Headquartered in Grand Rapids, Michigan, FormulaFolio Investments, LLC is a fee-only firm with more than $3.2 million in assets under management (AUM). Non-high-net-worth individuals make up the majority of its client base, which totals to more than 25,300 clients. The firm has about 17 advisors.
FormulaFolio Investments, LLC Background
FormulaFolio was founded in 2011 as an independent and privately held registered investment advisor (RIA). Jason Wenk is a principal owner of the firm and also serves as co-founder and chief investment strategist. Jason Crump is the firm’s co-founder and chief executive officer (CEO).
FormulaFolio Investments, LLC Client Types and Minimum Account Sizes
FormulaFolio serves non-high-net-worth and high-net-worth individuals, pension and profit sharing plans, estates, trusts, charitable organizations, corporations and business entities. When it comes to minimum account sizes, the firm typically requires its clients to have at least $25,000.
Services Offered by FormulaFolio Investments, LLC
The firm provides the following advisory services:
- Portfolio management
- Financial planning
- Selection of other advisors
- Market timing services
- Educational services
FormulaFolio Investments, LLC Investment Philosophy
FormulaFolio describes its investment approach as one that strives to equip investors with smart portfolios that remove waste and keep costs low. The firm also touts on its website that it works to deliver long-term-centered, goal-based financial planning and automated portfolio management.
Advisors generally allocate client assets using tactical asset allocation strategies invested in individual equity securities, exchange-traded funds (ETFs) and various mutual funds. FormulaFolio employs a range of other investment strategies, including long- and short-term purchases, trading, short sales and option purchases and writing.
Fees Under FormulaFolio Investments, LLC
The firm primarily earns its compensation through asset-based fees, subscription fees and transaction fees and wrap fees from brokerage and custodial services. The investment advisory fees for the firm’s allocation programs typically range from 0.10% to 0.90% depending on the amount of assets and program used. The annual management fees are billed monthly in arrears.
For non-discretionary and non-managed accounts, the firm charges an annual fee of $50 for administrative services. FormulaFolio also charges an administrative fee of $50 for managed accounts.
The firm also acts as a sub-advisor to certain accounts. For these services, FormulaFolio receives an asset-based fee of 0.25% to 0.80% of AUM.
FormulaFolio Investments, LLC Awards and Recognition
The Inc. 5000 is a listing produced by Inc. Magazine that ranks private and independent U.S.-based firms based on each firm’s percentage revenue growth over a three-year period. FormulaFolio has now been recognized as part of the Inc. 5000 for five consecutive years.
What to Watch Out For
There isn’t much to be concerned about when it comes to FormulaFolio. The firm’s fee-only fee structure doesn’t present conflicts of interest, and its minimum account size requirement isn’t particularly large compared to other investment firms.
This firm doesn’t have any disclosures.
Opening an Account With FormulaFolio Investments, LLC
If you’re interested in opening an account, you can visit either of the firm’s offices in Grand Rapids or Costa Mesa, California. You can also set up an appointment with an advisor by calling the firm’s headquarters at (888)562-8880.
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All information was accurate as of the writing of this article.