A. Firm Information
MJT & Associates Financial Advisory Group, Inc. formerly MJT & Associates, LLC (“MJT” or the “Advisor”) is a
registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). The Advisor is
organized as a Corporation under the laws of Minnesota. MJT was founded in October 2014, and is owned and
operated by Mitchell J. Thompson (President and Chief Compliance Officer. This Disclosure Brochure provides
information regarding the qualifications, business practices, and the advisory services provided by MJT.
B. Advisory Services Offered
MJT offers investment advisory services to individuals, high net worth individuals, trusts and retirement plans
(each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. MJT’s fiduciary commitment is further described in the Advisor’s Code of Ethics. For more
information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading.
Wealth Management Services
MJT may provide Clients with wealth management services, which generally includes discretionary management
of investment portfolios in connection with a broad range of comprehensive financial planning services.
Investment Management Services - MJT provides customized investment advisory solutions for its Clients. This
is achieved through continuous personal Client contact and interaction while providing discretionary investment
management and related advisory services. MJT works closely with each Client to identify their investment goals
and objectives as well as risk tolerance and financial situation in order to create a portfolio strategy. MJT will then
construct an investment portfolio, consisting of low-cost, diversified mutual funds and/or exchange-traded funds
(“ETFs”) to achieve the Client’s investment goals. The Advisor may also utilize individual stocks, bonds or
options contracts to meet the needs of its Clients. The Advisor may retain certain legacy investments based on
portfolio fit and/or tax considerations.
MJT’s investment approach is primarily long-term focused, but the Advisor may buy, sell or re-allocate positions
that have been held for less than one year to meet the objectives of the Client or due to market conditions. MJT
will construct, implement and monitor the portfolio to ensure it meets the goals, objectives, circumstances, and
risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable restrictions on
the types of investments to be held in their respective portfolio, subject to acceptance by the Advisor.
MJT evaluates and selects investments for inclusion in Client portfolios only after applying its internal due
diligence process. MJT may recommend, on occasion, redistributing investment allocations to diversify the
portfolio. MJT may recommend specific positions to increase sector or asset class weightings. The Advisor may
recommend employing cash positions as a possible hedge against market movement. MJT may recommend
selling positions for reasons that include, but are not limited to, harvesting capital gains or losses, business or
sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the position[s]
in the portfolio, change in risk tolerance of the Client, generating cash to meet Client needs, or any risk deemed
unacceptable for the Client’s risk tolerance.
At no time will MJT accept or maintain custody of a Client’s funds or securities, except for the limited authority as
outlined in Item 15 – Custody. All Client assets will be managed within the designated account[s] at the
Custodian, pursuant to the terms of the advisory agreement, please see Item 12 – Brokerage Practices.
Retirement Accounts – When the Advisor provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), the Advisor is a fiduciary within the meaning of Title I of the
Employee Retirement Income Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable,
which are laws governing retirement accounts. When deemed to be in the Client’s best interest, the Advisor will
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provide investment advice to a Client regarding a distribution from an ERISA retirement account or to roll over
the assets to an IRA, or recommend a similar transaction including rollovers from one ERISA sponsored Plan to
another, one IRA to another IRA, or from one type of account to another account (e.g. commission-based
account to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a
new (or increase its current) advisory fee as a result of the transaction. No client is under any obligation to roll
over a retirement account to an account managed by the Advisor.
Schwab Institutional Intelligent Portfolios –
The Advisor may recommend an automated investment program
through which Clients are invested in a range of investment strategies MJT has constructed and manages. The
Client’s portfolio is held in a brokerage account opened by the Client at Charles Schwab & Co., Inc. (“Schwab”).
The Advisor utilizes the Institutional Intelligent Portfolios® platform, offered by Schwab Performance
Technologies, a software provider to independent investment advisors and an affiliate of Schwab, to operate the
Schwab Institutional Intelligent Portfolios. The Advisor remains the Client’s investment advisor and primary point
of contact. The Advisor is responsible for determining the appropriateness of the Schwab Institutional Intelligent
Portfolios for the Client, choosing a suitable investment strategy and portfolio for the Client’s investment needs
and goals, and managing that portfolio on an ongoing basis.
Use of Independent Managers - MJT will recommend that Clients utilize one or more unaffiliated investment
managers or investment platforms (collectively “Independent Managers”) for all or a portion of a Client’s
investment portfolio, based on the Client’s needs and objectives. In certain instances, the Client may be required
to authorize and enter into an investment
management agreement with the Independent Manager[s] that defines
the terms in which the Independent Manager[s] will provide its services. The Advisor will perform initial and
ongoing oversight and due diligence over each Independent Manager to ensure the strategy remains aligned
with Clients investment objectives and overall best interests. The Advisor will also assist the Client in the
development of the initial policy recommendations and managing the ongoing Client relationship. The Client,
prior to entering into an agreement with an Independent Manager, will be provided with the Independent
Manager's Form ADV Part 2A - Disclosure Brochure (or a brochure that makes the appropriate disclosures).
Financial Planning Services – As part of the wealth management services, MJT will typically provide a variety of
financial planning and consulting services to Clients. MJT also makes available to Clients financial planning and
consulting services as a stand-alone service pursuant to a written financial planning agreement. Services are
offered in several areas of a Client’s financial situation, depending on their goal and objectives.
Generally, such financial planning services involve preparing a formal financial plan or rendering a specific
financial consultation based on the Client’s financial goals and objectives. This planning or consulting may
encompass one or more areas of need, including but not limited to, investment planning, retirement planning,
personal savings, education savings, insurance needs and other areas of a Client’s financial situation.
A financial plan developed for, or financial consultation rendered to the Client will usually include general
recommendations for a course of activity or specific actions to be taken by the Client. For example,
recommendations may be made that the Client start or revise their investment programs, commence or alter
retirement savings, establish education savings and/or charitable giving programs.
MJT may also refer Clients to an accountant, attorney or other specialists, as appropriate for their unique
situation. For certain financial planning engagements, the Advisor will provide a written summary of the Client’s
financial situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may
not provide a written summary. Plans or consultations are typically completed within six (6) months of contract
date, assuming all information and documents requested are provided promptly.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for investment management services or to increase the level of investment assets with the Advisor would pose a
conflict, as it would increase the amount of advisory fees paid to the Advisor. Clients are not obligated to
implement any recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If
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the Client elects to act on any of the recommendations made by the Advisor, the Client is under no obligation to
implement the transaction through the Advisor.
Retirement Plan Advisory Services
MJT provides 3(21) retirement plan advisory services on behalf of the retirement plans (each a “Plan”) and the
company (the “Plan Sponsor”). The Advisor’s retirement plan advisory services are designed to assist the Plan
Sponsor in meeting its fiduciary obligations to the Plan and its Plan Participants. Each engagement is customized
to the needs of the Plan and Plan Sponsor. Services generally include:
• Identifying investment objectives and restrictions
• Providing guidance on various asset classes and investment options
• Recommending money managers to manage plan assets in ways designed to achieve objectives
• Monitoring performance of money managers and investment options and making recommendations for
changes
• Recommending other service providers, such as custodians, administrators and broker-dealers
• Creating a written pension consulting plan
• Vendor Analysis
• Plan Participant Enrollment and Education Tracking
These services are provided by MJT serving in the capacity as a fiduciary under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). In accordance with ERISA Section 408(b)(2), the Plan
Sponsor is provided with a written description of MJT’s fiduciary status, the specific services to be rendered and
all direct and indirect compensation the Advisor reasonably expects under the engagement.
Trust Services
MJT offers Trust Management services for Trusts for which an Advisory Person of the Advisor serves as Trustee.
The services provided are as follows:
• Administration of all trust assets per trust documents.
• Managing distributions in accordance with trust provisions.
• Ensuring that the trust assets are held in safekeeping.
• Records maintenance and full annual accounting of all trust activities.
• Filing of trust tax returns.
C. Client Account Management
Prior to engaging MJT to provide investment advisory services, each Client is required to enter into one or more
agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor and
the Client. These services may include:
• Establishing an Investment Strategy – MJT, in connection with the Client, will develop a strategy that
seeks to achieve the Client’s goals and objectives.
• Asset Allocation – MJT will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation and tolerance for risk for each Client.
• Portfolio Construction – MJT will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
• Investment Management and Supervision – MJT will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
MJT does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by MJT.
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E. Assets Under Management
As of December 31, 2022, MJT manages $112,752,406 in Client assets, $108,711,556 of which are managed on
a discretionary basis and $4,040,850 on a non-discretionary basis. Clients may request more current information
at any time by contacting the Advisor.