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Nova Wealth Management Review

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Nova Wealth Management

Nova Wealth Management, Inc. is a fee-based financial advisor firm based in Bonita Springs, Florida. The firm has a three-person advisory staff that works with nearly $73.5 million in client assets under management (AUM). Financial planning, retirement plan consulting, asset management and other services are at the core of what Nova can offer.

Nova Wealth Management Background

Founders and senior financial advisors James Novakovich and Amy Novakovich opened Nova Wealth Management in 2012. Those two, along with the firm’s other advisor, have spent an average of just under 10 years in the financial services and brokerage industries.

Nova Wealth Management’s advisors include one certified financial planner (CFP) and one chartered retirement planning counselor (CRPC).

What Types of Clients Does Nova Wealth Management Accept?

Individuals with and without a high net worth, businesses and retirement plans such as pension plans and profit-sharing plans make up the vast majority of Nova Wealth Management’s client base. The firm does explicitly state on its website, though, that professional athletes and entertainers are a few of its specialties.

Nova Wealth Management Minimum Account Size

In order to gain eligibility to have Nova Wealth Management handle your money, you’ll need at least $250,000 in investable assets. Depending on the client’s personal financial situation and advisory needs, Nova does reserve the right to waive this minimum.

Services Offered by Nova Wealth Management

Nova Wealth Management has a plethora of advisory services across the financial planning, asset management and retirement plan consulting verticals. Take a look through its specific offerings below:

  • Asset management
    • Discretionary services
    • Individualized portfolios built using your:
      • Risk tolerance
      • Time horizon
      • Investment and financial goals
      • Liquidity needs
    • Portfolio monitoring and rebalances
  • Financial planning and consulting
    • Investment planning
    • Risk management
    • Retirement planning
    • Estate planning
    • Tax planning, management and consulting
    • Income and savings projections
    • Cash flow analysis
    • 401(k) and IRA rollover assistance
    • Roth vs. traditional IRA analysis
  • Retirement plan consulting
    • Investment policy statement (IPS) development
    • Investment recommendations
    • Monitoring of investments
    • Middleman for plan providers and plan participants
    • Consistent performance reports and benchmarking
    • Education services for plan sponsors and participants
    • Fee assessment
  • Wrap-fee program

Nova Wealth Management Investment Philosophy

In order to best serve the needs of each of its clients, Nova Wealth Management adheres to a variable investment philosophy that’s tailored to your investor profile. Factors included in this analysis are your risk tolerance, financial objectives, liquidity needs, time horizon and any preferred investment strategies. Each of these will come together to form your investment policy statement that will drive how Nova manages your investment portfolio and finances.

While Nova makes a good portion of its investment decisions through the lens of the standard long- and short-term purchase ideologies, it also utilizes covered and uncovered option writing and spreading strategies. The firm’s asset allocations often involve some combination of equities, mutual funds, bonds, exchange-traded funds (ETFs) and other related securities.

Fees Under Nova Wealth Management

For the most part, Nova Wealth Management uses a tiered fee schedule that’s based on a percentage of your assets under management, with larger accounts receiving lower annual rates. Although these charges are technically negotiable, most clients will abide by the rates in the tables below. All clients must pay their account fees quarterly and in advance, with the value of your managed assets on the last business day of the previous quarter determining these charges.

Clients of Nova will be enrolled into either a standard fee schedule or a wrap-fee program. The difference is that all fees and outside costs are combined in a wrap-fee program, whereas non-wrap clients may incur other miscellaneous fees. Within these two asset management styles are two portfolio types that are subject to different fees.

Standard Asset Management Fees: Equity Portfolio
Assets Under Management Annual Fee
$250,000 - $500,000 1.30%
$500,001 - $750,000 1.20%
$750,001 - $1,000,000 1.10%
Over $1,000,000 Fee schedule abides by wrap-fee program rates

 

Standard Asset Management Fees: Equities with Options Portfolio
Assets Under Management Annual Fee
$250,000 - $500,000 1.40%
$500,001 - $750,000 1.30%
$750,001 - $1,000,000 1.20%
$1,000,001 - $3,000,000 1.10%
$3,000,001 - $5,000,000 1.00%
Over $5,000,000 negotiable

Here are the charges for Nova Wealth’s asset management wrap-fee program:

Asset Management Wrap-Fee Program: Equity Wrap Portfolio
Assets Under Management Annual Fee
$250,000 - $500,000 1.40%
$500,001 - $750,000 1.30%
$750,001 - $1,000,000 1.20%
$1,000,001 - $3,000,000 1.10%
$3,000,001 - $5,000,000 1.00%
Over $5,000,000 negotiable

 

Asset Management Wrap-Fee Program: Equities with Options Wrap Portfolio
Assets Under Management Annual Fee
$250,000 - $500,000 Portfolio not available at this size
$500,001 - $750,000 1.40%
$750,001 - $1,000,000 1.30%
$1,000,001 - $3,000,000 1.20%
$3,000,001 - $5,000,000 1.10%
Over $5,000,000 negotiable

Rather than use an asset-based fee, the firm’s financial planning services typically come with a $250 hourly fee. However, before any services are rendered, the firm will be sure to provide an estimated fee for your completed financial plan. Nova states that it usually finishes its financial plans in around 60 days.

If you subscribe to retirement plan consulting services at Nova, you will be given an annual fee between 0.10% and 0.75%. The exact rate you’re given is dependent upon the complexity of your needs, how much money needs to be managed and other considerations.

Check out the table below to see how Nova’s fees for its services compare to those at similar financial advisor firms. Note that these fees are only estimates and actual costs may vary.

*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.
Estimated Fee Comparison*
Your Assets Nova Wealth Management Equity Portfolio Asset Management Fees National Median Advisory Fees**
$500K $6,500 $5,000
$1MM $11,000 $8,500 - $10,000
$5MM $50,000 $25,000 - $32,500
$10MM negotiable $50,000

What to Watch Out For

As of right now, Nova Wealth Management is only approved by the U.S. Securities and Exchange Commission (SEC) to provide advisory services in Florida and Texas. This obviously limits the potential client base that Nova can work with.

Some of the advisors who are employed by Nova Wealth Management have the opportunity to earn extra income from the sale of insurance policies to clients. Commission arrangements such as this represent a potential conflict of interest, as advisors may be inclined to sell products solely because of their desire for additional compensation. Nova and its advisors are all fiduciaries, though, legally binding them to act in clients’ best interests.

Disclosures

Nova Wealth Management’s SEC-filed Form ADV shows that the firm has a clean legal and regulatory record.

Opening an Account With Nova Wealth Management

If you want to work with Nova Wealth Management, it would be best to get in touch with the firm over the phone at (239) 444-1794 or via email at info@novawealthmanagement.com.

Where Is Nova Wealth Management Located?

Nova Wealth Management has just one office in Bonita Springs, Florida at 28089 Vanderbilt Drive, #103. Texas and Florida are the only states where Nova can accept clients.

Tips for Your Investment Returns

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How Many Years $1 Million 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 To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

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%. This reflects the typical return on a conservative investment portfolio. 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