John Hancock Personal Financial Services, LLC (JHPFS) is a Boston-based financial advisory firm. Many of the firm's services are either automated and/or offered through investment advisor representatives (IARs). JHPFS has a number of advisory offerings in relation to investing, financial planning, retirement planning and more.
JHPFS is a fee-based firm, due to the fact that some of its advisors may receive commissions for selling certain insurance products to clients. This is a distinctly different model than that of a fee-only firm, which only receives advisory fees directly from clients.
John Hancock Personal Financial Services Background
John Hancock Financial is an insurance company founded in the 19th Century. However, the John Hancock Personal Financial Services branch is relatively young, having come into existence in 2014. As with the rest of John Hancock Financial, John Hancock Personal Financial Services is ultimately owned by Manulife Financial Corporation, a Canadian life insurance company.
It's important to note that JHPFS relies on a network of phone-based investment advisor representatives (IARs) who communicate with clients over the phone or via email. As a result, you may want to look elsewhere if you're only interested in working with an advisor in person.
John Hancock Personal Financial Services Client Types and Minimum Account Sizes
JHPFS mostly works with individual clients below the high-net-worth threshold. However, a small percentage of its client base comprises individuals with a high net worth. JHPFS also has services available for trusts, estates, non-profits, partnerships and various types of businesses.
The firm's advice and financial planning services do not carry a minimum investment requirement. The firm's wrap-fee program, MyPortfolio, has a minimum of $10,000 while its managed IRA offering requires a $5,000 minimum. The firm may sometimes make exceptions to these minimums.
Services Offered by John Hancock Personal Financial Services
John Hancock Personal Financial Services offers a range of financial planning and investment management services to its clients. While MyPortfolio is geared towards managed brokerage accounts and individual retirement accounts (IRAs), the JHPFS advice program focuses on comprehensive financial plans, which may involve:
- Asset allocation planning
- Estate plan review
- Retirement planning
- Wealth and cash accumulation planning
- Insurance planning
- College planning
MyPortfolio is designed to help clients grow their assets in ways that work with their overall financial needs and goals. The firm may invest assets using a variety of different strategies and model portfolios. In some cases, third-party managers may be used as well.
John Hancock Personal Financial Services Investment Philosophy
Advisors at JHPFS begin each client relationship by gathering information about their individual financial situation and long- and short-term objectives. Additionally, the firm will review with the client their risk tolerance, time horizon, investment preferences, liquidity needs and more.
Based on the factors above, advisors typically use proprietary computer software to develop an appropriate investment strategy or written consultative plan, depending on the scope of services needed. Financial planning strategies are usually more generic in nature, and do not provide insight on specific investments or portfolio composition. On the other hand, the MyPortfolio program is made up of actively managed portfolios that contain mostly exchange-traded funds (ETFs).
Fees Under John Hancock Personal Financial Services
John Hancock Personal Financial Services has a wide range of advisory offerings, each with their own fee schedule.
For the firm's MyPortfolio wrap-fee program, clients are charged an asset-based fee equal to 0.75% of their assets under management. For the Managed IRA program, clients pay a program fee equal to 0.50% of their AUM plus a $4 monthly fee if their account has less than $50,000.
Financial planning services can be charged at an hourly rate of $200 or as a flat fee. Financial consultation services come with a rate of $200 per hour. Fees are normally billed on a quarterly basis.
What to Watch Out For
John Hancock Personal Financial Services is a fee-based firm, meaning advisors may receive commissions when they sell specific insurance products to clients. This creates a potential conflict of interest, as the firm's advisors may be inclined to recommend certain products over others. Despite this, the firm still abides by fiduciary duty, so it is legally bound to act in the best interests of clients at all times.
While John Hancock Personal Financial Services has five disclosures listed on its Form ADV, none of them implicate the firm directly. Instead, each disclosure relates to one or more of the firm's advisory affiliates. These include Manufacturer's Life Insurance Company, Manulife Financial Corporation and Benesure Canada, Inc.
Opening an Account With John Hancock Personal Financial Services
Opening an account with JHPFS isn't hard. You can visit the firm's websites and request a consultation, take a survey or schedule a call. You can also call the firm at (888) 955-5432 to speak with the team over the phone.
All information is accurate as of the writing of this article.
How to Build an Investment Portfolio
- A financial advisor can help you build an investment portfolio aligned with your goals and risk tolerance. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Capital gains taxes will impact your return on investment, so it’s important to know how much you can expect to pay when Uncle Sam comes knocking. SmartAsset’s capital gains tax calculator can help you calculate the total capital gains tax you’ll pay.
