Pence Wealth Management operates in Southern California with a relatively small team that includes 17 financial advisors. The firm had less than 10 clients in 2017 and, unlike many other financial advisor firms, it does not provide portfolio or investment management services. Advisors will advise you on investing but the firm only offers financial planning services. Read on to learn more about the services that Pence Wealth Management offers and the fees it charges.
Pence Wealth Management Background
Pence Wealth Management was founded in 1980. The firm has grown to have three offices, all of which are located in Southern California, near Los Angeles. Although the firm has been in business for nearly four decades, it continues to work with relatively few clients. It instead emphasizes really getting to know each client so that it can create a very clear and comprehensive plan for reaching the client’s financial goals.
The firm is unique from many other financial advisor firms because it does not offer portfolio management services. At the same time, advisors at Pence Wealth Management are also registered advisors for LPL Financial. LPL Financial is an organization with a network of 14,000 independent financial advisors.
What Types of Clients Does Pence Wealth Management Accept?
Pence Wealth Management accepts individual clients both with and without a high net worth. It also works with pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and business entities.
Pence Wealth Management Minimum Account Sizes
There is no minimum account size necessary to work with Pence Wealth Management.
Services Offered by Pence Wealth Management
Advisors at Pence Wealth Management do not offer investment or portfolio management, but they do provide a wide range of financial planning services:
- Investment planning
- Life insurance planning
- Tax planning
- Retirement planning
- Debt/credit planning
- Education and 529 planning
- Trust and estate planning
- Charitable giving
If you are looking specifically for investment help, advisors can still assist you with things such as assessing your risk tolerance, deciding on the right asset allocation, diversifying your portfolio and understanding how your investments will affect your taxes.
It’s also worth saying that advisors at Pence Wealth Management are registered financial advisors at LPL Financial. They may be able to provide additional services in their capacity as advisors for that organization.
Pence Wealth Management Investment Philosophy
As mentioned, Pence Wealth Management does not manage investment portfolios for its clients. However, it will advise clients on investment and portfolio decisions. The products that the firm will generally recommend include the following:
- Mutual funds
- Exchange-traded funds (ETFs)
- Exchange-listed securities
- Corporate debt securities
- Commercial paper
- Certificates of deposit (CDs)
- Municipal securities
- Variable annuities
- Variable life insurance
- U.S. Government securities
- Options contracts on securities
- Options contracts on commodities
- Interests in partnerships investing in real estate
- Real estate investment trusts (REITs)
Fees Under Pence Wealth Management
The fees you’ll pay at Pence Wealth Management will depend on the type and complexity of services that you receive. Advisors typically charge clients either one fixed fee up front or at an hourly rate.
If you just need help creating a financial plan, you will likely pay a single fee that ranges from $1,000 to $20,000, depending in the complexity of your situation. If you need help beyond creating a plan, you’ll probably pay for the services at an hourly rate of between $150 and $350 per hour. These rates are all negotiable, and you will agree on the price before you receive any services.
Advisors accept payment via check, and you’ll pay either in advance or upon the completion of the services. Payments you make in advance will be prorated and refunded if the cost of the services that you received amounts to less than what you paid.
What to Watch out For
Financial advisors at Pence Wealth Management are licensed insurance agents in California. They may earn a commission for selling certain insurance products. Advisors are also registered with other firms and could earn a commission for selling certain securities or financial products. This poses a potential conflict of interest, but remember that Pence Wealth Management and its advisors do have a fiduciary duty that requires them to act in the best interests of their clients.
Pence Wealth Management has not been subject to any disciplinary actions over the past decade.
Opening an Account With Pence Wealth Management
If you would like to work with Pence Wealth Management, you will need to contact the firm. Addresses, phone numbers and a contact email for each office location are available on the firm’s website. If you prefer to reach out via email, there is an online contact form that you can use. The form will require you to provide your contact information and the topics that you are interested in discussing.
Where Is Pence Wealth Management Is Located?
Pence Wealth Management has three office locations. All of the offices are in Southern California and near Los Angeles. The firm’s main office is in Newport Beach. The other offices are in Thousand Oaks and Torrance.
Tips for Finding a Financial Advisor
- If you live outside of California or if you are looking for portfolio management, you will need to work with a different financial advisor. No matter where you live or what services you need, SmartAsset’s free financial advisor matching tool will pair you with up to three advisors in your area who meet your needs. All you need to do is answer some questions about your financial goals and preferences. You can then read your advisor matches’ profiles and interview them to determine who you want to work with in the future.
- Many people work with a financial advisor only when they want to manage a portfolio of investments. But as Pence Wealth Management highlights, general financial planning is also very important. Knowing how to achieve your goals, such as building retirement savings, is a vital part of financial success.