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 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|
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.
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