LBJ Family Wealth Advisors was created from the Johnson family business. Headquartered in Austin, Texas, you will need deep pockets to work with this financial advisor firm. The minimum account size is $10 million. The company accepts high-net-worth families as clients and individuals, trusts, estates and charitable organizations.
As a fee-only firm, all of LBJ's compensation comes from the fees its clients pay. On the other hand, a fee-based firm would receive both client-paid fees and third-party commissions for things like insurance sales.
LBJ Family Wealth Advisors Background
LBJ Family Wealth Advisors was founded in Austin in 2003. The firm has been in business ever since. It has a small team of advisors on staff and a similarily small staff that helps with the day to day operations of the firm. The firm is owned by owned by Luci Baines Johnson and by Ian J. Turpin. Ian Turpin is the president of LBJ Family Wealth Advisors.
LBJ Family Wealth Advisors Client Types and Minimum Account Sizes
LBJ works with a variety of clients. The company offers services to:
- High-net-worth families and individuals
- Trusts
- Charitable organizations
- Corporations
- State or municipal entities
- Estates
Clients can engage with LBJ Advisors as long as they meet the general $10 million minimum of invested assets. The firm may, at its sole discretion, choose to lower that minimum.
Services Offered by LBJ Family Wealth Advisors
Your portfolio’s construction is derived from your initial interviews with your advisor. That means your liquidity needs, overall wealth and financial objectives are paramount in the plan for your asset allocation. Target allocations can include:
- Cash
- U.S. fixed-income securities
- Domestic and international inflation-protected fixed-income securities
- Commodities
- Real estate
- Private equity
LBJ Advisors will primarily rely on mutual funds, index funds and other money managers rather than individual securities to build your portfolio. Your advisor might also recommend that you invest in limited partnerships that invest in private equity, real estate, hard assets and other investments. These investments help reduce volatility and can help protect against inflation.
LBJ Family Wealth Advisors Investment Philosophy
Overall, LBJ Advisors seeks funds with low management fees. Tax-adjustment performance numbers are analyzed with the benchmark index, management experience and reputation of the firm. The company builds personalized portfolios that rely on client financial goal input. Therefore, every portfolio will be different in order to serve specific outcomes. The company tries to offer a progressive approach while respecting the lessons of the past.
Fees at LBJ Family Wealth Advisors
Unlike most of its competition, you won’t find a set fee schedule at LBJ Family Wealth Advisors. Instead, the company states on its Form ADV filed with the SEC that clients will generally receive a quarterly fee of up to 0.25%. The final rate you are given will be based on a percentage of your assets under management. Most clients at the firm have their fees deducted directly from their account's balance. However, you can choose to be billed separately.
Management fees are not the only charges you'll incur at LBJ. Clients are also responsible to cover brokerage commissions and mutual fund, exchange-traded fund (ETF) and money manager fees. Limited partnerships managed by the firm will incur a charged negoitated flat fee.
What to Watch Out For
LBJ Family Wealth Advisors has no legal or regulatory disclosures on its SEC-filed Form ADV.
Opening an Account With LBJ Family Wealth Advisors
Initiate contact with LBJ Family Wealth Advisors by calling over the phone or filling out a contact form on the company’s website.
After making an appointment, the next step is usually to get to know your advisor. He or she will gather your financial situation through an in-depth series of interviews. You’ll review your current status as well as your financial goals and future objectives.
All information is accurate as of the writing of this article.
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