Form ADV - Part 2A

ITEM 4: ADVISORY BUSINESS

A. Description of Firm

Financial Resources Consulting Group dba First Financial Consulting (“First Financial Consulting” or the “Firm”), is a California-based investment adviser firm founded in 1975. As further detailed in Item 4.B. below, First Financial Consulting provides certain financial consulting and financial planning services. There are currently 5 financial advisors who provide these services. The Firm is registered with the state of California as a Registered Investment Adviser.

The Firm provides personal financial planning and investment consulting services to individuals, families and their related entities, trusts, estates, and closely-held businesses. The Firm works with clients to define financial objectives and to develop strategies for achieving those objectives, some of which may include: cash flow and budget management, tax planning, investment consulting, risk exposure review, education funding, retirement planning, estate planning, charitable giving, business succession and/or other issues specific to the client.

The Firm’s compensation is derived solely from fees paid by clients. The Firm does not sell investment, insurance or real estate products, does not receive commissions of any type, nor does it receive any benefits from custodians/broker-dealers based on client security transactions (“soft dollar benefits”).

The Firm does not take ownership or control of any client assets and does not accept discretion to manage client investment accounts. All client investment accounts on which the Firm is providing investment advice are held by independent custodians, as selected by the client, and titled in the client’s name.

In assisting clients in achieving their financial objectives, the Firm may recommend other professionals such as lawyers, accountants, insurance agents, etc., but these professionals are engaged directly by the client on an as-needed basis. The Firm does not accept any referral fee from any professional to whom it has referred a client.

First Financial Consulting principal owners are Mr. Gregory Jay Welborn, 70% stockholder of the Firm, and Mr. Scott Fredrick Sommers, 30% stockholder of the Firm. The firm is a California corporation. There are no intermediate subsidiaries. Mr. Scott Sommers serves as the Chief Compliance Officer of the Firm and Mr. Gregory Welborn serves as President of the Firm. For additional information regarding their qualifications and business background, please refer to his Form ADV Part 2B Brochure Supplement.

B. Types of Advisory Services Offered

The primary types of advisory services offered by the Firm include financial planning and investment consulting. In performing these services, which are described in more detail below, the Firm relies on the accuracy of information provided by clients and is not required to verify that information. Each client is advised that it is their personal responsibility to provide accurate and thorough information concerning their personal situation and to promptly notify the Firm when there has been a material change in that information.

The following are more detailed descriptions of the advisory services offered.

Financial Planning – This service is provided to clients as needed by the client and may be comprehensive in nature or more selectively focused on one or several smaller issues identified by the client. In each case, the nature of the current situation and the desired objectives are determined, and strategies are developed to help the client achieve those objectives. A written evaluation of the situation and the recommended strategies is provided to the client, and the results of that evaluation are reviewed verbally with the client.

As part of the written evaluation, clients are provided specific steps to implement the recommended strategies. If a client requests First Financial Consulting to help implement the strategies, the Firm will interface with the necessary brokers, agents, professionals or other service or product providers as needed to assist the client, but at no time would our actions entail selling a product to a client, representing a product or service provider to the client or taking control over the client’s investments or other assets. Our services would always remain consultative and focused on the best interests of the client.

We recommend to clients that any financial plan, whether it is specific or comprehensive in nature, be reviewed, and updated, if necessary, approximately every 2 to 3 years. Clients are always free to request or reject a review on a more frequent or less frequent basis, or to cease using our services altogether at any time.

Under CCR Section 260.235.2, the Firm is required to provide all of its clients with notice that in the event financial advice is implemented through First Financial Consulting:

1. Neither the Firm nor its associated person will receive commissions from the sale of insurance products (through designated carriers) or real estate, and thus, other than its fee as provided in its client-facing agreements, neither the Firm nor its associated persons will receive fees or other forms of compensation from the sale of securities or other products, or services recommended as part of the financial consulting services. In the event the Firm and/or its associated person receive any of the aforementioned commission, this will create a conflict of interest for the Firm and/or its associated person have a pecuniary interest in making such recommendations and/or offering such financial consultation services. In the event such conflict of interest arise, the Firm mitigates this conflict of interest by doing what is in the client’s best interest at all times when providing a recommendation and/or offering such financial consultation services.

2. The clients of the Firm are under no obligation to act on the recommendation and/or the financial consulting advice that is offered to the client by the Firm and/or its associated persons. Moreover, if the client elects to act on any of the recommendations provided by the Firm, the client are under no obligation to effectuate the transaction through the Firm and/or its associated person.

Investment Consulting – This service is provided to clients as needed by the client and again may be as selectively focused or comprehensive in nature as requested by the client. In providing such investment consulting services, the Firm can do so based on either project-based consulting or can provide ongoing consulting services. The details regarding the specific services to be provided to any particular client shall be further described in each respective client’s agreement with the Firm. With regard to a comprehensive approach, First Financial Consulting meets with clients to assist them in setting investment goals and objectives, focusing on their current and future economic needs. The Firm then develops asset allocation models for the client based on their investment objectives, risk tolerance, asset preferences, expected returns and time horizons. The Firm then synthesizes this information to develop a brief investment policy statement which succinctly defines the return expectation, the risk expectation and the recommended allocation structure based on the information provided by the client.

To implement this investment plan, the Firm makes specific recommendations as to which investment managers to use and in so doing provides clients with information regarding the investment management styles and performance of the investment managers being recommended. These investment managers may be employed by mutual fund companies or by investment advisory firms offering separate account management. First Financial Consulting will also monitor the allocation and performance of client portfolios if the client so chooses. In so doing, the Firm would review client portfolios on a quarterly basis so as to make recommendations to the client for any changes that the Firm believes should be made.

In providing its investment consulting services, First Financial Consulting is not under any obligation to implement any recommended strategy or change. If requested by the client, the Firm will assist the client with such implementation or to make such changes by passing on to any brokers or custodians the client’s instructions.

If requested by the client, the Firm will recommend broker-dealers and/or custodians. Such recommendations will be to unaffiliated firms, but the client is under no obligation to use any recommended broker-dealer or custodian, nor to purchase any produce or use any investment manager recommended by the Firm.

Tailored Relationships: First Financial Consulting will tailor its services to the specific needs of the client. Clients may impose restrictions on the nature of the work, the information to be used, and/or the specific investments to be recommended.

C. Wrap-Fee Programs

First Financial Consulting does not provide its services to any wrap fee program, as that term is defined the instructions to Form ADV Part 2.

D. General Information About the Firm’s Services

As indicated above, services provided by First Financial Consulting are customizable based upon the individual client’s needs, objectives, and other financial goals of the client.

First Financial Consulting will not assume any responsibility for the accuracy of the information provided by the client. The Firm is not obligated to verify any information received from the client or from the client’s other professionals (e.g., attorney, accountant, etc.), and is expressly authorized to rely on such information. Under all circumstances, clients are responsible for promptly notifying the Firm in writing of any material changes to the client’s financial situation, investment objectives, time horizon, tax status, risk tolerance or other material information that the Firm could have relied upon in rendering its services. If a client notifies the Firm of such changes, First Financial Consulting will review the changes and might recommend revisions to the client’s financial plan and/or portfolio.

E. Amount of Client Assets Under Consultation

First Financial Consulting does not manage client’s assets. The Firm provides investment consulting services. As of February 29, 2024, the Firm provided investment consulting services to approximately 1,800 accounts, owned by roughly 600 households, representing about $500,000,000 in assets. Since the Firm provides consulting services, the firm does not take discretion in any client account.

ITEM 5: FEES AND COMPENSATION

A. Compensation for First Financial Consulting’s Services

Description: First Financial Consulting charges clients on either an hourly basis, flat fee, or based on a percentage of the assets that are under consultation, depending on the circumstances and the client’s desires, as described immediately below. All fees are negotiable and further described in each client’s agreement with the Firm.

Fees for Financial Planning Services: The Firm charges clients for financial planning services on an hourly basis. The Firm’s current rate is $300/hr. The Firm provides clients with an estimate of the hours needed to provide the requested services, and confirms the hourly rate before work is to begin. No deposit is required. Invoicing occurs on a monthly basis, and clients pay from the invoice.

Fees for Investment Consulting Services: The Firm charges clients for investment consulting services on either an hourly basis, flat fee, or as a percentage of assets under consultation. The method of charging the client is determined at the outset of the engagement before any work is begun and is based on the mutual agreement of both the client and the Firm. Estimates are provided before work is begun and no deposit is required. Invoicing occurs on a quarterly basis, and clients may decide whether they want to pay from an invoice or have the fee deducted from their account(s). If fees are deducted from their account(s), the client still receives an invoice and the amount of the fee is also shown on the statement provided by the independent custodian.

For those engagements in which the fee is calculated as a percentage of assets, the calculation is made at the end of each calendar quarter and is based on the assets held in the client’s account(s) as of the end of that quarter. We typically rely on the statement prepared by the independent custodian to determine this quarter-end balance, but we also are willing to rely on balances provided by clients in cases where those assets are not domiciled at a custodian or where a custodian is not sending us a statement.

The typical percentage of assets fee is 1.00% per year, but this can vary based on a variety of factors, including, but not limited to, the specific types of assets and their complexity, anticipated future assets withdrawals and contributions, and the complexity of the relationship with any other professionals or brokers that may be involved. Generally speaking, this percentage fee ranges from no higher than 1.50% to no less than .50%, but this percentage fee is always disclosed to and accepted by the client before work is begun.

B. General Information on First Financial Consulting’s Compensation and Fees

Other Fees and Costs: Custodians may charge transactions fees on purchases or sales of investment products. First Financial Consulting does not share in or receive any part of these fees and we do not require clients to maintain their account(s) at any particular broker or custodian. Mutual funds and exchange traded funds generally charge a management free for their services as investment managers. The management fee is included in the fund’s expense ratio. Additional fees may be charged by these funds as disclosed in the fund’s prospectus. These fees are charged in addition to the fees paid by the client to First Financial Consulting.

Please see the section entitled “Brokerage Practices” for more information.

Consulting Fees In General: Similar consulting services may, or may not, be available from other advisors.

Past Due Accounts and Termination of Agreement: First Financial Consulting reserves the right to stop work on any account that is more than 60 days overdue. The Firm reserves the right to terminate any financial planning engagement where a client has willfully concealed or refused to provide pertinent information about their financial situation when necessary to providing proper financial advice, per the judgment of First Financial Consulting. Clients may terminate their agreement with the Firm at any time by providing written notice.

Terminating clients will receive an itemized bill for all services rendered up until the time of the termination.

Compensation for Sales of Investment Products: First Financial Consulting does not solicit, accept or receive commissions, fees or other forms of compensation for the sale of any investment, insurance or other product.

ITEM 6: PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

First Financial Consulting does not charge performance-based fees (i.e., fees calculated based on a share of capital gains upon or capital appreciation of the funds or any portion of the funds of an advisory client). Consequently, the Firm does not engage in side-by-side management of accounts that are charged a performance-based fee with accounts that are charged another type of fee (such as assets under management). We believe that such fees create an incentive for the advisor to recommend investments that may carry a higher degree of risk to the client.

ITEM 7: TYPES OF CLIENTS

A. Description

First Financial Consulting generally provides investment consulting services to individuals, families, trusts and estates, and closely-held businesses. The advice we provide may extend to entities related to the client such as retirement plans, and charitable organizations, including foundations and endowments.

B. Conditions for Managing Accounts

Client relationships vary in scope and length of service. The Firm does not impose a minimum dollar value of assets or other conditions to maintain an investment consulting relationship.

ITEM 8: METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

A. Methods of Analysis and Investment Strategies

Methods of Analysis: First Financial Consulting relies on a wide variety of information to conduct its analysis of investments held by clients or of investments that the Firm recommends to the clients. The main sources of information include public databases, such as Morningstar, subscription services, industry conferences, and on-site and off-site visits with portfolio managers. The Firm also purchases specific research from a number of vendors based on our research needs at any point in time.

Investment Strategies: First Financial Consulting develops an investment strategy for each client based upon that client’s objectives, risk tolerance, income needs, and tax situation. The investment strategy is based on an asset allocation model which is developed for the client. Using this model, the Firm assists the client in evaluating different asset allocation risk/reward scenarios and helps the client select an investment structure which seems best suited to the client’s objective, needs and tolerances. The Firm then compiles and provides the client with information regarding the investment management styles and relative skills of various investment managers to help the client select how the investment structure is to be implemented. These investment managers may be employed by mutual fund companies or investment advisory firms offering separate account management. After implementation, First Financial Consulting will monitor the investment account(s) for performance on whatever frequency the client requests.

Since the Firm does not take discretion in client account(s), the client is ultimately responsible for the implementation of any investment strategy, including making changes that the Firm may recommend. If the client desires, First Financial Consulting will assist them in the implementation of any recommendations.

B. Risk of Loss

All investment programs and products have certain risks that are borne by the investor. Our investment approach keeps risk of loss in mind. However, as with all investments, clients face investment risks including, amongst others: Loss of Principal Risk, Interest-rate Risk, Market Risk, Inflation Risk, Currency Risk, Reinvestment Risk, Business Risk, Liquidity Risk and Financial Risk.

ITEM 9: DISCIPLINARY INFORMATION

Registered investment advisers, such as First Financial Consulting, are required to disclose all material facts regarding any legal or disciplinary events that would be material to a client’s or prospective client’s evaluation of the Firm or the integrity of its management. First Financial Consulting and its employees have not been involved in any such legal or disciplinary events, and thus, has no information to disclose with respect to this Item.

ITEM 10: OTHER FINANCIAL INDUSTRY ACTIVITIES AND AFFILIATIONS

A. Financial Industry Activities and Affiliations

Activities: First Financial Consulting does not participate in any other industry business activities.

Affiliations: First Financial Consulting does not have arrangements that are material to its advisory business or its clients with any related person. The Firm may at times recommend unrelated third party investment managers, but the Firm does not receive any compensation for the recommendation or selection of these investment advisors.

ITEM 11: CODE OF ETHICS, PARTICIPATION OR INTEREST IN CLIENT TRANSACTIONS AND PERSONAL TRADING

A. Description of Code of Ethics

First Financial Consulting requires its employees to commit to a Code of Ethics and Fiduciary Oath as outline by the National Association of Personal Financial Advisors (NAPFA). The key points are: putting clients’ interest first, objectivity, confidentiality, competence, fairness and suitability, integrity and honesty, regulatory compliance, full disclosure and professionalism. CFP designees are also held to a Code of Ethics as outlined by the CFP© Board of Standards. The Firm will provide a copy of the Code of Ethics to any client or prospective client upon request.

B. Participation or Interest in Client Transactions and Personal Trading

First Financial and its employees may at times buy or sell securities that are also held by clients. Employees may not trade their own securities ahead of client trades, and employees comply with the provisions of the Firm’s “Policies & Procedures Manual”.

The Chief Compliance Officer is Scott Sommers. Scott reviews all employee trades each quarter, including those of the President, Greg Welborn. Mr. Sommers’ trades are reviewed each quarter by the President. The personal trading reviews ensure that the personal trading of employees was not based on inside information and that employees of the Firm do not receive preferential treatment. The trades are not of a significant enough value to affect the securities markets.

ITEM 12: BROKERAGE PRACTICES

A. Selection Criteria

First Financial Consulting does not have any affiliation with any brokerage firms, custodians, or product sales firms. The Firm does not receive any fees or commissions from any arrangements with any brokerage firm, custodian or product sales firm. First Financial Consulting recommends custodians or brokerage firms to clients based on their need for such services. The Firm’s recommendations are based on the proven integrity, financial responsibility, execution abilities, pricing, communication and quality of service offered by the brokerage firm or custodian. Clients are not under any obligation to use a brokerage firm or custodian recommended by First Financial Consulting. Clients are specifically told that they have that freedom of selection and that they are ultimately responsible for the selection of a brokerage firm or custodian.

B. Research and Other Soft Dollar Benefits

Soft Dollars: First Financial Consulting does not receive soft dollar benefits from brokerage firms or custodians.

Research: Many brokerage firms and custodians make research available to advisors and/or clients. These benefits are standard for brokerage firms and custodians, and First Financial Consulting does not use or rely on any research that in any way is tied to or dependent upon the level or number of clients that we have referred to any given brokerage firm or custodian.

Other Services: Some brokerage firms and custodians offer to transmit electronically to First Financial Consulting information about client accounts domiciled at these firms. First Financial Consulting considers these services to be a benefit to the client(s), not to First Financial. As such, it is a component of overall quality which is considered, as discussed above, in our recommendation to clients.

C. Directed Brokerage

First Financial Consulting does not direct brokerage for specific client transactions.

Since clients pick the brokerage firm or custodian they want to use, they may also direct brokerage of their own accounts. Generally speaking, First Financial Consulting would not be involved in this decision or in its implementation. If a client does engage in such activity, the Firm would explain to the client that such practice might increase costs in the form of fees, commissions or the inability to achieve the most favorable execution.

ITEM 13: REVIEW OF ACCOUNTS

A. Periodic Reviews

Financial Planning Periodic Reviews: First Financial Consulting will review a client’s financial plan on whatever frequency the client requests. In the absence of a specific request from the client, the Firm believes that financial plans should be reviewed approximately every 3 years. The Firm will send a reminder to each client on this interval to indicate that a review is due, but the client has full authority to authorize, decline or postpone the review.

If a review is conducted, its scope would be negotiated with the client in the same way that the original financial planning engagement was negotiated with the client. Reviews are conducted by the advisor assigned to the client relationship.

Investment Consulting Periodic Reviews: First Financial Consulting will, at the request of the client, monitor the allocation and performance of client portfolios. In so doing, the Firm would typically suggest that client portfolios be reviewed on a quarterly basis so as to make recommendations to the client for any changes that the Firm believes should be made. Reviews are conducted by the advisor assigned to the client relationship.

B. Other Reviews and Triggering Factors

Review Triggers: Reviews of financial plans are performed more frequently than every 3 years, as indicated above, when market conditions dictate, or when a client’s objectives change. A review may be triggered by client request, changes in market condition, new information about an investment or other component of the client’s overall net worth, changes in tax laws, or other important changes.

If a client has requested the Firm to monitor and review an investment portfolio, reviews are performed more frequently than every quarter, as indicated above, when market conditions dictate, or when a client’s objectives change. A review may be triggered by client request, changes in market condition, new information about an investment or other component of the client’s overall net worth, changes in tax laws, or other important changes.

C. Regular Reports

Written reports are sent to financial planning and/or investment consulting clients based on the frequency discussed above. The reports may consist of an individualized letter or email summarizing the results of the review and our general thoughts on the economy, a statement of holdings from our portfolio accounting software, or such other portfolio reports, asset allocation analysis, tax-related information, updates, portfolio graphs, or other reports as needed.

ITEM 14: CLIENT REFERRALS AND OTHER COMPENSATION

A. Incoming Referrals

First Financial Consulting has been fortunate to receive many client referrals over the years. The referrals have come from current clients, attorneys, accountants, insurance agents, stockbrokers, other professionals, family and friends. The Firm does not pay for referrals.

B. Referring Clients to Third Parties

First Financial Consulting refers clients to other professionals as the need arises in each client’s situation. The Firm does not under any circumstances accept referral fees or any other form of compensation for those referrals.

ITEM 15: CUSTODY

Account Statements: Client investment accounts are domiciled at qualified custodians, who provide account statements directly to the clients at an address supplied by the client. We always encourage clients to carefully review the statements provided by their custodians.

Account Statements Provided by First Financial Consulting: Clients are at times provided account statements that are generated from our portfolio accounting and financial planning software. These statements can contain information taken from the custodian that the client has selected in addition to information taken from other statements or verbal estimates of value provided by the client to our Firm for purposes of informing us of changes in their financial situation. When clients are providing information to our Firm, we always encourage them to be as accurate as possible. Additionally, we always encourage clients to compare the information on the statement we provide with the information that they have provided and/or with the information provided by their custodian.

Custody: First Financial Consulting does not take custody of client accounts. Custody is maintained by the client or by a custodian selected by the client.

ITEM 16: INVESTMENT DISCRETION

Discretionary Authority for Trading: First Financial Consulting does not accept discretionary authority to manage securities accounts on behalf of clients.

Limited Power of Attorney: If clients want First Financial Consulting to assist them with the implementation of their investment account(s), they may give us a limited power of authority which would allow us to communicate the client’s instructions to their broker or custodian. At no time in such a situation would the Firm accept or assume discretion. The Firm would always communicate a recommendation to the client, ask if the client agrees with the advice, and if so, then communicate the client’s decision to the broker or custodian designated by the client. Our communication of client decisions to the designated broker or custodian can be done by letter, fax, telephone, email or internet.

ITEM 17: VOTING CLIENT SECURITIES

Proxy Votes: First Financial Consulting does not vote proxies for clients. Clients will receive their proxies and other solicitations directly from their custodian or a transfer agent. If clients would like us to offer advice on the voting of their proxies, the Firm will provide such advice.

ITEM 18: FINANCIAL INFORMATION

Financial Condition: First Financial Consulting does not require or solicit prepayment of any fees, does not have discretionary authority or custody of client assets and has not been the subject of any bankruptcy proceeding. Accordingly, the Firm is not required to submit a balance sheet. Furthermore, the Firm does not have any financial commitments that impair its ability to meet contractual and fiduciary obligations to clients and has not been the subject of a bankruptcy proceeding.

ITEM 19: REQUIREMENTS FOR STATE-REGISTERED ADVISERS

Principal Executive Officers and Management Persons: The education and business background for all management and supervised persons can be found in the Part 2B of this Brochure.

Outside Business Activities: The outside business activities for all management and supervised persons can be found in the Part 2B of this Brochure.

Performance Based Fee Description: First Financial Consulting does not receive any performance-based fees.

Disclosure of Material Facts Related to Arbitration or Disciplinary Actions Involving Management Persons:

1. Neither First Financial Consulting nor its supervised person have been involved in an arbitration claim alleging damages in excess of $2,500 involving any of the following:
• An investment or an investment-related business or activity;
• Fraud, false statement(s) or omissions;
• Theft, embezzlement or other wrongful taking of property;
• Bribery, forgery, counterfeiting, or extortion;
• Dishonest, unfair or unethical practices.

2. Neither First Financial Consulting nor its supervised person have been found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following:
• An investment or an investment-related business or activity;
• Fraud, false statement(s) or omissions;
• Theft, embezzlement or other wrongful taking of property;
• Bribery, forgery, counterfeiting, or extortion;
• Dishonest, unfair or unethical practices.

Material Relationship Maintained by this Advisory Business of Management Persons with Issuers of Securities: There are no material relationships with issuers of securities to disclose.

Material Conflicts of Interest Assurance: There are no material conflicts of interest regarding First Financial Consulting, its consultants or any of its employees which could be reasonably expected to impair the rendering the rendering of unbiased and objective advice are disclosed as required under CCR Section 260.238(k).

Business Continuity Plan: First Financial Consulting has a Business Continuity Plan in place that provides steps to mitigate and recover from the loss of office space, communications, services or key people.

Disasters: The Business Continuity Plan covers natural and man-made disasters, such as storms, fires, flooding, earthquakes, power interruptions, biological or chemical events, etc. Critical client information is maintained electronically and those files are backed up and archived daily offsite.

Alternate Offices: The Business Continuity Plan identifies alternate work locations to support on-going operations in the event that the main office is unavailable. It is our intention to contact all clients within five days of a disaster that dictates moving our office to an alternate location.

Loss of Key Personnel: First Financial Consulting maintains a buy-sell agreement between the shareholders of the Firm, and the agreement is funded with life insurance. In the event of the death or serious disability of a shareholder, his or her duties and client relationships would be taken over by the other shareholder(s). It is our intention to contact all clients within five days of the death or serious disability of a shareholder.

Information Security: First Financial Consulting maintains an information security program to reduce the risk that personal and confidential information may be breached.

Privacy Policy and Notice: First Financial Consulting maintains a privacy policy to protect all client information. Client information would be disclosed to an outside party only in the event of a court order or the specific granting of permission by the client. Every client is provided a written copy of the Firm’s privacy policy before any work is begun and is offered, in writing, a written copy of the privacy policy annually.