Kovack Advisors is a financial advisor firm based in Fort Lauderdale, Florida, whose motto is "Independent. Strong. Supportive." Though the firm serves both individual and institutional clients, it focuses on the former. In total, the firm has billions of dollars in assets under management (AUM) and over 11,000 clients.
This is a fee-based firm, which means it's advisors can receive compensation in the form of either client-paid fees or third-party commissions for things like insurance or securities. A fee-only firm, on the other hand, earns all income from client-paid fees.
Kovack Advisors Background
Founded in 2004 by former chairman Ronald Kovack and Brian Kovack, current president Chris Mills, the firm functions as a registered investment advisor (RIA) that also works with a network of independent advisors who are scattered throughout the country. The firm is a wholly-owned subsidiary of Kovack Financial, LLC. Today, the firm is run by president Chris Mills and vice president for advisory services Melinda Wolfe.
Kovack Advisors Client Types and Minimum Account Sizes
Kovack Advisors serves non-high-net-worth and high-net-worth individuals, pension and profit-sharing plans, banks and thrift institutions, charitable organizations and corporations. However, individuals are far and away its most common client type.
Kovack has varying minimum account size requirements. These typically range from $10,000 to $100,000 depending on the services you use.
Services Offered by Kovack Advisors
Through its own advisors and network of investment advisor representatives (IARs), Kovack Advisors offers the following advisory services:
- Financial planning
- Retirement planning
- Estate planning
- Education funding
- Business planning
- Charitable gift planning
- Long-term care planning
- Survivor income needs
- Investment portfolio management
- Wrap fee programs
- Available through third-party programs
- Customizable portfolios
Kovack Advisors Investment Philosophy
Kovack’s investment strategies include asset allocation, dollar-cost averaging, technical analysis, long-term purchases and short-term purchases. The firm says that, when employing these strategies, it considers each client’s investment objectives, risk tolerance and time horizon.
The firm utilizes mutual funds, exchange-traded funds (ETFs), U.S. stocks, foreign stock, investment-grade fixed-income securities, non-investment-grade fixed-income securities, tax-exempt municipal bonds, U.S. government and government agency securities, derivatives, real estate investment trusts and business development companies
Fees Under Kovack Advisors
For investment advisory services, Kovack typically charges an annual fee of up to 2.90% of assets. The firm also charges up to this rate for third-party asset manager services. For financial planning, Kovack charges up to $350 per hour. Generally speaking, fees are charged on a quarterly basis, in advance.
What to Watch Out For
Kovack Advisors has nine regulatory disclosures listed on its Form ADV, although only one is attributed directly to the firm itself.
As mentioned earlier, certain Kovack advisors can earn commissions from the sale of investment products or insurance. Advisors may also generate additional fees from mutual funds. Both compensation arrangements can create a potential conflict of interest, but Kovack says it abides by a fiduciary obligation to protect each client’s best interests.
Opening an Account With Kovack Advisors
If you’re interested in setting up an account with Kovack, you can visit the firm’s Florida office or you can call (954) 782-4771 to schedule an appointment.
All information is accurate as of the writing of this article.
Retirement Planning Tips for Beginners
- A financial advisor can help you get the retirement planning process started. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Social Security is an important part of retirement planning. These benefits can greatly affect how much you’re able to spend during your post-employment years. Our Social Security Calculator can help you determine just how much you may be eligible to receive once you reach retirement age.
