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 have over 2,500 clients and $1.03 billion in assets under management (AUM).
This is a fee-based firm, as advisors in the network can earn extra compensation from the sale of specific insurance products or securities. That's in contrast with a fee-only firm, which would receive compensation 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. Firm president and CEO Richard Scott Bennett owns NFGI Holding Corporation, making him the indirect owner of Nations. The firm employs 57 financial advisors in total.
Nations Financial Group Client Types and Minimum Account Sizes
Nations Financial Group's advisors work with a collective 2,500 clients. Of these clients, almost 90% are non-high-net-worth individuals. However, these advisors do maintain some advisory relationships with 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.
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 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 order to properly evaluate investment opportunities, advisors typically use fundamental, technical, charting and cyclical 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.
Fees Under Nations Financial Group
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 get as high as 2.25%, while Nations' wrap fee programs naturally 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.
What to Watch Out For
Nations Financial Group is a fee-based financial advisor firm. This is due to the fact that, in addition to standard advisory fees, some advisors can earn commissions for securities and insurance sales. While this is a potential conflict of interest, advisors are bound by fiduciary duty to act in the best interests of clients at all times.
Nations Financial Group's legal and regulatory record is completely devoid of any disclosures.
Opening an Account With Nations Financial Group
To open an account with Nations Financial Group, you can go to its website and submit a contact form so an advisor can reach out to you. You can also call the firm at (800) 351-2471 or visit the firm's office location in Iowa.
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