Horter Investment Management, LLC is a financial advisor firm based in Cincinnati, Ohio. It has more than 150 financial advisors who manage $902 million in client assets. The firm specializes in investment management and retirement planning for individuals, the vast majority of whom are below the high-net-worth cutoff.
As a fee-based firm, Horter receives revenue from client fees but also allows certain licensed advisors to receive commissions for the sale of specific insurance products or securities. That differentiates it from a fee-only firm, in which 100% of the firm’s compensation comes from client-paid fees.
Horter Investment Management Background
Horter Investment Management was founded in 1991 by CEO and president Drew Horter under the name Horter Asset Management. It changed to its current name in 2006. Drew Horter still principally owns the firm.
A total of 154 advisors work at this firm, some of whom hold advisory certifications such as chartered financial consultant (ChFC).
What Types of Clients Does Horter Investment Management Accept?
There are more than 5,600 clients at Horter Investment Management, with all but 39 being individuals without a high net worth. The firm also manages assets for a select few high-net-worth individuals, pension and profit sharing plans, insurance companies and corporations.
Horter Investment Management Minimum Account Sizes
Horter Investment Management generally doesn’t require a minimum account size, with the exception of a $50 minimum annual fee for non-discretionary accounts.
Services Offered by Horter Investment Management
Horter Investment Management specializes in ongoing investment management and advice. The firm’s advisors may provide this management directly, or they may recommend portfolio management programs offered by third-party money managers or tactical institutional mutual funds.
Additionally, the firm offers access to Nationwide Advisory Services, a no-load fee-based RIA variable annuity. Horter also provides investment management services to tax-qualified retirement plans, though this will naturally differ slightly from the firm’s standard services.
Horter rounds out its services with a spectrum of financial planning offerings. Its staff can provide services like tax and cash flow planning, investment planning, insurance planning, retirement planning, death and disability planning and estate planning.
Horter Investment Management Investment Philosophy
When a new client joins Horter Investment Management, the firm utilizes a seven-step process to create their portfolio. Here’s an overview:
- Step 1: Complete the firm’s risk tolerance test.
- Step 2: Figure out the risk exposure of your top 10 investments and review their performance.
- Step 3: Determine how much of your assets should be invested in these three classes: fixed assets, low-risk and low-volatility and moderate risk.
- Step 4: Go over the aggregate performance of low-to-moderate risk portfolio managers.
- Step 5: Manage the portfolio on a daily basis to ensure its asset allocation remains intact.
- Step 6: Meet with clients at least once per year.
- Step 7: Adjust the portfolio’s complexion as needed.
Fees Under Horter Investment Management
For its investment management services, Horter charges fees based on a percentage of clients’ assets under management (AUM). These fees may be negotiable depending on the complexity of your situation, the type of client you are and if you have a pre-existing relationship with the firm, among other factors. Fee rates will generally adhere to the fee schedule below:
|Horter Investment Management Fees|
|Program Name||Fee Percentage|
|Third-Party Money Manager Program||1.99%|
|Tactical Institutional Mutual Fund||1.99%|
|Nationwide Advisory Services||1.99%|
|Retirement Plan Asset Management||1.99%|
|Retirement Plan Asset Management (Index Funds only)||0.50%|
|Non-Discretionary Accounts||0.10% (or $50 minimum)|
Financial planning fees at the firm may come in the form of either a fixed or an hourly fee. If hourly, the fee will likely fall between $150 and $175. If fixed, the fee won’t exceed $3,500.
What to Watch Out For
Horter Investment Management is a fee-based firm. This is because certain advisors are licensed insurance agents, leaving them open to earn commissions for selling insurance products. Some Horter advisors may also be registered representatives of a securities broker-dealer, meaning they may receive commissions from overseeing certain securities transactions. Such arrangements, while common, are generally regarded as conflicts of interest, as they incentivize an advisor to recommend transactions that would earn them commissions.
Despite the above fee arrangements, Horter Investment Management abides by fiduciary duty. As a result, it is legally bound at all times to act in clients’ best interests.
Horter Investment Management has one disclosure listed on its Form ADV, which is in relation to a violation levied by the U.S. Securities and Exchange Commission (SEC). It states that in 2014, the firm distributed performance advertising materials that were provided by F-Squared Investments, an unaffiliated signal caller that released inaccurate performance information from 2001 until 2008. Without admitting or denying these allegations, Horter agreed to a censure and a $250,000 fine.
Opening an Account with Horter Investment Management
To get in touch with Horter Investment Management, you can call the firm’s headquarters at (513) 984-9933 or send an email to firstname.lastname@example.org. You can also visit the firm’s website and fill out the provided contact form with your name, phone number, email address and a message.
Where Is Horter Investment Management Located?
Horter Investment Management is located on Seven Gables Road in Cincinnati, Ohio, next to Seven Gables Park. The office is approximately a 20-minute drive from the city center.
Tips for Retirement Planning
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- Don’t forget to take Social Security payments into account when you formulate what kind of income you’ll need in retirement. If you don’t know what you’re in line to receive, check out SmartAsset’s Social Security calculator.