Based in Dayton, Ohio, Beacon Capital Management provides investment management services to various types of clients, including individuals, pensions and profit sharing plans, financial advisors, charitable organizations, corporations and other advisory managed accounts. The fee-only firm’s investment team designs investment portfolios based on research from Nobel-Prize-winning scholars and various investment strategies.
Fee-only Beacon Capital Management was recently named to Financial Advisor Magazine’s 2023 top RIA list. It also landed on the Financial Times’ list of the top 300 registered investment advisors (RIAs) in 2019.
Beacon Capital Management Background
James Christopher Cook founded Beacon Capital Management in 2000, after graduating from Bowling Green University with a bachelor’s degree in business administration. He holds multiple securities licenses with the Financial Industry Regulatory Authority (FINRA) and is the author of the best-selling book “Slash Your Retirement Risk.”
Beacon Capital Management is owned by Sammons Financial Group.
Beacon Capital Management Client Types and Minimum Account Sizes
Beacon Capital Management serves individuals – both above and below the high-net-worth threshold – pension and profit-sharing plans and business entities.
The firm imposes various minimum investment requirements for each of its model portfolios. These range from $5,000 to $25,000, with the typical minimum account size for portfolio strategies being $25,000. That said, the firm may reduce or waive these minimums at its discretion.
Services Offered by Beacon Capital Management
Beacon Capital Management provides investment management advice through a variety of programs:
Investment Supervisory Services
Beacon Capital Management can build portfolios for clients based on their risk tolerance, time horizon, tax situation and other personal factors. The firm’s advisors would also monitor these portfolios and make certain adjustments if deemed suitable to help the client meet investment goals.
Investment Advisory Services
Beacon Capital Management can also serve as a co-advisor to clients referred to the firm by representatives of other RIA firms or broker-dealers. The firm provides these specific clients with access to one or more of the following portfolio models:
- Beacon Vantage 1.0 Portfolio Strategy: Designed for the long-term investor, this strategy invests primarily in small company stocks and value stocks through mutual funds and offers global exposure. There are aggressive, balanced and conservative models.
- Beacon Vantage 2.0 Portfolio Strategy: Aims for consistent returns while avoiding significant losses, this strategy invests equally in stocks across 11 different market sectors. It also gives equal weight to long-term, intermediate-term and short-term fixed-income holdings.
- Beacon Vantage 3.0 Portfolio Strategy: In addition to sharing objectives and asset allocations with Vantage 2.0, this strategy offers an alternative investment and bond model. The alternative portfolio aims for equal investment across currencies, commodities and private equity investment products. The bond portfolio offers exposure to extended duration, long-term, intermediate-term, inflation-protected and short-term fixed-income holdings.
- Beacon Vantage 3.0 American Portfolio Strategy: This strategy relies on a tactical asset allocation methodology and is put together in partnership with the capital markets team from American Funds, a mutual fund company.
Also, Beacon Capital Management can provide its model portfolio strategies to separately managed accounts (SMA) and unified managed accounts (UMA) through platform providers such as Envestnet, Lockwood Advisors and Trust Company of America.
Beacon Capital Management Investment Philosophy
Beacon Capital Management’s investment philosophy is driven by the following three principles:
- Maximize diversification through equal sector allocation
- Minimize losses with mechanical investments
- Maintain discipline to protect from emotion-based decision-making
The investment philosophies of various scholars also inform the firm's approach. For instance, the Beacon Vantage 1.0 Portfolio follows an asset-allocation strategy based on the work of Eugene Fama and Kenneth French.
Fees Under Beacon Capital Management
Clients receiving the firm’s investment supervisory services negotiate fees with their advisors. These fees may not exceed 1.8% of assets under management (AUM) annually, though there is a $400 minimum fee per year.
| Investment Advisory Fee Schedule | |
| Average Daily Value of Client Account | Annual Fee Rate |
| $0 - $499,999.99 | 0.55% |
| $500,000 - $999,999.99 | 0.35% |
| $1,000,000 and up | 0.15% |
Here's a breakdown of what you might pay in advisory fees at this firm. For context, a 2018 study by RIA in a Box found that the average annual advisory fee is 0.95% of 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 Beacon Capital Management* | |
| Your Assets | Beacon Capital Management Fee Amount |
| $500K | $1,750 |
| $1MM | $1,500 |
| $5MM | $7,500 |
| $10MM | $15,000 |
Beacon Capital Management negotiates separately managed account (SMA) fees with platform providers. These can be as high as 0.55% with an annual $400 floor.
What to Watch Out For
Beacon Capital Management had no legal or disciplinary matters to report in its most recent SEC filings.
Beacon Capital Management focuses on investment management services. So if you want financial advice on other topics like estate planning or debt management and savings strategies, you may want to look elsewhere.
Opening an Account With Beacon Capital Management
Those interested in working with Beacon can visit the firm's website and submit a contact form. You can also contact the firm over the phone or visit in person to speak with someone who can help.
All information was accurate as of the writing of this article.
Tips for Finding the Right Financial Advisor
- Beacon Capital Management may not focus on individualized financial planning, but we can help you find a firm that does. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Fee structures can vary widely across advisors, and the difference can take a big chunk out of your balance. So make sure you know how prospective financial advisors get paid. Some work on a fee-only basis, which means they make money solely from clients. Other advisors may get a commission from vendors, in addition to the advisory fee they collect from clients, which may present potential conflicts of interest.
