The 401 Group believes investors should demand a fiduciary standard of advice from their advisor, as this is a key distinction between true financial practitioners and salespeople.

• The fiduciary standard requires that an adviser put the clients interest first and is adhered to by Registered Investment Advisors and enforced by the Securities and Exchange Commission (SEC)
• The suitability standard requires that a broker make recommendations that are suitable based on a client’s personal situation, but the standard does not require the advice to be in the client’s best interest. Brokers, also known as registered representatives, are held to this suitability standard, which is enforced through a self-regulatory organization called the Financial Industry Regulatory Authority (FINRA). - Forbes "The Difference Between Fiduciary & Suitability Standards"
• "Look for a fiduciary - In short, this means the planner has pledged to act in a client’s best interests at all times. Investment professionals who aren’t fiduciaries are often held to a lesser standard, the so-called suitability standard. That means that anything they sell you merely must be suitable for you, not necessarily ideal or in your best interest. This point is critical, and should be a deal breaker if a prospective planner is not a fiduciary." - Wall Street Journal "How to Choose a Financial Planner"

Investors should look for an independent firm, like The 401 Group at Focus Financial, that offers objective advice and does not profit from the sale of proprietary products. Our clients enjoy a fee-based pay as you go structure that is not motivated by transactions or commissions.

• An independent firm is positioned to provide truly unbiased and objective advice, allowing its advisors to analyze the entire market of available investment options to provide the most cost-efficient method to implement your customized wealth management strategy.
• Banks, Brokerage Firms, & Insurance Companies are in the business of creating and selling their own financial products; much of their brokers' compensation is based on commissions from the sale of these products (see Suitability Standard Above)

Most Job Titles utilized in the financial industry are largely firm-anointed marketing titles that require no regulated education, experience, testing, or ethics guidelines. This makes it extremely important that you evaluate your "Financial Advisor", "Wealth Manager", "Financial Planner", or "Financial Analyst" based on their level of attainment in experience, education, and industry credentials.

EDUCATION & CREDENTIALS

"Professional credentials are especially important when choosing an advisor...Unlike doctors or architects, financial advisors aren't required to earn degrees in their field, so credentials show that the advisor has taken his professional development seriously. Just because someone is with a big firm and has certain clients doesn't mean he's competent. Among the most respected credentials are Certified Financial Planner and Chartered Financial Analyst." - Barron's "How to Pick a Financial Advisor"

The 401 Group's founders hold degrees in Finance and Mathematics from the University of Minnesota's Carlson School of Management and Minnesota State University, respectively. Carl Arrell and Joel Schrimpf are a part of a select group of approximately 2% of all Financial Advisors in America holding both highly esteemed Chartered Financial Analyst® and CERTITFIED FINANCIAL PLANNER™ Designations.

CHARTERED FINANCIAL ANALYST® - CFA®:

• "The CFA Charter's reputation in the business community is world class, and CFA Charterholders work in many countries around the world. The CFA program is very broad, and might be more aptly described as the equivalent of a master's degree in finance with accompanying minors in accounting, economics, statistical analysis and portfolio management. The CFA charter is one of the most respected designations in finance, considered by many to be the gold standard in the field of Investment Analysis." - Investopedia
• "The CFA designation (granted by the CFA Institute) earns its reputation mainly due to the grueling process candidates must endure to earn the CFA charter. Before you can become a CFA Charterholder, you must have four years of investment/financial career experience and hold a bachelor's degree. To earn the CFA charter, candidates must pass a six-hour exam with pass rates of 42%, 39%, & 53% respectively for each of the three levels; Using these three pass rates, the probability of passing all three exams in a row is about 8.6%. Successful candidates take an average of four years to earn the designation. A candidate must sign off annually that he is following the CFA Institute Code of Ethics and Standards of Professional Conduct. Failure to adhere to the ethics and standards is grounds for possible lifetime revocation of the CFA charter." - Investopedia

CERTITFIED FINANCIAL PLANNER™ - CFP®

• As the ranks of CFP Certificants are on the rise, the CFP certification is increasingly transitioning from a “nice to have” designation to the minimum (competency) standard for financial planners. - Industry Expert, Michael Kitces
• "Anyone can hang out a shingle as a financial planner, but that doesn’t make that person an expert. They may tack on an alphabet soup of letters after their names, but CFP designation is the most significant credential. A CFP Professional has passed a rigorous test administered by the Certified Financial Planner Board of Standards about the specifics of personal finance. CFP Professionals must also commit to continuing education on financial matters and ethics classes to maintain their designation. The CFP® credential is a good sign that a prospective planner will give sound financial advice." - Wall Street Journal "How to Choose a Financial Planner"

EXPERIENCE

The lead Advisors at the 401 Group each bring over 20 years of experience providing financial advice to individuals, families, small businesses, and retirement plans.

• While our Advisors bring ample experience as trusted consultants, they are also not at such an advanced age where they will be considering retirement when you may most require their advice. Based on the average age of most Financial Advisors in the industry, they will likely be considering their own retirement within the next decade, which could leave clients in a position in which you are forced to develop trust in a new professional relationship at the exact time you require the most critical guidance...YOUR Retirement.
• Intelligent, committed advisors can be any age, but a little seasoning can be very reassuring. If an advisor has been through a few bear markets, she may do a better job of protecting your money when hard times hit. - Barron's
• Advisors typically spend the first several years of their career building a client base, which may affect the amount of personal attention you'll receive. You should leave an interview confident that you won't get lost in the shuffle. - Barron's
• Experience must be scrutinized; as years of experience working as a financial "salesman" under a general suitability standard, rather than a true registered investment advisor held to the fiduciary standard, should be a consideration in evaluating the experience of your trusted financial consultant.

The 401 Group's holistic wealth management expertise, addresses both your comprehensive financial planning (CFP) and investment portfolio analysis (CFA) needs, which provides you with on-going personally customized financial planning that is integrated within an investment portfolio that is managed directly by your personal Advisor.

• Many "Financial Planners" simply act as middlemen when implementing your investment plan, pooling your investments with mutual funds or third-party investment managers that provide portfolios that cannot to be fully customized to your specific tax, risk, and/or performance objectives. Mutual Fund managers are often constrained by the benchmarks they track, and are forced to buy and sell securities based on the cash in and out flows of your fellow investors, regardless of the current market environment. These issues can cause unwanted tax, cost, and performance issues that are outside of your and your advisor's control; We have found the closer you are to the investment decisions being made within your portfolio, the higher the likelihood that you will meet your financial objectives. A portfolio that is customized to the specific time-frame, risk characteristics, and tax considerations of your individual financial goals should provide you with greater clarity and control of your investment results, ultimately allowing you to securely achieve life's most important goals.

• Many "Investment Managers" simply provide investment advice and/or portfolio management that may not consider your individual financial circumstances, constraints, and/or goals. An investment portfolio that is integrated with your personal financial plan can capitalize on opportunities relating to your tax, retirement, and estate planning situation, while considering the time-constraints and capital needs of your personal financial goals.

• Cash Flow, Balance Sheet, & Income Statement Analysis
• Current Asset/Liability Management 
• Review of Potential Business and/or Private Investment Opportunities
• Small Business Planning & Financial Management

• Risk Management Scenario Analysis to Determine Potential Coverage Gaps
• Life, Health, Disability, Property/Casualty & Umbrella Insurance Policy Review & Selection
• Coordination with Employee Benefit Plans
• Self-Insurance Planning

• Federal & State Tax Return Review
• Income Tax Scenario Analysis for Current & Future Years
• Proactive Tax Minimization Strategies for Current & Future Years
• Tax-Sensitive Portfolio Management
• Self-Employed & Small Business Tax Planning Assistance
• Coordination with your CPA or Tax Professional

• Investment Portfolio Review
• Risk Based Asset Allocation Optimization
• Discretionary Investment Portfolio Management
• Coordination of Investment Strategies within Employer Retirement Plans
• Evaluation and Implementation of Passive, Active, & Fundamental/Rules-Based Investment Approaches within Tactical Asset Allocation

• Retirement Projection & Monte Carlo Analysis Provided Under Multiple Scenarios
• Pension Benefit & Retirement Plan Review
• Social Security Review & Claiming Strategies
• Retirement Asset (Rollover IRA & Roth Conversion) Planning
• Tax Advantaged Retirement Saving/Distribution Strategies
• Fixed & Variable Annuity Review
• Small Business & Self Employed Retirement Plan Selection & Funding

• Estate Planning Document Review & Scenario Analysis
• Irrevocable & Revocable Trust Strategies
• Health Care, Guardianship, & Financial Decision-Making if Incapacitated 
• Family & Charitable Gifting Strategies
• Trust Portfolio Management Services
• Coordination of Planning with your Estate Attorney