Interactive Financial Advisors Review

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Interactive Financial Advisors (IFA) is a Chicago-based financial advisor firm providing financial planning and portfolio management services through a variety of different asset allocation models. These models vary from short-term conservative to long-term aggressive, and they are chosen based on each client's risk tolerance.

This fee-based firm's client base is currently made up entirely of individuals. As a fee-based operation, certain advisors at IFA can receive commissions from third parties in addition to client-paid fees. This differs from a fee-only firm, which is one that only earns compensation from client fees.

Interactive Financial Advisors Background

Interactive Financial Advisors was founded in Chicago in 2003. The firm's CEO is Rick Peterbok and its managing partners are Gary Tsujimoto, Roderick Hill and Jonathan Kehinde Aina. OrganizAmerica, the sole owner of IFA, is in turn owned by Peterbok and chief compliance officer (CCO) Joanne Woiteshek.

This firm is part of a network of firms called the "CARES Companies." The group also includes Unifinancial Corporation and OrganizAmerica, the firm's owner. Unifinancial Corporation is a risk management analysis business, whereas OrganizAmerica provides information technology services to financial advisor firms.

Interactive Financial Advisors Client Types and Minimum Account Sizes

While Interactive Financial Advisors currently only works with individuals, the firm is also open to working with pension and profit-sharing plans, trusts, estates and charities. Of IFA's individual clients, the vast majority do not have a high net worth, although a handful do. 

There are a variety of minimum investment requirements at this firm, ranging from $1,000 to $25,000. 

Serviced Offered by Interactive Financial Advisors

Interactive Financial Advisors works with clients to provide a range of both financial planning and investment management services. To be precise, the firm's services can be divided into five main categories:

• Portfolio management services  
• Financial planning services  
• Advisory consulting services  
• Selection of other advisers
• Sub-advisory services
• Advisory services to retirement plans

The firm's portfolio management services can be broken down into a number of strategies and accounts. These asset allocation models generally range from conservative to aggressive growth:

• In-house investment management
  • Invest with Trust
• Sub-advisory investment management
  • Core strategy
  • Momentum strategy
  • Global equity strategy
  • Quantum strategy
  • Tech Leader strategy
  • Diversified Tax-Efficient strategy
• Legacy
  • Mutual fund/ETF strategy

Financial planning services at IFA are offered through a program called "CARES Client Confidential Information Organizer." The result of participating in this program is what the firm calls a "Making Life Better Official Report." Financial planning may entail advice on variety of financial topics. Specific advice ultimately depends upon what the client is looking for help with.

Interactive Financial Advisors Investment Philosophy

Interactive Financial Advisors works with clients to provide tailored investment management services. Advisors provide continuous account supervision, working with clients over the course of the engagement to ensure they have the best grasp of the client's financial situation. This includes their personal financial objectives, as well as their risk tolerance, time horizon and income needs.

Advisors use a range of investments to populate client portfolios, such as equities, fixed-income securities, mutual funds and exchange-traded funds (ETFs). Different strategies, programs and models may involve the use of certain investments instead of others. When it comes to evaluating potential investments, the firm uses fundamental analysis, modern portfolio theory and a computer-based mathematical technique known as "portfolio analyzer."

Fees Under Interactive Financial Advisors

Interactive Financial Advisors charges clients portfolio management fees based on how much they have invested with the firm. The firm's fee schedule is built using basis points (BPS), which are individually equal to 0.01%. Specific annual fee rates vary by account type, program, strategy and asset level.

Financial planning services are mainly offered on a fixed fee basis, ranging from $48 to $7,500. General financial consulting services are available on an hourly basis, and this rate ranges from $100 to $400 per hour.

What to Watch Out For

Interactive Financial Advisors does not have any legal or regulatory disclosures listed on its Form ADV.

As mentioned earlier, IFA is a fee-based firm, which means some on-staff advisors are also registered as broker-dealer representatives and insurance agents. As a result, these advisors may receive commissions from selling securities and insurance products to clients. This is a potential conflict of interest, though it is technically mitigated by the firm's fiduciary duty, which legally requires it to act in the best interests of clients at all times.

Opening an Account With Interactive Financial Advisors

If you're looking to open an account with Interactive Financial Advisors, go to the firm's website. There, you'll find the firm's email address and phone number you so you can reach out to an advisor directly.

All information is accurate as of the writing of this article.

Tips for Finding a Financial Advisor

• SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• When you're talking about investing, investors with a significant amount of wealth are referred to as high-net-worth individuals. These investors are often given access to special services and programs that those with less money are not. Take a look through SmartAsset's guide to high-net-worth individuals to figure out if you qualify.