FormulaFolio Investments is a large fee-based financial advisor firm that's based in Grand Rapids, Michigan and holds a top spot on SmartAsset's list of the top financial advisor firms in Grand Rapids.
Jason Wenk, the firm's founder, has received significant industry recognition in the form of multiple awards. These include the 2018 Ernst and Young Entrepreneur of the Year award in the Industry Disruption Category and the Grand Rapids Business Journal Newsmaker of the Year award in the Finance Category for 2016 and 2017. When Wenk was 20 years old, he was also one of the youngest investment researchers at Morgan Stanley.
FormulaFolio Investments Background
FormulaFolio Investments was founded in 2011 as an independent and privately held registered investment advisor (RIA). Jason Wenk is the principal owner of the firm and also serves as an advisor to the board and director of product development. Jason Crump is the firm’s other co-founder and chief executive officer (CEO).
The advisory team includes certified financial planners (CFPs), chartered retirement planning counselors (CRPCs) and chartered financial analysts (CFAs).
FormulaFolio Investments Client Types and Minimum Account Sizes
FormulaFolio Investments serves non-high-net-worth and investment companies.
FormulaFolio typically requires new clients to have at least $25,000 in investable assets before they can open an account.
Services Offered by FormulaFolio Investments
FormulaFolio Investments provides the following advisory services:
- Investment management
- Portfolio customization based on client needs
- Investment manager recommendations
- Financial planning
- Market timing services
- Educational services
FormulaFolio Investments 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, goal-based financial planning and automated portfolio management. These services are designed to work together to help clients reach their financial goals.
Advisors generally allocate client assets using tactical asset allocation strategies invested in individual equities, 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
FormulaFolio Investments primarily earns its compensation through asset-based fees, subscription fees and transaction and wrap fees from brokerage services. The investment advisory fees for the firm’s allocation programs typically range from 0.25% to 0.80% depending on the amount of assets and program used. For context, a 2018 study by RIA in a Box showed that the average investment advisory fee is about 0.95% of assets under management (AUM).
The firm's annual management fees are billed monthly in arrears based on the average daily balance of the account.
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 Awards and Recognition
The Inc. 5000 is a listing produced by Inc. Magazine that ranks private and independent U.S. companies based on each business’ percentage revenue growth over a three-year period. FormulaFolio Investments has now been recognized as part of the Inc. 5000 list for five consecutive years.
What to Watch Out For
FormulaFolio Investments does not have any disclosures on its legal and regulatory record with the U.S. Securities and Exchange Commission (SEC).
As a fee-based firm, certain advisors here can receive commissions for selling insurance products to clients. While this presents a potential conflict of interest, the firm's fiduciary duty requires it to act in clients' best interest at all times.
Opening an Account With FormulaFolio Investments
If you’re interested in opening an account, you can visit either of FormulaFolio Investments’ 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.
All information is accurate as of the writing of this article.
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