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Hornor, Townsend & Kent Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Hornor, Townsend & Kent is both a registered investment advisor and a broker-dealer. Commonly called HTK, the firm serves as the home office to lots of independent advisors, according to its website. So as a retail client, you’d likely not have communications directly with the firm, except for an occasional notice required by law or information verification request. Instead, your communications would be with your investment advisor representative (IAR) and the holder (or custodian) of your assets.

This firm is based in Horsham, Pennsylvania. Most assets are managed on a non-discretionary basis. IARs at the firm are also registered broker-dealer representatives and licensed insurance agents.

Hornor, Townsend & Kent Background

HTK has been registered with the Securities and Exchange Commission (SEC) as an investment advisor since 1999. It is also registered with the Financial Industry Regulatory Authority (FINRA) and a member of the Securities Investors Protection Corporation (SIPC). 

The firm is is a wholly owned subsidiary of The Penn Mutual Life Insurance Company. Being part of such a large company, HTK has many affiliations. They include: HTK Insurance Agency, Inc.;  Penn Mutual Asset Management, LLC; Penn Series Fund, Inc.; The Penn Insurance & Annuity Company; PIA Reinsurance Company of Delaware; Advisory Resource Group, LLC; Janney Capital Management LLC; Janney Montgomery Scott LLC; Longevity Insurance Company; Pillar Wealth Advisors, LLC; Vantis Life Insurance Company of New York; Vantis Life Insurance Company and Wealth Development Strategies Investment Advisory, Inc.

Hornor, Townsend & Kent Client Types and Minimum Account Sizes

As noted earlier, HTK doesn’t serve clients directly. It provides services to IARs, who in turn work with individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and other business entities. The vast majority of clients do not have a high net worth

The firm does not have a set account minimum for most services, including financial planning. Certain accounts in the wrap fee program may have minimums ranging from $10,000 to $75,000, though they may be waived.

Services Offered by Hornor, Townsend & Kent

IARs offer financial planning services that include either a full financial analysis or an analysis of a specific area. Clients are then free to implement the recommendations or not. They are also free to continue working with the IAR or not.

IARs also offer portfolio monitoring services, consulting services, wealth management services and retirement planning consulting services. They do not manage investments, but will recommend third-party money managers based on client needs and goals, under HTK’s third-party asset manager (TPAM) programs. The firm has a wrap fee program sponsored by Betterment, called HTK Smart Journey Program. 

Additionally, as a broker-dealer, HTK offers mutual funds, exchange-traded funds (ETFs), real estate investment trusts (REITS), business development companies (BDCs) and other general securities. As an insurance agent, it offers fixed indexed annuities, variable annuities and variable life insurance products.

Hornor, Townsend & Kent Investing Philosophy

IARs use various methods of analysis to determine investing strategies for clients. These strategies then inform the recommendation of a TPAM program. Generally, IARs may use technical and fundamental analyses, asset allocation strategies and investment strategies concentrated on a specific sector or industry.

Fees at Hornor, Townsend & Kent

The fee for financial planning is negotiable and can be a flat fee or on an hourly basis. If it’s on an hourly basis, the fee will generally not exceed $1,000 per hour. Consulting fees will generally not exceed $150 per month. 

The fee for portfolio monitoring is also negotiable. It’s generally based on assets under management (AUM), though the firm doesn't publish its specific fee schedule. For HTK’s wrap fee program, the HTK’s fee is up to 1.75% of AUM.

What to Watch Out For

In its most recent SEC filings, Hornor, Townsend & Kent reported six legal or disciplinary actions on its SEC record. As a result of these disclosures, the firm paid fines and submitted to censure on multiple occasions.

HTK’s many affiliations can present potential conflicts of interest. Similarly, IARs who have multiple roles (broker-dealer representatives and insurance agents) may have conflicts of interest. When receiving recommendations from your IAR, be sure to ask what they are based on and whether and how the advisor and firm may benefit from your following them. As a fiduciary, your advisor is still obligated to act in your best interest, though.

Opening an Account with Hornor, Townsend & Kent

If you're interested in opening an account with Hornor, Townsend & Kent, you can connect with the firm on LinkedIn. You can also reach out over the phone at (215) 957-7300.

All information was accurate as of the writing of this article. 

Tips for Finding the Right Financial Advisor 

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How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research