Form CRS – ADV Part 3 - Shobe Financial Group

Form CRS – ADV Part 3


Shobe & Associates, Inc. d/b/a: The Shobe Financial Group

The Shobe Financial Group is registered with the Securities and Exchange Commission as an investment adviser and, as such, we provide advisory services rather than brokerage services. Brokerage and investment advisory services and fees differ and it is important for you, our client, to understand the differences. Additionally, 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. This document is a summary of the services and fees we offer to “retail” investors, which are natural persons who seek or receive services primarily for personal, family, or household purposes.

What investment services and advice can you provide me?

We offer the following investment advisory services to retail investors: Financial Planning Services; Business Consulting Services, Portfolio Management Services, Retirement Plan Consulting Services, and Selection of Other Advisers/Asset Management Services. Detailed information regarding our services, fees and other disclosures can be found in our Form ADV Part 2A Items 4, 7, and 8 by clicking this link https://adviserinfo.sec.gov/firm/brochure/114975.

Account Monitoring: If you open an investment account with our firm, as part of our standard service we will monitor your investments on a periodic basis, but no less than annually.

Investment Authority: We manage investment accounts on a discretionary basis whereby we will decide which investments to buy or sell for your account. You may limit our discretionary authority (for example, limiting the types of securities that can be purchased or sold for your account) by providing our firm with your restrictions and guidelines in writing. We also offer non-discretionary investment management services whereby we will provide advice, but you will ultimately decide which investments to buy and sell for your account. You have an unrestricted right to decline to implement any advice provided by our firm on a non-discretionary basis.

Investment Offerings: We offer advice on most all traditional types of investments/products, with resources for information on many others (available upon request).

Account Minimums and Requirements: In general, we require a minimum account size of $50,000 to open and maintain an advisory account, which may be waived or lowered at our discretion. We may also, in our discretion, household client accounts to meet the stated minimum.

Key Questions to Ask Your Financial Professional

  • 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?

What fees will I pay?

The following summarizes the principal fees and costs associated with engaging our firm for investment advisory services. For detailed information, refer to our Form ADV Part 2A, Items 5 and 6 and Form ADV Part 2 Appendix 1 Brochures by clicking this link https://adviserinfo.sec.gov/firm/brochure/114975

  • Asset Based Fees – Payable quarterly in advance. However, in special circumstances, other fee-paying arrangements may be negotiated. Since the fees we receive are asset-based (i.e. based on the value of your account), we have an incentive to increase your account value which creates a conflict especially for those accounts holding illiquid or hard-to-value assets;
  • Hourly Fees – Payable In arrears;
  • Fixed Fees – Payable In advance;
  • Other Advisory Fees – In addition to our fees, if we refer you to a third party money manager, you will also be charged advisory fees by that third party money manager, which are separate and apart from our fees.
  • Clients may also pay additional fees and/or expenses. Examples of the most common fees and costs applicable to our clients are: custodian fees, account maintenance fees, fees related to mutual funds and exchange-traded funds; transaction charges when purchasing or selling securities; and other product-level fees associated with your investments.

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.

Key Questions to Ask Your Financial Professional

  • Help me understand how these fees and costs might affect my 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.

  • Third-Party Payments; Registered Representatives: Persons providing advice on behalf of our firm are registered representatives with a broker-dealer. These persons receive compensation in connection with the purchase and sale of securities or other investment Compensation earned by these persons is separate and in addition to our advisory fees. This practice presents a conflict of interest because they have an incentive to recommend investment products based on the compensation received rather than solely based on your needs.
  • Third-Party Payments; Insurance Agents: Persons providing investment advice on behalf of our firm are

licensed as independent insurance agents. These persons will earn commission-based compensation for selling insurance products. Insurance commissions are separate and in addition to our advisory fees. This practice presents a conflict of interest because they have an incentive to recommend insurance products to you for the purpose of generating commissions rather than solely based on your needs.

.Refer to our Form ADV Part 2A Brochure by clicking this link https://adviserinfo.sec.gov/firm/brochure/114975 to help you understand what conflicts exist.

Key Questions to 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?

The financial professionals servicing your account(s) are compensated via receipt of a salary, bonus and, in some cases, non-cash compensation. Financial professionals’ compensation is based on the amount of client assets they service and the revenue the firm earns from the person’s services or recommendations. Shobe & Associates, Inc. is compensated by advisory fees, which are generally assessed quarterly at the rate agreed upon based on an established fee schedule, as well as fees related to other products and services provided to you. The revenue that Shobe & Associates, Inc. receives will generally increase or decrease based on the increase or decrease of our clients’ accounts. Therefore, your financial professional(s) is incentivized to increase revenues on your accounts.

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

No, our firm and our financial professionals currently do not have any legal or disciplinary history to disclose. Visit Investor.gov/CRS for a free and simple research tool.

Key Questions to Ask Your Financial Professional

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

You can find additional information about your investment advisory services and request a copy of the relationship

summary at 225-763-7010 or click the link provided https://adviserinfo.sec.gov/firm/brochure/114975

Key Questions to 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?