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Frequently Asked Questions (FAQ) |
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We provide our investment-management clients with convenience and discipline. So many of our clients are busy living their lives -- attending to their careers and pursuing their interests and passions. As a JLFranklin Wealth Planning client, we'll design an investment plan for you, implement your investment strategy, and monitor your portfolio. We are always available to answer questions that come up. We bring discipline to your financial plan, by helping you choose the investments that are expected to achieve your goals, while monitoring your portfolio over time to ensure that you are on track to reach your objectives. You can delegate your financial decisions to us.
FAQs About Our Investment Advisory Services
What is the firm's investment approach?
What makes JLFranklin Wealth Planning unique?
What services does JLFranklin Wealth Planning provide?
What do typical JLFranklin investment-management clients look like?
What will I pay for your investment management services?
How else are the planners at JLFranklin compensated?
How does my 401(k) fit into the wealth-management plan?
What services will I receive in exchange for the management fee?
Are JLFranklin clients involved in investment decisions?
Can I keep my E*Trade account?
What does JLFranklin Wealth Planning's investment performance look like?
Can I receive regular periodic withdrawals from my account?
Why should I hire JLFranklin Wealth Planning as my Investment Manager?
How do I request a copy of your SEC Form ADV, Part II?
What is the firm's investment approach?
First, we assess each client's risk, goals, time frame, and tax situation. We then create an investment design using a variety of asset classes, both domestic and international. Finally, and most importantly, we implement and monitor the portfolio to ensure that it offers maximum diversification while continuing to meet your target allocation. Each portfolio is customized to help our clients achieve their goals and dreams -- in accordance with their tolerance for risk.
We primarily use no-load mutual funds to implement our clients' portfolio designs. The funds we use have been carefully selected based upon in-depth research of portfolio manager performance, fund-style category, fund philosophy, and low expense ratios. Charles Schwab & Co. is the custodian of our clients' assets. We take advantage of institutional class funds that are available at lower cost to clients of investment advisors than to retail investors, and we use low-cost index funds where appropriate to get affordable exposure to a specific asset class.
What makes JLFranklin Wealth Planning unique?
First among our firm's unique attributes is our principal, Joyce Franklin. Ms. Franklin possesses graduate degrees in Personal Financial Planning and Taxation, as well as nearly two decades of financial-industry experience, including five years with Big Five accounting firms. She sits on the boards of several financial planning oversight groups and is frequently quoted by journalists seeking a voice of reason amidst all the economic hype. And since we're a smaller firm, clients benefit from the personal touch that Ms. Franklin brings to the complex world of financial planning.
As a firm composed of both CPAs and Certified Financial Planners, JLFranklin Wealth Planning bases all financial decisions on sound investment principals and your personal goals and dreams. With our tax background, we are uniquely aware of the tax implications of every action. We also specialize in stock-option planning for employees and executives.
Recent accounting scandals have tarnished some reputations in the industry, but surveys that measure consumers' trust consistently rate CPAs at the top of the list. This rating is due to professionally dictated standards of integrity, competence, and objectivity -- standards which JLFranklin adheres to resolutely. We use a fee-only compensation structure that assures no conflict of interest in our decision-making.
What services does JLFranklin Wealth Planning provide?
We offer financial planning, investment management, and tax services. We also provide stock-option planning services that help reduce concentrated equity positions while minimizing risk and tax exposure. Our clients gladly delegate the implementation and monitoring of their investment portfolio. In return, they save time and receive rational, disciplined guidance.
What do typical JLFranklin investment-management clients look like?
Our typical investment-management clients have a minimum of $2 million in assets available for management. Many of our clients have stock options and come to us for strategic stock-option planning, so as to minimize taxes, increase diversification, and decrease their overall investment risk. We also provide hourly tax and financial planning for clients who do not meet our investment-management minimums.
What will I pay for your investment management services?
Our minimum investment management portfolio value is $2 million. This amount includes assets held in taxable accounts, as well as assets in tax-deferred accounts, such as IRAs and company retirement plans. Our fees range from .30% to 1% annually, depending upon the size of the portfolio. Clients receive an itemized statement of fees on a quarterly basis, and fees are based on the value in the account on the last day of each quarter. Following the client's receipt of our quarterly billing notice, fees are deducted from client accounts.
Fees for management of portfolios with less than our investment minimum are assessed according to the minimum portfolio value. Our fees are as follows:
| Value of Assets | Annual Fee |
| Less than $2 million | 1.00 % |
| $2 – 5 million | .75 % |
| Above $5 million | .30 % |
How else are the planners at JLFranklin compensated?
JLFranklin is an independent, fee-only firm. This means that we do not accept commissions or referral fees for our work. We are compensated by our clients only, either on an hourly basis or based upon assets under management. There is no other way we are compensated. This approach to managing wealth enables us to make the best investment choices for you, free of bias.
Since we do not receive commissions, we can assure our clients a lack of bias toward or against any particular investment or insurance product. Receiving compensation based solely on assets under management or on an hourly basis means we are able to maintain a very competitive fee structure. We do not sell our clients products for which we receive commissions, nor do we accept compensation from providers of investment products.
We also provide tax and financial planning services on an hourly fee-for-service basis, regardless of the size of client assets.
How does my 401(k) fit into the wealth-management plan?
Company-sponsored 401(k) plans administered by present employers will be incorporated into the overall portfolio design. For 401(k) plans held with former employers, we usually recommend that these assets be rolled over to a conduit IRA, where they can be invested in the universe of mutual funds.
What services will I receive in exchange for the management fee?
Behind the scenes and through personal contact via telephone and email, our clients receive a wealth of professional investment services, expertise, and advice. We are available throughout the year to answer financial planning, cash flow, and tax questions. We also provide quarterly performance reports and face-to-face annual reviews. Clients receive trade confirmations and monthly statements from the custodian, typically Charles Schwab & Co., and we continually monitor mutual fund investments and periodically adjust portfolios based on changing needs or changes in the market. We rebalance our clients' portfolios as necessary, keeping asset allocations in line with objectives, but we also keep a sharp eye on the tax consequences of our actions and only sell if we believe the benefit outweighs the tax cost. Where appropriate, we take advantage of tax-loss selling.
For all clients, we also provide annual financial planning updates at no additional charge.
Are JLFranklin clients involved in investment decisions?
Absolutely. Client input during the investment-planning phase determines risk tolerance and outlines investment time horizon. We offer an objective, consensus-driven process that is designed by both the planner and the client. This process retains our objectivity and integrity and provides our clients with unbiased advice that is tailored to their specific needs. Our recommendations are based on your preferences. You will be presented with these recommendations before the assets are purchased, so that you can endorse, modify, or reject any particular item.
Can I keep my E*Trade account?
Sure. Assets you wish to trade yourself or keep under your own management, such as in an online brokerage account, will be kept out of the diversified portfolio designed by our firm. If you prefer, your self-managed account can be set up on our system as an unmanaged "custodial" account for a nominal fee. One benefit of setting up your personal trading account with us is that we can prepare tax and performance reports on these assets.
What does JLFranklin Wealth Planning's investment performance look like?
Since every client has different goals, we do not have a "typical" client portfolio. Instead, each portfolio reflects the time horizon, return objectives, risk tolerance, and personal goals of each client. And though we cannot show a typical client portfolio, we can discuss the performance of the mutual funds we have used over time, and how they have performed in relation to our benchmarks.
One of the major things you will learn from working with us is that performance is not the primary concern for a successful portfolio. The crucial factor is for you to achieve your financial goals. Risk and time horizon determine your portfolio design, which in turn affect performance. Risk is the degree of volatility of your investment returns. When we design your investment plan, we help you choose a level of risk that you are comfortable with, and we implement the plan using asset allocation principles. Asset allocation does not maximize a portfolio's total return, but it does help clients reach their goals with an appropriate level of risk. Assets needed to fund lifestyle expenses and major purchases within the next five years will not be invested in the market. Instead, we will carve out a reserve for these expenditures.
Our firm's goal is to help our clients plan well so they sleep well at night and achieve their goals.
Can I receive regular periodic withdrawals from my account?
Yes. We can set up semi-monthly, monthly, or quarterly fixed-amount transfers from your managed accounts into your checking account.
Why should I hire JLFranklin Wealth Planning as my Investment Manager?
- Our dual expertise in both tax matters and financial planning.
- We provide the discipline to maintain your investment strategy.
- Delegating management of your investments to a professional simplifies your life and allows you more time to do the things that you enjoy.
- Changes to your personal financial situation can be quickly incorporated into your plan. We serve as a resource for ideas, information, and questions.
- Our educational process includes a risk coaching questionnaire, a review of historical market returns and a discussion of the importance of diversification.
- We constantly monitor your investments and the fund managers behind them, making changes to the investments as needed. We also help you choose the funds in your 401(k) plan.
- Our expertise in tax matters helps us to choose the right tax-managed funds for you. And we'll monitor your stock-option vesting and expiration dates to maximize your total net worth.
- You'll have access to lower cost mutual funds, load-waived funds and institutional class funds that are not available to retail investors.
- The size of our firm allows us to provide personalized service. You will interact directly with the owner of the firm, Joyce L. Franklin.
How do I request a copy of your SEC Form ADV, Part II?
The SEC requires Registered Investment Advisors to provide the Form ADV, Part II to all clients. This form gives detailed information regarding our firm, its principals and our business. Clients may request a copy by calling us at (415) 925-3400 or by email. Prospective clients who meet our minimums may request a copy of Form ADV, Part II after an initial discussion with one of our planner/investment managers.
In addition, you may view our Form ADV, Part I online by searching at http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_OrgSearch.aspx
How do I get started?
Just give us a call and let us know you're interested in getting the ball rolling.
In preparation for our first meeting, we'll begin with a brief telephone interview aimed at understanding your current situation and goals. At the first meeting, which usually lasts an hour or two, we will review your Confidential Client Questionnaire, go over our investment approach, and begin to map out how our investment philosophy could best benefit you. This meeting is an opportunity for you to ask specific questions about our process and the firm. At this point, if you want to proceed with the Investment Plan or Comprehensive Financial Plan, we'll ask you to provide information on your goals, your current asset allocation, and any stock option shares or grants you may possess.
At the second meeting, we will review your Investment Plan. We'll spend two-to-three hours discussing your net worth, your cash flow, your long-term investment picture, and the historical performance of the markets. We will then design an investment portfolio based on your short- and long-term goals and your tolerance for risk. We will also provide a written summary of conclusions that incorporates any changes we make in the second meeting, as well as an asset allocation.
If you like our investment approach, we will then discuss Investment Management services. Our IM services allow our firm to take over the responsibility of implementing and monitoring your investment portfolio. We use mutual funds that meet our selection criteria, including low-cost funds, institutional funds, and index funds (in certain asset classes only), as appropriate. We will provide you with an investment policy statement that specifies the asset allocation that you have chosen and allow you the opportunity to fine-tune the plan before implementation.
After initial implementation, we will be available for telephone or e-mail questions and conversations. You will receive quarterly performance reports, and we will meet at least once a year to review your current goals, objectives, and dreams.