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Larson Financial Group Review

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Larson Financial Group, LLC

Larson Financial Group is a financial advisor firm located in Chesterfield, Missouri-based. It manages over $1 billion in assets and provides a range of financial planning and portfolio management services. 

This firm charges standard advisory fees, but some of its advisors also receive commissions from the sale of insurance products to clients. This makes Larson a fee-based firm, which is markedly different from a fee-only firm.

Larson Financial Group Background

Larson Financial Group was established in 2006. Paul Larson is the founder and CEO of the firm. He is also the owner of Larson Financial Holdings, LLC, of which Larson Financial Group is a wholly owned subsidiary.

This firm employs a large team of financial advisors with professional certifications, including the chartered retirement planning counselor (CRPC), certified financial planner (CFP), chartered life underwriter (CLU) designations.

Larson Financial Group Client Types and Minimum Account Sizes

Larson Financial Group's client base consists primarily of individuals below the non-high-net-worth threshold. However, it also works with some high-net-worth individuals, who make up less than 20% of the firm's client base but account for just under half of its total assets under management (AUM). The firm also works with some businesses and pension and profit-sharing plans.

Larson Financial Group does not have a stated minimum account size.

Services Offered by Larson Financial Group

Larson Financial Group offers investment advisory services, model portfolio management and financial planning services. Investment advisory services are tailored to the individual needs of each client by taking into account their risk tolerance, time horizon and financial objectives. Advisors provide this service through several different asset allocation portfolios and automated investment platforms. These models range from extremely risk-averse to highly aggressive. 

Financial planning services most often relate to one or more of the following topics:

  • Tax and cash flow planning
  • Investment planning
  • Insurance planning
  • Retirement planning
  • Death and disability planning
  • Estate planning

Larson Financial Group Investment Philosophy

Larson Financial Group bases its investment philosophy on the long- and short-term goals and needs of each individual client, especially in regards to their risk tolerance and time horizon. The firm's model portfolios are all designed for a certain risk level and, in turn, a realistic return output. Advisors also work to determine an asset allocation strategy that will help each client meet their specific objectives.

The firm and its advisors comprehensively research, analyze and evaluate all potential investments for clients' portfolios. As a general rule they invest in:

Fees Under Larson Financial Group

Investment advisory fees at Larson Financial Group are based on a percentage of each client's total AUM. These fees are charged in advance on a quarterly basis. Clients can choose to pay fees via an invoice, or charges can be deducted directly from their account.

Larson Financial Group Investment Management Fees
Assets Under Management Annual Fee Rate
Up to $250K 1.75%
$250K - $500K 1.50%
$500K - $750K 1.25%
$750K - $1MM 1.00%
$1MM - $2MM 0.90%
$2MM - $3MM 0.80%
$3MM - $5MM 0.70%
$5MM and above Negotiable

In dollar terms, here's approximately how much you would pay in fees:

*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.
Estimated Investment Management Fees at Larson Financial Group*
Your Assets Larson Financial Group Fee Amounts
$500K $8,125
$1MM $13,750
$5MM $44,750
$10MM Negotiable

Financial planning fees are negotiable and depend on the scope of services provided. These fees generally range from $1,500 to $20,000 annually.

What to Watch Out For

Larson Financial Group has one disclosure of a regulatory action on its Form ADV involving an affiliated broker-dealer, not the firm itself. According to U.S. Securities and Exchange Commission records, a representative of Larson Financial Securities correspended with six customers about variable universal life insurance policies in 2012 and 2013 but did not provide all of the required disclosures and illustrations. As a result, the representative was suspended for 15 days. 

Also remember that Larson Financial Group is a fee-based advisory firm, which means advisors may receive third-party commissions. Specifically, some of its advisors receive commissions from the sale of insurance and investment products through an affiliated broker-dealer. This creates the potential for a conflict of interest to arise, as the firm may be incentivized to recommend these insurance products to clients regardless of their needs.

That said, the firm is still a fiduciary and is therefore legally bound to act in the best interests of its clients. Furthermore, the firm does not charge clients investment advisory fees on products for which they earn a commission.

 

Opening an Account With Larson Financial Group

Those looking to become a client of Larson Financial Group can go online to its website and request a consultation. You can also reach the firm over the phone at (866) 569-2450.

Tips for Financial Planning

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How Long $1mm 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 We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

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%. 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