Description of the Advisory Firm
Ross\Johnson & Associates, LLC (hereinafter “RJA”) is a Limited Liability
Company organized in the State of Minnesota. The firm was formed in June
1998, and the principal owners are Anthony Robert Johnson and Patrick Terrence
Ross.
RJA provides personalized confidential financial planning and investment
management to individuals, trusts, estates, 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.
Investment advice is provided, with the client making the final decision on
investment selection. RJA does not act as a custodian of client assets. The client
always maintains asset control. Unless such authority is withheld by client, RJA
will supervise and direct the investments of the account subject to such
limitations as client may impose by notice in writing. RJA, as agent and attorney-
in-fact with respect to the account, may direct custodian to buy, sell, exchange,
convert, and otherwise trade in any stocks, bonds and other securities (Including
money market, limited partnerships, mutual funds and list stock options and
RSU’s). RJA will supervise and direct the investments of the account held at
custodian on a discretionary basis, unless client specifically requests otherwise.
An overview of each client’s initial situation is provided to the client, often
through the use of Present Plan Model. Periodic reviews are also communicated
to provide reminders of the specific courses of action that need to be taken.
Additional reviews may occur but are not necessarily communicated to the client
unless immediate changes are recommended.
The initial introduction 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 Owners
Anthony R Johnson is a 50% Owner.
Patrick T Ross is a 50% Owner.
Types of Advisory Services
Portfolio Management Services
RJA offers ongoing asset management services based on the individual goals,
objectives, time horizon, and risk tolerance of each client. Client establishes an
investment advisory account(s) and appoints RJA as the advisor to supervise and
develop an asset allocation strategy using an appointed custodian to implement
said strategy in accordance with the clients stated objectives. RJA creates an
Investment Policy Statement for each client, which outlines the client’s current
situation (income, tax levels, and risk tolerance levels) and then constructs a plan
to aid in the selection of a portfolio that matches each client's specific situation.
Portfolio management services include, but are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
RJA evaluates the current investments of each client with respect to their risk
tolerance levels and time horizon. Risk tolerance levels are documented in the
Investment Policy Statement, which is given to each client.
RJA uses custodial services of SEI Trust, TD Ameritrade Institutional, Fidelity,
and Ameritas. SEI is a global provider of asset management, investment
processing, and investment operations solutions for personal wealth
management. SEI provides investment advisors with comprehensive wealth
management services through outsourced investment management, back office,
and administrative functions. TD Ameritrade Institutional, Fidelity and Ameritas
are providers of brokerage and custody services to investment advisors and their
clients. Given each client situation is unique, a determination of which custodian
to appoint is determined after an evaluation of all relevant facts and
circumstances.
On more than an occasional basis, RJA furnishes advice to clients on matters not
involving securities, such as financial planning matters, taxation issues, and trust
services that often include estate planning.
Services Limited to Specific Types of Investments
RJA generally limits its investment advice to mutual funds, fixed income
securities, insurance products (Life, Disability and Single premium income
annuities), equities, ETFs (including ETFs in the gold and precious metal sectors)
and non-U.S. securities. RJA may use other securities as well to help diversify a
portfolio when applicable.
Assets Under Management
RJA has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$145,391,345.00 $5,103,663.00 December 2023
Client Tailored Relationships
RJA will tailor a program for each individual client. The goals and objectives are
documented in our client relationship management system.
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 Agreement
Financial Planning Services
RJA shall provide for client the services identified on the statement of work (see
below), or in any statement of work subsequently entered into between the
parties from time to time in accordance with the requirements set forth on such
statement of work. RJA has made and will make no guarantees or assurances as
to the outcome of any engagement or to the extent of time and effort that will be
involved in connection therewith, and specifically disclaims any warranties client
may be entitled to as a consumer. It is understood and agreed that during the
course of the engagement, client may elect not to implement specific
recommendations outlined and/or recommended by RJA. RJA may appoint or
otherwise designate suitable agents and representatives to fulfill its requirements
under this agreement and the supervision and compensation of such individuals
shall at its sole and direct expense, responsibility and risk.
Statement of Work
Freedom of life style requires clarity, focus and a unique perspective. At RJA we
partner with our clients to maintain lasting financial independence for more
enjoyment today and confidence about tomorrow. Our approach allows clients to
capture a wealth of opportunities through multi-faceted personal and business
planning solutions.
Introduction
Maximize your personal and financial vision. During the first step of our process,
we’ll meet to discuss and how the financial industry interacts with individuals
and the rules in which they play and give a new paradigm to constantly view
your financial world.
CFQ – Fact Finding
The next phase is to collect current financial documentation to have a complete
understanding of client(s) current financial position.
PPM
The information provided will be used to build the client (s) personal Protection,
Savings and Growth Model (PS&G) verifying client(s) financial present position.
The goal is to make sure that the client(s) financial
position in each of the three
areas is optimally positioned, coordinated, integrated and in line with the
client(s) core values, habits and risk tolerance into a comprehensive strategy.
Strategies
In step 4, we actively engaged in the implementation of your personal and
financial vision. Having identified opportunities or problems based on the model
that was built with client(s) provided documentation, you will decided which
actions you want to make in seeking to improve your financial position.
Implementation
By simultaneously increasing the efficient and effective use of client(s) money,
implementing any desired actions items, and participating in periodic reviews
and updates to ensure that plans are growing with you as your wants and
objectives evolve, we seek to help create greater financial opportunity and peace
of mind.
Investment Management Agreement
Investment Management Services
Client hereby establishes an investment advisory account(s) and appoints RJA as
the advisor to supervise and develop an asset allocation strategy using an
appointed custodian to implement said strategy in accordance with the client’s
stated objectives, time horizon, risk tolerance and financial goals. At a minimum
client will receive a quarterly account statement from the custodian showing the
account activity as well as the positions held in the account at quarter end. The
client may also receive quarterly a written statement of investments of the
account from the custodian showing portfolio values including performance
results for the quarter.
Wrap Fee Program
A wrap fee program is an investment program where the investor pays one
stated fee that includes management fees, transaction costs, and certain other
administrative fees. RJA does not participate in wrap fee programs.
Asset Management
Assets are invested primarily with third party money management firms, no-
load or low-load mutual funds and exchanged-traded funds, usually through
custodians or fund companies. Custodians and 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.
Ross\Johnson & Associates 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, US
government securities.
Initial public offerings (IPO’s) are not available through Ross\Johnson and
Associates.
Unified Managed Account Program
We offer discretionary investment management services in a managed account
program through an Overlay Manager (the “UMA Program”). This UMA
program may consist of using model portfolio advisors, model portfolio’s or
other investment options such as mutual funds and/or exchange traded funds
(“ETFs”) to represent different investment strategies for managing your account.
Each of these investment strategies is designed to meet a specific goal.
Prior to investing in the UMA Program, you will execute a discretionary
investment management agreement with us setting forth the terms and
conditions of our management services the client selects. The client will grant us
limited discretionary authority to manage the client account through selection of
an overlay manager (“Overlay Manager”), third party strategist (“Strategist”)
and/or third party mangers (“Managers”; collectively, “Third Party Service
Providers”). In addition, the client will authorize the custodian to follow our
instructions as well as instructions given by Overlay Manager to effect
transactions, deliver securities, deduct fees and take other actions with respect to
the client account. The client will not have a direct contractual relationship with
the Overlay Manager or any Third-Party Service Provider.
The timing of trades in the client’s account will primarily depend upon the
model or changes in the model, and, generally will not take into consideration
how long a client may have held the position indicated by the model.
We will retain the right to replace any strategist or manager on a discretionary
basis. Depending on the service a client has selected, we will separately provide
the client with the firm brochure (Part 2 of Form ADV) for the applicable Third-
Party Service Provider(s) which includes information about their services, model
portfolios, and investment strategies at or before the execution of our
discretionary investment management agreement.
Tax Overlay Management Services
Tax overlay management services are available as an option for accounts
utilizing the UMA Program through the Overlay Manager. If you elect tax
overlay management services, the portion of your fee paid as the
management fee on your account will increase. The Overlay Manager will
develop a tax strategy for your account based on the information and
instructions provided by us on your behalf. Tax overlay management services
in an investment account offer benefits and limitations, as described below.
The tax strategy developed for you by the Overlay Manager is provided solely
in connection with your account and the Overlay Manager does not provide
general tax planning services. If you do elect the tax overlay management
services option, please consider the following:
• The Tax Overlay Manager will implement tax overlay management services
based on the information and instructions provided for your account(s).
• The Tax Overlay Manager does not provide general tax advice, tax return
preparation or tax planning services.
• The Tax Overlay Manager will seek to reduce the overall tax burden of the
account while seeking to maintain the risk and return characteristics of the
model portfolios received from Strategists and/or Managers.
• When providing tax overlay management services to the account, short-
term gains are avoided where possible, but long-term gains are not limited
unless you have requested a mandate to limit realized long-term gains.
The Overlay Manager will provide tax overlay management services with the
assumption that the Overlay Manager will continue to provide services to the
account for an entire tax year. The termination or removal of the overlay
management services before the completion of an entire tax year may result
in adverse tax consequences, including without limitation realization of short-
term capital gains. Regardless of your account size or any other factors, we
strongly recommend that you continuously consult with a tax professional
prior to and throughout the investing of your assets.
The Tax Overlay Management Services are offered at an additional cost to
you.
Termination of Agreement
A client may terminate any of the aforementioned agreements at any time by
notifying RJA in writing and paying the rate for the time spent on the investment
advisory engagement prior to notification of termination. RJA may terminate any
of the aforementioned agreements at any time by notifying the client in writing.