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Updated on Thursday, September 30, 2021
JFG Wealth Management, LLC is a Denver-based wealth management firm that specializes in advising high net worth individuals and their families. In general, clients of the firm are required to have at least $5 million under the firm’s management to open or maintain an account. For this high-end market, JFG Wealth Management offers investment management, financial planning and private capital-related services.
The bottom line: JFG Wealth Management offers services targeted toward the wealthy, such as comprehensive financial planning and the sourcing of private capital opportunities.
- Offers impact investing strategies
- Requires a high minimum annual fee of $45,000
- Has only one physical office location
|Assets under management (AUM): $308,232,667|
|Minimum investment: $5 million|
|Individual investor to advisor ratio: 3:1|
|Fee structure: A percentage of AUM, fixed fees|
|Headquarters: 1144 Fifteenth Street, Suite 3950 Denver, CO 80202|
All information included in this profile is accurate as of September 17, 2021. For more information, please consult JFG Wealth Management’s website.
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Overview of JFG Wealth Management
Founded in 2002, JFG Wealth Management is an investment advisory firm that offers portfolio and wealth management services aimed mostly at high net worth investors. Based in Denver, JFG Wealth Management has just under 30 employees, approximately 16 of whom work in an investment advisory or research capacity.
JFG Wealth Management is owned by banking, wealth and insurance services company Johnson Financial Group. That company is in turn primarily owned by its founder Brandon Johnson, who currently serves as JFG Wealth Management’s CEO and chief investment officer.
A look at the founder of JFG Wealth Management
Brandon Johnson launched JFG Wealth Management in 2002 to manage his family’s fortune. However, the firm’s roots date back much further than that. Johnson’s grandfather, Wallace E. Carroll, originally founded the family’s private investment office in the mid-1900s after his manufacturing company took off, becoming a global conglomerate including 80 manufacturing companies, an insurance company, an airline and a railroad.
In 2010, Johnson expanded his family’s practice to serve other wealthy families as well.
JFG Wealth Management’s pros
- Experience working with high net worth families: Given that JFG Wealth Management started as a family office for a very wealthy family, the firm has demonstrated experience dealing with the more complex financial issues of the high net worth.
- Customized investment portfolios: JFG Wealth Management does not offer one-size-fits-all portfolios but rather customizes its investment recommendations for each client based on their past investment experience, current financial situation and future goals and needs.
- Wide selection of investments: For client portfolios, JFG Wealth Management could consider a wide range of potential investments including equities, fixed income, alternative assets and private placements. The firm also offers impact investing options for clients who want to align their investments with their values.
JFG Wealth Management’s cons
- Beginner or non-wealthy investors are generally shut out: JFG Wealth Management typically requires a minimum investment of $5 million to become a client. Additionally, a $45,000 minimum annual fee is generally required, which is likely out of reach for many.
- Potential conflict of interest in buying or selling securities: JFG Wealth Management may at times recommend that clients buy or sell the same securities that the firm is also buying or selling. If trades are placed at or around the same time, this could present a potential conflict of interest because the firm may benefit from client transactions. The firm states that it mitigates this risk by adhering to policies that assure it will not put its own interests ahead of those of its clients.
- Just one physical office: Clients who prefer to meet face-to-face with their advisor will have to be located in the Denver area, as JFG Wealth Management’s only physical office location is there. Additionally, the firm only has jurisdiction in Colorado, New York and Texas, further limiting the clients it can work with even remotely.
What types of clients does JFG Wealth Management serve?
The firm almost exclusively works with high net worth individuals and families. For reference, the SEC defines high net worth individuals as those with at least $750,000 under an advisor’s management or a net worth of at least $1.5 million.
In general, the firm requires a minimum account size of $5 million. While JFG Wealth Management does state in its brochure that it can waive this minimum at its discretion, the firm does not currently work with any individual investors who are not high net worth.
Services offered by JFG Wealth Management
JFG Wealth Management has three main offerings: investment management, financial planning and private capital services.
For investment management, the firm works both on a discretionary basis, where the advisor can make trades on a client’s behalf, and on a non-discretionary basis, where a client must approve all trades. Portfolios are custom-built based on each client’s unique situation and goals.
Clients interested in financial planning can choose from comprehensive financial planning, where JFG Wealth Management designs a customized plan addressing the client’s overall financial situation, or a more consultative-style service that focuses on just one or two specific areas. Topics covered may include wealth transfer, risk management, cash flow planning and more. In general, financial planning is included as part of the firm’s investment management services.
Finally, JFG Wealth Management can offer clients private capital services. Specifically, the firm can source opportunities and conduct due diligence, as well as provide ongoing management.
Here is a full list of services offered by JFG Wealth Management:
- Investment management
- Financial planning
- Balance sheet optimization
- Cash flow planning
- Accumulation goals
- Risk management
- Wealth transfer
- Next generation education
- Pre- and post-liquidity planning
- Estate planning
- Tax planning
- Private capital services
- Selection of other advisors
How JFG Wealth Management invests your money
JFG Wealth Management creates customized investment portfolios for its clients. The firm looks at factors such as a client’s investment experience, risk tolerance, time horizon, liquidity needs, tax considerations and goals to determine its recommendations.
In general, the firm aims to build portfolios that are globally diversified, tax-efficient and cost-efficient. To do so, JFG Wealth Management may use a wide range of strategies and assets including:
- Domestic and foreign equities
- Fixed income
- Mutual funds
- Exchange-traded funds (ETFs)
- Certificates of deposit (CDs)
- Separately managed accounts
- Alternative assets
- Private placements
JFG Wealth Management also offers an impact investing strategy in which clients can align their values with their portfolio by investing in assets that have positive social and/or environmental impacts.
Fees JFG Wealth Management charges for its services
For investment management services, JFG Wealth Management charges clients based on a percentage of their assets under the firm’s management. JFG does typically require an annual minimum fee of $45,000 and expects clients to maintain a portfolio of at least $5 million, although there are exceptions.
Financial planning is offered on a complimentary basis as part of the firm’s investment management services. Below is JFG Wealth Management’s fee schedule for wealth management clients:
|JFG Wealth Management Fee Schedule|
|Total assets under management||Annual fee|
|Up to $5 million||0.90%|
|$5 million to $25 million||0.70%|
|$25,000,000 and above||0.35%|
Clients could also be responsible for covering the costs of managing their portfolio, including brokerage and transaction fees, wrap fees, private placement expenses and separately managed account fees.
For financial consulting services, JFG Wealth Management charges a fixed fee. Rates are determined on a case-by-case basis, depending on the complexity and scope of the services provided.
JFG Wealth Management disciplinary disclosures
JFG Wealth Management does not have any disciplinary disclosures from the past 10 years. This is a sign that the firm and its representatives have operated in an ethical, compliant manner.
The SEC requires that registered investment advisors report any instances of misconduct over the past 10 years on their Form ADV filing. This includes any criminal, civil or regulatory allegations against the firm, its employees or its affiliates.
For more information on JFG Wealth Management, visit its IAPD page.
JFG Wealth Management onboarding process
- Contact the firm: To learn more about working with JFG Wealth Management, you can call the firm’s office directly at 720-475-1195 to schedule an appointment, or fill out the contact form on the firm’s website.
- Have an initial consultation and receive a portfolio recommendation: During your initial consultation, a JFG Wealth Management advisor will get to know your financial situation including your investment history, risk tolerance, time horizon and objectives. This information is used to create your customized portfolio recommendation.
- Launch your portfolio: If you are happy with the recommendation, you can sign on as a client. Once you launch your portfolio, the manager will continue overseeing your portfolio and update it as needed.
- Receive regular reports: Clients have access to their accounts at any time, through the brokerage at which their assets are held, and also can expect to receive monthly and/or quarterly reports from the brokerage. JFG Wealth Management also provides written reports on a quarterly basis.
Where JFG Wealth Management is located
JFG Wealth Management has just one office, its headquarters in Denver. While this is the firm’s only physical location, it is also registered to serve investors in New York and Texas.
Is JFG Wealth Management right for you?
If you are a high net worth individual looking for sophisticated investment management, JFG Wealth Management could be a good choice. The firm offers an impressive selection of strategies for its customized portfolios, alongside comprehensive financial planning and private capital services.
For investors with smaller portfolios and budgets, however, JFG Wealth Management will most likely not be an option. You generally need at least $5 million to join as a client, and the firm charges a minimum fee of $45,000 per year for investment management services. Investors still looking to build their wealth or who want a simpler, low-cost approach should look elsewhere. Be sure to research multiple firms to ensure you find the right advisor for you.
The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.