Eddy Financial is a small, fee-based financial advisory firm headquartered in Santa Monica, California. The firm provides an array of advisory services to individual and institutional clients.
Eddy Financial Background
Eddy Financial was founded by Robert D. Eddy in 2017. Andrew D. Eddy, the firm’s president and the founder’s son, currently owns Eddy Financial. Both Robert and Andrew hold the certified financial planner (CFP), chartered financial consultant (ChFC) and chartered life underwriter (CLU) designations. Andrew also holds the accredited investment fiduciary (AIF) designation.
Eddy Financial Client Types and Minimum Account Sizes
Eddy Financial serves pension and profit sharing plans, individuals, high-net-worth individuals, trusts, estates, charitable organizations, corporations, limited liability companies or other businesses. While a majority of its clients are considered high-net-worth individuals, the firm doesn’t have a set account minimum.
Services Offered by Eddy Financial
Eddy Financial gives clients access to a variety of advisory services, including asset management, financial planning and consulting, retirement plan consulting for employer sponsored plans and referrals to third-party money managers.
Eddy Financial can provide financial planning and advice on a range of topics, including:
- 401(k)s and 401(k) rollovers
- SEPs and IRAs
- Deferred compensation
- Stock options
- Pension plans
- 529s and college funding
- Retirement income
- Family and businesss protection
- Multi-generational advisory
Eddy Financial Investment Philosophy
Eddy Financial believes in creating an investment plan based on market principles, informed by financial science and tailored to each client’s specific needs, according to its website. The firm says it strives to manage expenses, minimize taxes and portfolio turnover while maintaining broad diversification.
In managing client accounts, the firm uses numerous investment strategies, including asset allocation, alternative investments, debt securities, Dimensional Funds, long-term purchases, fixed income investing and exchange-traded funds (ETFs). Eddy Financial also utilizes real estate investment trusts (REITs), mutual funds and fixed annuities.
Fees Under Eddy Financial
For investment management services, Eddy Financial charges an annual asset-based management fee that generally doesn’t exceed 2% of assets under management (AUM). Annualized fees are billed quarterly on a pro-rata basis in advance and are based on the value of a client's account on the last day of the previous quarter. Fees are negotiable and are be deducted from client accounts.
For financial planning and consulting services, hourly fees won’t exceed $500 and flat rates won’t exceed $10,000. The hourly fee and flat fee rates are the same for the firm’s retirement plan consulting services, but Eddy Financial may also charge asset-based fees that won’t exceed 1.1% of AUM.
When it comes to advisor referrals, advisory fees generally won’t exceed 2% of AUM. Other fees might include transaction charges, custodial fees, mutual fund sales loads, 12b-1 fees and other securities transaction fees.
What to Watch Out For
However, as a fee-based firm, Eddy Financial advisors may also earn third-party commissions for recommending insurance products to clients. While this creates a conflict of interest, the firm has a fiduciary duty to work in the best interest of each client, so you won’t have much to be wary of when investing with Eddy Financial.
Additionally, Eddy Financial is registered only in California, Louisiana and Texas. If you live elsewhere, try SmartAsset's free matching tool to find a financial advisor in your area.
Opening an Account at Eddy Financial
Those looking to open an account at Eddy Financial can visit the firm's website and fill out a contact form or call the firm directly at (310) 451-3339.
All information was accurate as of the writing of this article.
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