Capital Management Group, Inc. (CMG) is a small financial advisor firm based out of Wheaton, Illinois. The firm employs just two financial advisors who take care of the firm’s $54 million in client assets under management (AUM). This is a fee-only firm, so it earns revenue solely from the fees that its clients pay. This is different from a fee-based firm, which receives compensation from a combination of client fees and outside sources.
The primary service at CMG is its customizable investment portfolio management. However, the firm does also offer retirement planning for individuals (both with and without a high net worth). The only other client type that the firm works with is pension and profit-sharing plans.
Capital Management Group Background
From 1985 to 2000, Capital Management Group did business under the name Green, Plagge & Associates, Inc., an accounting company with some investment offerings. As of 2000, though, the firm changed to its current name.
Today, CMG is under the principal ownership of firm president Michael Green and portfolio manager and equity analyst Brian Greene. Brian Greene is a chartered financial analyst (CFA).
What Types of Clients Does Capital Management Group Accept?
Over 80% of Capital Management Group’s client base consists of non-high-net-worth individuals and high-net-worth individuals. The firm’s remaining clients are trust accounts and corporate pension and profit-sharing plans.
Capital Management Group Minimum Account Size
For the most part, Capital Management Group requires new clients to invest at least $100,000 upon joining the firm. Accounts smaller than this may find CMG’s $1,250 minimum annual fee to be cost prohibitive. At its discretion, Capital Management Group may decide to adjust or waive its minimum requirements.
Services Offered by Capital Management Group
Capital Management Group is built around investment management, though it does pair this with retirement planning for individuals. Here’s a specific overview of what the firm can do:
- Investment management
- Plans are customized based on your answers to an investor questionnaire
- Development of your risk tolerance and investment guidelines
- Investment performance evaluation and rebalancing
- Client-imposed security restrictions
- Retirement planning
- Review of your current retirement assets
Capital Management Group Investment Philosophy
First and foremost, Capital Management Group bases its investment approach on the specifics of the investor. This involves doing a deep dive on their risk tolerance, time horizon, income and liquidity needs, investment objectives and any other applicable factors. Based on these specifics, an investment plan is put into place.
In order to adequately meet the varying needs of clients, CMG is open to investing in a wide selection of securities. The most notable among these are individual equities, fixed-income securities, no-load mutual funds and cash and cash equivalents.
Fees Under Capital Management Group
Capital Management Group utilizes an extremely simple fee schedule that charges rates based on a percentage of clients’ AUM. In fact, the firm charges a flat 1.00% annual fee regardless of your account’s balance. This differs drastically from the AUM-based tier system that many other similar firms adhere to.
All advisory fees at CMG are billed in arrears based on the market value of your assets on the last day of the preceding quarter. You can choose to pay these fees either through direct withdrawal or via bill statements.
What to Watch Out For
Note that Capital Management Group is only registered with the U.S. Securities and Exchange Commission (SEC) to operate in the state of Illinois. Therefore prospective clients outside of the Prairie State may not be able to open an account at CMG.
Capital Management Group’s Form ADV is devoid of all disclosures, giving it a clean legal and regulatory record in the eyes of the SEC.
Opening an Account With Capital Management Group
If you’re interested in becoming a client of Capital Management Group, the easiest way to do so is call (630) 587-0198. According to the firm’s website, if you call, ask for Mike or Brian. Otherwise, stop by CMG’s only office location in Wheaton, Illinois.
Where Is Capital Management Group Located?
You can visit Capital Management Group’s headquarters in Wheaton, Illinois at 2100 Manchester Road. Once you’re there, the firm can be found in Building B, Suite 910. It’s located directly down the street from Dupage County Veterans Memorial.
Tips for Your Investment Portfolio
- Before you invest your hard-earned money in the market, a financial advisor might be worth looking into. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- One of the most important things to remember about investing is that you’ll need to pay taxes on your returns. This is called the capital gains tax. If you’re unsure of what to expect from these IRS charges, try SmartAsset’s capital gains tax calculator.