Sound Income Strategies (SIS) is a full-service financial advisory firm that handles over a billion in assets under management (AUM). The firm is based out of Fort Lauderdale, Florida and employs dozens financial advisor professionals.
SIS provides several different types of financial services to clients. These services include financial planning, investment management, consulting and financial education workshops. Clients of SIS are mainly non-high-net-worth individuals, but the firm also works with a few high-net-worth individuals and institutions.
Some advisors at SIS are registered insurance agents, and they can receive commissions for selling insurance products to clients. This makes SIS a fee-based firm. That's different from a fee-only firm, which only earns compensations from client-paid advisory fees.
Sound Income Strategies Background
David Scranton founded Sound Income Strategies in 2014. Today, the firm is a wholly owned subsidiary of Advisors’ Academy Holdings, LLC, a financial services holding company that Scranton principally owns.
Scranton has over 30 years of industry experience and holds several financial certifications. He is a chartered life underwriter (CLU), chartered financial consultant (ChFC), certified financial planner (CFP) and chartered financial analyst (CFA). Chief investment officer (CIO) Eric Lutton is also a CFA.
Sound Income Strategies Client Types and Minimum Account Size
Sound Income Strategies works almost entirely with individuals, with the vast majority of them falling below the high-net-worth threshold. SIS also works with high-net-worth individuals, pension and profit-sharing plans and corporations.
The firm requires a minimum investment of $25,000 in order to open an account. SIS reserves the right to waive this stipulation.
Services Offered by Sound Income Strategies
SIS offers a wide range of advisory services to clients. Its portfolio and investment management services are provided on both a discretionary and non-discretionary basis. These services are typically provided on an ongoing basis with all portfolios being customized for each individual client.
Financial planning and consulting services are offered on a more one-off basis, and they may encompass a variety of financial topics. These include retirement and Social Security planning, estate planning, investment planning and mortgage consulting. Estate planning and Social Security planning are also covered by the firm through educational workshops.
Sound Income Strategies Investment Philosophy
Sound Income Strategies looks to tailor its investment advice to clients' needs. By determining their clients' respective investment goals, time horizon, securities preferences, risk tolerance and more, advisors at SIS are able to develop investment strategies and approaches that are specific to their needs. This strategy creation process involves selecting the proper investments, asset allocation planning and regular portfolio monitoring.
SIS places a particular emphasis on finding securities that have an "improving credit story," according to its Form ADV. When these securities become available, the firm will look to "swap out of some current holdings into newer securities." Indicators for an "improving credit story" include lower duration, lowering interest rate risk, increasing yield or lowering credit risk.
The firm's advisors also rely heavily on fixed-income analysis, fundamental analysis and technical analysis to evaluate potential investment opportunities. While specific strategies vary from client to client, SIS tends to use long-term purchases, short-term purchases and trading to help drive returns.
Fees Under Sound Income Strategies
SIS charges management fees based on a percentage of each client's total AUM. The maximum annual fee is 1.75%. Financial planning and consulting fee schedules are centered around either fixed or hourly fees, with a minimum charge of $300. All fees are negotiable. SIS does not charge a fee for its educational workshops.
What to Watch Out For
Sound Income Strategies has three disclosures of regulatory actions listed on its most recent SEC-filed Form ADV. Each of these are in reference to filings attributed to advisory affiliates of SIS and not the firm itself.
Sound Income Strategies' status as a fee-based firm means that some of its advisors can earn commissions when they sell insurance products to clients. This creates the potential for a conflict of interest to arise, as advisors have an incentive to recommend certain insurance products over others. Despite this potential conflict of interest, it's important to remember that the firm abides by fiduciary duty. As a result, the firm and each of its financial advisors are legally obligated to act with your best interests in mind.
Opening an Account With Sound Income Strategies
To become a client of SIS, stop by the firm's offices or call (888) 492-0505 to schedule time with the firm's founder, David Scranton.
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