History
Gene W. Henssler, Ph.D., (“Dr. Gene”) and his wife, Patricia, moved to Kennesaw, Georgia in May 1986 when Dr. Gene accepted
the Professor of Finance position at Kennesaw State University. A station manager for a local AM radio station asked the
department chairperson at Kennesaw if he knew someone from academia who could do a talk show about finance, money and
investing. The department chairperson suggested Dr. Gene.
Dr. Gene started by doing a couple of guest spots with Atlanta radio personality Neal Boortz. Shortly thereafter, Dr. Gene was
offered his own show. Although he was not highly compensated, the radio show provided exposure for Kennesaw State University
and gave Dr. Gene a healthy ego boost as a radio personality.
After a couple of weeks on the air, callers began asking Dr. Gene if he would provide advice to individuals, on a consulting basis.
Callers wanted Dr. Gene to apply the same fact‐based, no‐nonsense approach that he had on his radio show to their own financial
endeavors.
GWH was created in 1987 to meet this growing interest. It began as a small, part‐time consulting business based out of his home.
Dr. Gene reviewed portfolios and offered investment advice on an hourly, fee‐only basis. He created a “Financial Plan” for clients
and detailed specifically how to work that plan. In turn, clients would “work the plan” with their own stockbroker, or a
stockbroker Henssler recommended, with no financial benefits to Henssler. Pursuant to a succession plan created by Dr. Gene
and the company, which was previously disclosed to and consented to by all clients, effective January 1, 2023, Dr. Gene no longer
owns an interest in Henssler. Other current Henssler employees now hold all interests in the company.
Working the Plan
While clients seemed to appreciate Dr. Gene’s advice, Dr. Gene soon began to notice that people would start fervently working
the plan, and then life would intervene. The kids would go back to school, soccer practice would start, holidays would roll around,
and they would let things go. Clients would come back in a year or two and those who worked the plan were right on target, but
then, there were those who got sidetracked.
Within five years, Dr. Gene hired his first employee to assist clients in carrying out their financial plan. Henssler worked for an
hourly fee with clients and their brokers. However, Henssler had clients who were behind financially because they did not do what
was recommended or follow the advice given. It would be a while before Dr. Gene could sit with his clients and suggest that they
consider having their money managed on a percentage‐fee basis by Henssler. In the interim, Dr. Gene continued teaching and
Henssler’s client base grew steadily.
In 1991, an attorney asked Henssler to manage his client’s funds. Dr. Gene spent several days trying to figure out how to
accomplish this. Around this time, Charles Schwab & Co., Inc. was starting its Financial Advisor’s Service program (now Schwab
Institutional). Henssler started working with Schwab as the custodian and took this attorney’s client as Henssler’s first “managed
client.”
As the Management Program developed, now called The Traditional Management Program, Henssler worked on making it
successful.
As Always
The service provided by Henssler from the beginning is still firmly practiced today. Henssler recognizes that every client is not the
same and treats each and every client on an individual basis. Every client has different liquidity needs, goals and attitudes.
Focusing on each client as an individual maintains the unique client base. Clients are able to impose specific restrictions on
investing in certain securities or types of securities. Henssler aims to help clients comfortably reach their goals for retirement and
life. Providing a consistently high level of service that meets the needs of our individual clients is critical to that process.
Services Offered by Henssler
Henssler provides a wide range of services to its clients. These services include Comprehensive financial planning services,
targeted analysis of a client’s financial position, portfolio management for individuals and/or small businesses, portfolio
management for investment companies, portfolio management for businesses or institutional clients, pension advice, selection of
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other advisers (including private fund managers), automated asset management, basic investment advice and as a sub‐advisor to
an investment company.
The investment related services are generally classified as either discretionary investment management or non‐discretionary
investment advice. These services are provided to both individuals and institutions.
During the initial client meeting, our clients learn about the many types of services Henssler offers. Each client meets with an
Associate to discuss the scope of services required based upon each individual client’s needs. In general, the advice given as to
financial, tax, insurance, estate, and investment planning will be similar for both discretionary investment management and non‐
discretionary investment advice. The main differences are in the ongoing support and execution of the investment
recommendations.
Non‐Discretionary Services
Under a non‐discretionary relationship, Henssler provides the recommendations for the aforementioned services but does not
execute or monitor the recommendations. Henssler will not follow up with the client’s progress on the advice unless outlined in
the services agreement signed by the client, or when otherwise requested by the client. A non‐discretionary relationship is
generally used when a client wants financial planning or investment recommendations based on a one‐time or periodic review of
their situation, or has a specific question they want answered, such as: “Am I saving enough for retirement;” “Is my current
allocation appropriate given my stage of life;” “How should I invest my 401(k) or rollover IRA.” This service is not as robust or
comprehensive as a discretionary investment management relationship. Henssler can be retained to render advice on these and
other questions based on an hourly fee or a flat fee.
Discretionary Services
The majority of our investment management clients use our traditional approach of combining financial planning services with
asset management. For clients who choose to use the traditional combined services of financial planning and asset management,
we use a comprehensive cash flow analysis based on information provided by the client to make a recommendation for the
allocation of the investment portfolio. The portfolio will be managed based on ongoing changes to the cash flow analysis and
overall financial plan. This could include updates to the strategy based upon life‐changing spending or income events. Examples
include marriage, childbirth or adoption, promotion, divorce, inheritance, and death. There are a multitude of situations that are
considered when creating, implementing, monitoring, and reporting on an investment strategy.
Alternatively, a discretionary investment management relationship may not include comprehensive financial planning. Some
individual clients or institutional clients may have
their own investment strategy or plan, which Henssler will execute on behalf of
the client. For the client who does not request comprehensive financial planning, we will work with the client to determine an
acceptable asset allocation and execution plan. The agreed upon allocation will be monitored and executed at Henssler’s
discretion. Henssler may also serve a client as a separate account manager or sub‐adviser.
Typically, Henssler is retained to provide discretionary‐based investment management services based upon a percentage of assets
under management or as a flat fee.
Henssler Automated Investment Management
We provide portfolio management services through Institutional Intelligent Portfolios™, an automated, online investment
management platform for use by independent investment advisors and sponsored by Schwab Wealth Investment Advisory, Inc.
(the “Program” and “SWIA,” respectively). Through the Program, we offer clients a range of investment strategies we have
constructed and manage, each consisting of a portfolio of exchange traded funds (“ETFs”) and a cash allocation. The client may
instruct us to exclude up to three ETFs from their portfolio. The client’s portfolio is held in a brokerage account opened by the
client at SWIA’s affiliate, Charles Schwab & Co., Inc. (“CSC”).
We are independent of and not owned by, affiliated with, or sponsored or supervised by SWIA, CSC or their affiliates (together,
“Schwab”). The Program is described in the Schwab Wealth Investment Advisory, Inc. Institutional Intelligent Portfolios™
Disclosure Brochure (the “Program Disclosure Brochure”), which is delivered to clients by SWIA during the online enrollment
process.
We, and not Schwab, are the client’s investment advisor and primary point of contact with respect to the Program. We are solely
responsible, and Schwab is not responsible, for determining the appropriateness of the Program for the client, choosing a suitable
investment strategy and portfolio for the client’s investment needs and goals, and managing that portfolio on an ongoing basis.
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SWIA’s role is limited to delivering the Program Disclosure Brochure to clients and administering the Program so that it operates
as described in the Program Disclosure Brochure.
We have contracted with SWIA to provide us with the technology platform and related trading and account management services
for the Program. This platform enables us to make the Program available to clients online and includes a system that automates
certain key parts of our investment process (the “System”). The System includes an online questionnaire that helps us determine
the client’s investment objectives and risk tolerance and select an appropriate investment strategy and portfolio. Clients should
note that we will recommend a portfolio via the System in response to the client’s answers to the online questionnaire. The client
may then indicate an interest in a portfolio that is one level less or more conservative or aggressive than the recommended
portfolio, but we then make the final decision and select a portfolio based on all the information we have about the client. The
System also includes an automated investment engine through which we manage the client’s portfolio on an ongoing basis
through automatic rebalancing and tax‐loss harvesting (if the client is eligible and elects).
We do not receive a portion of a wrap fee for our services to clients through the Program. Clients do not pay fees to SWIA in
connection with the Program, but we charge clients a fee for our services as described below under Item 5. Clients do not pay
brokerage commissions or any other fees to CSC as part of the Program. Schwab does receive other revenues in connection with
the Program, as described in the Program Disclosure Brochure.
We do not pay SWIA fees for its services in the Program so long as we maintain $100 million in client assets in accounts at CSC that
are not enrolled in the Program. If we do not meet this condition, then we pay SWIA an annual fee of 0.10% (10 basis points) on
the value of our clients’ assets in the Program. This fee arrangement gives us an incentive to recommend or require that our
clients with accounts not enrolled in the Program be maintained with CSC.
Separate Account Manager
As part of our discretionary investment advisory services, Henssler may recommend that clients use the services of a separate
account manager to manage the entire, or a portion of, the investment portfolio. After gathering information about a client’s
financial situation and objectives, we may recommend that the client engage a specific separate account manager or investment
program. When recommending a separate account manager, Henssler considers their performance, analysis methods and fees,
along with the client’s financial needs, investment goals, risk tolerance and investment objectives. Henssler monitors each
separate account manager’s performance to ensure its management and investment style remains aligned with the client’s
investment goals and objectives.
Each selected separate account manager will actively manage the client’s portfolio and will assume discretionary investment
authority over the account. Henssler will assume discretionary authority to hire and fire each separate account manager and/or
reallocate assets to another separate account manager when we deem it appropriate and when in the client’s best interest.
Henssler will continue to provide advisory services as needed for the ongoing monitoring and review of account performance.
Henssler charges a negotiable annual advisory fee for these services. The fees are generally 1.0% of the value of the assets being
managed by the separate account manager. For such accounts, our fee is in addition to the fees charged by the separate account
manager. Henssler’s fee is invoiced monthly in advance.
Advisory fees that you pay to the separate account manager are established and payable in accordance with the disclosure
brochure provided by each separate account manager to whom you are referred. These fees may or may not be negotiable.
Clients should review the recommended separate account manager’s disclosure brochure and take into consideration the
separate account manager’s fees along with Henssler’s fees to determine the total amount of fees associated with the program.
Clients may be required to sign an agreement directly with each recommended separate account manager. Clients may terminate
the advisory relationship with the separate account manager according to the terms of the agreement with them. Clients should
review each separate account manager’s disclosure brochure for specific information on how to terminate the advisory
relationship with them, and how a client may receive a refund for any fees paid in advance. Clients should contact Henssler
directly with questions regarding the advisory agreement with any separate account manager.
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Henssler’s Client Assets Under Management: Total assets under management: $3,005,733,304.66
Type of Assets Amount
Discretionary: $2,444,891,345.06
Non‐Discretionary: $560,841,959.60
Total: $3,005,733,304.66
Total assets under management are listed as of December 31, 2023.