Retirement Plan Advisors (RPA) is a Chicago-based financial advisor firm that has billions of dollars in client assets under management (AUM). The firm's team of financial advisors provides a spectrum of services, ranging from investment management and financial planning to more specific managed account programs and other advisory services. RPA advises individual clients, as well as government retirement plans.
RPA is a fee-based firm, as some in-house advisors may receive commissions from the sale of certain securities or insurance products. That's different from a fee-only firm, which avoids conflicts of interest by restricting its compensation to client-paid advisory fees.
In addition to its headquarters in Chicago, RPA has offices in Missouri, Wisconsin, Michigan and Louisiana.
Retirement Plan Advisors Background
Retirement Plan Advisors has been in business since 2000. The firm is a wholly owned subsidary of Retirement Plan Advisors Group, LLC. The firm's senior leadership comprises CEO Josh Schwartz, president Ken Mergen and principal Zach Karas.
RPA began by offering retirement plan design, vendor search, plan consulting, investment advice and financial education to public sector employers and their employees. Over time, RPA expanded its services to include investment menu options and managed account services for private sector and multi-employer plans, including Pooled Employer Plans (PEPs).
Some of the staff members at RPA hold various professional designations, including the Certified Financial Planner™ (CFP®), chartered financial analyst (CFA), certified public accountant (CPA), chartered life underwriter (CLU), chartered financial consultant (ChFC), enrolled agent (EA), certified retirement counselor (CRC) and accredited investment fiduciary (AIF).
Retirement Plan Advisors Client Types and Minimum Account Size
RPA works almost exclusively with individual clients, with the vast majority of them below the high-net-worth threshold. The firm also manages money for the pension plans of state and municipal government entities. While government clients account for a small percentage of the firm's overall client base, they account for the vast majority of its AUM.
RPA generally requires a $25,000 minimum to open a managed account, but this may be waived if your household has another account meeting that amount. For the WealthPort Program, the minimum is typically $5,000, though higher amounts might apply based on the account type. The PortfolioPlus program has no minimum investment requirement.
Services Offered by Retirement Plan Advisors
Financial planning services are a hallmark at Retirement Plan Advisors. The firm looks to develp a comprehensive plan that may address the client's insurance needs, cash flow, budgeting and retirement planning. The firm gathers information about the financial situation of each client and uses those insights to develop a comprehensive plan.
The firm also offers discretionary investment management through several accounts and programs. Individual investors can take advantage of general asset management services, PortfolioPlus or Advisory Directed Managed Accounts through third-party registered investment advisors (RIAs). Institutional clients have access to retirement plan consulting services, 3(21) and 3(38) advisory and SponsorPlus accounts.
Retirement Plan Advisors Investment Philosophy
Retirement Plan Advisors looks to tailor its investment strategies to the financial needs and objectives of each client. Advisors work with clients to develop an initial asset allocation model that's built specifically for them, using information about the client's risk tolerance, time horizon and investment goals to inform it. Advisors continuously monitor portfolios to ensure that goals are being properly pursued. Clients are encouraged to update the firm with any changes to their financial situation or goals.
Advisors tend to allocate a client's assets to mutual funds, exchange-traded funds (ETFs) and collective investment trusts (CITs). They inform their investment decisions using a variety of techniques, including charting, fundamental analysis and technical analysis. Advisors also try to utilize long- and short-term purchases when crafting client portfolios.
Fees Under Retirement Plan Advisors
All fees at RPA are subject to negotiation between advisors and clients, though there are some minimum and maximum rates. Financial planning fees typically average $600 for basic plans and $1,500 for comprehensive plans. Hourly fees are no higher than $500 per hour.
For investment management accounts, fees won't exceed 2.25% of a client's total AUM annually. Fees for other accounts and services may be negotiable. Fees at RPA are charged quarterly, monthly or all at once, in arrears.
What to Watch Out For
Retirement Plan Advisors does not have any disclosures listed on its Form ADV.
Retirement Plan Advisors is a fee-based firm, and it employs some financial advisors who can receive commissions when they sell certain securities or insurance products. As a result of this situation, there exists a potential conflict of interest. However, this doesn't affect the firm's status as a fiduciary, legally binding it to act in the best interests of clients at all times.
Opening an Account With Retirement Plan Advisors
To open an account with RPA, visit the firm's website. There you can search the firm's network of advisors and find one that operates in your area. When you locate a suitable option, you can submit a contact form, send an email or even chat directly with the advisor. Call (312) 701-1100 if you prefer working over the phone.
All information is accurate as of the writing of this article.
Investing Tips
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