Goldstone Financial Group Review
Goldstone Financial Group is a financial advisor firm located in Oakbrook Terrace, Illinois with close to $139 million in assets under management (AUM). The firm works with a mix of individuals and high-net-worth individuals. Goldstone Financial Group was founded in 2008, and it specializes in ongoing portfolio management services.
Goldstone Financial Group Background
Goldstone Financial Group has been in business for over a decade. Today, the firm has two owners: principal Michael August Pellegrino and principal and chief investment strategist Anthony Pellegrino. The duo has more than 20 years of combined financial services experience and co-hosts a weekly television show called “Securing Your Financial Future™” on CBS 2.
Michael Pellegrino and Anthony Pellegrino are two of the firm’s six advisors. The firm has one certified financial planner (CFP) as part of the team.
What Types of Clients Does Goldstone Financial Group Accept?
Goldstone Financial Group works with around 1,400 clients, all of them individuals; about 200 of these are high-net-worth individuals.
Goldstone Financial Group Minimum Account Sizes
Goldstone Financial Group has $50,000 account minimum for individuals seeking portfolio management services. The firm may waive this minimum at its discretion.
Services Offered by Goldstone Financial Group
Goldstone Financial Group’s flagship offering is its ongoing portfolio management. This service can include the following:
- Investment strategy planning
- Asset allocation planning
- Risk tolerance determination
- Personal investment policy creation
- Asset selection
- Regular portfolio monitoring
Goldstone may occasionally use sub-advisors or recommend clients to third-party money managers. The firm provides access to a wrap-fee program as well, in which client accounts are supervised by separate managers. For this service, clients are charged a single fee that covers both management and transactional costs.
Goldstone Financial Group Investment Philosophy
Goldstone Financial Group attempts to find the asset allocation strategy that best fits each client’s risk tolerance, time horizon and financial goals. The firm uses its own proprietary asset management model, Proactive Asset Management, to help come up with these allocation strategies.
Goldstone also uses a number of methods when analyzing securities, including fundamental, technical, cyclical and charting analysis. When choosing securities for client accounts, the firm will consider the client’s objectives, sensitivity to taxes, liquidity needs and tolerance for risk and volatility.
Fees Under Goldstone Financial Group
Goldstone Financial Group charges advisory fees according to two separate fee schedules. One applies to standard portfolio management clients, while the other is reserved for those who subscribe to the wrap-fee program.
|Assets Under Management||Fee Percentage|
|Up to $1,000,000||1.20%|
|$1,000,001 - $3,000,000||0.90%|
|Wrap Fee Portfolio Management*|
|Assets Under Management||Fee Percentage|
|Up to $500,000||1.50%|
|$500,001 - $1,000,000||1.25%|
You’ll notice that the fee rates for wrap fee portfolio management are higher than the standard offering. This is because the wrap fee percentages encompass all transactional and custodial fees that you would normally have to pay separately.
Check out this table to see how fees at Goldstone Financial Group compare to rest of the industry. Note that these are only estimates.
|Estimated Fee Comparison*|
|Your Assets||Goldstone Financial Group Portfolio Management Fees||National Median Advisory Fees**|
|$1MM||$12,000||$8,500 - $10,000|
|$5MM||$30,000||$25,000 - $32,500|
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
What to Watch Out For
As a fee-based firm, some members of Goldstone Financial Group’s advisory staff can earn commissions specifically from the sale of certain insurance products to clients. Although this has the potential to cause a conflict of interest, the firm is legally bound by fiduciary duty to act in clients’ best interests, no matter what.
Opening an Account With Goldstone Financial Group
The simplest way to become a client of Goldstone Financial Group is to call the firm directly at (630) 620-9300. If you prefer to do things in person, you could also stop by any of the firm’s three offices in the Chicago area. You can also schedule an appointment on the firm’s website by heading to the “Contact Us” tab.
Where Is Goldstone Financial Group Located?
Goldstone Financial Group is located on Butterfield Road in Oakbrook Terrace, Illinois. Oakbrook Terrace is located between Lombard and Downers Grove, which is about a 30-minute drive from Chicago. The firm also has secondary offices in St. Charles, Illinois and Hoffman Estates, Illinois.
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