J. Arnold Wealth Management Sees Assets Rise to $185M
CANFIELD, Ohio – The J. Arnold Wealth Management Co. LLC grew to $185 million in assets in 2019, up from $155 million.
In doing so, it became an SEC investment advisory firm with $112 million in investment advisory assets. The company, led by Jon P. Arnold, CEO and president, also grew in other ways. It added staff and built a training room for its clients.
“In terms of workforce, we promoted from within and added two key administrative assistants and one marketing person,” says Arnold.
“Infrastructure-wise, I designed and built a state-of-the-art investment training room which helps educate our clients on upcoming events that concern their investment wellbeing.”
The room also allows clients to watch workshops online from their homes via video or streaming.
“In my opinion, it’s very well done and thought out,” says Arnold.
The company’s revenue reached $1.4 million in 2019, an increase over the previous year’s revenue of $1.1 million.
Founded in 2006, J. Arnold Wealth Management has seven employees and offers investment management for families, individuals and businesses. It has offices at 3869 Starrs Centre, Canfield, and in Hobe Sound, Fla. Call 330 965 9890.
One employee, Jennifer Daily, passed the Ohio life, health and annuity test, opened her own company, and was promoted internally to operations manager in 2019.
The company made major contributions to the local Red Cross chapter last year, and also the Youngstown State University Foundation to fund its $100,000 scholarship to the Williamson College of Business.
The company outlook for 2020 indicates its growth in asset management will continue.
“We estimate, based on current market conditions, that our assets under management will hit $200 million and that our entire administrative staff will be insurance and securities licensed,” says Arnold.
“The major change is the offering of CPA tax planning and business planning services. We strategically aligned with Andrew Smith, CPA, and his firm. Our vision is that we can offer the identical services to clients at a major reduced cost in comparison to the large CPA firms in the area.”
To promote this effort, Arnold will do a weekly radio show on Wednesdays from 6 to 7 p.m. on 570-AM WKBN.
“The show will be dedicated to showcasing successful entrepreneurs in our area, giving advice to the listeners on how to create or improve their small business, and increase commerce in the area.”
Arnold says the investment advisory industry is changing and is also under pressure from computerized “roboadvisors.”
“The industry is turning upside down,” he says. “The move from broker commission-based management to investment advisory fiduciary investment management has been a paradigm shift that I do not believe the industry has adjusted to yet.
“Secondly, the monopolization of the advisory custodian platform resulting from Charles Schwab purchasing TD Ameritrade is a major earthquake in terms of servicing advisors that use these platforms.”
Arnold says that technology is also squeezing the industry as younger people acquire assets.
“Technology has become a threat to the investment advice industry as computerized roboadvisors designed to manage assets on an algorithm scenario are slowly eating into financial advisors’ book of business as the assets are being transferred to a younger generation who would rather use a roboadvisor than a person.”
The key to overcoming this challenge, Arnold says, is to keep service at the highest level while not going over budget on staffing.
“More clients equal more service,” he says. “More service equals more payroll expense. Clients will not accept an increase in fees, so the challenge is to maintain profitability while making sure there is not a decrease in customer satisfaction.”
Copyright 2023 The Business Journal, Youngstown, Ohio.