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Sound Income Strategies Review

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Sound Income Strategies, LLC

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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How Long $1mm 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 the cost of living in retirement for that location.

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

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. 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. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

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