LBJ Family Wealth Advisors
LBJ Family Wealth Advisors was created from the Johnson family business. Headquartered in Austin, Texas, you will need deep pockets to work with this financial advisor firm. The minimum account size is $10 million. The company accepts high-net-worth families as clients and individuals, trusts, estates and charitable organizations.
Who Should Use LBJ Family Wealth Advisors?
First off, you need at least $10 million to become a new client at LBJ Family Wealth Advisors. Next, since the firm recommends meeting quarterly and is only registered in Texas, it’s best if you’re based in Austin or within driving distance.
The firm doesn’t seem as tech-savvy as some of its competitors that have web-based financial dashboards and remote video-conference capabilities. That means you should most likely be close enough that you can see your advisor in person for the majority of your meetings.
Another factor is the size of the company. If you value holistic family financial education and an intimate-sized firm, you might enjoy working with this three-person firm. Other financial advisor firms have at least a dozen employees or more, where you might not get to know many people on your team. At LBJ Advisors, you can be sure you’ll know everyone who’s handing your accounts.
Finally, the company emphasizes that it provides family financial planning. And, the advisors have experience in that regard. So, if you’re the head of a wealthy family, you might find that LBJ Advisors is a good fit.
What You’ll Pay in Fees
Unlike most of its competition, you won’t find a set fee schedule at LBJ Family Wealth Advisors. Instead, the company states on its Form ADV filed with the SEC that clients will generally receive a quarterly fee of up to 0.25%. The final rate you are given will be based on a percentage of your assets under management. Most clients at the firm have their fees deducted directly from their account's balance. However, you can choose to be billed separately.
Management fees are not the only charges you'll incur at LBJ. Clients are also responsible to cover brokerage commissions and mutual fund, exchange-traded fund (ETF) and money manager fees.
What to Watch Out for With LBJ Family Wealth Advisors Private Wealth Management
The first potential negative is that the company is fee-based rather than fee-only. Fee-only means that your advisor makes money solely from management fees. Fee-based is less concrete. It includes money made from commissions or other products sold to you. It’s a common fee type and doesn’t take away from LBJ’s status as a fiduciary. However, as a potential customer, you should be aware of it.
The next factor may be a positive or negative depending on your preferences. The firm is very small and has a tiny staff. If you like working with a big team or with a large firm with specialized employees, you might not find LBJ a good fit for you or your family. However, the small size might be a feature for those wanting an intimate financial experience.
Tech-savvy clients might prefer a company with the latest apps and website integration. LBJ Family Wealth seems a touch more old-school, which means meeting your advisor in person reigns king. The company doesn’t offer an online dashboard or remote conferencing that some firms, such as WorthPointe, features.
LBJ Family Wealth Advisors: What to Know
This is one of the smallest firms we profiled in Austin. Just four people work at the company and only two serve as advisors. The company was opened up to outside investment after years of serving the Johnson family business and investments. That means, the company is likely used to a very small number of family clients. Overall, the company has fewer than 100 accounts.
As a smaller firm, there are less certifications among the staff. There’s not one certified financial planner, certified public accountant or chartered financial analyst on the management team. However, the chief investment officer, Faith Vincent, does hold a specialty certification that only one other firm (Venturi Wealth Management) in our list of top 10 financial advisors in Austin has: the certified private wealth advisor (CPWA) designation. This certification is for wealth managers who have experience working with high-net-worth clients.
Regardless of certifications, the company has decades of experience in wealth management. The president, Ian Turpin, has supervised the holdings of the late Lyndon B. Johnson for more than 18 years. He also had a 20-year career as an international banking executive in Canada.
The management team is comprised of four individuals: Ian Turpin, Faith Vincent, John Welborn and Willyn Wahl.
Ian Turpin is the president of LBJ Family Wealth Advisors and the husband of Luci Baines Johnson (of the Johnson family estate). Turpin is originally from Toronto, where he had a 20-year career as an international private banking executive. He has a master’s degree in International Business from the University of Bradford in England.
Faith Vincent has worked with the LBJ Holding Company (predecessor to the current company) since 2000. She is the chief investment officer and has worked in finance since 1994.
Financial advisors usually have relationships with brokerage firms. LBJ Advisors is no different and generally recommends that clients use Fidelity for brokerage services. You’re not required to use the company, but LBJ Advisors receives research and online analysis from the firm
LBJ Family Wealth Advisors does not have a disclosure or disciplinary action filed at this time.
LBJ Family Wealth Advisors Philosophy
Overall, LBJ Advisors seeks funds with low management fees. Tax-adjustment performance numbers are analyzed with the benchmark index, management experience and reputation of the firm. The company builds personalized portfolios that rely on client financial goal input. Therefore, every portfolio will be different in order to serve specific outcomes. The company tries to offer a progressive approach while respecting the lessons of the past.
LBJ Family Wealth Advisors Portfolio Styles
Your portfolio’s construction is derived from your initial interviews with your advisor. That means your liquidity needs, overall wealth and financial objectives are paramount in the plan for your asset allocation. Target allocations can include:
- U.S. fixed-income securities
- Domestic and international inflation-protected fixed-income securities
- Real estate
- Private equity
LBJ Advisors will primarily rely on mutual funds, index funds and other money managers rather than individual securities to build your portfolio. Your advisor might also recommend that you invest in limited partnerships that invest in private equity, real estate, hard assets and other investments. These investments help reduce volatility and can help protect against inflation.
Starting an Account With LBJ Family Wealth Advisors
Initiate contact with LBJ Family Wealth Advisors by calling (512-457-5000) or filling out a contact form on the company’s website.
After making an appointment, the next step is usually to get to know your advisor. He or she will gather your financial situation through an in-depth series of interviews. You’ll review your current status as well as your financial goals and future objectives.
Services offered at the firm include:
- Consolidated and individual performance reporting
- Legacy asset management (minerals, real estate, timber, ranching, etc.)
- Private equity investment
- Hedge funds
- Family financial education
- Foundation management
- Family business oversight and governance recommendations
At LBJ Family Wealth, advisors recommend that you meet quarterly to discuss your portfolio’s performance and to adjust factors such as your risk tolerance or goals. The company also offers family meeting education forums once a year.
What Types of Clients Does LBJ Family Wealth Advisors Accept?
LBJ works with a variety of clients. The company offers services to:
- High-net-worth families and individuals
- Charitable organizations
- State or municipal entities
Clients can engage with LBJ Advisors as long as they meet the $10 million minimum.
Where Is LBJ Family Wealth Advisors Located?
You won’t have to drive to an office park to find LBJ Advisors; the company is one of the few that’s located downtown, rather than north of the city. You’ll find the office in the historic Northwood Tower on West Seventh Street.
Tips for Financial Planning
- Financial planning can be difficult and overwhelming. You want to make sure you have the best plan in place with as little hassle as possible, which is something a financial advisor can help with. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- Investing with a goal in mind is often confusing. It can be tough to know how much to invest in order to meet your goals. Use SmartAsset’s investment calculator to help you reach your goals. Know how much you’re starting with, how fast you want to grow, and how long you want to invest, and the calculator will have you well on your way to reaching your financial goals.