Advance Capital Management, Inc.
The founders of Advance Capital Management come from a slightly different background than most financial advisors — they managed the pension at Michigan Bell. While there, they noticed a lot of people didn't understand planning for retirement, so they decided to move into the financial advising space.
The fee-only firm has been providing investment management and financial planning services to a wide variety of clients in Southfield, Michigan, since the 1980s. With nearly $3 billion in assets, Advance Capital is on SmartAsset top financial advisor lists for both Southfield and Michigan.
Advance Capital Management Background
Advance Capital Management formed in 1986. Today, it’s owned by Advance Capital Group, Inc. At the helm, Daniel D. McHugh is a certified financial planner (CFP) and certified public accountant (CPA).
Advance Capital Management Client Types and Minimum Account Sizes
Advance Capital Management works with individuals, investment advisors, investment companies, pensions, retirement plans, trusts, estates, charitable organizations and corporations. Individual investment accounts do not have minimum size requirements.
Services Offered by Advance Capital Management
Advance Capital Management focuses on financial planning and discretionary investment management services. Its advisors meet with clients to create financial plans that cover various aspects of their financial lives from budgeting to estate planning. For each client, the firm will base investment recommendations on the person's financial plan.
Advance Capital Management Investing Philosophy
As just noted, Advance Capital Management uses the financial plan it designs for clients as the cornerstone of its investment recommendations. The firm generally recommends mutual funds and exchange-traded funds. Advisors, though, may consider other types of securities. These may include exchange-listed and over-the-counter securities, foreign issues, warrants, corporate debt securities, commercial paper, certificates of deposit, municipal securities and U.S. government securities. Individual clients' portfolios are actively managed and on a discretionary basis.
Fees Under Advance Capital Management
For investment management services, the firm charges annual asset-based fees. We provide the current fee schedule below. These fees are billed separately at the end of each month based on the fair market value of the assets held in your account.
|Assets Under Management||Annual Fee Rate|
|Assets in excess of $1,000,000||0.65%|
Keep in mind that these fees are negotiable. Also, they apply to services provided by Advance Capital Management. They don’t include other expenses your account may incur such as brokerage fees, custodial costs and fund fees.
The chart below shows what you'll pay in management fees based on how much money you have at the firm. The average asset management fee in the United States is 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Advance Capital Management*|
|Your Assets||Firm Name Fee Amount|
Accounts with less than $200,000 are also subject to a service fee of between $40 and $100.
What to Watch Out For
Within the past 10 years, Advance Capital Management has not undergone any legal or disciplinary events that would be material to a client’s evaluation of the firm’s business practices.
Opening an Account at Advance Capital Management
To speak to someone about opening an account at Advance Capital Management, fill out the form on this page.
Tips for Finding the Right Financial Advisor
- Want an advisor who will manage your assets on a non-discretionary basis? Use SmartAsset financial advisor matching tool to find one. It recommends up to three local advisors in five minutes.
- Know how your advisor gets paid. While they may sound interchangeable, there is a difference between fee-only and fee-based advisors. Namely, the former may have fewer conflicts of interest than the latter.
All information was accurate as of the writing of this article.