Headquartered in Phoenix, Arizona, Dynamic Wealth Advisors is a multi-billion dollar financial advisory firm with a large network of financial advisors. Through these affiliated advisors, the firm offers services such as financial planning, portfolio managment, pension consulting and educational seminars. It also boasts no minimum account size for new clients.
As a fee-based firm, certain advisors at Dynamic can sell insurance products for a commission in addition to client-paid fees. On the other hand, a fee-only firm avoid third-party commissions, instead focusing entirely on client fees.
Dynamic Wealth Advisors Background
A registered investment advisor (RIA) with the SEC, Dynamic was founded in 2008 as a Delaware limited liability company. Dynamic Management LLC, which is an Arizona-based affiliated company, fully owns Dynamic Wealth Advisors. Its current staff of employees serves nearly 4,000 clients of various types.
Dynamic Wealth Advisors Client Types and Minimum Account Sizes
Through its network, Dynamic Wealth Advisors offers investment advisory services to primarily to individuals (most of whom are high-net -orth), as well as the following types of clients:
- Charitable organizations
- Pension and profit-sharing plans
- Other investment advisors
The firm generally does not impose a minimum account size for establishing a new relationship. Some advisors, however, may require minimum total assets from a client to establish a relationship.
Services Offered by Dynamic Wealth Advisors
Dynamic Wealth Advisors manages assets on a discretionary as well as a non-discretionary basis.
With regard to discretionary services, the firm and its clients enter into what it calls an Investment Management Agreement (IMA) in order to provide Dynamic with discretion to manage one or more client accounts. Advisors will work with clients to identify goals, objectives, risk tolerance and financial situation. They will then construct portfolios based upon those factors, using various types of securities, including individual equity and fixed-income securities, mutual funds, ETFs and options.
With regard to non-discretionary services, the firm and its clients enter into what it calls an Investment Advisory Agreement (IAA) that lists out the services for Dynamic to provide. If the advisor does not have access or authority to execute trades in the account, the client is responsible for implementing, trading and executing any of the recommendations offered by the advisor.
Dynamic provides professional services to RIAs unaffiliated with the firm, including a technology platform, a range of invesment management solutions, various operational and compliance support, client account reporting through an online portal as well as the ability to service clients through various asset custodians.
Additionally, Dynamic Wealth Advisors offers financial planning and consulting services to individuals, families and businesses. This may cover one or more of the following areas: investment planning, retirement planning, personal savings, education savings and other areas of the client's financial circumstances.
Some of the firm's advisors may recommend that all or part of a client's portfolio be implemented through one or more third-party managers who are not affiliated with the firm. Some of the firm's advisors also manage and recommend allocations to outside accounts. The firm may also authorize some of its advisors to provide fiduciary or non-fiduciary services to ERISA plans.
Dynamic Wealth Advisors Investing Philosophy
When putting together investment strategies, the advisors at Dynamic Wealth Advisors primarily use fundamental and technical analysis methods. Fundamental analysis evaluates a company that has issued securities by measuring the value of its underlying assets. Technical analysis evaluates securities by analyzing the statistics associated with market activity.
In general, the firm's advisors use a long-term strategy for their clients, but may also sell and buy on a short-term basis at times, depending on the client's goals and/or the particular security, sector or asset class. Of course, all potential and current clients must keep in mind that no investment strategy guarantees against risk or loss.
Fees Under Dynamic Wealth Advisors
Investment advisory fees at Dynamic Wealth Advisors are paid quarterly in advance or in arrears. Advisors determine fees based on the market value of all AUM. Fee rates may range up to 2.25% per year, depending on the type and complexity of the management strategy, as well as the size of the account. As a result, certain accounts may be charged higher fees if the situation is more complex. Fees vary across advisors and may be negotiable at the advisors' discretion.
Fees at Dynamic can be primarily structured in one of the following ways:
- Blended Management Fee: AUM multiplied by the fee percentage in all asset ranges
- Breakpoint Management Fee: AUM multiplied by the fee percentage of the highest total asset value range in the account
- Flat Management Fee: Sum of all AUM multiplied by the fee percentage
For financial planning services, Dynamic charges a fixed or hourly rate. The fixed rate may range from $1,000 to $20,000 per project. The hourly rate usually ranges from $150 to $500 per hour.
What to Watch Out For
Dynamic Wealth Advisors does not have any disclosures on its SEC-filed Form ADV, giving it a clean legal and regulatory record.
Some of the advisors at Dynamic have the ability to sell insurance products to clients for a commission. Although this represents a potential conflict of interest, the firm's fiduciary duty requires it to act in clients' best interests at all times.
Opening an Account With Dynamic Wealth Advisors
To open an account with Dynamic Wealth Advisors, you can visit the firm's website or call (877) 257-3840.
All information is accurate as of the writing of this article.
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