Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Pension Consulting Services
- Educational Seminars & Workshops
- Other
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
Available Fee Structures
- Percentage of Assets Under Management (AUM)
Spectrum Financial Alliance, Ltd., L.l.c. Overview
Spectrum Financial Alliance, Ltd., L.L.C. is an investment advisory firm based in Nicholasville, KY. The firm prides itself in providing advisory services to its clients on a fee-only basis. Spectrum Financial Alliance has been in operation since 2014, working with individuals and small businesses to achieve their financial goals. As a registered investment advisory firm, Spectrum Financial Alliance provides investment advice only, specialising in financial planning, portfolio management, pension consulting services, and educational seminars & workshops. This firm has a reputation for providing personalised and tailored financial advice to suit the unique needs and goals of each client. In addition to its core services, Spectrum Financial Alliance also offers investment and insurance consulting as well as estate planning facilitation. The firm's commitment to providing top-notch advisory services has earned it a reputation as a trusted and reliable partner to its clients. With its team of experienced financial advisors, Spectrum Financial Alliance is dedicated to helping its clients achieve long-term financial success.
Spectrum Financial Alliance, Ltd., L.L.C. is a financial advisory and wealth management firm that offers its services to a diverse range of clients. The firm primarily serves individuals, regardless of their income or financial situation, to help them achieve their financial objectives. In addition to individual clients, Spectrum Financial Alliance, L.L.C. also serves high net worth individuals who require customized investment plans and portfolio diversification strategies to manage their wealth. In terms of fee structures, Spectrum Financial Alliance, L.L.C. offers a range of options based on the services provided to clients. For investment management services, the firm charges a percentage of assets under management (AUM). This percentage varies depending on the total value of the client's portfolio. This allows clients to benefit from the advisers' skills without experiencing conflicts of interest. For other services, such as financial planning and advice, the firm offers hourly or fixed-fee arrangements depending on the complexity of the client's situation. This means that clients' fees are transparent, and they only pay for the services they need. Overall, Spectrum Financial Alliance, L.L.C. endeavors to provide its clients with cost-effective financial guidance that fits their individual needs.
Typical Clients, Fee Structures & Investment Minimum
The Part 2 Brochure for Spectrum Financial Alliance, Ltd., L.L.C. does not mention an investment minimum.
How This Office Can Help Nicholasville, KY Residents
Spectrum Financial Alliance Ltd. L.L.C. provides a wide range of financial services and solutions to clients in Nicholasville, KY. The team of experienced professionals helps people facing various financial situations, such as retirement planning, investment management, estate planning, and college planning. They work closely with clients to create customized strategies that align with their financial goals, risk tolerance, and current financial situation. For someone living in Nicholasville, KY, Spectrum Financial Alliance Ltd. L.L.C. can help them save for their post-retirement life, plan for their children's college education, manage investment portfolios, and implement estate plans. The firm offers a comprehensive suite of financial tools and solutions that help clients feel confident and secure in their financial future. Whether they are looking to grow their assets, plan for retirement, or protect their legacy, the team at Spectrum Financial Alliance Ltd. L.L.C. can provide the guidance and support needed to achieve their objectives.
Services Offered by Spectrum Financial Alliance, Ltd., L.l.c.
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Spectrum Financial Alliance, Ltd., L.l.c. most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Unavailable
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Spectrum Financial Alliance, Ltd., L.l.c. is registered to service clients in the following states:
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Tennessee
- Texas
Disciplinary History
Spectrum Financial Alliance, Ltd., L.l.c. does not have any disclosures. Please visit it's Form ADV for more details.