Anchor Financial Group is a Brea, California-based financial advisor firm. It has just over $52 million in assets under management (AUM) and nearly 300 individual clients. The firm provides investment management, financial planning and insurance-related services.
Anchor Financial Group is considered to be fee-based firm, which is different from a fee-only firm and means that it may earn third-party commissions in addition its standard advisory fees. Specifically, Anchor Financial earns commissions from the sale of insurance products to clients, which may present a conflict of interest as it's incentivized to recommend such products.
Anchor Financial Group Background
Anchor Financial was established in 1988. The firm's small team includes just two financial advisors: firm president Steve Kiernan and vice president Joe Richard. Kiernan is a certified financial planner (CFP) and has over 30 years of investment experience, while Richard has spent 20 years in the financial management industry. Kiernan is the original founder of the firm, and remains its principal owner to this day.
What Types of Clients Does Anchor Financial Group Accept?
Anchor Financial Group has services available for individuals (both with and without a high-net-worth), pension plans, profit-sharing plans, trusts, estates and small businesses. However, the firm's client base consists entirely of individuals, the vast majority of which are below the high-net-worth cutoff.
Anchor Financial Group Minimum Account Size
Anchor Financial has a minimum account size of $250,000, but maintains full discretion to waive or reduce this minimum.
Services Offered by Anchor Financial Group
Anchor Financial primarily provides investment management services, but also has some financial planning and insurance offerings. These include:
- Investment management
- Investment supervision
- Risk analysis
- Customized investment selection
- Asset allocation planning
- Regular monitoring and client-advisor communication
- Financial planning
- Insurance analysis and review for:
- Life insurance
- Medical insurance
- Long-term care insurance
- Disability insurance
- Medicare supplemental insurance
Anchor Financial Group Investment Philosophy
When creating client portfolios, Anchor Financial Group leans heavily upon strategic asset allocation planning to ensure each portfolio is personalized according to the client's needs. This involves going over your risk tolerance, time horizon, liquidity needs and overall investment objectives. Then, the firm will globally diversify your assets in an effort to mitigate risk as much as possible.
Anchor Financial consistently invests client assets in passively managed index funds, exchange-traded funds (ETFs), actively managed funds, real estate investment trusts (REITs), interval funds, commodity funds and more. While the firm primarily uses fundamental analysis in its security selection process, advisors will occasionally implement other methods of analysis as well. To gather the information used in this process, the firm relies on financial publications, Morningstar mutual fund information and financial modeling software.
Fees Under Anchor Financial Group
Fees at Anchor Financial Group can come in the form of fixed fees, hourly fees or annual fees based on a percentage of your overall AUM. Furthermore, fee rates depend on the number of assets you invest with the firm. Investment management fees are charged according to the following schedule:
|Investment Management Fees|
|AUM||Annual Fee Rate|
|Up to $500K||1.25%|
|$500K - $5MM||1.00%|
Financial plans come with a fixed fee that can range from $1,000 to $3,500. Certain financial planning services are charged at an hourly rate of $250, though. All fees are negotiable and are calculated and charged on a quarterly basis.
What to Watch Out For
Anchor Financial Group is a fee-based firm, so its advisors receive commissions from selling certain insurance products to clients. This creates the potential for a conflict of interest, but the firm is still bound by fiduciary duty. This means that no matter the situation, it's still legally obligated to act with your best interest in mind.
Another thing to keep in mind is that Anchor Financial Group is only registered to operate in California and Texas. While the firm's California registration is unimpeded, its Texas registration has some extra supervision requirements attached to it.
Opening an Account With Anchor Financial Group
If you're looking to open an account with Anchor Financial, there are several options on its website. You can setup an in-office meeting, an online meeting or email an advisor at email@example.com. You can also call the firm at (800) 934-8377.
Anchor Financial Group is located at 500 South Kraemer Boulevard in Brea, California in Suite 255. The firm is only licensed to operate in California and Texas, though the firm is registered with the latter on a restricted basis.
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