Frequently Asked Questions
Our process begins with a “get acquainted” meeting. We will review information you provide regarding your financial situation (tax returns, insurance policies, asset statements, estate planning documents, employee benefits, etc.). We want to know about your personal goals, values, concerns, dreams, and past experiences.
The financial planning process entails discovering where you are now and where you want to go. We work together to establish and prioritize objectives. We’ll review the problems and opportunities facing you, examine alternatives and make recommendations and action steps. The last step is assisting you in implementing those recommendations.
Once your initial plan is complete, we regularly meet with you to review and update your plan, assess your progress, and consider other actions that may be helpful for you.
You can learn more about the step-by-step process on the Financial Planning page.
As a prospective client, you are encouraged to come in for a complementary exploratory consultation. We discuss your financial situation as well as our firm’s ability to help you. Most client engagements begin with a financial plan that addresses the multiple aspects of a family’s personal finances. If we decide to engage in the financial planning process, this one-time fee typically costs $2,000 to $3,000 depending upon complexity. The planning process entails 3 to 4 meetings. It is the start of a wonderful blueprint into your financial future.
In some instances, where extensive analysis and planning may not be warranted, we will still engage with clients.
Many of our clients come to us on a referral basis. They typically enjoy healthy household incomes and have investment portfolios of $1,000,000 or more. However, we welcome and enjoy working with clients who do not yet meet these thresholds but are on the path to reach them in the near future.
As we begin to understand you and what your financial goals are, we help you grow, protect, enjoy, and safely transfer your wealth to your chosen heirs. We will help clarify your financial objectives and desires and provide the framework to help you obtain your goals. We will monitor your progress and make sure you are on a steady course to your own financial freedom and independence.
We derive income from the financial planning fees as well as investment management fees. We are a fee-based investment advisory firm.
Investment management fees are calculated as an annual percentage of the assets we manage on your behalf. The fees, paid quarterly, are set at an annualized rate.
The annual fee for investment management services ranges from 1.50% to 0.50% on larger accounts.
Outside of our normal fee-based pattern, there are a few isolated occasions where it becomes necessary to recommend a special product to meet a client’s need. For instance, College Education (529 Plans), direct participation, or other insurance products can pay out commissions through our Broker-Dealer arrangement.
No, it is illegal for an investment advisory firm to guarantee returns. However, we devote a lot of time, research, and experience in adopting best practices which we believe will help you meet your return goals.
Johanson Financial Advisors, Inc. never has custody — physical possession or access to your money.
Client assets are held at TD Ameritrade Institutional, or Charles Schwab in an account registered in your name and social security number, or a tax identification number for trust accounts.
On occasion we will use other mutual fund, insurance or direct participation companies. Client assets are then held with those companies.
Johanson Financial Advisors, Inc. is an independent financial advisory firm that holds itself to a Fiduciary Standard which occupies a special trust and confidence when working with a client. A fiduciary is simply someone who represents your interests, even above their own interests. As a fiduciary, we are required to act with undivided loyalty to you as our client. This includes disclosure of how we are compensated and any corresponding conflicts of interest.
Not every financial advisor accepts this fiduciary duty. For example, some brokers are held to the much lower standard of suitability. This standard of care means an advisor need only suggest products that are suitable for your objectives and no disclosure is required for possible conflicts of interest. The introduction of compensation by commission also introduces a conflict with acting in your best interest first and foremost.
Our philosophy is to manage your assets in a way that works best for you. We will attempt to design your portfolio to achieve its targeted rate of return without taking on more risk than necessary. You will have your own tailored Investment Policy Statement that mandates and establishes your goals, policies and procedures.
Whether your portfolio’s goal is aggressive growth or capital preservation, or somewhere in between, the guiding investment principles that we adhere to are:
- Strategic and Tactical Asset Allocation provide the foundation to managing the long-term risk and return of a portfolio.
- Low cost investing through the use of index funds, ETF's and low-expense no-load mutual fund families.
- Rebalancing portfolios on a consistent basis should reduce risk and increase returns over time.
- A mandate to uphold an unbiased, objective, and advocacy roll.
We are currently working with over 200 investment management clients. Our clients include individuals, couples, trusts, and business retirement plans.
Our clients have all ages and backgrounds, most of our clients are in the “accumulation” stage of their life, meaning 35-65 years old. Many of our clients are professionals, corporate executives, or owners of their own small businesses. Approximately one third are retired. In total, our clients are successful, fulfilled people who either do not have the time to devote to their finances or who recognize the benefit of professional guidance in this area.
In essence, our clients do not like to cut their own hair. They look to us as a great resource so they can achieve their financial dreams.
Please email your question to us at firstname.lastname@example.org or feel free to give us a call at (408) 404-0009.