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Index Fund Advisors Review

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Index Fund Advisors

Headquartered in Irvine, California, Index Fund Advisors, Inc. (IFA) is a fee-based advisory firm offering a range of wealth management services to individual and institutional clients. The financial advisor currently has nearly $3.6 billion in assets under management (AUM), with 13 advisors serving more than 6,500 clients. 

Index Fund Advisors, Inc. Background  

Founded by owner and president Mark T. Hebner, IFA has been providing investment advisory services since 1999. The firm is a registered investment advisor (RIA) with the United States Securities and Exchange Commission (SEC), and it says it specializes in providing risk-appropriate, returns-optimized, globally diversified and tax-managed investment strategies. 

Index Fund Advisors, Inc. Client Types and Minimum Account Sizes 

IFA serves individuals and high-net-worth individuals, endowments, foundations, pension and profit sharing plans, trusts, estates, charitable organizations, corporations and other business entities.

The firm generally requires clients to have at least $100,000 when opening an account.

Services Offered by Index Fund Advisors, Inc.

IFA specializes in the following advisory services:

  • Portfolio management 
  • Financial planning
  • Pension consulting 
  • Publication of periodicals or newsletters
  • Educational seminars and workshops

Index Fund Advisors, Inc. Investment Philosophy

IFA’s website says its advisors utilize a quantitative approach that emphasizes broad diversification and consistent exposure to the structural trends of global, publicly-traded markets. The RIA also uses index portfolios that work to address each client’s specific level of risk.

The firm invests in a wide range of securities, including index funds, equity securities, U.S. government securities, corporate debt securities, municipal debt securities, mutual funds and exchange-traded funds (ETFs).

Fees Under Index Fund Advisors, Inc.

For its investment advisory services, IFA charges fees which are billed quarterly and payable in advance. Additional fees include transaction and/or brokerage fees and other custodial charges. Below, we’ve listed the firm’s fee schedule for investment advisory services. 

Amount of assets Quarterly billing of annual fee Annual fee
First $500,000  0.2250%  0.90%
Next $500,000  0.1875% 0.75%
Next $1,000,000 0.1500% 0.60%
Next $2,000,000 0.1125% 0.45%
Next $2,000,000 0.0750% 0.30%
Next $4,000,000 0.0625% 0.25%
Next $10,000,000 0.0500% 0.20%

Index Fund Advisors, Inc. Awards and Recognition

Over the past four years, CNBC, Forbes, Financial Times, Financial Planning, Barron’s, Financial Advisor Magazine and WealthManagement.com have all recognized IFA as one of the top firm’s on their respective top advisor and RIA ranking lists. 

What to Watch Out For 

You won’t have much to be concerned about when working with IFA. The firm isn’t devoid of conflicts of interest, but it offers advisory services on a fee-only basis and works to honor its fiduciary duty.

Disclosures

IFA’s Form ADV doesn’t list any disclosures. 

Tips for Finding a Financial Advisor

  • Before choosing an advisor, it's important to ask certain questions to ensure the best quality of service. It's useful to ask whether your advisor honors a fiduciary standard. This ensures that your advisor works in your best interest. You'll also want to ask whether you're advisor has a fee-based or fee-only fee structure. In doing so, you can learn how your advisor is compensated and also anticipate any potential conflicts of interest. 
  • If you'd like help narrowing down your search, SmartAsset's free financial advisor matching service pairs you with up to three local advisors suitable to your needs.

All information was accurate as of the writing of this article.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research