Nations Financial Group, Inc. is a financial advisory firm with its main office located in Cedar Rapids, Iowa. This firm is an advisor network that provides resources to independent financial advisors. As such, it does not work directly with clients. The advisors at Nations manage billions in assets under management (AUM).
This is a fee-based firm, as advisors in the network collect compensation from the sale of specific insurance products or securities. That's in contrast to a fee-only firm, whose compensation comes only from client-paid fees.
Nations Financial Group Background
Nations Financial Group has been in business since 1999. NFGI Holding Corporation is the firm's direct principal owner. President and CEO Richard Scott Bennett own NFGI Holding Corporation, making him the indirect owner of Nations.
Nations Financial Group Client Types and Minimum Account Sizes
Of the firm's clients, the vast majority are non-high-net-worth individuals. The rest are a mix of high-net-worth individuals, retirement plans, charities and corporations.
Nations Financial Group typically imposes a minimum investment amount of $25,000. However, minimum requirements are ultimately determined by each individual advisor. All minimums are negotiable and waivable. The fee for third-party management services will vary depending on the program and advisor. This could range from $25,000 to $250,000.
Services Offered by Nations Financial Group
Nations Financial Group's advisors offer a range of financial services, including investment portfolio management, model portfolios and financial consulting. When it comes to portfolio management, advisors manage assets on both a discretionary and non-discretionary basis. All services are tailored to the individual needs and preferences of each client, including their risk tolerance, time horizon, income needs and more.
Nations Financial Group Investment Philosophy
Because the Nations Financial Group is a network of independent financial advisors, there isn't a specific investment philosophy that all advisors adhere to. However, there are several risk-adjusted model strategies that clients can take advantage of.
While advisors may invest in a wide range of securities, strategies tend to involve stocks, bonds, options, variable annuities, exchange-traded funds (ETFs) and mutual funds. Additionally, advisors take into account the financial objectives of clients when creating their asset allocations.
In evaluating investment opportunities, advisors typically use fundamental, technical, quantitative and qualitative methods of analysis. Again, there's a significant emphasis on asset allocation planning, but advisors pursue a range of investment strategies like long- and short-term purchases, trading, short sales, margin transactions and option-writing.
Nations Financial Group Fees
Fees under Nations Financial Group for advisory services are negotiable and vary from client to client. When it comes to the fees that Nations Financial Group's network of advisors charges for its services, they are divided between those within its wrap fee program and those that aren't. Non-wrap fee annual charges can go as high as 2.25%, while Nations' wrap fee programs incorporate higher fees that are capped at 2.50% annually.
Clients pay all fees to Nations directly, not their individual advisors. Fees are calculated and billed on a quarterly basis.
Learn more about advisors' typical costs here.
What to Watch Out For
Nations Financial Group's legal and regulatory record is free of any disclosures of legal or disciplinary action at the time of this writing.
One thing to note: Again, Nations Financial Group is a fee-based financial advisory firm, meaning some advisors earn commissions for securities and insurance sales. This is a potential conflict of interest. That said, the advisory is bound by its fiduciary duty to act in the best interests of clients at all times.
Opening an Account With Nations Financial Group
To open an account with Nations Financial Group, go to the firm's website and submit a contact form, and an advisor will reach out to you. Or you can call the firm's toll-free number, (800) 351-2471.
All information is accurate as of the writing of this article.
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