Planners Alliance is a financial advisor firm that's based out of Holland, Michigan. The firm has a team of 20 financial advisors that collectively manage $286 million in client assets under management (AUM). The firm works entirely with individual clients, all of whom have less than a high net worth. The firm provides a variety of services, from financial planning and portfolio management to annuity programs and retirement plan services.
Fee-based Planners Alliance employs some advisors that can receive commissions when they sell certain insurance products or securities to clients. This differs from a fee-only firm, which is any one that completely eliminates third-party compensation from its fee structure.
Planners Alliance Background
Planners Alliance was created in 2017, and it registered as an investment advisor with the U.S. Securities and Exchange Commission (SEC) in the same year. The firm and many of its advisors are affiliated with other financial advisor firms, such as Advisory Alpha, LLC and Simplicity Wealth, LLC. In fact, the firm provides some of its advisory services directly through these other firms.
Steve and Janine Osterink are the firm's two principal owners, with Janine also serving as its chief compliance officer (CCO). Steve Osterink is a certified financial planner (CFP), chartered financial analyst (CFA) and accredited investment fiduciary (AIF).
Planners Alliance Client Types and Minimum Account Sizes
The entirety of Planners Alliance' client base is made up of non-high-net-worth individuals. The firm also states that it offers services to high-net-worth individuals, defined contribution plans, defined benefit plans, corporations and other institutional investors.
There is no minimum account size requirement for new clients of Planners Alliance.
Services Offered by Planners Alliance
Planners Alliance provides clients with both portfolio management and financial planning, along with services for retirement plan sponsors. A portion of the firm's portfolio management services are provided through third-parties and model portfolios. Many of these portfolios are available through Advisory Alpha, which offers a range of different allocation structures. Some portfolios are managed through a variable annuity platform too.
Financial planning services at Planners Alliance may include advice on a range of different topics. For example, the firm can help with investment planning, tax planning, retirement planning, college planning, real estate planning and more.
Planners Alliance Investment Philosophy
Planners Alliance works with clients to provide tailored investment advice. This means that advisors take note of a client's overall financial situation and objectives when developing an investment strategy. However, advisors may still use model portfolios and other pre-built investment programs to help manage client assets. The goals of each individual client are still kept in mind, though.
Advisors at Planners Alliance tend to lean towards fund-of-funds strategies, using a variety of mutual funds and exchange-traded funds (ETFs) to drive growth. However, depending on the client, advisors may also use indiviudal securities to flesh out portfolios. Strategies typically include elements of asset class selection, asset allocation, holding selection and portfolio rebalances.
Fees Under Planners Alliance
Planners Alliance charges investment management fees based on an annual percentage of each client's total AUM. This fee ranges from 0.10% to 2.00% annually. The exact rate you receive will depend on the specifics surrounding your client-advisor agreement. For context, a 2018 study by RIA in a Box shows the average annual advisory fee is 0.95% of AUM.
Financial planning services come with either a fixed or hourly fee. Specific fixed fees are determined on a case-by-case basis, whereas hourly fees range from $50 to $400 per hour.
What to Watch Out For
Planners Alliance has one disclosure from 2012 listed on its Form ADV. This disclosure relates to an advisory affiliate of the firm who violated a rule within Michigan's Professional Standards Occupational Code. As a result, a $6,000 fine was paid.
Planners Alliance is also a fee-based firm, as some advisors can receive commissions in their roles as insurance agents or broker-dealer representatives. This dynamic creates a potential conflict of interest, though the firm is still bound by its fiduciary duty, making it legally obligated to act in the best interests of clients.
Opening an Account With Planners Alliance
If you're interested in working with Planners Alliance, your best option for contacting an advisor is to call (866) 530-1400.
All information is accurate as of the writing of this article.
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