Financial Advocates Investment Management (FAIM) - more commonly known as Financial Advocates - is a financial advisor firm with billions of dollars in assets under management (AUM). Financial Advocates' headquarters is in Olympia, Washington. The firm offers services such as financial planning and portfolio managment, though it doesn't do this in a traditional way. More specifically, the firm partners with outside financial advisors, offering them services that they then use with their own client base.
As a fee-based firm, certain advisors who partner with Financial Advocates can receive commissions from things like insurance and securities sales in addition to client-paid fees. A fee-only firm, on the other hand, focuses entirely on client-paid fees.
Financial Advocates Background
FAIM is fully owned by Financial Advocates, LLC, and it has been in business as an investment advisor since 2010. According to its website, it works with hundreds of independent financial advisors. Gary Campbell is FAIM's founder and serves as its chief strategy officer, with Angela Vlach being its president and CEO.
Financial Advocates Client Types and Minimum Account Sizes
On its own and through its affiliated advisors, Financial Advocates advises individuals with and without a high net worth, pension and profit-sharing plans, charitable organizations and corporations/businesses.
The firm does not have a set minimum account size, though some of its LPL-sponsored programs may have their own minimums.
Services Offered by Financial Advocates
Offerings from Financial Advocates include asset management services, third-party asset management programs, strategic wealth management, financial planning and consulting services and investment fiduciary and retirement plan consulting services.
The firm offers asset management services on a discretionary basis only. Asset managment services comprise the creation of a portfolio for each client, initially designed to meet a specific investment goal. Clients who opt for strategic wealth management can consolidate multiple investments into one account and receive one statement.
In terms of financial planning and consultation, services may include analysis or discussion in areas such as charitable planning, education planning, mortgage/debt analysis, insurance analysis, evaluation of lines of credit and/or business and personal financial planning.
Financial Advocates Investing Philosophy
IARs at Financial Advocates work separatey from one another and use a variety of philosophies, strategies and tools in the ways they analyze investments and complete due diligence. They may use one or more of the following methods to analyze and put together management advice: fundamental, technical, quantitative or qualitative.
Furthermore, advisors may use one or more strategies for managing assets. For example, things like long-term purchases (securities held at least a year) and short-term purchases (securities held less than a year) are some of the basics. Short sales, margin transactions and options are also used.
Fees Under Financial Advocates
The fees that Financial Advocates charges clients are negotiable and affected by several factors, including the scope and complexity of services, amount of assets managed or advised, number of plans with the client, number of participants or accounts, location of participants or accounts and number of meetings required with the client.
With regards to asset managment services, Financial Advocates generally bills clients quarterly, in advance. The firm's guidelines suggest a maximum annual fee of 2% of assets under management (AUM) and may be subject to negotiation at the discretion of the IAR. Here's the full fee schedule:
| Asset Management Fee Schedule | |
| Portfolio Value | Base Annual Fees |
| Up to $500,000 | 2.00% |
| $500,001 - $1,000,000 | 1.75% |
| $1,000,001 - $3,000,000 | 1.50% |
| $3,000,001 - $10,000,000 | 1.00% |
| $10,000,001 and more | 0.50% |
Here is the estimated dollar amount you'd pay in advisory fees based on the size of your account:
| *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 Financial Advocates* | |
| Your Assets | Annual Fee Amount Charged on All AUM |
| $500K | $10,000 |
| $1MM | $18,750 |
| $5MM | $68,750 |
| $10MM | $118,750 |
For financial planning or consulting services, the firm charges fees on an hourly basis (ranging from $50 to 300) or a flat fee basis (ranging from $250 to $30,000). Clients may have to pay fees in advance, with the firm not collecting more than $1,200 in advance of the service they provide, with certain exceptions.
What to Watch Out For
Financial Advocates Investment Management has a clean legal and regulatory record on its Form ADV.
It's important to note that advisors at Financial Advocates may also be broker-dealer representatives or insurance agents. Employees acting in these roles generally receive transaction-based fees, which can be a potential conflict of interest. That said, as an SEC-registered investment advisor, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times.
Opening an Account With Financial Advocates
To open an account with Financial Advocates, you can visit the firm's website or call (360) 866-2345.
All information is accurate as of the writing of this article.
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