This Disclosure document is being offered to you by Jacobsen Capital Management, LLC
(“Jacobsen Capital” or “Firm”) about the investment advisory services we provide. It
discloses information about the services we provide and how those services are made
available to you, the client.
Jacobsen Capital Management, LLC was registered as an Investment Advisor with the SEC
on April 7, 2004. The Principal Owner is Eric Michael Jacobsen, and the Chief Compliance
Officer is Layna Morrison.
We are committed to helping clients build, manage, and preserve their wealth. Our Firm
provides services that help clients to achieve their stated financial goals. We will offer
initial complimentary meetings at our discretion; however, investment advisory services
are initiated only after you and Jacobsen Capital execute an Investment Management
Agreement.
INVESTMENT MANAGEMENT AND SUPERVISION SERVICES
We manage advisory accounts on a discretionary basis. For discretionary accounts, once
we have determined a profile and investment plan with a client, we will execute the day-
to-day transactions without seeking prior client consent but within the expected
investment guidelines. Account supervision is guided by the client’s written profile and
investment plan. We will accept accounts with certain trading restrictions if
circumstances warrant. We primarily allocate client assets among various equities,
Exchanged Traded Funds (“ETFs”), no-load or load-waived mutual funds, equities,
corporate bonds, municipal bonds, U.S. Government Treasuries, and cash in accordance
with their stated investment objectives. All of which are considered asset allocation
categories for the client’s investment strategy. When appropriate, we recommend
Private Fund investments to certain suitable clients.
During personal discussions with clients, we determine the client’s objectives, time
horizons, risk tolerance, and liquidity needs. As appropriate, we also review a client’s
prior investment history, as well as family composition and background. Based on client
needs, we develop a client’s personal profile and investment plan. We then create and
manage the client’s investments based on that policy and plan. It is the client’s obligation
to notify us immediately if circumstances have changed with respect to their goals. Once
we have determined the types of investments to be included in a client’s portfolio and
have allocated the assets, we provide ongoing investment review and management
services.
With our discretionary relationship, we will make changes to the portfolio as we deem
appropriate to meet client financial objectives. We trade these portfolios based on the
combination of our market views and client objectives using our investment process. We
tailor our advisory services to meet the needs of our clients and seek to ensure that your
portfolio is managed in a manner consistent with those needs and objectives. Clients
have the ability to leave standing instructions with us to refrain from investing in
particular industries or invest in limited amounts of securities.
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You are advised and are expected to understand that our past performance is not a
guarantee of future results. Certain market and economic risks exist that adversely affect
an account’s performance. This could result in capital losses in your account.
ALTERNATIVE INVESTMENTS AND FUND ADVISORY SERVICES
Alternative Investments represent asset classes outside the realm of traditional stocks,
bonds, mutual funds, ETFS and cash equivalents and include, among other things, private
equity, venture capital, and funds of private funds. Where determined suitable for a
client, Jacobsen Capital will utilize or otherwise recommend alternative investments,
which may include, but are not limited to, private funds.
FINANCIAL PLANNING
Financial planning services are offered as part of our investment advisory services.
Through the financial planning process, our team strives to engage our clients in
conversations around the family’s goals, objectives, priorities, vision, and legacy – both
for the near term as well as for future generations. With each family's unique goals and
circumstances in mind, our team will offer financial planning ideas and strategies to
address the client’s holistic financial picture, including estate, income tax, charitable,
cash flow, wealth transfer, and family legacy objectives. Our team partners with our
client’s other advisors (CPAs, Enrolled Agents, Estate Attorneys, Insurance Brokers, etc.)
to coordinate all parties' efforts toward the client’s stated goals. Such services include
various reports on specific goals and objectives or general investment and/or planning
recommendations, guidance to outside assets, and periodic updates.
Our specific services in preparing your plan may include:
§ Review and clarification of your financial goals.
§ Assessment of your overall financial position including cash flow, balance sheet,
investment strategy, risk management, and estate planning.
§ Creation of a unique plan for each goal you have, including personal and business
real estate, education, retirement or financial independence, charitable giving,
estate planning, business succession, and other personal goals.
§ Development of a goal-oriented investment plan, with input from various advisors
to our clients around tax suggestions, asset allocation, expenses, risk, and liquidity
factors for each goal. This includes IRA and qualified plans, taxable, and trust
accounts that require special attention.
§ Design of a risk management plan including risk tolerance, risk avoidance,
mitigation, and transfer, including liquidity as well as various insurance and
possible company benefits; and
§ Crafting and implementation of, in conjunction with your estate and/or corporate
attorneys as tax advisor, an estate plan to provide for you and/or your heirs in the
event of an incapacity or death.
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The firm utilizes financial planning software for your initial and ongoing financial
situation. Financial reports will be provided upon your request. The Adviser will provide
an annual review, if indicated by you and the Adviser, per the agreement. More frequent
reviews occur but are not necessarily communicated to you unless immediate changes
are recommended.
SUB-ADVISORS & THIRD-PARTY MONEY MANAGER (“TPMM”) SERVICES
Our firm utilizes the sub-advisory services of a third-party for the management of client
accounts. Jacobsen Capital utilizes sub-advisors to offer diverse and unique management
styles. The client will not engage the subadvisor directly; the client’s advisory
relationship remains with Jacobsen Capital as set forth in the client’s Investment
Advisory Agreement. Our firm will not offer advice on any specific securities or other
investments in connection with this service. Prior to utilizing sub-advisors for our clients,
our firm will provide initial due diligence on third-party money managers and ongoing
reviews of their management of client accounts. In order to assist in the selection of a
sub-advisor, our firm will gather client information pertaining to financial situation,
investment objectives, and reasonable restrictions to be imposed upon the management
of the account.
Our firm will periodically review third-party management reports provided to the client
at least annually. Our firm will contact clients from time to time in order to review their
financial situation and objectives; communicate information to third-party money
managers as warranted; and assist the client in understanding and evaluating the
services provided by the sub-advisor. Clients will be expected to notify our firm of any
changes in their financial situation, investment objectives, or account restrictions that
could affect their financial standing.
Our firm takes actions on behalf of the client to hire or fire money managers used in the
implementation of a client’s investment plan and execution of the Advisory Agreement
with our Firm. Therefore, the firm has the discretionary authority to hire or fire the
manager or to allocate assets among managers without obtaining the Client’s consent.
CONSULTING SERVICES
We also provide clients with investment advice on a more-limited basis on one or more
isolated areas of concern, such as estate planning, real estate, retirement planning, or
any other specific topic. Additionally, we provide advice on non-securities matters about
rendering estate planning, insurance, real estate, or annuity advice or any other business
advisory and consulting services for equity or debt investments in privately held
businesses. In these cases, clients will be required to select their own investment
managers, custodians, or insurance companies for the implementation of consulting
recommendations. If the Client's needs include brokerage or other financial services, we
recommend using one of several investment managers, brokers, banks, custodians,
insurance companies, or other financial professionals ("Firms"). Consulting clients must
independently evaluate these Firms before opening an account or transacting business
and have the right to effect business through any firm they choose. Clients have the right
to choose whether or not to follow the consulting advice provided.
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ADMINISTRATIVE SERVICES
Our Firm utilizes has contracted with Advyzon Technologies to utilize its technology
platforms to support data reconciliation, performance reporting, fee calculation, client
relationship maintenance, quarterly performance evaluations, and other functions
related to managing Client accounts' administrative tasks. Due to this arrangement,
Advyzon will have access to client accounts, but Advyzon will not serve as an investment
advisor to our clients or bill the accounts. Advyzon charges our firm an annual fee for
each account administered by its software. Please note that Jacobsen Capital's annual
fee to Advyzon will not increase the Client's fee. Jacobsen Capital will pay the annual fee
from the portion of the management fee retained by Jacobsen Capital. Jacobsen Capital
and Advyzon are non-affiliated companies.
PONTERA - PARTICIPANT ACCOUNT MANAGEMENT (DISCRETIONARY)
We utilize the third-party platform, Pontera, to facilitate the management of held-away
assets, such as defined contribution plan participant accounts, with discretion. The
platform allows us to avoid being considered to have custody of Client funds since we do
not have direct access to Client log-in credentials to affect trades.
We are not affiliated with the platform in any way and receive no compensation from
them for using their platform. A link will be provided to the Client, allowing them to
connect an account(s) to the platform. Once the Client account(s) is connected to the
platform, Adviser will review the current account allocations. When deemed necessary,
Adviser will rebalance the account considering the Client investment goals and risk
tolerance, and any change in allocations will consider current economic and market
trends. The goal is to improve account performance over time, minimize loss during
difficult markets, and manage internal fees that harm account performance. Client
account(s) will be reviewed at least quarterly, and allocation changes will be made as
deemed necessary.
RETIREMENT PLAN SERVICES
When providing any non-discretionary investment advisory services, we will solely be making
investment recommendations to the Sponsor, and the Sponsor retains full discretionary authority
or control over assets of the retirement plan. We agree to perform any non-discretionary
investment advisory services to the retirement plan as a fiduciary, as defined in ERISA Section
3(21)(A)(ii). We will act in good faith and with the degree of diligence, care, and skill that a prudent
person rendering similar services would exercise under similar circumstances.
When providing administrative services, we may support the Sponsor with plan governance and
committee education; vendor management and service provider selection and review;
investment education; or plan participant non-fiduciary education services. We agree to perform
any administrative services solely in a capacity that would not be considered a fiduciary under
ERISA or any other applicable law.
When offering investment models to plan sponsors, under certain circumstances, we will act as a
“fiduciary” as defined under Section 3(21) of ERISA and Section 4975I(3) of the Internal Revenue
Code of 1986, as amended (the “Code”).
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DISCLOSURE REGARDING ROLLOVER RECOMMENDATIONS
A Client or prospect leaving an employer typically has four options regarding an existing
retirement plan (and may engage in a combination of these options): (i) leave the money
in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s
plan, if one is available and rollovers are permitted, (iii) rollover to an Individual
Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending
upon the Client’s age, result in adverse tax consequences). Our Firm may recommend
an investor roll over plan assets to an IRA for which our Firm provides investment
advisory services. As a result, our Firm and its representatives may earn an asset-based
fee. In contrast, a recommendation that a Client or prospective client leave their plan
assets with their previous employer or roll over the assets to a plan sponsored by a new
employer will generally result in no compensation to our Firm. Our Firm, therefore, has
an economic incentive to encourage a Client to roll plan assets into an IRA that our Firm
will manage, which presents a conflict of interest. To mitigate the conflict of interest,
there are various factors that our Firm will 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 our Firm, (iv) protection of assets from creditors and legal
judgments, (v) required minimum distributions and age considerations, and (vi)
employer stock tax consequences, if any. All rollover recommendations are reviewed by
our Firm’s Chief Compliance Officer, who remains available to address any questions that
a Client or prospective client has regarding the oversight.
We are fiduciaries under the Investment Advisers Act of 1940, and when we provide
investment advice to you regarding your retirement plan account or individual
retirement account, we are also fiduciaries within the meaning of Title I of the Employee
Retirement Income Security Act or the Internal Revenue Code, as applicable, which are
laws governing retirement accounts. We have to act in your best interest and not put our
interests ahead of yours. At the same time, the way we make money creates some
conflicts with your interests.
WRAP FEE PROGRAM
We do not offer a Wrap Fee Program.
ASSETS
As of December 31, 2022, we manage $345,361,647 on a discretionary basis. We
currently do not have managed accounts on a non-discretionary basis.