Firm Description
THE ELLERSON GROUP, INC., was founded in 1995.
THE ELLERSON GROUP, INC. provides personalized confidential financial
planning and investment management to individuals, pension and profit sharing plans,
trusts, estates, charitable organizations and small businesses. Advice is provided
through consultation with the client and may include: determination of financial
objectives, identification of financial problems, cash flow management, tax planning,
insurance review, investment management, education funding, retirement planning,
and estate planning.
THE ELLERSON GROUP, INC. is strictly a fee-only financial planning and
investment management firm. The firm does not sell annuities, insurance, stocks,
bonds, mutual funds, limited partnerships, or other commissioned products. The firm
is not affiliated with entities that sell financial products or securities. No
commissions in any form are accepted. No finder’s fees are accepted.
THE ELLERSON GROUP, INC. does not act as a custodian of client assets. The
client always maintains asset control. THE ELLERSON GROUP, INC. places trades
for clients under a limited power of attorney.
A written evaluation of each client's initial situation is provided to the client, often in
the form of a net worth statement. Periodic reviews are also communicated to
provide reminders of the specific courses of action that need to be taken. More
frequent reviews occur but are not necessarily communicated to the client unless
immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged
directly by the client on an as-needed basis. Conflicts of interest will be disclosed to
the client in the unlikely event they should occur.
The initial meeting, which may be by telephone, is free of charge and is considered an
exploratory interview to determine the extent to which financial planning and
investment management may be beneficial to the client.
Principal Owner
James P. Ellerson is a 100% owner.
Types of Advisory Services
THE ELLERSON GROUP, INC. provides investment supervisory services, also
known as asset management services; manages investment advisory accounts not
involving investment supervisory services and furnishes investment advice through
consultations. On more than an occasional basis, THE ELLERSON GROUP, INC.
furnishes advice to clients on matters not involving securities, such as financial
planning matters, taxation issues, and trust services that often include estate planning.
As of February 15, 2023, THE ELLERSON GROUP, INC. manages approximately
$202 million in assets for approximately 100 clients. Approximately $199 million is
managed on a discretionary basis, and $2.7 million non-discretionary.
Tailored Relationships
The goals and objectives for each client are documented in our client meetings
Clients may impose restrictions on investing in certain securities or types of
securities.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Advisory Service Agreement
Clients choose to have THE ELLERSON GROUP, INC. manage their assets to obtain
ongoing in-depth advice and life planning. All aspects of the client’s financial affairs
are reviewed, including those of their children. Realistic and measurable goals are set
and objectives to reach those goals are defined. As goals and objectives change over
time, suggestions are
made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to the
client in writing prior to the start of the relationship. An Advisory Service Agreement
can include: a financial plan, cash flow management; insurance review; investment
management (including performance reporting); education planning; retirement
planning; and estate planning, as well as the implementation of recommendations
within each area.
The annual Advisory Service Agreement fee is based on a percentage of the
investable assets according to the following schedule:
_1.50%_ on the first $500,000;
_1.20%_ on the next $500,000 (from 500,001 to 1,000,000)
_1.00%_ on the next $1,000,000 (from 1,000,001 to 2,000,000)
_0.85%_ on the next $1,000,000 (from 2,000,001 to 3,000,000)
_0.65%_ on the next $1,000,000 (from 3,000,001 to 4,000,000)
_0.50% _ on all assets above $4,000,001.
The minimum annual fee is $7,500 and is negotiable. Current client relationships
may exist where the fees are higher or lower than the fee schedule above.
Although the Advisory Service Agreement is an ongoing agreement and constant
adjustments are required, the length of service to the client is at the client’s discretion.
The client or the investment manager may terminate an Agreement by written notice
to the other party. At termination, fees will be billed on a pro rata basis for the
portion of the quarter completed. The portfolio value at the completion of the prior
full billing quarter is used as the basis for the fee computation, adjusted for the
number of days during the billing quarter prior to termination.
Hourly Planning Engagements
THE ELLERSON GROUP, INC. provides hourly planning services for clients who
need advice on a limited scope of work. The hourly rate for limited scope
engagements is $400 and is negotiable.
Asset Management
Assets are invested primarily in no-load or low-load mutual funds and exchange-
traded funds, usually through discount brokers or fund companies. Fund companies
charge each fund shareholder an investment management fee that is disclosed in the
fund prospectus. Discount brokerages may charge a transaction fee for the purchase
of some funds.
Stocks and bonds may be purchased or sold through a brokerage account when
appropriate. The brokerage firm charges a fee for stock and bond trades. THE
ELLERSON GROUP, INC. does not receive any compensation, in any form, from
fund companies.
Investments may also include: equities (stocks), warrants, corporate debt securities,
commercial paper, certificates of deposit, municipal securities, investment company
securities (mutual funds shares), U. S. government securities, options contracts,
futures contracts, and interests in partnerships.
Initial public offerings (IPOs) are not available through THE ELLERSON GROUP,
INC..
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by
notifying THE ELLERSON GROUP, INC. in writing and paying the rate for the time
spent on the investment advisory engagement prior to notification of termination. If
the client made an advance payment, THE ELLERSON GROUP, INC. will refund
any unearned portion of the advance payment.
THE ELLERSON GROUP, INC. may terminate any of the aforementioned
agreements at any time by notifying the client in writing. If the client made an
advance payment, THE ELLERSON GROUP, INC. will refund any unearned portion
of the advance payment.