Ferguson-Johnson Wealth Management is a Registered Investment Adviser located in Potomac, Maryland.
The firm is notice filed with the states of Maryland, Virginia, Florida, Massachusetts, New Hampshire, and
Washington D.C. The firm is a subchapter S Corporation incorporated in the State of Maryland. Ferguson-
Johnson Wealth Management has been in business since 1978. As of July 1, 2014, Derek Johnson has become
the majority shareholder and Chief Compliance Officer of Ferguson-Johnson Wealth Management, Inc.
Ferguson-Johnson Wealth Management provides continuous investment management services and financial
planning services to clients. The service of investment management or financial planning may be engaged in
exclusion of the other or as a combined service.
Investment Management
The firm specializes in creating process-driven investment strategies to satisfy different risk levels. The
investment management of client accounts is based on development of a personalized Investment Policy
Statement (IPS). The IPS is developed based on a discussion and review of each client’s objectives and
performance goals. The investment advisor will mutually determine with the client what the client “needs” to
achieve their stated goals. Allocations for each portfolio are then based on the risk levels dictated by these
goals and target allocations are detailed in the IPS.
Clients may impose restrictions on investing in certain securities types or market sectors and such
restrictions are outlined in the IPS.
Financial Planning
The firm provides financial planning services to clients based on their specific needs. This may involve, but
are not limited to: a review of the client’s assets, liabilities, cash-flow, insurance, and estate documents.
Typically, the analysis and recommendation of the firm take the form of a financial plan.
A financial plan may include, but is not limited to a review and recommendations concerning: net-worth
statements, cash flow analysis, investment accounts and holdings, retirement accounts and holdings,
insurance policies, benefits of employment, and estate planning documents and plans.
The scope of any financial planning engagement is subject to change based on the nature of a client’s specific
circumstances. The client must approve any changes to the scope of the services provided before additional
work is performed when a fee increase is necessary.
Retirement Rollovers-No Obligation/Conflict of Interest: A client leaving an employer typically has four
options (and may engage in a combination of these options): 1) leave the money in his former employer’s
plan, if permitted, 2) roll over the assets to his/her new employer’s plan, if one is available and rollovers are
permitted, 3) rollover to an Individual Retirement Account (IRA), or 4) cash out the account value
(which
could, depending upon the client’s age, result in adverse tax consequences).
Ferguson-Johnson Wealth Management may recommend an investor roll over plan assets to an IRA managed
by Ferguson-Johnson Wealth Management. As a result, Ferguson-Johnson Wealth Management may earn an
asset-based fee; however, a recommendation that a client or prospective client leave their plan assets with
their old employer will result in no compensation. Ferguson-Johnson Wealth Management has an economic
incentive to encourage an investor to roll plan assets into an IRA that Ferguson-Johnson Wealth Management
will manage.
There are various factors that Ferguson-Johnson Wealth Management may consider before recommending a
rollover, including but not limited to: i) the investment options available in the plan versus the investment
options available in an IRA, ii) fees and expenses in the plan versus the fees and expenses in an IRA, iii) the
services and responsiveness of the plan’s investment professionals versus those of Ferguson-Johnson Wealth
Management , iv) required minimum distributions and age considerations, and vi) employer stock tax
consequences, if any. No client is under any obligation to roll over plan assets to an IRA managed by
Ferguson-Johnson Wealth Management.
Ferguson-Johnson Wealth Management does not participate in, or manage, any wrap fee programs or
accounts.
Most client accounts are managed on a discretionary basis, using a Trading Authorization Agreement which
each client signs and approves when the account is opened.
When we provide investment advice to you regarding your retirement plan account or individual retirement
account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act
and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we
make money creates some conflicts with your interests, so we operate under a special rule that requires us to
act in your best interest and not put our interests ahead of yours.
Under this special rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations (give prudent
advice);
• Never put our financial interests ahead of yours when making recommendations (give loyal advice);
• Avoid misleading statements about conflicts of interest, fees, and investments;
• Follow policies and procedures designed to ensure that we give advice that is in your best interest;
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
As of December 31, 2022, Ferguson-Johnson Wealth Management had a total of $214,467,361 of assets under
management on a discretionary basis and $6,595,442 on a non-discretionary basis.