Sigma Planning Corporation
Sigma Planning Corporation - also known as Sigma Financial, or SPC - is a financial advisor firm located in Ann Arbor, Michigan, home of the University of Michigan.
The firm offers services such as financial planning, portfolio management, consulting services, educational workshops and more to a wide variety of both individual and institutional clients.
Sigma Financial Background
Founded in 1983, Sigma Financial Corporation / Sigma Planning Corporation is headquartered in Ann Arbor, Michigan and has several locations around the country. Jerome Rydell is the principal owner through the The Jerome S. Rydell Revocable Living Trust and has served as the firm’s president since its creation. The firm employs several financially certified individuals, such as chartered financial analysts (CFAs) and certified financial planners (CFPs).
Sigma Financial Client Types and Minimum Account Sizes
SPC advises the following types of clients:
- Non-high-net-worth individuals
- High-net worth individuals
- Pension and profit-sharing plans
- Charitable organizations
- Corporations
For individual portfolio management services, SPC requires a minimum account size of $5,500 for SIGMA Managed Accounts maintained at Fidelity, and have the discretion to waive these minimums. There is no minimum asset amount required for retirement plan consulting services. Other minimums may be imposed on a client-by-client basis.
Services Offered by Sigma Financial
Sigma Financial Corporation offers various services to its clients, including financial planning services. In the way of consultation, it offers financial consulting as well as pension consulting services. Portfolio management services are available for individuals as well as for small businesses.
SPC generally offers portfolio management through the SIGMA Managed Account and does so on a discretionary basis, but clients can submit a written request to elect a non-discretionary arrangement. Beyond this, there is a charitable investment advisor program available for account holders with more than $250,000 in a donor-advised fund at Fidelity Charitable, as well as direct-at-fund programs for clients who are mainly interested in the funds of a particular mutual fund company. The firm also offers employer-sponsored retirement plans, financial planning services, consulting and pension consulting.
Sigma Financial Investing Philosophy
Investment advisor representatives (IARs) at Sigma Financial may use one or more of the following approaches or strategies when providing investment advice:
- Charting and technical analysis: This involves the gathering and processing of price and volume information for a particular security.
- Fundamental analysis: This involves the analysis of individual companies and their industry groups.
- Cyclical analysis: This is a kind of technical analysis that involves assessing recurring price patterns and trends based on business cycles.
- Long-term purchases: This involves buying and holding a security for at least a year.
- Short-term purchases: This involves buying and selling a security within a year.
- Margin transactions: Securities transactions in which an investor borrows money to purchase a security, with the security acting as collateral on the loan.
- Options trading/writing: Securities transactions that involve buying or selling an option.
According to SPC’s website, the firm lives by the motto “Financial Planning Today... for Financial Freedom Tomorrow!” and prides itself on its commitment to personal service, accomplishing these goals by centering several important principles and practices in its work. Among these important principles are appropriate asset allocation, consistent monitoring and disciplined rebalancing. The firm commits to full service and personal attention, professionalism, offering a range of investment choices and providing detailed performance reports to its clients.
Fees Under Sigma Financial
Sigma Financial charges wealth management fees based on the client’s assets under management (AUM). As of January 7, 2019, the firm entered into a new pricing agreement with Fidelity. Below is the firm’s current blended fee schedule (these fees do not include transactions costs, brokerage commissions and other expenses):
| Portfolio Value | Base Fee |
| Up to $500,000 | 2.50% |
| $500,001 - $750,000 | 1.75% |
| $750,001 - $1,000,000 | 1.50% |
| Greater than $1,000,000 | 1.25% |
Here is the estimated dollar amount you'd pay in advisory fees based on the size of your account:
| *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 Sigma Financial Corporation* | |
| Your Assets | Annual Fee Amount |
| $100K | $2,500 |
| $500K | $12,500 |
| $1MM | $20,625 |
| $5MM | $70,625 |
| $10MM | $133,125 |
Fees are negotiated directly with clients and are paid quarterly in advance, based on the value of the account on the last day of the quarter. The firm’s fees will not exceed 2.5% for any amount under management.
Financial planning and consulting fees are negotiable based on the time and effort required and how complex the services are. Pricing models differ depending on whether the plan is project-based, a segmented financial plan or constitutes ongoing financial consulting services.
What to Watch Out For
Sigma Planning Corporation has 10 disclusures reported on the ADV form that was filed with the SEC. Nine of these correspond to the firm's advisory affiliates. One of them from 2019 corresponds directly to the firm, in which it was fined $400,000 for failing to disclose conflicts of interest related to higher fees.
Another thing to note: Advisors at SPC may also be brokers or insurance agents. In these non-advisor roles, they receive transaction-based fees, which can be a potential conflict of interest. That said, as an SEC-registered investment advisor, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times.
Opening an Account With Sigma Financial
To open an account with Sigma Financial, you can visit the firm’s website and fill out a contact form. You can also call, if you prefer working over the phone.
All information is accurate as of the writing of this article.
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