)

• Fiduciary-Only™ (Work only in our clients’ best interests)

• Adheres to the highest level of Ethics and Standards in the Industry

• More than $18M in Assets Under Management and 80 clients served.

• 20 Local Community Organizations and Events supported with $20K since our founding

Why Balanced Rock?

The story behind the name.

Formed over tens of thousands of years completely exposed to the extremes of weather, Balanced Rock stands in the high desert of Utah as a massive but improbable tribute to the power of balance and positioning. Our founder Dan camped in Arches National Park on two occasions and it has remained one of his favorite places. When it came time to name this company, the combination of strength and

balance persevering over time seemed like the perfect way to express our philosophy while sharing a personal connection. We work to build appropriately balanced portfolios for our clients because we believe that just like the formation from which we took our name, our clients’ portfolios will weather volatility and survive for the long term with proper balance and positioning.

Highlights


Daniel M. Flannery, CFA

Dan is a lifelong investor who believes that high quality investment and financial management can help you reach your most important personal and family goals, while achieving peace of mind. Dan founded Balanced Rock and is the Portfolio Manager in addition to his roles as President and Wealth Manager.

Prior to founding Balanced Rock, Dan spent more than eight years with Cargill Investment Group Ltd.

in Boston, an asset manager of private tax credit real estate equity funds for institutional investors. Dan worked as office administrator, analyst, fund accountant, and junior asset manager before working for five years as an asset manager responsible for more than $90M of equity investments and $200M of total assets across multiple funds.

Dan graduated with honors from the University of Pittsburgh with a B.A. in Political Science. In 2009 Dan earned his CFA (Chartered Financial Analyst) Charter from the CFA Institute.

Dan lives and works in Boston (Roslindale), MA with his wife Meredith and son Alden. Dan used to play golf before he had a son and started Balanced Rock, and hopes to get back in the swing someday. He enjoys the outdoors, especially riding his mountain bike and skiing. Dan also loves watching Boston sports, especially the Patriots.

Our Team

James H. Keefe

James brings solid values, broad experience, and a strong desire to serve people to his position as Chief Operating Officer of Balanced Rock. James shares responsibility for all aspects of the organization and works directly with clients as a Wealth Manager.

After graduating from Providence College with a B.A. in American Studies, James worked in corporate real estate for CB Richard Ellis.

He then returned to his alma mater, St. Sebastian’s School, where he taught, coached and advised. Three years later, James transitioned to the financial advisory world and began working for a traditional firm with a fee-based model. James soon realized however that his personal values and investment philosophy were better aligned with the fee-only model of advising and wealth management. In Balanced Rock, James found a company for which he can be proud to work, and where his efforts can be focused on serving the best interest of each client.

James lives in Holliston with his wife Hadley and two daughters Millie and Claire. When he isn’t working hard for Balanced Rock, James enjoys a variety of activities including singing with his band, playing and coaching basketball, rooting for the Arrows and Friars, and relaxing by Lake Winthrop.


Our Model Fee-Only• We don’t sell any financial

products.

• We are only paid directly by our clients.

This means: • Ourincentivesarealignedwithyours;weonlyworkforyou.

• Ourgoalistoprovidethehighestqualityservicesatthelowestcost.

• Wenevertakecommissions,referralfees,salesfees,orpaymentsofanykindfromany3rdparties.

• Weneverprofitfromyoupayinghigherfees.

• Wepositionourselvestominimizeconflictsofinterest.Wearenotevenlicensedtosellfinancialproducts.

• Ourfeesaretransparentanddisclosedupfront.

Fiduciary-Only™• We always act in our

clients’ best interests.

• We put your interests ahead of our own.

This means:• Wemaintainthehighestlevelofethicsandintegrity.

• WecommittotheCFACodeofEthicsandStandardsofConduct,globallyrecognizedastheleaderintheindustry.

• Weneversettleforthesuitabilitystandardcommonlyusedinthefee-basedmodelbywhatwecall“part-time”fiduciaries.

• Wefollowthegoldenrule,andtreatourclientsthewaywe’dliketobetreated.Here,wecallitThe Nana Rule™.


FEE-BASED BROKERFEE-ONLY

PaidbyClient-Hourlyor%ofAUM

CommissionsfromTrader

Loads+SalesChargesonFunds&Investments

InsuranceCommissions

SalesIncentives(TriptoBahamas!)

KickbacksfromOtherProfessionals(forreferrals)

Fiduciary-OnlyTM

Learning about you, your portfolio and risk tolerance,and understanding your goals is the first step in Financial Planning. We then work with you to develop a plan that uses your current and future assets and income to meet your goals. We’ll recommend an allocation and portfolio of investments for you to implement using low-cost index funds when possible. If you want to take an active role and execute and manage the investments

yourself, then financialplanning is probably yourstyle.

Financial Planning also includes assistance and coordination with complementaryprofessionals such asattorneys, tax preparers, real estate professionals,insurance providers, education consultants and others with whom we work to provide the wide range of services our clients need.

Wealth Management also begins with the development of a comprehensive plan however in addition to this we provide plan execution, unlimited financial advice (no hourly fees) as well as ongoing management of and reporting on your entire portfolio. Quarterly reports provide appropriate risk-based benchmarks and time-weighted returns. Management begins after collaborative development of an Investment Policy

Statement (IPS). The IPS acts as the “rules of the road” for how we manage your investments, including asset allocation, types of investments, risk tolerance, and any values-based or other preferences or restrictions you desire. If you prefer that we execute your plan for you and provide ongoing management then our Wealth Management service is for you. Our Values+Value service is included at no cost.

Our Services - Choose Your Path Wealth ManagementFinancial Planning


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RISK TOLERANCE,VALUES & GOALSASSESSMENTS

PLAN & INVESTMENTRECOMMENDATIONS

INVESTMENT POLICY STATEMENT APPROVED

BY CLIENTIMPLEMENTATION

TRANSFERSCOMPLETED

RETURN FOR REGULAR REVIEWS

MANAGEMENT &REPORTING

PLAN PRESENTED, ADJUSTMENTS MADE

FINANCIAL PLANNING

WEALTH MANAGEMENT

2INFORMATIONGATHERING

FREE INTROMEETING 1

Our Process


US YOU

TAX PLANNING+

PREPARATION

REAL ESTATE+

MORTGAGES

FINANCIALPLANNING

EDUCATIONPLANNING

RETIREMENTPLANNING

PORTFOLIOMANAGEMENT

INSURANCEESTATEPLANNING

Our Role as Coordinator


$50K

$150K

$250K

10 YEARS 20 YEARS 30 YEARS

TOTAL TOTAL TOTAL

$27K15%

$104K32%

$301K52%

.35%LOW-COST INVESTING

.45%REGULAR REBALANCING

.70%TAX OPTIMIZATION

The Building Blocksof Annual Added Value*

* Putting a value on your value:Quantifying Vanguard Advisor’s Alpha, Vanguard Research, March 2014

1.5%TOTAL ADDED VALUE

The Total Added Value to just $100,000 Invested for

10, 20 & 30 Years

Our Investment StategyLow-Cost Investing • Direct Investments in

stocks and bonds

• Low cost index funds

Regular Rebalancing• Improve risk management

by maintaining a consistent level of portfolio risk over time.

• Take advantage of extra returns that can be generated by consistently selling some assets that have gone up in value and buying some of those that have gone down.

Tax Optimization

• Tax Efficient Investments

• Tax-Loss Harvesting

• Tax Location

• Tax Planning


Values+Value™

Put simply, this is an opportunity to invest in great companies that also meet your personalized values-based criteria. We combine Environmental, Social, Governance (ESG) and values-based research with fundamental value investment analysis, to select companies that we think will perform well while respecting our clients’ values-based preferences.

We believe that with lower identified ESG risks we can improve risk-adjusted returns in client portfolios and allow our clients to not only live and work in a manner consistent with their values, but to invest in the same way. This type of investing is more commonly called Socially Responsible Investing (“SRI”), Sustainable Investing, or Faith-based Investing.

We bring the same strategies found in the fund industry’s expensive values-based offerings (Sustainable, Socially Responsible, Fossil Fuel Free and Faith-based mutual funds) directly to your individual portfolio with greater control and customization while providing a more comprehensive service that includes financial planning, investment management and advice on your entire

financial picture. We offer this at no charge within our Wealth Management service. By eliminating layers of fees we are able to provide a fully personalized planning and management service that is lower in cost than the average mutual fund.


YOUR PLAN

YOUR PORTFOLIO

YOUR VALUES

Aligning your investment choices with your personal

values througha customized

selection process

BEHAVIOR AL

• Environmental• Social/Human• Governance• Faith-based

VALUES ANALYSIS

VALUE ANALYSIS

Global Universe of Covered Securities

FINANCIAL

• Valuation• Positioning• Competetive Advantage• Fundamentals

SelectingHigh QualityCompanies & Investments

for the long-term

WHAT WE DO PROCESSRISKMANAGEMENT

PERFORMANCEENHANCEMENT

RESEARCHPROVIDERS

FACTORS

Values+Value™


Our Fees — A Comparison

GET MORE.PAY LESS.


_ _

+A diversified portfolio of investments

managed to best a particular index

They have underperformed

their indexes 75% of the time**

AN

NU

AL

FEES

2.37%

1.37%

0.75%Typical Advisor (1%)

+Actively Managed

Mutual Fund (1.37%*)

+Advisor assistance choosing mutual funds, delivered

with the Suitability Standard

The portfolio is not designed or

managed with your value, goals or tax situatuion in mind

+

+

+

+

+

+

+

+

OR

$150/hrfor Financial

Planning

A Comprehensive Financial Plan

Low-cost Investments

Recommended

Actively Managed Mutual Fund

(1.37%*)Balanced Rock

Wealth Management

AComprehensivePlan&PersonalizedPortfoliobuiltbyaFiduciaryOngoingFinancialAdvice&SupportHelpReachingYourGoalswhileHonoringYourValuesInstitutionalQualityResearchandManagementLow-CostandTaxefficientInvestingwithRegularRebalancingCoordinationwithotherProfessionals

*Source: 2014 Investment Company Fact Book, Investment Company Institute. ** The Case for Index Investing, Vanguard Research, April 2014

Our Tools & Trusted ProvidersService ProvidersCustodian/Brokers

Charles Schwab is our primary custodian, where the majority of our clients’ accounts are held.

Vanguard is the leader in low-cost indexing owned by it’s investors.

Low Load Insurance Services provides no pressure competitive bids, excellent service and analysis. Together we guide you from quotes to policy purchase.

A Network of trusted Attorneys and Accountants.

Institutional Research

Morningstar is a global leader in Independent Investment Research & Portfolio Modeling and Analysis.

MSCI provides unique values-based research and analysis of the environmental, social and governance related business practices of thousands of companies worldwide.

Tools MoneyGuidePro is our goal based financial planning software where we build and update your personalized plan

Yodlee allows individuals to seamlessly include all of their assets and liabilities in their plan so that they are updted automatically.

ByAllAccounts provides account aggregation like Yodlee but is used for managed “held-away” accounts such as current 401k/403b plans.

FinaMetrica provides a scientific assessment of an individual’s personal financial risk tolerance by using psychometrics to ensure validity and

reliability.

Sharefile is a secured file sharing and storage system. The web-based software provides a password-protected area where documents and files can be

stored, synced and exchanged in the cloud.


Sustainable Community InvolvementBalanced Rock Investment Advisors helps individuals and families of all kinds strengthen their financial position, gain peace of mind, and plan for their future in a sustainable way. We consider ourselves part of a sustainable community that begins in our own back yard and extends across the greater Boston area and beyond.

Rather than traditional sales-based marketing, we focus our resources on support for local events and organizations in exchange for opportunities to introduce our business to community members. Not only do we love supporting community events and organizations, we find that our involvement is great for business. To us, this is the very definition of sustainability.

Here’s where our growing active engagement currently stands.

We Support: Farmers Markets:RoslindaleEglestonCambridgeCentral SquareCopley SquareDavis SquareWest RoxburyMattapanWellesleyHopkinton

Non-Profits:JP Local First (members)Sustainable Business Network of MA (members)Kids Art ExpressMass Farmers Market Other Events:Boston Local Food FestivalHyper-local Craft BrewfestLocal Craft BrewfestRoslindale Open StudiosSustainable Living Festival (Sustainable Wellesley)Roslindale Prochfest


Frequently Asked QuestionsHow do you increase tax-efficiency?

Tax-Loss Harvesting is one of the methods we use to create tax-efficiency. Simply put it’s the practice of selling a security that has experienced a loss. By realizing, or “harvesting” a loss, we are able to offset taxes on both gains and income. It’s primarily used to limit the recognition of short-term capital gains, which are normally taxed at higher federal income tax rates than long-term capital gains. The sold security is typically replaced by a similar one to maintain the optimal asset allocation and expected returns.

Tax Location is determining which investments to put where (which type of account) to help maximize after-tax returns? Each person has a different answer based on his or her particular situation. Generally we consider putting the most tax-efficient investments in taxable accounts and the least in tax-deferred accounts.

Will I be notified of each trade? Do I need to confirm each trade? Can I make trades on my own?

You will be notified of each trade made in your account by your custodian if you choose. You do not need to confirm each trade. In giving us discretionary authority you authorize or approve us to make trades on your behalf in accordance with your investment policy statement. You always maintain the right to make trades on your own.

How Do You Invest?

We focus on the things we can control. We start by working to keep your total investment expenses including taxes, commissions, transaction fees, and fund management expenses as low as possible while still using high quality providers.

We build and manage broadly diversified, global, multi-asset class portfolios to manage risk while taking advantage of long term global economic growth and the benefits of regular rebalancing and tax-aware investing. We use sophisticated portfolio modeling tools to take into account the uncertainty that always exists in real life, while using what we do know from history and theory to improve the chances of success.

Based on a mutual understanding of your goals, values and risk tolerance we’ll build a portfolio that will try to maximize the chance of meeting your goals while not taking on more risk than you can comfortably handle.

Do you ever hold custody or have access to my money?

No. We never take custody of any of your assets and never have access to your money. We always use a third party custodian such as Charles Schwab and you always maintain a separate relationship with them. You grant us the authority to manage and make trades in your account. If you are ever unsatisfied with our management you can remove our authority by contacting your custodian.

Do you have any binding agreements or lock-up periods with potential penalties or surrender charges?

No. There is nothing binding about our agreements, they can be canceled at any time. We never lock-up your money or place any restrictions on you accessing your funds.

Can you provide references?

Yes, we’re happy to.


Connect With Us

Weoffermultiplewaystomeetandstayintouch:•Yourhomeorofficeorours(seemap,whenlocatonpermits)•Overthephone•Internetvideo-chat(likeSkype)•Onlineshareddesktopforviewingdocumentsorpre-sentations•AndEmailofcourse

BalancedRockInvestmentAdvisorsCRDNo:157424

ROSLINDALE,MAOFFICE:252RoslindaleAvenueRoslindale,MA02131

HOLLISTON,MAOFFICE:192WinthropStreetHolliston,MA01746

PHONE6179718323

www.BalancedRockIA.com


DisclosuresBalanced Rock Investment Advisors LLC (“BRIA”) is a Registered Investment Advisor (“RIA”), registered in the Commonwealth of Massachusetts. Registration of an investment advisor does not imply any specific level of skill or training, and does not constitute an endorsement of the firm by Massachusetts or other state securities regulators or the Securities and Exchange Commission (“SEC”).

BRIA provides asset management and related services for clients nationally. BRIA will file and maintain all applicable licenses as required by the state securities boards and/or the SEC, as applicable. BRIA renders individualized responses to persons in a particular state only after complying with the state’s regulatory requirements, or pursuant to an applicable state exemption or exclusion.

We do not provide tax or legal advice. Clients are responsible for determining their need for and obtaining their own legal and tax advice through qualified professionals whenever necessary.

This brochure is intended to provide general information about BRIA. It is not intended to offer investment, tax or legal advice. Information regarding investment products and services are provided solely to read about our investment philosophy, our strategies and to be able to contact us for further information.

The information, including any opinions expressed by BRIA, is of a general nature, provided solely for entertainment and educational purposes, and should not be construed as investment advice.

BRIA will provide all prospective clients with a copy of our current Firm Disclosure Brochure prior to commencing an advisory relationship. Existing clients will receive a copy on an annual basis. However, at anytime, you can view our current Firm Disclosure Brochure on our web site or through the SEC’s Investment Advisor Search. In addition, you can contact us to request a hard-copy.

If you have any questions regarding compliance and regulatory information, please contact us.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.


Notes


Economy & Finance

Balanced rock company presentation 2015.4.2