If you are looking for a financial advisor, you may be interested in learning more about Jazz Wealth Managers, Inc., a multi-state financial advisory firm. They provide retirement investing and financial planning services to investors, but do not accept performance-based fees or compensate employees for bringing new clients. Here’s a closer look at this company. Read on for our review and recommendations. While the company is a good choice for retirement investing, we would caution you against accepting performance-based fees and making any decisions based on their fees or performance.
Jazz Wealth Managers, Inc. is a multi-state financial advisory firm
Based in Pinellas Park, Florida, Jazz Wealth Managers, Inc. manages $50.2 million in total assets across 2,662 client accounts. The firm has a small team of four employees and a single financial advisor, but it cannot act as a registered broker-dealer or engage in any other business activities. It is not registered with the SEC as a broker-dealer and does not provide financial planning services.
This multi-state financial advisory firm uses a fee structure that rewards performance, which may not be in your best interests. Performance-based fees reward the advisor for beating a benchmark, typically an index, but may put you at risk of underperforming. Mutual funds that have incentive fees generally take more risks than other mutual funds, which is harmful to your portfolio during down markets. Similarly, advisory fees may not be transparent.
It offers retirement investing and financial advisory services to investors
In addition to offering a full range of retirement investing and financial planning services, Jazz Wealth Managers, Inc. offers free and unlimited calls with registered financial advisors. The firm offers a variety of investment products and services, including IRAs, taxable accounts, and SEP IRAs. As an SEC-registered investment advisory firm, Jazz Wealth Managers is an excellent choice for investors who are looking to manage their retirement funds.
The firm’s headquarters is in Pinellas Park, FL, but they serve investors in 30 states. The average account size is $18,859. On average, a typical advisor manages 2,662 accounts. The firm has a small staff of four employees and one financial advisor. It is not a registered broker-dealer, so it cannot act as an agent for other financial institutions.
Investment advisory fees are calculated by the advisor and deducted from the client’s account at the Custodian on a quarterly basis. The amount due is calculated by applying the quarterly rate to the total assets under management with HWMG at the end of the prior quarter. In addition to the fees, clients receive quarterly statements from their custodian. As long as the advisor has provided good service, they will not charge you more than the agreed-upon amount.
In addition to offering financial advisory services to investors, HWMG offers discretionary investment management and comprehensive financial planning services. The firm’s advisors are fiduciaries, which means that they owe their clients a duty of loyalty and mitigate conflicts of interest. As part of this duty, HWMG Advisors are prohibited from trading personal securities in exchange for client funds. Their Code of Ethics outlines their fiduciary responsibilities and the types of clients they serve.
It does not accept performance-based fees
If you want your financial advisor to work for free, you might be wondering if Jazz Wealth Managers actually works for you. The financial advisory firm is located in Pinellas Park, Florida, and manages $50.2 million in total assets. Its customers include 2,662 individuals. Its team is small, with only four employees and one financial advisor. However, it is important to note that Jazz does not act as a broker-dealer, as securities are tradable fiscal investments.
The problem with performance-based fees is that they can encourage investment managers to take on greater risks than they should and can even depress the value of an investor’s portfolio during a bear market. Congress recognized this problem during the bull market of the 1920s and the Great Depression, and passed the Investment Advisers Act of 1940, which explicitly prohibits performance-based fees. However, this change still does not completely remove the pitfalls of this type of compensation.
Using performance-based fees is an attractive model for some advisors. However, many clients are wary of high-risk investments. The high fees associated with this model encourage some advisors to take excessive risks with clients’ portfolios, hoping that the market will go up. While the rules on performance-based fees have been relaxed in recent decades, this structure only applies to the most sophisticated and experienced “Qualified Client” investors. Such investors are presumed to be more sophisticated and experienced, and therefore understand the risks associated with this arrangement.
Investment advisors can only charge performance-based fees if they offer a service that generates higher returns than the industry’s benchmark. Hence, they cannot charge performance-based fees to retail clients. However, investment advisors can charge performance-based fees as long as they meet certain criteria. However, it is important to note that performance-based fees require more than just performance. The fee structure should not be based on price.
It does not offer financial planning services
The company Jazz Wealth Managers, Inc. is a multistate investment adviser headquartered in Pinellas Park, Florida. They are registered with the SEC as advisers and manage $50.2 million in total assets on behalf of 2,662 client accounts. Despite their name, they do not provide financial planning or other financial services. Instead, they offer retirement investing and educational seminars to clients. Jazz Wealth Managers, Inc. is not a registered broker-dealer and cannot act as a financial planner.
As a registered broker-dealer, Folio Investments, Inc. is a member of FINRA/SIPC. It is a subsidiary of Goldman Sachs & Co. LLC, a global full-service financial services company. Jazz Wealth Managers, Inc. does not offer financial planning services. Their clients’ accounts do not reside in foreign countries. However, their fees are competitive compared to other financial advisors.