Choosing a financial advisor is an important decision.
questions you may want to ask when making that decision.
What is your investing approach?
We believe in a dynamic, opportunistic approach toward investment management. Rather than being tied to pre-set, static portfolio constraints, our portfolios are designed to be fluid. We believe it is very difficult to consistently beat market returns by picking individual stocks. Rather, our approach focuses on using exchange-traded index funds (ETFs), mutual funds, as well as individual stocks and bonds. This gives us exposure to the specific market segments we feel have superior risk vs. reward characteristics. Our investment approach tends to be low cost, tax efficient and responsive to market conditions.
How does your firm’s investment philosophy differ from others?
Because Lokken Investment Group is independent, we can control our resources in the best interests of our clients. We answer to only you and dedicate ourselves to staying informed minute by minute. Yesterday’s investment strategies can become outdated quickly, and that's why we keep an eye out for tomorrow’s opportunities.
Our goal is to stay ahead of the curve because the investment goals of retirees, for example, differ greatly from younger investors.
What types of clients does Lokken Investment Group serve?
Our clients include retired individuals and couples, small business owners, and nonprofit organizations that need to invest and manage their money successfully. Our clients worked hard throughout their lives, in government and private-sector jobs, and invested in work-sponsored savings plans.
They now need to manage their wealth wisely to ensure a comfortable and long retirement.
How do you build portfolios?
We construct portfolios using a Core and Satellite approach. The core is built using either broad market exchange-traded funds or individual securities and is designed to be low cost and with low turnover. Typically, the core portion is 60 percent to 80 percent of the total portfolio. The balance is dedicated to satellite or opportunistic investments. These investments tend to be more short term and focused on market opportunities.
How frequently do you review my investments and account?
Daily. We monitor investments and portfolio models each day. We continuously review changes in market, industry sector and asset class conditions. If we find it appropriate to change your asset allocation model, that change will be reflected in your portfolio that day.
If any security strays from the desired result, it is sold or other risk management strategies are implemented.
Why should I trust you with my money?
We are an independent investment group. Our advice and guidance is not dictated by any Wall Street firm. We are free to use the investment solutions best suited to help you achieve your financial goals. We are experienced with almost three decades of direct professional experience in client investments. Our strategies are always timely. Market conditions change rapidly in today’s world. Yesterday’s strategies are often inappropriate for the opportunities of tomorrow. You need an advisor who can think ahead of the curve. We understand your investment concerns.
Our fee-based practice always places your interests ahead of all else. We are your advocate in the world of finance and investments. We care about our clients and understand that financial events and investment news can be confusing and intimidating. You can count on us to answer your questions and concerns with patience and use plain language. It is your money we manage and we want you to be at peace with our process.
How often will you meet with me?
We will report performance to you at least quarterly with more updates as market events dictate or upon client request. You can meet with us in person or on the phone as often as required to ensure you are comfortable with our strategies and the direction we provide to your account.
How can I check on my investments?
Lokken Investment Group provides each client with secure, online portal accessible at all times. Through your web portal you can see your investments. We update your investment data regularly to give you an up-to-date picture. Additionally, you will receive a monthly statement directly from the third party custodian where client assets are held.
What qualifications and industry designations do you have?
Lokken Investment Group is owned by Jonathan Lokken, Managing Principal. Jon began his financial services career in 1997. Before starting Lokken Investment Group, he was a vice president and branch manager for Merrill Lynch in Rehoboth Beach, Delaware. In 2004, Jon attended the University of Pennsylvania's Wharton School program for the Investment Management Consultants Association and earned the Certified Investment Management Analyst (CIMA®) designation.
This program requires continuing education on a biannual basis to remain in good standing. You can find additional information at www.imca.org. Delaware Magazine has consistently selected Jon as a Five Star Wealth Manager since 2011.
What is the difference between a fee-based and commission-based advisor?
Commission-based advisors receive their compensation from purchasing and selling securities such as stocks, bonds and ETFs. Their compensation comes from executing transactions on their clients' portfolios. Fee-based advisors charge a percentage of the assets they manage for their clients. They do not accept commissions or compensation based on product sales.
The fee is for the advice and time spent helping the client, not on the actual buying and selling of securities. Lokken Investment Group advisors are fee-based.
How do you get paid?
As a fee-based practice, we do not charge commissions nor do we offer any proprietary products. Our clients pay us an advisory fee that ranges between 1-2% of the assets we manage for them. All fees and costs are disclosed prior to becoming a client.
What is fiduciary responsibility?
The U.S. Securities and Exchange Commission explains that investment advisors have a fundamental obligation to act in the best interests of their clients and offer investment advice in their clients' best interests. At Lokken Investment Group, we take our responsibility very seriously and owe our clients a duty of undivided loyalty and utmost good faith. We do not engage in any activity in conflict with the interest of any client, and we take steps reasonably necessary to fulfill our obligations.