Hantz Financial Services, Inc. is a Southfield, Michigan-based financial advisor firm. It employs a large team of 235 financial advisor professionals and has $1.96 billion in total assets under management (AUM). The firm has a wide range of both individual and institutional clients. It provides comprehensive financial services to these clients, from financial planning to investment management to family office and business services.
As a fee-based firm, Hantz receives commissions from selling financial products like insurance or securities, along with any advisory fees that it receives directly from clients. That's different from a fee-only firm, which only earns income from clients themselves.
Hantz Financial Services Background
Hantz Financial Services opened its doors for business in 1998. It is currently owned by Hantz Group, Inc., which is, in turn, principally owned by John R. Hantz, who is also the founder of Hantz Financial Services.
In total, the firm employs hundreds of individuals and has 21 offices located in Michigan and Ohio. The firm serves as an investment advisor, but also as a broker-dealer and mortgage broker.
Hantz Financial Services Client Types and Minimum Account Sizes
Hantz Financial Services mainly provides services to individuals and their retirement accounts and trusts, as well as businesses and their pension or retirement plans. The firm's Form ADV shows that the vast majority of its clients are individuals below the high-net-worth threshold.
The firm does not have a stated minimum account size for clients.
Services Offered by Hantz Financial Services
Hantz Financial Services provides a wide range of financial planning and investment management serivces to clients. Financial planning services are separated into three distinct services:
- Horizon planning service: The most basic package, designed for individuals.
- Premier planning service: Provides more in-depth analysis, designed for business owners and high-net-worth individuals.
- Premier business planning service: Advanced financial planning service designed for businesses and business owners.
The firm also provides retirement planning services to clients. Comprehensive investment and portfolio management services are tailored to the individual needs of clients and are offered through a range of separately managed accounts (SMAs) and model portfolios. The firm also offers separately managed accounts to clients through third-party money managers. Advisors make sure to constantly keep up to date with the financial needs and goals of all of their clients so that they can readjust investment strategies as necessary.
Hantz Financial Services Investment Philosophy
Hantz Financial Services looks to tailor investment strategies to the individual needs of clients. Advisors take into account such factors as an individual or business' financial needs, investment objectives, time horizon and risk tolerance. Regardless of client preferences, most investment management services involve allocating client assets among one or more model portfolios. These portfolios are typically constructed with a range of mutual funds, exchange-traded funds (ETFs) and separately managed accounts (SMAs). Advisors can also allocate assets among alternative investments such as hedge funds, private equity funds and real estate funds.
The firm primarily uses fundamental analysis when evaluating investments for client portfolios. Advisors look at management teams, investment strategies, style drifts, past performance, reputation and financial strength in order to best make judgements on individual investments. Asset allocation also sits at the front of the firms overarching investment strategy. Advisors look to acheive long-term investment success.
Fees Under Hantz Financial Services
The annual fee for the horizon planning service is $360. The premier planning service and premier business planning service both have annual fees that start at $1,200, but it may be higher depending on the range of services requested. Retirement planning services are charged a negotiable fee, either at a flat rate, hourly or based on a percentage of the clients total AUM. Flat rates range from $100 to $30,000. Hourly rates are typically $100 to $300 per hour. Fees based on a percentage of AUM range from 0.05% to 0.75%.
Standard portfolio management services generally range from 0.20% to 1.00% of a client's total AUM. The firm will negotiate this fee based upon the type and amount of services requested by the client as well as the client's total AUM. Advisory fees for separately managed accounts are charged similarly.
What to Watch Out For
Since Hantz Financial Services is a fee-based firm, some advisors have the ability to earn commissions from the sale of certain securities and insurance products. This creates a potential conflict of interest, as advisors may have an incentive to recommend financial products because of this compensation. Regardless, the firm is still a fiduciary, meaning it's legally bound to act in clients' best interests.
There are two regulatory disclosures listed on Hantz Financial Services' Form ADV. For each of these, the firm paid monetary fines and submitted to censure. Here's a breakdown of each:
- A registered representative of Hantz Financial Services embezzled over $2 million from more than 20 clients. The representative did this by having clients write checks, which he then deposited in his own business account. The firm was unaware of this, but it was still reprimanded for failing to have adequate supervisory mechanisms in place to detect such a crime.
- The firm failed to conduct proper due diligence when it came to certain non-exchange real estate investment trusts (REITs).
Opening an Account With Hantz Financial Services
Those interested in opening an account with Hantz Financial Services can call the firm at (248) 304-2855, or visit the firm's website and submit a contact form so a representative can reach out to you.
Tips for Financial Planning
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