Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Charitable Organizations
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Fixed Fees (Other than subscription)
Clarity Asset Management, Inc. Overview
Clarity Asset Management, Inc. is a fee-only registered investment advisory firm that offers investment advice to individuals and small businesses. With its headquarters located in Ames, IA, the firm has been in business since 2013, providing financial planning and portfolio management services to its clients. As a fee-only firm, Clarity Asset Management, Inc. charges its clients a set fee for the services rendered, rather than receiving commissions or fees from third-party products. This model allows the firm to provide objective and independent investment advice without any conflicts of interest. The firm's team of advisors is dedicated to helping clients achieve their financial goals, offering customized financial plans tailored to each client's individual needs. With a focus on portfolio management, Clarity Asset Management, Inc. helps clients invest their assets in a way that aligns with their long-term objectives and risk tolerance. Overall, Clarity Asset Management, Inc. is a comprehensive investment advisory firm that puts its clients first, providing objective advice and personalized service to help them navigate the complexities of the financial world.
CLARITY ASSET MANAGEMENT, INC. proudly serves a diverse clientele base, catering to individuals seeking to secure their financial future, high net worth individuals who require sophisticated investment strategies to preserve and grow their assets, and charitable organizations striving to achieve their philanthropic goals. The firm provides customized solutions tailored to meet the unique needs of each client, employing a comprehensive approach that encompasses portfolio management, financial planning, and risk management. CLARITY ASSET MANAGEMENT, INC. offers various competitive fee structures depending on the services provided. Clients who opt for percentage of AUM (Assets Under Management) pricing model pay a percentage of their total AUM as a management fee. This fee structure is typically used by clients who require long-term investment management services and value long-term trust relationships. Fixed fees, on the other hand, charges a fixed amount for the specific investment services offered to clients. This model is suitable for clients who require short-term financial services for a one-time or irregular basis. With flexibility and transparency built into its fee structures, CLARITY ASSET MANAGEMENT, INC. aims to deliver value to its clients while holding the highest standards of professionalism and integrity.
Typical Clients, Fee Structures & Investment Minimum
The investment minimum for Clarity Asset Management, Inc. is generally $250,000 as stated in their Part 2 Brochure. However, the Advisor has the sole discretion to reduce or waive this minimum relationship size.
How This Office Can Help Grundy County, IA Residents
Clarity Asset Management, Inc. offers a range of financial services to clients in Grundy County, IA, with the aim of helping them achieve their financial goals and secure their future. Given that Grundy County is a largely rural area with a diversified economy, many clients in the area may be facing unique financial situations, such as variability in income and an inherent risk of agricultural enterprises. To navigate these challenges, Clarity Asset Management, Inc. offers customized financial planning tailored to the unique needs of each client. This may include setting and achieving short-term goals, such as managing cash flow and budgeting, as well as long-term goals, such as retirement planning and estate planning. By utilizing their expertise in tax laws, investment strategies, and risk management, Clarity Asset Management, Inc. empowers clients to make informed decisions and achieve their financial objectives.
Services Offered by Clarity Asset Management, Inc.
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Clarity Asset Management, Inc. most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Unavailable
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Clarity Asset Management, Inc. is registered to service clients in the following states:
- Iowa
Disciplinary History
Clarity Asset Management, Inc. does not have any disclosures. Please visit it's Form ADV for more details.