Item 1 Cover Page
J/M Kaighn, Inc.
t/a
Jersey Benefits Advisors
CRD: 125129
Date: 12/31/2010
Physical Address: 34 Doe Dr.
Woodbine, NJ 08270
Mailing Address: PO Box 1406
Ocean City, NJ 08226
Telephone: (609) 827-0194
Fax: (609) 861-9257
Email: kaighn@jerseybenefits.com
Website: Jersey Benefits Advisors
This brochure provides information about the qualifications and business practices of Jersey Benefits Advisors. If you have any questions about the contents of this brochure, please contact us at (609) 827-0194 or kaighn@jerseybenefits.com. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Jersey Benefits Advisors also is available on the SEC's website at www.adviserinfo.sec.gov.
Item 2 Material Changes
None
Item 3 Table of Contents
Item Number Item Page
4 Advisory Business, Licenses & Education ............................................ 1
5 Fees & Compensation ....................................................................... 2
6 Performance Based Fees ..................................................................... 3
7 Types of Clients ................................................................................ 4
8 Methods of Analysis, Investment Strategies and Risk of Loss..................... 5
9 Disciplinary Information ..................................................................... 6
10 Other Financial Industry Activities and Affiliations .................................. 7
11 Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading........................................................ 8
12 Brokerage Practices ............................................................................ 9
13 Review of Accounts .......................................................................... 10
14 Client Referrals and Other Compensation............................................... 11
15 Custody .......................................................................................... 12
16 Discretion ....................................................................................... 13
17 Voting Client Securities .................................................................... 14
Item 4 Advisory Business
J/M Kaighn, Inc. t/a Jersey Benefits Advisors is a Registered Investment Advisor in the state of New Jersey. The firm's CRD Number is 129125. Jersey Benefits Advisors provides investment and insurance advice to clients, and publishes a quarterly newsletter.
Item 2 Material Changes
None
Item 3 Table of Contents
Item Number Item Page
4 Advisory Business, Licenses & Education ............................................ 1
5 Fees & Compensation ....................................................................... 2
6 Performance Based Fees ..................................................................... 3
7 Types of Clients ................................................................................ 4
8 Methods of Analysis, Investment Strategies and Risk of Loss..................... 5
9 Disciplinary Information ..................................................................... 6
10 Other Financial Industry Activities and Affiliations .................................. 7
11 Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading........................................................ 8
12 Brokerage Practices ............................................................................ 9
13 Review of Accounts .......................................................................... 10
14 Client Referrals and Other Compensation............................................... 11
15 Custody .......................................................................................... 12
16 Discretion ....................................................................................... 13
17 Voting Client Securities .................................................................... 14
Item 4 Advisory Business
J/M Kaighn, Inc. t/a Jersey Benefits Advisors is a Registered Investment Advisor in the state of New Jersey. The firm's CRD Number is 129125. Jersey Benefits Advisors provides investment and insurance advice to clients, and publishes a quarterly newsletter.
John H. Kaighn is the only Investment Advisory Representative of the firm, and he provides investment supervisory services, manages client accounts and furnishes investment advice through consultation with clients. Mr. Kaighn has been a registered IAR in the state of New Jersey with Jersey Benefits Advisors since 1996. His date of birth is 9/11/1952.
John H. Kaighn has a BA and an MA from Rowan University aka Glassboro State College, has FINRA licenses series 7,26 & 63 and has been a registered representative since 1993. Mr. Kaighn currently holds securities licenses in the states of CO, DE, FL, MD, NC, NJ, NY & PA and offers securities through Transamerica Financial Advisors, Inc.
John H. Kaighn has a life, health and variable life insurance license in the state of New Jersey. Mr. Kaighn is licensed with numerous insurance carriers and Jersey Benefits Group, Inc. is a licensed insurance agency in the state of New Jersey. Jersey Benefits Group, Inc. also offers Pension Consultation and TPA Services.
Item 5 Fees and Compensation
Compensation for advisory services is primarily derived from the following sources:
1. Front End Sales Commissions
2. Contingent Deferred Sales Charges
3. Percentage of Assets Under Management.
Front End Sales Commissions are generated at the point of sale and are commonly called A shares. These commissions vary by fund company. A shares usually have a 12b1 fee of .25% ($00.25 per $100.00 of assets under management) which is compensation for ongoing service and advice to clients who utilize A shares. This portion of compensation from A shares is considered a Percentage of Assets Under Management. Commissions for sales of stocks, bonds and ETF's are generated at the purchase and sale of these securities, and for clients holding mutual funds with 12b1 fees, there is no additional asset under management charge for holding stocks, bonds or ETF's.
Contingent Deferred Sales Charges are generated when a client sells an investment prior to the holding period, which can be from 9 years on some annuity products, to 6 years on B shares of mutual funds, or 1 year on C shares of mutual funds. The CDSC usually declines each year during the surrender period. This compensation method is only recommended for clients whose investment time horizon matches the surrender time line of the share class. The idea is to AVOID paying the CDSC. The 12b1 fee for products with a CDSC is usually 1.00% during the surrender period and declines to .25% when the surrender period has ended, in most cases. The 12b1 fee for C shares remains 1.00% ($1.00 per $100.00 of assets under management).
Percentage of Assets Under Management This type of compensation is usually generated through service fees associated with mutual funds, which are commonly known as 12b1 fees and provide compensation for ongoing advice and service. If a client prefers to purchase mutual funds which don't have a 12b1 fee, then a fee will be charged on total assets under management, which is 1.00%. Hourly charges may also be assessed in certain situations. Hourly charges and additional asset based fees are not charged if a client utilizes funds which have a 12b1 fee.
Item 6 Performance-Based Fees and Side-By-Side Management
Clients are not charged performance based fees.
Item 7 Types of Clients
Jersey Benefits Advisors generally provides investment advice to individuals, pension and profit sharing plans, trusts, estates, charitable organizations, corporations and other business entities. Most clients are generally invested in several, if not all of the the following types of securities:
1. Equity Securities (common stock of large, medium and small corporations)
2. Corporate Debt Securities (bonds)
3. Certificates of Deposit
4. Investment Company Securities (mutual funds, variable annuities, variable life insurance and ETF's)
5. Municipal Securities
6. United States Government Securities
Item 8 Methods of Analysis, Investment Strategies and Risk of Loss
Jersey Benefits Advisors utilizes Charting, Fundamental Analysis, Techmical and Cyclical Analysis to assess securities. The main sources of information for investment analysis are:
1. financial newspapers and magazines
2. research materials prepared by others
3. corporate rating services
4. annual reports, prospectuses and filings with the Securities and Exchange Commission
5. company press releases
6. inspection of corporate activities.
Investment strategies primarily consist of long term purchases of diversified assets which are rebalanced periodically. As with any investment past performance is no guarantee future results, and there is always a risk of loss.
1. Equity Securities (common stock of large, medium and small corporations)
2. Corporate Debt Securities (bonds)
3. Certificates of Deposit
4. Investment Company Securities (mutual funds, variable annuities, variable life insurance and ETF's)
5. Municipal Securities
6. United States Government Securities
Item 8 Methods of Analysis, Investment Strategies and Risk of Loss
Jersey Benefits Advisors utilizes Charting, Fundamental Analysis, Techmical and Cyclical Analysis to assess securities. The main sources of information for investment analysis are:
1. financial newspapers and magazines
2. research materials prepared by others
3. corporate rating services
4. annual reports, prospectuses and filings with the Securities and Exchange Commission
5. company press releases
6. inspection of corporate activities.
Investment strategies primarily consist of long term purchases of diversified assets which are rebalanced periodically. As with any investment past performance is no guarantee future results, and there is always a risk of loss.
Item 9 Disciplinary Information
Jersey Benefits Advisors has never had any disciplinary actions initiated against it.
Item 10 Other Financial Industry Activities and Affiliations
Jersey Benefits Advisors has arrangements with various other entities which are material to its advisory business or clients. John H. Kaighn is a Registered Representative with Transamerica Financial Advisors, Inc., which is a registered broker/dealer. Jersey Benefits Advisors also has arrangements with Jersey Benefits Group, Inc., a licensed insurance agency and third party administrator to assist meeting client needs for insurance and pension services. Jersey Benefits Advisors sells products and services, other than strictly advice to its clients.
Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
Jersey Benefits Advisors maintains a Code of Ethics and practices under the fiduciary standard of care. In order to help a client establish a position in a fund with a high minimum purchase price, a principal purchase may be used on occasion. Jersey Benefits Advisors also acts as a broker and effects securities transactions for compensation for clients.
Clients have the choice of maintaining a fee or commission based relationship. Transamerica Financial Advisors, Inc. is the broker/dealer recommended to clients and they review all transactions. Pershing Brokerage Accounts are also recommended to many clients. Other brokers may be used if the client's needs dictate.
Item 12 Brokerage Practices
Jersey Benefits Advisors utilizes brokerage practices to assist clients in choosing the most cost effective product to meet their investment, insurance and other financial needs. Securities transactions are provided through Transamerica Financial Advisors, Inc. and insurance brokerage services are provided through Jersey Benefits Group, Inc.
Item 13 Review of Accounts
All client accounts are constantly reviewed, no less than quarterly, by John H. Kaighn. Clients with multiple accounts receive consolidated semiannual statements, prepared by the advisor. All clients receive monthly or quarterly statements directly from the B/D, investment company or insurance company with custody of the client's assets. Online access for clients is available through the company website, which is Jersey Benefits Advisors.
Item 14 Client Referrals and Other Compensation
Jersey Benefits Advisors always accepts referrals, but does not directly or indirectly compensate any person for client referrals.
Item 15 Custody
Jersey Benefits Advisors does not maintain custody of client assets. Client accounts are held in the individual's name at Pershing, banks, insurance companies or investment companies. No client funds are commingled with the assets of Jersey Benefits Advisors.
Item 16 Investment Discretion
Jersey Benefits Advisors does not have the authority to determine, without client consent, the securities to be bought or sold, the amount of securities to be bought or sold, the broker or dealer to be used or the commission rates paid. An opt out rebalancing program exists, and to date no client has opted out. Clients certainly have the right to opt out of rebalancing programs, if they so desire.
Item 17 Voting Client Securities
All clients vote their own securities.
