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:
- Fixed-income securities
- Certificates of deposit (CDs)
- Variable annuities and life insurance
- Mutual funds
- Exchange-traded funds (ETFs)
- Interests in businesses and partnerships
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|
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.
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