Background
• Company started in July 1988
• Formed to provide independent and objective advice
• Paul G. Anthes is the founder and principal owner
•
Loran J. Filson is also a principal owner
•
Financial Advisory Corporation (FAC) is a SEC-registered
adviser. Registration with the SEC does not imply any
level of skill or training.
Services Offered
We offer both investment management and financial planning services for
our clients. We believe that the decisions made in the area of financial
planning often impact the decisions made with investments. That is why
our normal client services include both areas, which we refer to as Wealth
Management Services. Listed below are some highlights of both of these
areas.
Investments
• Determination of proper risk profile
• Once your risk tolerance level is understood, a portfolio is
created using the process of asset allocation
• Portfolio is reviewed on at least a quarterly basis
• Periodic rebalancing
Calculated rate of return for the entire portfolio
• Education in basic investment concepts and strategies
Quarterly portfolio reports
• Recommendation of portfolio changes as conditions
warrant
Financial Planning
• Gathering of financial data
• Coordinating data in a written format to be used as a guide
to pursue stated goals and objectives
•
This written document could include various modules such as:
o Statement of Financial Position
o Goals and Objectives
o Retirement Planning
o Cash Flow System
o Income Tax Summary
o Financial Projections
o Estate Plan Information
o Education Funding
o Savings Projections
o Risk Management and Insurance Summary
o Other financial matters, specific to the client
Services for Company Retirement Plans
• We will provide investment advice as a fiduciary as defined in
ERISA Section 3(21) of the Code, meaning we share the
liability for making investment decisions with the plan trustees.
Services include assisting trustees in:
o Developing investment objectives and an Investment
Policy Statement
o Selection of available investment choices for
participant directed plans
o Recommending investment alternatives to allow the
Plan’s participants to choose among a broad range of
investments that will allow diversification within and
among alternatives (for participant directed plans)
o Evaluating the investment results and analysis of
the Plan and its investment portfolio
• Other retirement plan investment services:
o Portfolio is reviewed on at least a quarterly basis
o Periodic rebalancing
o Calculated rate of return for the entire portfolio
o Education in basic investment concepts and
strategies
o Quarterly portfolio reports
o Recommendation of portfolio changes as
conditions warrant
Services for Non-Profits, and Endowment Funds
• Services include assisting trustees in:
o Developing investment objectives and an
Investment Policy Statement
o Determination of proper risk profile
o Once your risk tolerance level is understood, a portfolio
is created using the process of asset allocation
o Portfolio is reviewed on at least a quarterly basis
o Periodic rebalancing
o Calculated rate of return for the entire portfolio
o Education in basic investment concepts and
strategies
o Quarterly portfolio reports
o Recommendation of portfolio changes as
conditions warrant
Schwab Institutional Intelligent Portfolios
For a few and limited number of clients, if appropriate, we offer an
automated investment program (the “Program”) through which
clients are invested in a range of investment strategies we have
constructed and manage, each consisting of a portfolio of
exchange traded funds (“ETFs”) and a cash allocation.
In these limited situations, a client’s portfolio is held in a brokerage
account opened by the client at Charles Schwab & Co., Inc.
(“Schwab”). We use the Institutional Intelligent Portfolios® platform
(“Platform”), offered by Schwab Performance Technologies (“SPT”),
a software provider to independent investment advisors and an
affiliate of Schwab, to operate the Program.
We are
independent of and not owned by, affiliated with, or
sponsored or supervised by SPT, Schwab, or their affiliates. We, and
not Schwab, are the client’s investment advisor and primary point of
contact with respect to the Program. We are solely responsible, and
Schwab is not responsible, for determining the appropriateness of the
Program 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.
We have contracted with SPT to provide us with the Platform, which
consists of technology and related trading and account
management services for the Program. The Platform enables us to
make the Program available to clients online and includes a system
that automates certain key parts of our investment process.
We manage the portfolio on an ongoing basis through automatic
rebalancing and tax-loss harvesting (if the client is eligible and
elects).
This portfolio is included when determining the fee for our services as described
under Item 5 Fees and Compensation. Our fees are not set or supervised by
Schwab. Clients do not pay brokerage commissions or any other fees to Schwab
as part of the Program. Schwab does receive other revenues in connection with
the Program. We do not pay SPT fees for the Platform so long as we maintain $100
million in client assets in accounts at Schwab that are not enrolled in the Program.
If we do not meet this condition, then we pay SPT an annual licensing fee of
0.10% (10 basis points) on the value of our clients’ assets in the Program. This fee
arrangement gives us an incentive to recommend or require that our clients with
accounts not enrolled in the Program be maintained with Schwab. While we
endeavor at all times to put the interest of our clients first as part of our fiduciary
duty, clients should be aware that the potential for our firm to be charged
additional fees creates a conflict of interest, which can affect the judgment of
individuals making the recommendation. To mitigate this conflict, we require all
FAC employees to always put our clients’ interests ahead of our own, and we
conduct reviews of our advisor’s recommendations to clients in accordance with
our policies and procedures.
Our Methods
Our services are usually tailored to meet your individual needs. Your goals and
objectives are unique and are considered when making investments or financial
planning decisions.
Most clients grant us discretionary power with their accounts. Having this
discretionary authority allows us to provide service in managing your investments
and applying the investment strategy on an ongoing basis. You are always in full
control and may impose restrictions on investing in certain types of securities if
you choose.
In the area of investments, we routinely recommend an asset allocation strategy.
However, you are not obligated to use this strategy. Asset allocation is a strategy
that uses a mix of asset classes in various proportions based on your desired level
of risk. Target amounts are established for each asset class and rebalancing
back to the targeted amounts is suggested on a periodic basis. A common
guideline would be to rebalance the portfolio if the difference between targeted
amounts and current amounts were greater than 5%.
Portfolios can be comprised of many types of securities, and usually include
mutual funds, exchange traded funds or ETFs, individual bonds, and money
market accounts. Investment strategies utilizing margin transactions and options
are rarely utilized. However, these strategies can be implemented for unique
client situations. This is most common when clients already hold investments using
these types of strategies when becoming clients of FAC. Because all types of
investments involve certain degrees of risk, they will only be implemented or
recommended when they are consistent with your investment objectives,
tolerance for risk, liquidity, and suitability.
Client Assets We Manage
As of December 31, 2022, we managed the following assets:
Discretionary Accounts: $795,719,994
Non-Discretionary Accounts: $0
Total: $795,719,994
Wealth Management Fee