WIXLIB

1Part 2A of Form ADV: Firm BrochureItem 1Cover PageClarity Financial, L.L.C.555 East Green Meadows Rd., Suite 7Columbia, MO 65201573-447-7007 (office) 800-381-9829 (fax)Date of Brochure: 03/27/2018This Brochure (also known as Form ADV Part 2) provides informationabout Clarity Financial, L.L.C., doing business as Clarity Financial.Form ADV has two parts. Part 1 has information about the advisoryfirm's business and whether they've had problems with regulators orclients in the past. Part 2 describes their services, fees, and investmentstrategies in addition to whether they’ve had prior problems withregulators. Before you hire an investment advisory firm, examine bothparts of Form ADV, and then ask for an explanation of anything youdon't understand. If you have any questions about the contents of thisBrochure, please contact Timothy M. Sullivan, owner and chiefcompliance officer of Clarity Financial, at 573-447-7007 or attim@goclarityfinancial.comClarity Financial is a State of Missouri registered investment adviser.Registration of an investment adviser does not imply any level of skill ortraining. The selection of an investment adviser is of great importanceand should be considered with significant care. Additional informationabout Clarity Financial is available on the SEC’s website atwww.adviserinfo.sec.gov . The SEC’s web site also providesinformation about any persons affiliated with Clarity Financial who areregistered as Investment Adviser Representatives.You may also visit the Missouri Investor Protection Network p for further valuableinformation. The information in this brochure has not been approved bythe SEC or any state securities authorities.

2Item 2Material ChangesOn July 28, 2010, the United State Securities and Exchange Commissionpublished “Amendments to Form ADV” which amends the disclosuredocument that all registered investment advisers provide to clients. ThisBrochure dated February 21, 2017 is a new document prepared in accordancewith the revisions to Form ADV Part 2. The amended Form ADV 2 has beenadopted for use by the state of Missouri.Updates since 02/21/2018.1. On pg. 5, Item 5.1, the maximum fee for a 1st year retainer wasincreased.2. Mr. Sullivan had a working relationship with Scottrade as a brokerplatform and they were mentioned several times throughout theprevious brochure. Scottrade was purchased in 2016 by TDAmeritrade but continued operating under the Scottrade name untilFebruary 2018 when TD Ameritrade officially transitioned allScottrade customers to TD Ameritrade. As such, any reference to“Scottrade” in the previous brochure was replace with “TDAmeritrade” in this brochure.3. On pages 15 & 16, Item 15, the discretionary option for client assets,also discussed more extensively under Item 4, is also mentioned.There are no other updates at this time.We will ensure you receive a summary of any material changes to this andsubsequent Brochures by April 30th each year. We may further provide otherongoing disclosure information about material changes as necessary and willprovide a new Brochure based on changes or new information at any time.Currently, our Brochure may be requested by contacting Tim Sullivan at 573447-7007 or a digital copy may be obtained by emailingtim@goclarityfinancial.com . Brochures are always provided free of charge.

3Table of ContentsItem 1 – Cover Page.1Item 2 - Material Changes.2Item 4 – Advisory Business.4Item 5 – Fees and Compensation.5-9Item 6 – Performance-Based Fees and Side-By-Side Management.9Item 7 – Types of Clients.9Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss.9Item 9 – Disciplinary Information.10Item 10 – Other Financial Industry Activities and Affiliations.10-11Item 11 – Code of Ethics, Participation or Interest in Client Transactions and PersonalTrading.12-13Item 12 – Brokerage Practices.14Item 13 - Review of Accounts.14-15Item 14 - Client Referrals and Other Compensation.15Item 15 - Custody.15Item 16 - Investment Discretion.16Item 17 – Voting Client Securities.16Item 18 – Financial Information.16Item 19 – Requirements for State-Registered Advisors .16Part 2B of Form ADV: Brochure Supplement .17-19

4Item 4Advisory BusinessClarity Financial is an LLC organized in the state of Missouri. Clarity Financial – alsoreferred to as the “Advisor” - is a fee-only financial planning firm that specializes inproviding comprehensive financial planning and investment advisory services toindividuals, families, and small businesses. Clarity Financial is owned and operated byTimothy M. Sullivan and was established in 2011. Advisor offers a wide range offinancial services. Specifically, Clarity Financial distinguishes itself from traditionalinvestment advisory firms by providing fee-only consulting services focused on yourinvestment goals and objectives, risk management (insurance review), retirementplanning, estate planning, debt management solutions, business investment, and businessretirement account needs.Clarity Financial maintains discretionary authority over the assets of some Clientaccounts. Clients can choose if they prefer a discretionary or non-discretionaryrelationship with one exception. This exception is for Retirement Solutions clientsengaging Mr. Sullivan as a 3(38) fiduciary advisor for retirement plan assets. TheDepartment of Labor does not allow a 3(38) advisor to maintain a non-discretionary rolein this position. However, at no time will Clarity Financial have access to client funds inthese retirement plan accounts. Mr. Sullivan does have the final authority to decide whatfunds are available in “the plan” for participants to choose from and as such, isconsidered a discretionary advisor for these accounts.For non-discretionary transactions, the Advisor will obtain Client’s prior approval foreach specific transaction before executing investment recommendations, as well as forthe selection and retention of sub-advisors to the account. Advisor will only executetransactions for Clients when specifically requested and authorized by Client in writing.If there are numerous smaller transactions needed to execute one larger objective, thesewill not be individually approved by the client. For example, if the client wishes to sellall the positions in a portfolio, this can be approved with one authorization, not thirtyindividual authorizations. Client approval through email correspondence shall beaccepted as written approval. Advisor will act in accordance with a Statement ofInvestment Policy (or similar document used to establish Client’s objectives andsuitability).Advisor and Client will enter into an agreement which details the scope of therelationship and responsibilities of both Advisor and Client. Advice and servicesprovided under the agreement are tailored to the stated objectives of the Client(s).Advisor does not sell insurance or investment products and does not acceptcommissions as a result of any product recommendations. Advisor does not payreferral or finder's fees, nor does it accept such fees from other firms.

5Item 5Fees and CompensationClarity Financial provides the following five types of services. In general,fees for these services are billed directly to the client. The exception to this isif the client chooses to use TD Ameritrade as their custodian for theirinvestments, we have the ability to deduct fees from these accounts if sodesired. This is certainly not required, but it is available.1. Open RetainerInitial Year of Open Retainer: 2,500 - 30,000New client fees are calculated based on income, assets, complexity ofsituation, and the time anticipated performing our services.Renewal Years of Open Retainer: Typically, 75% of the initial year with aminimum charge of 2,500. For example, if your first year of Open Retainerwas 10,000, a typical renewal year would be 7,500 based on the expectedwork required. Since we must be “re-hired” every year, these fees are agreedupon by both parties in writing prior to the renewal.Fees are calculated annually and payable quarterly, in advance. In the InitialYear, one-quarter of the annual fee is due at engagement and the remainingfee is due in three quarterly payments. In Renewal Years four payments aredue quarterly.An open retainer fee is based on a Comprehensive Financial Plan.The financial planning process consists of but is not limited to: Goal Clarification and Assessment Coordinated Investment Advise Tax planning and preparationo We can also coordinate with an existing CPA if so desired Value based Risk Managemento We review current insurance coverage and will researchavailable options so that insurance dollars are spent wisely Identification of financial problems and formulation of solutions.

6 o We review spending, saving, and debt levels to make sure theyare appropriate for your situationEstate Planning goes beyond make a will. We will evaluate with youthe pertinent estate issues that impact your life and consider choicesyou can then implement with your attorney.Analysis and recommendations of any investment property based onNet Operating Income, Cap Rate, and client goalsSince this is an open retainer, other issues specific to individual clientsmay be addressed such as college savings strategies, charitable givingefficiency, special needs planning, or any number of other topicsPreparation of a financial plan in the form of specific writtenrecommendationsImplementation of recommendationsPeriodic review and updates to the planThis process normally takes 6 to 8 face-to-face meetings the first yearfollowed by 3 to 4 meetings in subsequent years. As many additional followup emails, phone calls, or other communications as needed are included inthe full retainer cost. The Open Retainer cost does not normally changeduring the year unless significant changes occur to the plan (such as helpneeded dealing with an unexpected inheritance). Any cost changes will beagreed upon with the client in advance of any work performed.2. Clarity Financial ReviewA Clarity Financial Review is available for clients who wish to have anoverall picture of their financial health but don’t wish to have ongoingfinancial monitoring or advice.a) We review your progress in achieving the Five Fundamentals of FiscalFitnessb) We then compare current net worth to where you are on the FinancialLife Cycle and identify your current life cycle stagec) In addition, we review your net worth and current asset allocationd) We review your prior two years of tax returnse) Finally, we answer specific questions regarding one additional planningtopic. Examples include but are not limited to: