Cornell Pochily Investment Advisors, Inc.

 

Form CRS Relationship Summary, June 10, 2020

 

 

What type of firm is Cornell Pochily Investment Advisors, Inc. (Cornell Pochily, the Firm)?

Cornell Pochily is a U.S. Securities and Exchange Commission (SEC) registered investment advisory firm. 

 

How do brokerage and investment advisory services and fees differ?  

Brokerage firms and registered investment advisory firms are different and retail investors should understand the differences.  See https://investor.gov/CRS a website helpful to investors that provides educational tools and information about the differences between the two as well as about various financial professionals.  In general, brokerage firms sell their products and services and focus on trading securities.  Brokers are typically compensated by commissions that are based on the volume of trading activity.  As an investment advisory firm, we are not focused on trading activity and do not promote active trading unless it is part of an overall investment strategy for a client.  Our focus and services are directed by the needs and best interest of our client.  We primarily invest on a discretionary basis authorized by agreement with the client and in accordance with the goals, risk preference and other information provided by the client.  Our compensation is generally based on a percentage of the assets under management in the client account(s). 

 

What investment services and advice do you provide?  

Our investment and financial services are more fully described in our Form ADV Part 2A (Disclosure Brochure) which can be accessed here: https://adviserinfo.sec.gov/firm/summary/145355.  See especially Items 4, 5 and 7.  Our principal investment advisory services include discretionary management and non-discretionary consulting for investment accounts.  Advisors continually track changes in financial markets and follow stocks, mutual funds, exchange traded funds and fixed income securities.  Appropriate adjustments are made to client portfolios as needed.  Clients are expected to keep us informed of any changes in their financial circumstances to enable us to best provide appropriate services for our client(s).  The Firm relies upon information provided by the client and we do not verify such information.  After consultation with us, our clients direct the type of authority we have over their investment account(s).    

 

Discretionary authority for client investments:  When we engage in discretionary management of client investments, we take responsibility for making investment decisions to buy and sell stocks and other investment products without further direction from the client.  Our authority is based on agreement with the client and respect for the goals, risk preference and other information provided by each client. 

 

Non-discretionary authority for consulting services:  Under agreement for non-discretionary consulting services, the client generally initiates discussions with their advisor and retains responsibility over their investment strategy and ultimate decisions regarding the purchase or sale of stocks or other products.  A client who receives consulting services may request and choose to rely upon our opinions, research, the news or other information.  Although we believe information is accurate and correct when we are providing consulting services, we cannot guarantee the accuracy or correctness of our opinions, or of any information we provide. 

 

Client investments are held with a qualified custodian.  Cornell Pochily primarily uses Fidelity to hold client investments, but clients may have relationships with other custodians. 

 

Are client accounts monitored on a regular basis and if so, how frequently?  

Yes, Cornell Pochily monitors and reviews client portfolios as part of an ongoing process.  In addition, discretionary accounts undergo a full review in conjunction with client goals and risk preferences at least once a year, and more frequently as necessary.  Client accounts that are provided consulting or financial planning services are reviewed on an as needed basis.  Clients receive comprehensive monthly or quarterly statements of holdings and activity from their custodian(s) and can access on-line service that enables them to monitor their investments and account activity. 

 

What fees will I pay?

Cornell Pochily is compensated for our discretionary services by fees based upon assets under management calculated on an annual basis and paid quarterly.  Fees of up to 1.25% of the assets in the client's account(s) are charged.  We assess fees for our consulting and financial planning services based either on a fixed fee or an hourly basis.  See our Disclosure Brochure at Items 5 and 6 for additional information about our fees.  In addition to our fees, clients may also incur miscellaneous costs and pay fees to financial institutions with whom they have relationships, including but not limited to their account custodian(s) and/or mutual funds.  You should understand that fees and costs reduce the earnings on your investments over time. 

 

What are your legal obligations to me when acting as my investment advisor?

When we provide services to clients, we are required to act in the best interest of the client and are not to put our interest ahead of that of the client.   

 

How does your firm make money and what conflicts of interest do you have?  

The sources of revenue for Cornell Pochily are the fees earned for the services that we provide to our clients.  The Firm recognizes we have potential conflicts of interest with clients, but we do not believe that the conflicts adversely influence our work or relationships with clients.  For example, as a rule, the more assets in your investment advisory account(s), the more Cornell Pochily will earn, so we may have some incentive to encourage you to increase the assets in your accounts.  Also, advisors may trade in the same stocks as clients, but the Firm's ethical practices assure that the client's interest comes first.  Advisors may have outside business activities that in the opinion of the Firm management do not conflict with their work at Cornell Pochily.  Upon request, clients will be provided information on investments owned by our advisors and/or on any advisor's outside business activities. 

 

How do the individual financial professionals at your firm make money? 

Our financial professionals are compensated by salary and some may receive an occasional bonus based upon their individual professional ability.  Compensation is not commission based.  Our advisors have no incentive other than to act in the client's best interest.  

 

Do you or your professionals have any legal or disciplinary history?

No.  You can visit http://www.investor.gov to research our Firm and our financial professionals. 

 

What else might I ask Cornell Pochily or any financial professional whose services I am considering?

  • How will you choose my investments?
  • Who is my primary contact at your firm?
  • Given my financial situation, should I choose an investment advisor or a brokerage firm? Why or why not? 

 

Can I find more information about Cornell Pochily in addition to what has been described and referenced here? 

Yes, you can access the Firm website www.CornellPochily.com and you can contact us either by phone at (607) 391-7080 or by email at cl@cornellpochily.com to get additional information about our firm.  Our office is located at 2415 North Triphammer Road, Suite 1, Ithaca, New York 14850.

 

 

 

 

 

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