Headquartered in Charlotte, North Carolina, Independent Advisor Alliance, LLC (IAA) is an advisory firm whose network of 175 advisory representatives offer an array of services to various client types. The fee-only financial advisor has more than $4.7 billion in assets under management (AUM) and nearly 24,200 clients.
Independent Advisor Alliance Background
IAA was established in 2012, but it became a registered investment advisor (RIA) in 2013. The firm partners with LPL Financial LLC to offer securities and investment products. Robert Russo owns the firm and serves as CEO. Jessica Sexton serves as chief compliance officer, while Chris Zaccarelli is the firm’s chief investment officer. Jon Reidenouer is the firm’s chief operating officer.
The certified financial planner (CFP) and chartered financial analyst (CFA) designations are just of few of the qualifications some of the firm’s professionals have earned.
Independent Advisor Alliance Client Types and Minimum Account Sizes
The firm serves non-high-net-worth individuals and high-net-worth individuals, trusts, estates and small businesses. Its minimum account requirement varies based on account type, but minimum account sizes generally range from $5,000 to $250,000.
Services Offered by Independent Advisor Alliance
IAA offers the following advisory services:
- Portfolio management
- Financial planning
- Pension consulting
- Selection of other advisors
- Educational seminars/workshops
- Publication of periodicals or newsletters
Independent Advisor Alliance Investment Philosophy
IAA advisors design portfolios with asset allocations that align with each client’s investment objectives. The firm says it works to minimize transaction costs, maximize diversification and anticipate market fluctuations.
Advisors utilize a range of investments when building client portfolios. These include mutual funds, exchange-traded funds (ETFs), variable annuity subaccounts, alternative investments, individual stocks and bonds.
Fees Under Independent Advisor Alliance
When it comes to asset management services, IAA charges an annual fee of up to 2.00% of client AUM. This fee is billed quarterly in advance. For acccounts where the advisory fee is shared between IAA and an advisory representative, the firm receives up to 12% of the advisory fee.
For wrap program accounts, clients pay the firm a single annual fee. From this fee, IAA pays the account's custodian an annual administrative, asset-based fee. The firm pays a maximum of 0.6% when LPL is the custodian, 0.12% for accounts held at Fidelity and 0.22% for accounts held at TD Ameritrade.
For the firm’s Manager Access Select program, its third-party management programs and other model portfolios, annual advisory fees may be up to 3.00% of client AUM.
What to Watch Out For
The firm offers a wide array of investment programs. Each third-party advisor, portfolio model or platform will have its own fees, on top of the IAA advisor's. For example, when your IAA advisor refers you to a third-party money manager, you will pay either an asset-based referral fee or a flat fee (of a maximum $800) to your IAA advisor. Or if you sign up with Betterment, a robo-advisor, you will still pay an advisory fee to the IAA advisor. So that you aren't surprised by your account statements, be sure you are aware of all the fees before agreeing to any investment plan.
In its most recent filings with the Securities and Exchange Commssion, IAA had no legal or disciplinary actions in the past 10 years to report.
Opening an Account With Independent Advisor Alliance
To open an account with IAA, visit the firm’s Charlotte-based principal office at 11525 N. Community Road, Suite 575. You can also set up an appointment with an advisor by calling the firm at (888) 430-1555.
Tips for Finding the Right Financial Advisor
- Are you interested in trying to beat the market or do you just want to track it? Your financial advisor's investing strategy should align with yours. Our free pro matching service can help you find a suitable advisor. After you answer a few questions, the tool will match you with up to three local advisors who meet your needs.
- Ask prospective advisors if they adhere to the fiduciary standard of putting clients’ interests first. Yes is the ideal answer, of course. But they may follow a lower standard of providing only suitable recommendations.
All information was accurate as of the writing of this article.