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Brookstone Capital Management Review

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Brookstone Capital Management Review

Brookstone Capital Management, LLC

Brookstone Capital Management, LLC is an advisory firm located in Wheaton, Illinois. This firm has thousands of clients through its network of independent advisory representatives, or IARs. Most of these clients are individuals, though there are a few institutional clients as well. In total, the firm boasts $2.35 billion in assets under management (AUM). Brookstone provides asset management and financial planning services to its IARs, who then provide them to their clients.

Brookstone is a fee-based firm, as some of its advisors can earn commissions from selling financial products to clients via an affiliated broker-dealer or insurance agency. This is different from a fee-only firm, which doesn't receive outside forms of compensation and instead only takes advisory fees directly from clients. 

Brookstone Capital Management Background

Brookstone Capital Management was founded in 2006 by Dean Zayed. The firm is owned by Zayed and AL Marketing, LLC, known as AmeriLife. Zayed is a certified financial planner (CFP), and he also serves as the CEO of Brookstone. Darryl Ronconi is the firm's president and chief operating officer (COO), Matt Lovett is the chief compliance officer (CCO) and Mark DiOrio is the chief investment officer (CIO). DiOrio is also a chartered financial analyst (CFA).

This firm's network of IARs include a wide range of advisory certifications.

Brookstone Capital Management Client Types and Minimum Account Sizes

Through its IARs, Brookstone Capital Management works almost entirely with individuals. The vast majority of these clients are below the high-net-worth threshold. Around 50 of the firm's clients are businesses and other corporations. The firm also has the ability to work with retirement plans, trusts, estates and charitable organizations.

Brookstone offers several different investment programs and strategies. Minimum account sizes range from $5,000 to $300,000, depending on the type of strategy or mix of strategies used by each client. Here are the minimums for some of the firm's investment strategies:

  • Equity: Tactical - $40,000 to $100,000
  • Equity: Strategic - $5,000 to $50,000
  • Fixed-Income: Tactical - $2,000
  • Fixed-Income: Strategic - $5,000 to $25,000
  • Multi-Asset: Tactical - $40,000
  • Volatility: Tactical - $10,000

Other accounts and programs at Brookstone may carry other minimum requirements.

Services Offered by Brookstone Capital Management

Brookstone Capital Management provides investment and asset management services, as well as comprehensive financial planning. Each of these offerings are designed to help clients with their short-term financial needs and long-term objectives. When it comes to discretionary investment management, Brookstone works with clients to develop a personalized portfolio that might include equities, mutual funds, exchange-traded funds (ETFs), structured notes, certificates of deposit (CDs), bonds and options. The firm has a number of preset strategies and programs that it uses in investment plans.

Financial planning services are also tailored to the individual needs of clients. Brookstone typically helps businesses and individuals with issues including investment planning, insurance needs planning, retirement planning, cash flow management, debt consolidation, liquidity planning, education fund planning, estate planning and business planning.

Brookstone Capital Management Investment Philosophy

Brookstone's investment philosophy is centered around helping each client achieve their financial goals. As a result, advisors use a range of different strategies, programs and investments to craft portfolios accordingly. They take into account a wide range of factors that define each client's investor profile, such as risk tolerance, time horizon, investment history, income needs and more. By sufficiently defining these characteristics, the firm is able to create an asset allocation plan that works for the client.

Advisors use fundamental, technical and cyclical methods of analysis to help them make investments decisions for clients' portfolios. They also do significant independent research using proprietary investment software to both confirm these findings and flesh them out even further.

Fees Under Brookstone Capital Management

Brookstone Capital Management has two fee schedules for all of the investment programs and strategies that it offers. These are based on the client's AUM, with fee rates lowering as their investment gets larger. All fees below are a combination of Brookstone's annual fee and the advisor annual fee.

BCM MLCDs, BCM Municipal Bond Model, BCM Structured Notes, BCM Dividend Stock Basket, BCM Floating Rate Preferred Stock Basket, RAISE 360° Portfolios, BlackRock Strategic ETF Models, Individually Customized Mutual Fund/ETF/ Stock Portfolios, Vanguard ETF Models
Total AUM Total Annual Fee
Up to $500K 1.50%
Next $500K 1.35%
Above $1MM 1.15%

 

Alpha Seeker Portfolio, Canterbury Portf. Thermostat, CMG Opportunistic All Asset ETF, Donoghue Power Dividend, MarketGrader 100 Enh Index, MStar Dividend Select, MStar Hare Select, MStar Tortoise Select, MStar Wide Moat Select, Newfound Global Sectors, Newfound Multi-Asset Income, SmartOption
Total AUM Total Annual Fee
Up to $500K 1.95%
Next $500K 1.75%
Above $1MM 1.50%

Financial planning fees are charged as either a flat or hourly fee. Hourly rates are typically $250 per hour and flat fees range from $200 to $5,000.

What to Watch Out For

Some advisors at Brookstone Capital Management can receive commissions from the sale of insurance products or securities, meaning this is a fee-based firm. This dynamic creates the potential for a conflict of interest to arise. However, the firm is a fiduciary and is therefore legally bound to act in the best interests of clients at all times.

Disclosures

While Brookstone Capital Management does have disclosures listed on its Form ADV, none of them implicate the firm directly, but rather concern violations by some of Brookstone's affiliates.

Opening an Account With Brookstone Capital Management

To find out more about Brookstone Capital Management, go to its website and submit an inquiry form. You can also call the firm on the phone at (630) 653-1400, or email the firm at info@brookstonecm.com.

Tips for Finding a Financial Advisor

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  • There are a number of certifications across the financial advisor business that can help you to identify what a particular advisor specializes in. For example, a certified financial planner (CFP) has been trained in financial planning, whereas a certified divorce financial analyst (CDFA) can help you manage your money during or following a divorce.

How Many Years $1 Million 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.

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

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

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%. This reflects the typical return on a conservative investment portfolio. 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