Richard P. Slaughter Associates, Inc.
When the late Richard P. Slaughter founded his namesake firm in 1991, it was one of the first in the country to be fee-only. His wife and firm co-founder, Barbara, still works at the firm as corporate secretary today, while their son, Brooks, serves as president and CEO and their daughter, Kirsten, serves as corporate vice president.
Richard P. Slaughter Associates, Inc. is based in Austin and has a branch in Dallas. The firm is on SmartAsset's top financial advisor list for Austin.
Richard P. Slaughter Associates Background
Richard P. Slaughter Associates is primarily owned by the Slaughters who work at the firm. Three executive vice presidents have small stakes.
As president and CEO, Brooks Slaughter, who is a certified financial planner (CFP) and MBA, leads a team of advisors that includes CFPs, MBAs, accredited investment fiduciaries (AIFs), accredited wealth management advisors (AWMAs), chartered financial analyst (CFA) and accredited asset management specialist (AAMS). (Advisors may have more than one credential.)
Richard P. Slaughter Associates Client Types and Minimum Account Sizes
The practice primarily works with individuals, particularly the newly wealthy, business owners and professionals. Individuals who do not have high net worths currently outnumber those who do. The firm also serves pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and other businesses.
Rather than setting a minimum account size, Slaughter Associates imposes a minimum quarterly household fee of $3,125. As a result, households with relatively less in assets may pay a higher fee rate than investors with larger accounts.
Richard P. Slaughter Associates Services
Slaughter Associates specializes in active asset management on a discretionary basis. It also provides it on a non-discretionary account, where the provides recommendations and the client makes the trades. The practice also offers financial planning, 401(k) consulting and a selection of other advisors. Additionally, the firm says it can help clients with mortgages, real estate, insurance, tax planning and estate planning.
Richard P. Slaughter Associates Investment Philosophy
To start, Slaughter Associates invests with a long-term horizon in mind. That means that the company recommends only committing funds that can be invested for three to five years. The company believes in diversification and different asset classes to spread volatility and risk. Your portfolio will mainly be invested in stocks, bonds, active and passive no-load funds, alternative strategies and limited partnerships.
For analysis, Slaughter Associates uses fundamental and technical analysis when deciding how to invest your portfolio. Fundamental analysis looks at company financials and operations focusing on variables directly related to the company rather than the market at large. For technical analysis, researchers use past trends to predict future trends.
The company has four tenets for asset management:
- Adjust through changing market environments.
- Adapt to your individual requirements for assets.
- Fully diversify across asset classes, sectors and styles.
- Combine multiple investment strategies for a complete diversification strategy.
The overarching philosophy is to: invest with a purpose, risk mitigation, market navigation and cash-flow management. These factors are what your advisor considers before investing your assets. The goal is to manage risk but provide maximum growth potential.
Fees Under Richard P. Slaughter Associates
For discretionary portfolio management services, the annual fee is a percentage of your assets under management and follows a tiered schedule, where the percentage goes down for higher tiers of assets. The firm bills clients quarterly based on the current value of your portfolio. The minimum quarterly household fee is $3,125. Here are the standard tiered schedules and estimated fee amounts:
|Fee Schedule for Discretionary Managed Accounts|
|Total Asset Value||Annualized Fee|
|On the first $1MM||1.25%|
|On the next $1MM||1.00%|
|On the next $3MM||0.75%|
|On the next $5MM||0.65%|
|On the next $10MM||0.55%|
|On the next $20MM||0.45%|
|On amounts above $40MM||0.35%|
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. All fees are negotiable at the discretion of the firm.|
|Estimated Discretionary Investment Management Fees at Slaughter Associates*|
|Your Assets||Slaughter Associates Annualized Fee Amount|
Investment management fees are higher than the industry average of 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. This is particularly true for small balances and for non-discretionary accounts. That said, Slaughter Associates says that fees are negotiable at its discretion. Learn more about advisors' typical costs here.
For consulting, the firm charges $225 per hour plus expenses, billed monthly, quarterly or as work is completed, depending on the scope of the work. The practice typically asks for 50% of the estimated bill upfront as a retainer. As with investment management fees, hourly fees are negotiable. Likewise, fees for 401(k) plan consulting are negotiable.
Richard P. Slaughter Associates Awards and Recognitions
Brooks Slaughter and Darby Armont were named "5 Star Wealth Managers" by Texas Monthly in 2015. Slaughter was also named a "Top 100 Advisor by Investment Advisor Magazine."
What to Watch Out For
Slaughter Associates has no disclosures of legal or disciplinary action in its latest SEC filings.
One thing to note: Brooks Slaughter is the managing limited partner at affiliated Slaughter Strategic Investment Management (SIM), and he and other Slaughters own the firm. Also, James Sherrard is a trader at both SIM and Slaughter Associates. As a result, if Slaughter Associates were to recommend the services of SIM or affiliated RPS Retirement Plan Advisors, which the firm says it has done, it would be a conflict of interest. But clients should be told that they are in no way required to follow the recommendation. Also, as a fiduciary, the firm is legally bound by law to put clients' interests first at all times.
Opening an Account at Richard P. Slaughter
You can call the firm's toll-free number, 800-821-5610, or submit a contact form on its website to set up an appointment or phone meeting.
If you go into the Austin office, it is located northeast of the city in the Anderson mill area, closer to Round Rock than downtown Austin. The Dallas office is located up north near Plano.
All information is accurate as of the writing of this article.
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