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AdvicePeriod Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

AdvicePeriod, LLC

AdvicePeriod, LLC is a fee-only firm with its headquarters located in Los Angeles, California. Its financial advisors are equipped to provide advice around investment management, retirement savings, tax planning and more.

As a fee-only firm, all of AdvicePeriod's compensation comes from client-paid fees. On the other hand, a fee-based firm earns both client-paid fees and third-party compensation as income.

AdvicePeriod Background

AdvicePeriod launched in 2013. OpenAdvisors, LLC, is its majority owner, which, in turn, is owned by Steven D. Lockshin. The firm generally supports investing in low-cost, passively managed index funds, but will consider active management and alternative investments if it considers them suitable for helping meet the client’s investment objectives. 

AdvicePeriod Client Types and Minimum Account Size

AdvicePeriod works with non-high-net-worth and high-net-worth individuals, charitable organizations and corporations.

The firm generally does not require a minimum portfolio size in order to establish and maintain a relationship. However, the firm may choose not to work with clients with smaller amounts to invest, any the firm may also impose minimum annual fees. 

Services Offered by AdvicePeriod

AdvicePeriod offers financial planning and investment advisory services. Its emphasis is on helping people plan their financial life. Of course, investing is a core competency, but it is just one part of the financial plan package. Generally, the firm allocates client assets across passively managed index funds. But it will consider other strategies if it believes they can help clients meet their investment goals and if it believes they're appropriate based on the client's risk tolerance and other factors. 

When appropriate, the firm may also recommend the use of independent money managers. Clients would come into separate agreements with these firms, which set fees and other terms. However, AdvicePeriod would monitor and evaluate the strategies of these third-party managers in order to ensure they align with your investment objectives and overall best interests. 

In certain cases, the firm may recommend an automated robo-advisory program provided by Betterment LLC, an affiliated third-party advisor. These programs generally invest in exchange-traded funds that adhere to your risk levels and other variables. 

AdvicePeriod Investment Philosophy

AdvicePeriod relies heavily on passively managed or tax-advantaged securities including certain types of mutual funds and exchange-traded funds. But if the firm finds that other options may help you reach your investing goals, it will consider a wider net of securities. 

When evaluating active management strategies or alternative investments, the firm turns to reports and materials provided by leading firms that focus on investment manager research and due diligence 

Fees Under AdvicePeriod

AdvicePeriod generally charges its advisory fees as 0.95% (or 95 basis points) of the market value of the assets being managed. In certain cases, however, that amount may be higher or lower. This annual asset-based fee is generally prorated and charged on a quarterly basis. 

The firm’s advisory fees may not cover other fees and expenses that your account would bear. These can come from third-party firms involved in the management of your account such as broker-dealers, custodians and fund managers. Additional fees may come in the form of brokerage commissions, transaction fees, charges associated with the underlying funds your portfolio invests in and more. 

Fees for stand-alone financial planning services are typically charged on a fixed-fee basis and would depend on the magnitude of services requested and on agreements between the client and the advisor. However, fees for any of the firm’s services may be negotiable at the discretion of AdvicePeriod.

The following chart shows about what you'll pay in fees at AdvicePeriod based on your total AUM:

*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 AdvicePeriod*
Your Assets AdvicePeriod Annual Fee Amount
$500K $4,750
$1MM $9,500
$5MM $47,500
$10MM $95,000

What to Watch Out For

AdvicePeriod reported one disciplinary events in its latest filings with the Securities Exchange Commission (SEC). However, the firm's Form ADV doesn't go into any detail on the occurance.

Certain persons at AdvicePeriod may have have equity in Betterment’s parent company, which means they have a conflict of interest when it comes to recommending the robo-advisor. That said, as a fiduciary, the firm must always place clients’ interests first.

Opening an Account With AdvicePeriod

You can open an account with the firm by visiting its website or by calling the firm.

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

Tips on Finding the Right 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.
  • Ask prospective advisors how they get paid. You ultimately want to understand how much a financial advisors costs. Ideally, you want one whose only compensation is the fees he or she charges clients - and not also commissions from third parties. If the advisor does receive commissions, ask for the terms. If what he or she says is confusing, you may want an advisor who can explain things more clearly - particularly when related to the advisor’s compensation and your investment plan.

How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research