Frequently Asked Questions

My approach is rooted in fundamentals that can help a broad variety of clients. I do some of our best work with:

• Professionals (Age 40 – 55) who are juggling multiple responsibilities and goals and need guidance in putting all of the puzzle pieces together. They want confidence and peace in their financial life and and benefit from an educational approach that utilizes great tools to analyze and improve their approach.

• Professionals (Age 55 – 70+) who are closer to retirement (or already retired) and have questions about investing and funding a variety of goals as they get serious about retirement and living their bucket list.  This can include questions about tax-efficient and wealth-maximizing strategies for retirement income (including Social Security claiming strategies).

• I’ve built a strong connection with women (typically Age 40+) who appreciate an independent and educational approach that allows her to manage her finances and take control. My planning method and transparent compensation are well-aligned with her objectives. Not all financial advisors can make that claim.

What these groups share is a desire to work with a smart and well-trained professional that listens, answers every question and approaches work like a great teacher or caring doctor.  With a simple and transparent fee structure that is free from commissions and conflicts, it is easier to work this way.

Our approach does not work well for everyone.  If you want to be completely hands-off with your money or are not tech savvy, there are better options…especially if you are comfortable with the traditional costs and approach of the old-school financial services industry.  

Of course! I am based in Hermosa Beach, regulated by the State of California, and able to work with clients nationally. I found during covid that video meetings allowed for robust discussion and information sharing, but I can meet in person when that best meets your needs.

Only by you. 100% of our fees comes from our client, which minimizes conflicts of interest.  The title of “Financial Advisor” is ill-defined and others may include asset management fees or commissions as well as indirect compensation from others in the form of “soft dollar” compensation. Fees are calculated based on an estimate of the complexity of your financial life and your requirements. That’s it!

 Regardless of whether you chose to work with me or not, I implore you to completely understand how your financial advisors are compensated.

I do not work directly with a custodian or offer management on a discretionary or non-discretionary basis in the traditional sense. Interestingly, I am fully licensed to manage assets as a Series 65 but have found that my “Advice Only” approach is a better fit for my clients.  I work with clients jointly to make sure that they have actionable guidance across all of their assets, regardless of where they are held. If you wish to consolidate assets, there are ways to do that collaboratively.  I have found that clients have their wealth in a variety of accounts and forms (such as 401ks, IRAs, real estate, etc.) and there is no need to move or consolidate them in order to implement a successful financial plan. This approach makes the most sense at a time where you have direct on-line access to your account…and I have worked with clients to train and empower them to use the tools that are available to them. They like to learn and be empowered!

Dave Pedersen is an Investment Advisor Representative and successfully passed the Series 65 Uniform Investment Adviser Law Exam. Investment advisory services are offered through Hermosa Advisors LLC; a California-domiciled Registered Investment Advisor. Our firm is subject to the strict requirements and oversight of the California Department of Financial Protection and Innovation.

As an Investment Advisor Representative, we have a fiduciary duty to our clients. This means:

• We have a duty to act primarily for the benefit of your clients.  

• We act in good faith and exercise the highest standard of care.  

• We are loyal to our clients and will avoid/disclose any conflict of interest that could impair the advice given to our clients.  

• We have the duty and responsibility to only engage in activities that promote fair, equitable and ethical principles.

The fiduciary standard is higher than the “suitability” standard and Hermosa Advisors is happy to uphold it.

It is not a requirement that I work with them, but I do both encourage you to discuss some items with them and also defer to them in their area of expertise. Allowing us to speak with your existing professionals or having them review my recommendations ensures that  you receive comprehensive holistic advice with all aspects of your planning.

You can call me at 310.683.8553, email via dave@hermosaadvisors.com as well as schedule a 30 minute conversation in order to understand your needs and how/if you can best be served.

Sure they do. We know that nothing is free. The advisor with the “free plan” is typically compensated in one of two ways:

1. Encouraging you to buy a product with a commission attached

2. Encouraging you to move assets to their firm for ongoing management fees

These free plans are often a conversation starter for them and likely focused on their particular strengths and financial products. Hermosa Advisors will tailor a plan specifically for you and help you to implement it, with minimal conflict of interest. Insurance agents look for young families that need coverage. Wealth managers look for “investable assets”. We look for clients that want to take a proactive and educated approach to define their future.

Based in the Southern California coastal town of Hermosa Beach, lifeguards are a welcome sight on our beaches as they protect beachgoers. With a nod to their role (and mine), I use this as my logo to remind clients that I look out for them.

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