Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Portfolio Management for Businesses or Institutional Clients
- Pension Consulting Services
- Selection of Others Advisors
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Pension & Profit Sharing Plans
- Charitable Organizations
- State & Municipal Govt Entities
- Corporations or Other Businesses Not Listed Above
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Hourly
- Fixed Fees (Other than subscription)
- Other
Focus Financial Overview
Focus Financial is a registered investment advisory firm that has been in business since 2010. The company is primarily based in Minneapolis, MN, and specializes in providing fee-only financial planning services to its clients. As a fee-only firm, Focus Financial operates without a commission-based compensation structure, which means that clients can trust the company to act in their best interest. One of the key services offered by Focus Financial is portfolio management. This includes management for individuals, small businesses, and institutional clients. This is a critical service since it helps clients to achieve their investment objectives, while also providing them with the peace of mind that comes from knowing that their assets are in good hands. Another service offered by the firm is pension consulting. This is particularly important for businesses seeking to manage retirement plans for their employees. Through regular consultations, the company can help businesses stay compliant with government regulations, as well as provide education to plan participants. Lastly, Focus Financial offers selection services for other advisors. By using their years of experience and expertise, the firm is able to identify and recommend advisors that would be most suitable for a client's specific needs. This can be particularly helpful for clients who are seeking personalized financial advice but do not have the expertise to evaluate potential advisors on their own.
Focus Financial, a leading financial advisory firm in the industry, serves a diverse clientele base with varying financial needs and goals. From individuals seeking basic investment advice to high net worth individuals looking for sophisticated financial strategies, to pension or profit sharing plans seeking sound retirement planning, to charitable organizations seeking guidance on managing their endowment funds, to state or municipal government entities seeking financial management services, and other corporate entities, Focus Financial caters to a wide range of clients. With a focus on providing customized financial solutions that are transparent and aligned with clients' objectives, Focus Financial offers a range of fee structures depending on the service provided. Clients can choose from a percentage of assets under management (AUM) fee, hourly fee for financial consulting services, fixed fees for specific services, or other types of fees that have been tailored to suit a client's unique financial needs. As one of their core values, Focus Financial takes pride in providing clarity on all fees charged, ensuring clients understand what they are paying for and the expected value they will receive.
Typical Clients, Fee Structures & Investment Minimum
Unfortunately, the Part 2 Brochure of Focus Financial does not mention anything about investment minimums. Therefore, it is unclear what the firm's investment minimum requirement is. Investors interested in working with this firm may have to contact them directly or refer to other sources to determine their investment minimum.
How This Office Can Help Hennepin County, MN Residents
Focus Financial provides clients in Hennepin County, MN with a range of financial assistance. Their team of financial experts understands that everyone's financial situation is unique and therefore requires customized solutions. They offer everything from financial planning and investment guidance to debt management and retirement planning. Hennepin County residents face a variety of financial challenges. With a population of over 1.2 million, many people struggle with high housing costs, student loan debt, and credit card debt. Additionally, the region has a large number of small business owners who need assistance navigating the complexities of managing their finances. Focus Financial's services help individuals and small business owners to achieve financial stability and security. They work with clients to develop a personalized plan that takes into account their unique needs and goals, whether that's creating a budget, planning for retirement, or starting a business.
Services Offered by Focus Financial
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Focus Financial most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Unavailable
Subscription (Newsletter or Periodical)
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Focus Financial is registered to service clients in the following states:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Wisconsin
Disciplinary History
Focus Financial does not have any disclosures. Please visit it's Form ADV for more details.