Fee-based financial advisor firm Primerica Advisors primarily operates in Duluth, Georgia. The firm has more than 3,000 advisors managing nearly $3.1 billion in assets under management (AUM).
Primerica Advisors Background
Founded in 1977, Primerica Advisors is an independent financial services firm serving clients in America, Canada, Puerto Rico and Guam. The firm’s legal name is PFS Investments, Inc., and Primerica is a subsidiary of Primerica, Inc. Its international headquarters is located in Duluth, Georgia, but the firm operates in more than 50 U.S. states and territories total.
Primerica Advisors Client Types and Minimum Account Sizes
The firm offers investment services and solutions to middle income families, high-net-worth individuals and non-high-net-worth individuals, corporations and charitable organizations. Primerica’s account minimum varies based on account type.
The firm generally requires $25 million as an initial investment, but certain program models require other minimum investment amounts. Primerica doesn’t specify a minimum account size requirement.
Services Offered by Primerica Advisors
Primerica offers the following services:
- Portfolio management
- Mutual funds
- Managed investments
- Business retirement plans
- Financial needs analysis
- Education funding
- Income protection
- Retirement planning
- Debt solutions
- Wrap fee programs
- Term life insurance
- Auto & home insurance referral program
- Identity theft protection
- Primerica Legal Protection Program
Primerica Advisors Investment Philosophy
Primerica says on its website that it strives to help middle-income families learn personal finance, reduce consumer debt and prepare for the unexpected. The firm’s advisors offer a range of investment solutions, and Primerica uses third parties to distribute investment and financial products.
Advisors offer clients actively managed investment models through an investment platform called the Lifetime Investment Platform. The firm selects the appropriate model based on client risk tolerance, time horizon, investing preferences and personal objectives. Each model is typically invested in mutual funds and exchange-traded funds (ETFs).
Fees Under Primerica Advisors
Primerica divides its platform management fees into three components: program fees, advisor fees and administration fees. The program fee represents the percentage investors pay for the services offered through the firm’s Lifetime Investment Platform. Clients pay the advisor fee to compensate advisors for any advice they provide. The administration fee compensates Primerica Advisors for management, sponsorship and administration services, as well as TD Ameritrade for its brokerage service contributions to the platform. The fee schedules are listed below.
Program Fee Schedule:
|Account value||Program Fee (Maximum)|
|$250,000 or less||2.07%|
|$250,000.01 - $500,000||2.03%|
|$500,000.01 - $1,000,000||1.99%|
|$1,000,000.01 and up||1.80%|
|Account value||Program Fee (Maximum)|
|$250,000 or less||1.25%|
|$250,000.01 - $500,000||1.25%|
|$500,000.01 - $1,000,000||1.25%|
|$1,000,000.01 - $3,000,000||1.10%|
|Account Value||Administration Fee|
|$250,000 or less||0.52%|
|$250,000.01 - $500,000||0.48%|
|$500,000.01 - $1,000,000||0.44%|
|$1,000,000.01 and up||0.40%|
What to Watch Out For
Primerica also utilizes brokerage services, and more than 3,000 of its employees are registered representatives of a broker-dealer. Advisors can therefore earn commissions from clients invested in mutual funds offered through the firm’s brokerage business. The firm also generates commissions from clients using annuities.
This can create a conflict of interest if advisors favor commission-based products over client needs, but the firm’s fiduciary obligation prevents any potential conflicts of interest.
Primerica has more than 10 disclosures listed on its Form ADV over the past 10 years. One of its disclosures lists that the Financial Industry Regulatory Authority (FINRA) alleged that the firm failed to provide clients with account information 30 days after the accounts were opened.
The disclosure reveals that FINRA also alleged that the firm’s investor profile questionnaire had deficiencies which affected certain clients who made short-term investments in mutual funds. All of Primerica’s disclosures are related to regulatory actions. The firm doesn’t have any civil judicial or criminal disclosures.
Opening an Account With Primerica Advisors
Interested in opening an account with Primerica? You can visit any of the firm’s locations to speak with an advisor, or you can reach the firm’s principal office at (800) 544-5445.
Tips for Investing
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All information was accurate as of the writing of this article.