Geneos Wealth Management is a financial advisory firm based in Centennial, Colorado. The fee-based firm has billions of dollars in assets under management (AUM) and a massive network of affiliated financial advisors. It mostly advises individual investors who don’t have a high net worth, though its client base also includes a few hundred high-net-worth individuals. Geneos also works with institutional clients, like charities and corporations.
Geneos Wealth Management Group Background
Geneos Wealth Management was founded in 2002 by father-and-son duo George and Ross Diachok. They were previously involved in building a broker-dealer but decided they wanted to approach the industry in a different way. The firm is wholly owned by GWM Holdings, Inc.
Geneos Wealth Management Client Types and Minimum Account Sizes
Individual investors, especially those located near the firm’s Colorado headquarters, might find what they are looking for at Geneos Wealth Management. The firm could work for clients who are simply looking for financial planning, for which the firm charges a flat fee, or for those who are looking for full-service asset management, for which Geneos charges a percentage of assets under management. The firm is located outside of traditional finance capitals and is independent of major financial institutions, so clients looking for a firm free from any relation to big banks could look here.
In addition to individuals and high-net-worth individuals, Geneos offers services to trusts, estates, pension and profit-sharing plans, charitable organizations, corporations and other types of business entities.
The required account minimum at Geneos Wealth Management depends on the type of account that a client selects. There is no set minimum for the VIP or VIP Ultra programs. For an Axiom managed account, a $25,000 account minimum is required. However, the firm notes that it may grant exceptions at its discretion.
Services Offered by Geneos Wealth Management
Services offered by the firm include:
- Financial planning
- Consulting services
- Referrals to third-party money managers
- Asset management
- Digital planning tools
- Broker-dealer services
Geneos Wealth Management Investment Philosophy
Geneos may use any combination of the following strategies when constructing a client’s portfolios:
- Long term purchases: securities held at least a year
- Short term purchases: securities sold within a year
- Trading: securities sold within 30 days
- Short sales: the practice of borrowing securities in anticipation of a price drop
- Margin transactions: a transaction in which the investor pays for part of a purchase and borrows the rest from a brokerage firm
- Option writing (including covered options, uncovered options and spreading strategies)
- Strategic timing and strategic/tactical asset allocation
The various programs at Geneos generally use similar investment strategies. The primary difference between the programs is in how fees are charged. The Axiom Program and the VIP Ultra Program are wrap fee programs, whereas the firm's VIP Program is a traditional management program in which clients pay a management fee separately from transaction fees.
Geneos generally tailors its services according to clients' needs, and it allows clients to place restrictions on which investments and sectors are included in their portfolios. When giving investment advice, Geneos considers a client's needs and goals. It relies on various types of analysis, including charting, fundamental, technical and cyclical analysis, when making investment decisions.
Fees Under Geneos Wealth Management
Geneos Wealth Management charges a flat fee for financial planning. That fee varies based on whether you are using the firm for one-time planning, hourly planning or periodic planning, as indicated by the table below.
|Billing Frequency||Minimum Fee||Maximum Fee|
|Hourly||$35 per hour||$300 per hour|
|Periodic||$50 per period||$25,000 per period|
For asset management, the firm charges a fee based on a percentage of assets management. The fee runs from 0.50% to 2.50%, and each client will negotiate the rate with his or her advisor. The Axiom Program and the VIP Ultra Program both offer a wrap fee in which all fees are rolled into one charge. In addition to these fees, clients may incur other costs.
What to Watch Out For
There are a total of two disclosures on Geneos Wealth Management record. Most recently, in April 2018, Geneos settled SEC charges related to mutual fund share class selection. Geneos and two other prominent firms were accused of selling customers higher-priced shares when cheaper options were available, which is a breach of fiduciary duty. The firm was censured and hit with a $250,000 penalty. It also had to repay more than $1.5 million to affected clients.
The other disclosure on the firm's SEC records relates to its alleged failure to supervise and record securities transactions. As a result, the firm paid a $12,500 fine and accepted a censure.
Geneos does not have ties to a major financial institution. Also, it does not have a set fee schedule in which the percentage of assets under management decreases as the total assets increase. Make sure that the fees you are being charged are in line with what you might be paying at another advisor.
Potential clients should note that Geneos is also a broker-dealer, meaning that advisors at the firm may try to sell you products for which they will receive commission. Advisors may also be licensed insurance agents who can earn commissions for recommending certain products and services. While these additional roles and their financial incentives can pose a conflict of interest ), the firm has a fiduciary duty to always act in its clients' best interests.
Opening an Account With Geneos Wealth Management
Potential clients can email the firm at email@example.com. Another option is to call the firm at 1-888-312-5043.
Tips for Financial Planning
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