It's not uncommon for financial advisor firms to have a number of specialties, but Primerica Advisors really stands out. In fact, beyond the standard financial planning and investment management offerings, the firm provides clients with services like term life insurance, identity theft protection, auto and home insurance shopping and legal protection.
Primerica is a fee-based financial advisor firm that primarily operates out of Duluth, Georgia. However, the firm has advisors across all 50 states and Puerto Rico.
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., a financial services company that trades on the New York Stock Exchange (NYSE).
Primerica Advisors Client Types and Minimum Account Sizes
Primerica Advisors offers investment services to high-net-worth individuals, non-high-net-worth individuals, corporations and charitable organizations.
Although the firm generally requires $25,000 as an initial investment, certain program models require other minimum investment amounts. In other words, Primerica doesn’t utilize a standard, firm-wide minimum account size.
Services Offered by Primerica Advisors
Primerica Advisors offers the following services:
- Portfolio management
- Mutual funds
- Managed investments
- Business retirement plans
- Wrap fee programs
- Financial planning
- Financial needs analysis
- Education funding
- Income protection
- Retirement planning
- Debt solutions
- Estate planning
- Insurance planning
- Auto & home insurance referral program
- Identity theft protection
Primerica Advisors Investment Philosophy
Primerica Advisors 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 often uses third parties to distribute investment and financial products.
Advisors provide clients actively managed investment models through a wrap fee investment program called the "Lifetime Investment Platform." Through this, the firm selects an appropriate portfolio model for each client based on their risk tolerance, time horizon, investing preferences, tax situation and personal objectives. Each model is typically comprised of some combination of mutual funds and exchange-traded funds (ETFs).
Fees Under Primerica Advisors
Primerica Advisors 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 and administration fees as part of the program fee schedule, as well as asset manager fees.
Each of the fee schedules at Primerica are listed below, starting with the total program fee rates. For reference, the average annual advisory fee is 0.95% of AUM, according to a 2018 study by RIA in a Box.
|Primerica Advisors Total Program Fee Schedule|
|Account Value||Program Fee (Maximum)|
|$250K or less||2.24%|
|$250K - $500K||2.21%|
|$500K - $1MM||2.17%|
|$1MM - $3MM||1.98%|
|$3MM and up||1.7%|
|Primerica Advisors Advisor Fee Schedule|
|Account Value||Program Fee (Maximum)|
|$250K or less||1.25%|
|$250K - $500K||1.25%|
|$500K - $1MM||1.25%|
|$1MM - $3MM||1.1%|
|$3MM and up||0.85%|
|Primerica Advisors Administration Fee Schedule|
|Account Value||Administration Fee|
|$250K or less||0.49%|
|$250K - $500K||0.46%|
|$500K - $1MM||0.42%|
|$1MM - $3MM||0.38%|
|$3MM and up||0.35%|
Below is a table that shows what you'd pay in total program fees for Primerica Advisors' Lifetime Investment Platform:
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Primerica Advisors*|
|Your Assets||Primerica Advisors Fee Amount|
What to Watch Out For
Primerica Advisors has multiple disclosures listed on its Form ADV. 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.
Primerica also offers brokerage services, meaning some of its employees are registered representatives of a broker-dealer. Advisors can therefore earn commissions from clients invested in certain mutual funds offered through the firm’s brokerage business. The firm also generates commissions from clients who buy annuities. This can create a potential conflict of interest, but the firm’s fiduciary obligation requires it to act in your best interest.
Opening an Account With Primerica Advisors
Interested in becoming a client of Primerica Advisors? 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.
All information is accurate as of the writing of this article.
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