Independence – Our firm is not tied to a famous Wall Street name. This was a good thing in 2008 because many of those famous names are now out of business. Our partnership structure allows us to be on the same side of the table as our clients. Many investment firms have hidden agendas, which are created by upper management and enforced upon all of the advisers of that firm. As a result the clients often end up with the same products regardless of their needs and objectives.
At Johnson & Gilliss, we are the management and the advisers. We spend the time up front to figure out where our clients are going and then we find the most efficient way to get there.
- Endowment Style Investing – Most investments are managed based on “Modern Portfolio Theory.” The problem with MPT is that it was created in the 1950s, so it is not so modern any more. Many large endowments and pension funds realized this phenomenon many years ago and began investing in assets that are not dependent on the stock market going up in value. We have built our process around the same approach.
- Service – Our business model is based around service. The economy and financial markets are not static and neither are our client’s lives and portfolios. Regular meetings allow us to stay on top of a changing world.
- Experts – We have specialists in our firm in the following areas:
- Retirement Plan Design
- Estate Planning
- Conservation Easements
- Business Transition
- Portfolio analysis and design
- Compensation Structure - We align our income with our client’s investments. Generally we are paid in three ways:
- We are paid a Consulting Fee for work involved preparing an objective financial plan.
- Asset Management Fees are based on a percentage of assets. The more we protect principal and grow assets, the more we are compensated.
- Our business has been built on a referral basis. Most people in the financial services business spend 90% of their time trying to find new clients. We spend the vast majority of our time working for our existing clients. The goodwill of our clients allows us to continue this business model.