Form CRS

 

Form CRS-Client Relationship Summary

March 2023

Introduction

Touchstone Capital, Inc is registered with the Securities and Exchange Commission (SEC) as an investment adviser.

Brokerage and investment advisory services and fees differ, and it is important for you to understand these differences.  Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing. 

What investment services and advice can you provide me?
 

Services: TCI offers to retail investors ongoing investment advisory services based on the individual goals, objectives, time horizon, and risk tolerance of each client. TCI creates an Investment Policy Statement for each client, which outlines the client’s current situation (income, tax levels, and risk tolerance levels) and then constructs a plan to aid in the selection of a portfolio that matches each client's specific situation.

Monitoring: TCI monitors discretionary investment accounts regularly and on a quarterly basis verifies the accounts are invested according to the Investment Policy Statement.

Investment Authority: TCI will request discretionary authority from clients in order to select securities and execute transactions without permission from the client prior to each transaction; however, TCI will also accept non-discretionary accounts for which TCI will secure client permission prior to proceeding with any transactions. Risk tolerance levels are documented in the Investment Policy Statement, which is given to each client.

Investment Offerings: TCI generally limits its investment advice to mutual funds, fixed income securities, insurance products including annuities, equities, ETFs (including ETFs in the gold and precious metal sectors), treasury inflation protected/inflation linked bonds, non-U.S. securities, venture capital funds and private placements. TCI may use other securities as well to help diversify a portfolio when applicable.

Account Minimums and Other Requirements: TCI has a $1 Million minimum per household, but TCI may waive this minimum at its discretion.

Additional information about our advisory services is in Item 4 of our Firm Brochure and Item 5 of our Wrap Brochure, which are available online at https://adviserinfo.sec.gov/firm/brochure/282537


Conversation Starters: Ask your financial professional

• Given my financial situation, should I choose a brokerage service or 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?

 

What fees will I pay?
 

Investment fees are assessed quarterly according to the most current schedule as published in our Form ADV Part 2A, Item 5. These fees are expressed an as annual percentage and are generally deducted quarterly from your account. The fees vary by Asset Sub-Type. These fees constitute a wrap fee program and include most transaction costs and fees to a broker-dealer or bank that has custody of these assets. Therefore, they are higher than a typical asset-based advisory fee. Because our fees are based in part on assets under management, the firm has an incentive to encourage the retail investor to increase the assets in his or her account.

Clients in the PPS Select Program pay the Investment Management and Services Fees listed above and an Annual Program Fee based on account value as described in our Form ADV Part 2A, Item 5. Clients may enter into a Wealth Management Agreement. The negotiated fixed rate for creating financial plans is between $500 and $25,000. Clients may terminate the agreement without penalty for a full refund of TCI's fees within five business days of signing the Wealth Management Agreement. Thereafter, clients may terminate the Wealth Management Agreement generally upon written notice. The TCI Retirement Plan Consulting program provides clients with the option of paying an annual fee for ongoing services based on a percentage of assets under advisement, a flat fee, or an hourly rate not to exceed $500. The fee amount a client will pay is negotiable between the client and the advisor. Fees may be paid directly from qualified plan assets or may be direct billed, as agreed to between the client and the advisor.

Some investors may pay additional fees depending on the types of assets that make up their accounts, such as custodian fees, account maintenance fees, fees related to mutual funds and variable annuities, and other transactional and product level fees. 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.

Additional information about our advisory services is in Item 5 of our Form ADV Part 2A, which are available online at https://adviserinfo.sec.gov/firm/brochure/282537
 

Conversation Starters: Ask your financial professional

• Help me understand how these fees and costs might affect my investment. If I give you $10,000 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: Two of our advisors are insurance agents. In these roles, they accept compensation for the sale products to TCI clients. When recommending the sale of insurance products for which the supervised persons receives compensation, TCI will document the conflict of interest in the client file and inform the client of the conflict of interest.

For additional information, please see the TCI Form ADV Part 2A, Item 12.C.
 

Conversation Starters: Ask your financial professional

• How might your conflicts of interest affect me, and how will you address them?
   

How do your financial professionals make money?
Advisors are compensated for attracting and retaining assets under management. Advisors may also qualify for typical forms of employee benefits, such as medical plans, retirement plans, etc.

Do you or your financial professionals have a legal or disciplinary history?
No, we have no legal or disciplinary history to report. Visit Investor.gov/CRS for a free and simple search tool to research you and your financial professionals. 
 

Conversation Starters: Ask your financial professional

• As a financial professional, do you have any disciplinary history? For what type of conduct?
   

Additional Information

For additional information about our services, up-to-date information or a copy of this disclosure, please call Theodore Kerr,  CCO, at 724-933-8388.
 

Conversation Starters: Ask your financial professional

• Who is my primary contact person? Is he or she a representative of an investment adviser or
  a broker-dealer?
• Who can I talk to if I have concerns about how this person is treating me?