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SagePoint Financial Review

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SagePoint Financial, Inc.

SagePoint Financial is a registered broker-dealer and investment advisor. It provides operational, investment and clearing support to more than 1,000 affiliated financial advisors, who, in turn, serve individuals, pension plans, charitable organizations, corporations and more. Through these affiliates, SagePoint Financial manages a combined $7,988,217,859 in assets. 

Headquartered in Phoenix, SagePoint Financial is a subsidiary of the Advisor Group, Inc., one of the largest networks of independent broker-dealers in the U.S. The other independent broker-dealers in the network are Royal Alliance (in Jersey City, New Jersey), FSC Securities Corporation (in Atlanta) and Woodbury Financial Services (in Oakdale, Minnesota). According to InvestmentNews, the Advisor Group had $1.7 billion in total revenue in 2018.

SagePoint Financial Background

SagePoint Financial started in 1970 as a broker-dealer, registered with the Financial Industry Regulatory Authority (FINRA) and engaged in the sale of securities products. In 2005, the firm also registered with the U.S. Securities and Exchange Commission (SEC) as an investment advisor, so it could offer investment advisory products and services to its clientele of financial advisors.  

As mentioned earlier, the firm is a subsidiary of the Advisor Group. This company is a wholly owned subsidiary of the Advisor Group Holdings, Inc., whose ownership has moved in recent years from American International Group (more commonly known as AIG) to Lightyear Capital, LLC and PSPIB Lunar Investments, Inc. More recently, in May 2019, private equity firm Reverence Capital Partners, founded by former Goldman Sachs executives, announced its purchase of a majority stake (75%) in Advisor Group and all its subsidiaries. Financial terms were not disclosed, but insiders estimated the price tag at close to $2.3 billion. 

What Types of Clients Does SagePoint Financial Accept?

As mentioned earlier, SagePoint Financial serves financial advisors. According to its SEC filings, the firm has 140 affiliate financial advisories, which, in turn, employ 1,043 financial advisors. (Its website puts the number closer to 1,500 advisors). Here are its affiliated firms, sorted by state:

Arizona

  • American Financial Associates  
  • Focus Point Planning
  • Mosaic Wealth Solutions
  • My Wealth Doctor
  • Progressive Financial Concepts 
  • Real Time Financial Solutions 

California

  • Advent Financial Services 
  • Allied Wealth Management, LLC 
  • Ameriflex
  • Angela Martin Financial 
  • Astor Financial Group 
  • Cole Financial 
  • Curtin Wealth Management
  • Financial Pointe
  • ICM Holistic Wealth Services
  • KND Financial 
  • Legacy Financial Planning 
  • Lutz Wealth Advisors
  • Monarch Wealth & Retirement Strategies
  • Peter Goodwin Personal Wealth Management 
  • Sage Financial Advisors 
  • Summit Edge Advisors
  • Tetgmeier2 Stumpus 
  • Vector Financial Solutions 

Colorado

  • CFS Advisor Team 
  • Comprehensive Financial Services 

Florida

  • Asset Wealth Management Services, Inc. 
  • B.E.S. Financial
  • GMBP Wealth Management 
  • James C. Protigal 
  • Karp Financial Strategies
  • Lewis and Palmer Financial Solutions Group
  • Lifelong Financial Planning 
  • Prime Retirement Asset Management 
  • Sentinel Financial Group
  • Steves Investment Management 
  • The Collaborative Financial Group 

Hawaii

  • Trusted Advisors Group Hawaii
  • Coda Financial Group, Inc. 

Idaho

  • Park Avenue Investments, Wealth Strategies

Illinois

  • Focal Point Financial 
  • Integrated Financial Concepts 
  • The NBB Group

Indiana

  • Coffman Wealth Management 

Iowa

  • Storm Investment Services 
  • Town & Country Financial Services 

 Kansas

  • Ad Astra Financial Group 
  • Baxter & Associates, Inc.

Maine

  • BGA Retirement Advisors

Maryland

  • Baker Street Financial Services, LLC

Massachusetts

  • Anchor Wealth Management Inc. 
  • Hale Financial Planning Group 
  • Legacy Financial Advisors, Inc.
  • Scott Advisory Group
  • The Stock Sisters 
  • Vaillancourt & Lefebvre Wealth Management, LLC

Michigan

  • BCF Wealth Strategies 
  • Grucz Financial 
  • Haven Financial Group
  • Spectrum Investment Advisors, LLC
  • Superiorland Financial Partners 

Minnesota

  • Current Financial 
  • Evergreen Wealth Management
  • Navigator Financial Group 
  • Rehbine Financial Group 
  • Signature Wealth Management

Missouri

  • A. M. Hoerr Financial 
  • Fischer  Christoff Bartmess Advisors 
  • Heritage Investments (formerly Hinde Asset Management) 
  • Main Street Advisors 

Nebraska

  • Valley Wealth Management
  • Valley Financial Planning 
  • New Hampshire
  • Catamount Wealth Advisory 

New Jersey

  • Betancourt Financial Services 
  • Mark S Lalin and Associates
  • Plan One Financial Group 

New York

  • Doral Asset Managers Inc. 
  • Harmony Financial Services 
  • Excelsior Wealth Partners
  • Financial Freedom Group 

North Carolina

  • Bice Wealth Management
  • Giguere Financial Services
  • Isys Financial Management
  • Krause Investment Advisory Group, LLC - Paul R. Krause
  • Lachicotte, Inc.
  • North Main Financial Group 
  • Repak Financial Services
  • Retirement Wisdom Group
  • Southeast Retirement Planners
  • Thayer Financial

Ohio

  • Emerald Financial Advisors 
  • Inkrott Financial Group  
  • Inkrott Financial Services  
  • Myers & Inkrott Financial Group
  • PK Financial Group 
  • Strategic Financial Resources, LLC - Travis Frey
  • Susan Swinehart & Associates Financial Planning and Investments  
  • Yarger Flegal, Inc

Oregon

  • Brazier Hinz & Associates
  • Forest Hills  Wealth 
  • Living Tree Financial Consulting 

Rhode Island

  • NBS Financial Group 
  • Northstar Associates
  • Pegasus Financial Group

South Carolina

  • Greenville Financial Group 

South Dakota

  • Dakota Legacy Financial 

Texas

  • Alpha Advising 
  • Camper Financial Group 
  • Davis Financial Group
  • Eagle Retirement Group
  • Escobar Financial
  • Flathers Wealth Management 
  • Global Capital Management 
  • Harman Wealth Management Inc 
  • Hill & Associates 
  • Homans Wealth Management 
  • Iqon Wealth Management 
  • JStephens Wealth Management 
  • Liberty Financial Associates
  • Oak Financial Advisors  
  • Renaissance Wealth Management Group of Texas
  • Retire Guides
  • Retirement Visions
  • Silverstar Wealth Management 
  • The Oak Financial Group 
  • Trioak Financial Group
  • Veritas Wealth Management 

Utah

  • Lawrence Wealth Management

Virginia

  • Baumoel & Goodman Financial Strategies
  • Dominion Eagle Advisor Group 

Washington

  • Strait Financial Advice 
  • The Rettenmeir Group

Wisconsin

  • Balthazor & Strube Financial & Insurance Services
  • Estate & Financial Consultants
  • High Point Capital Group
  • High Point Capital Partners 
  • Oakleaf Capital Partners
  • Van Hoof Investments 
  • Wealth Management Solutions LLC

Wyoming

  • Western States Wealth Management

SagePoint Financial Minimum Account Sizes

Minimum account sizes for Sagepoint Financial programs vary, depending on the program. Advisors may waive them at their discretion, but here they are generally:

SagePoint Financial Program  Program Minimum
VISION2020 Wealth Management Program – Advisor Managed Portfolios   $50,000
VISION2020 Wealth Management Program – Genesis Model Portfolios Program  $5,500
VISION2020 Wealth Management Program – SMA and UMA Program  $100,000 – SMA;   $50,000 – UMA 
Third-Party Advisory Services  Each third-party   advisory service sets   its own   minimums

Services Offered by SagePoint Financial

SagePoint Financial offers several wrap fee programs to its client advisors, who, in turn, offer them to their retail clients. They include: 

SagePoint Financial Wrap-Fee Programs Description
VISION2020 Wealth Management Platform - Advisor Managed Portfolios  This program provides comprehensive investment management via asset-allocation planning software and the provision of execution, clearing and custodial services through Pershing, LLC  or, on a limited basis, National Financial Services, Inc.
VISION2020 Wealth Management Platform - Genesis Model Portfolios  This program provides managed asset allocation models of mutual funds, exchange traded funds (ETFs), or a combination of the two, diversified using different strategies.
The Wealth Management Platform – SMA and UMA Accounts  This program provides a customized asset allocation model invested either with third-party money managers, no-load mutual funds, ETFs or any combination of the foregoing. These accounts are held in separately managed accounts (SMAs) or unified managed accounts (UMAs).

In addition to investment advisory services, SagePoint Financial provides its advisors with an advanced sales and internal sales desk and team and tool support for retirement planning services, insurance consulting services, financial planning services and specialized services (including lending, trust services and donor advised services). 

SagePoint Financial Investment Philosophy

SagePoint Financial’s affiliated financial advisors may use different tools and methods to design and implement client portfolios. But they will generally apply fundamental and technical methods of analysis. They’ll also typically use a long-term investing strategy, though they may use short-term tactical investing strategies in certain situations.

With the third-party advisory services program, third-party asset managers will have their own methods of analysis and investment strategies.

Fees Under SagePoint Financial

With SagePoint Financial’s wrap fee programs, brokerage, management and other costs are bundled into one all-inclusive fee. Generally, it is based on a percentage of client assets under management and is paid quarterly. Affiliated financial advisors determine and set what that percentage or fee is. 

With third-party advisory services, the third-party money manager will have his or her own fees, on top of the SagePoint affiliated advisor’s fees, which are set or negotiated by each advisor.

What to Watch Out For

SagePoint Financial does not take on retail clients directly. It’s on the wholesale side of financial services, so individuals must work with affiliated advisors to gain access to the firm’s wrap fee programs and other services.

When it comes to the wrap fee programs where retail clients are charged just one fee that covers brokerage and other costs, some affiliated advisors pay the ticket charges for securities transactions (while SagePoint Financial pays them for other advisors). In this situation, the advisor who is paying may be incentivized to trade less frequently. That said, SagePoint has policies and procedures in place to reduce the chance of this happening.

Disclosures

In its most recent SEC filings, SagePoint Financial reported a total 23 disclosures within the past 10 years. Of them, 15 involved affiliated advisors. The allegations and outcomes of the remaining eight are briefly summarized below:

7/24/2018

It was alleged that the firm failed to establish, maintain and enforce a supervisory system and written supervisory procedures for the sale of multi-share class variable annuities (VAS). The firm also failed to provide sufficient training to representatives and reviewing principals. Without admitting or denying the findings, SagePoint Financial paid a $200,000 fine, was censured and required to review and revise its systems, policies and procedures and training surrounding VAS.

12/20/2017

It was alleged that the firm disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase class A shares in certain mutual funds without front-end sales charge. The firm also failed to supervise reasonably the application of sales-charge waivers, instead relying on its advisors to determine the applicability of these waivers. Without admitting or denying the findings, SagePoint paid a $75,000 fine, was censured and restituted $196,000 to affected customers. 

7/20/2017

SagePoint Financial self-reported that one of its advisors was found to have converted a customer’s funds and used them for his own benefit. It was alleged that the firm failed to supervise the representative reasonably. Without admitting or denying the findings, SagePoint Financial paid a $25,000 fine, plus $15,000 investigative costs, and agreed to make certain policy and procedures enhancements.

05/03/2017

Without admitting or denying the findings, the firm consented to the entry of findings that it applied an inaccurate accounting and net capital treatment of advisory fees. Subsequent efforts to make corrections resulted in inaccuracies in bookkeeping and financial reporting. SagePoint Financial retained a new financial and operations principal, paid a $75,000 fine and was censured.

03/14/2016

It was alleged that SagePoint Financial, along with network affiliates Royal Alliance Associates and FSC Securities, placed certain advisory clients in their advisor managed portfolios program in mutual fund share classes with higher expense costs, when lower-expense-cost share classes of those funds were available. This presented a conflict of interest that the SEC felt should have been disclosed to clients. Without admitting or denying the findings, SagePoint Financial and its affiliates jointly paid a remedy of about $1.96 million, prejudgment interest of $93,399 and a civil penalty of $7.5 million. Agreeing to cease and desist from committing or causing further violations, the firm also retained a qualified independent compliance officer, implemented new policies and procedures and enhanced its Form ADV disclosures.

08/10/2011

Without admitting or denying liability, SagePoint Financial settled an investigation concerning allegations that it failed to reasonably supervise a former representative in Johnstown, Pennsylvania. As a result, it paid a $600,000 administrative assessment, $200,000 investigative and legal costs and $700,000 in restitution to certain clients in Pennsylvania.

03/08/2010

It was alleged that American General Securities Inc. (AGSI), which SagePoint acquired, violated certain state securities regulations and failed to supervise reasonably actions of an agent. AGSI subsequently made partial reimbursement of about $204,000 to affected customers and paid a $215,000 fine. Because SagePoint Financial acquired AGSI, it reported the disclosure.

02/04/2010

It was alleged that SagePoint Financial failed to supervise properly a representative’s selling of unregistered securities in Nevada. Without admitting or denying the allegations, the firm paid restitution of about $290,000 to the five people who were affected and investigation costs of $85,000.

Opening an Account With SagePoint Financial

As mentioned earlier, individuals cannot open accounts directly with SagePoint Financial. To find an affiliated advisor near you, check out the list of affiliated firms in the “What Type of Clients” section, above, or call SagePoint Financial’s customer service line: (800) 552-3319.

Where Is SagePoint Financial Located?

SagePoint Financial is headquartered in the midtown area of Phoenix. The exact address is 20 E. Thomas Road, Suite 2000, Phoenix, AZ 85012.

All information was accurate as of the writing of this article. 

Investing Tips for Beginners

  • Don’t go it alone at first. Even if you don’t have a lot of money to invest, you can get stand-alone (as opposed to ongoing) investment advice from financial advisors. Often, they’ll charge a fixed fee or hourly rate. 
  • To find the right advisor for you, use SmartAsset’s financial advisor matching tool. The program will pair you with up to three nearby registered investment advisors based on your answers to questions about your financial situation, needs and preferences.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research