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Pharmaceutical Investments Expected to Ramp Up in 2021, and 57% of Investors Say Vaccine Promise Is a Key Factor

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It may not have not been reviewed, commissioned or otherwise endorsed by any of our network partners or the Investment company.

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When COVID-19 hit, the whole world anxiously watched the pharmaceutical sector for a cure. And it came through, creating a vaccine in record time.

This success led to a new surge of investor interest, as 36% of investors expect to put more money in pharmaceutical stocks in 2021, according to the latest MagnifyMoney survey of nearly 1,000 investors. In addition, 57% of investors said the promise of a vaccine made them more likely to invest.

MagnifyMoney looked at this new interest from multiple angles, including the expectations, regrets and ethical concerns people had about pharmaceutical investments.

Key findings

  • 36% of investors expect to invest more in pharmaceutical stocks in 2021, with 57% of investors saying the promise of a COVID-19 vaccine makes them more likely to do so.
  • The vast majority (82%) of current pharmaceutical investors have purchased a related stock or increased their spend on a pharma investment amid the coronavirus pandemic. Of that group, 28% did so within the past month.
  • 1 in 10 investors say they don’t think investing in pharmaceuticals is ethical but do so anyway. At the same time, nearly a third (31%) of investors who don’t currently invest in these stocks say it’s because they don’t trust big pharma.
  • 47% of investors say they regret not investing in pharmaceutical stocks in the past. In fact, 59% of those with regrets say vaccine news would have increased their portfolio value had they invested in pharmaceutical stocks.

More than 1 in 3 investors expect to increase pharmaceutical investments as COVID-19 vaccine spurs stock market gains

As noted, our survey showed that 36% of respondents said they expect to invest more in pharmaceutical stocks in 2021:

Male investors (43%) seemed more interested in investing more in pharmaceutical stocks in 2021 than female investors (25%). Gen Xers (47%) led the way among the age groups, compared with:

  • 40% of millennials
  • 15% of baby boomers

Tendayi Kapfidze, LendingTree’s chief economist, believes there are good reasons to consider pharmaceutical stocks for investors looking to make money.

“Health care is one of the fastest-growing sectors of the U.S. economy,” Kapfidze said. “An aging population means that demand for health products, including pharmaceuticals, will continue to increase.”

Still, he acknowledged that pharmaceutical investing does have its downsides.

“The products are complex, which can be difficult for the average investor to analyze,” he said. “Drug development is also a risky process, as potential drugs have low odds of reaching the market.”

Pharmaceutical investing gets boost from vaccine development

Given the potential risks and downsides of pharmaceutical stocks, it makes sense that 20% of investors don’t expect to invest in pharma at all in 2021. However, given that 31% of investors didn’t have any pharmaceutical stocks in 2020, this is another sign that the promise of a COVID-19 vaccine increased interest.

Our survey data backs this up, as 57% of respondents said the vaccine made them more likely to invest — once again with a greater impact on male investors than female investors (62% versus 47%, respectively).

Some stocks working on vaccines have performed very well the past year, said Kapfidze, explaining the appeal. However, he cautioned that those gains may be already realized, so future investment earnings could depend on new innovations.

Pharmaceutical investors, by the numbers

Overall, 61% of investors have at least one pharmaceutical stock in their portfolio. Of those investors, the most likely to invest in pharmaceuticals include those with a household income of $100,000-plus (71%), men (68%) and millennials (also 68%).

Noteworthy: 18% of baby boomer investors weren’t sure if there were any pharmaceutical stocks in their portfolio, while only 6% of both millennial and Gen X investors said the same.

Of those investors who have at least one pharmaceutical stock in their portfolio:

  • 36% have an individual pharma-related stock they purchased
  • 22% invest in a mutual fund that includes pharmaceuticals
  • 16% invest in an exchange-traded fund (ETF) that includes pharmaceuticals

As for how investors decide which pharmaceutical stocks to invest in, the reasons vary:

Nearly 2 in 10 (18%) noted a financial advisor or robo-advisor makes those decisions for them. That’s especially true for baby boomers, as nearly a third (32%) who invest in pharmaceuticals said an advisor helps them select which investments to make, versus 17% of Gen Xers and 13% of millennials.

More than 8 in 10 current pharmaceutical investors have made related investment amid coronavirus pandemic

More than 8 in 10 (82%) investors have made some sort of pharmaceutical investment over the past nine months — amid the coronavirus crisis. Here’s how those numbers break down:

The constant news about COVID-19 and the vaccine rollout made an impact on investors. They seem to be tracking the news, as 28% made their most recent purchase within the past month — during the vaccine rollout — and another 27% made their most recent purchase more than a month ago but within the past three months, when the vaccines were getting close to launch.

Of interest:

  • 85% of male investors made a pharma-related purchase or increased their spend over the past 9 months, versus 75% of female investors
  • 31% of male investors made an investment within the past month, versus 23% of female investors
  • 37% of investors earning $100,000-plus made an investment in the past month

Investors overall have been active, as 74% have reallocated their portfolio in some way over the past month. Of this group, 35% reallocated their portfolio to put more money in pharmaceutical investments — with men being more likely to invest more compared to women and Gen Xers and millennials being more likely to move into pharma than baby boomers.

If you’d like to be more active with your investing, you could start trading with one of these online brokers.

1 in 10 investors think investing in pharmaceutical stocks is unethical, but they do it anyway

The majority of investors — nearly 60% — believe it’s ethical to invest in pharmaceutical stocks. Interestingly, another 10% said it’s unethical, but do it anyway:

Whether investing in pharmaceuticals is ethical is a topic of debate. After all, these companies can profit off life-saving discoveries. They can also end up putting shareholder returns above helping others, such as charging a high price for an essential medicine.

That’s why 12% of investors reported not putting their money in pharmaceutical stocks due to ethical concerns. Female investors (14%) were more likely than male investors (10%) to avoid pharma due to ethics.

Still, money talks, as another 10% of investors put money in pharmaceutical stocks even though they had issues. Millennial investors were the most likely of all generations to override their concerns, as 14% put money in pharmaceutical stocks despite seeing the industry as unethical.

Interesting finding: Though Democratic and Republican voters seem to have trouble agreeing on most anything these days, they generally felt the same way in terms of the ethics of pharmaceutical investing.

In the end, 58% believe it’s ethical to invest in pharmaceutical stocks. Kapfidze also believes that the good outweighs the bad.

“Pharma advancements over the past 100 years have increased life expectancy significantly, and the industry is currently at the forefront of the response to the coronavirus,” he said.

When you invest in pharmaceutical stocks, you’re putting your money toward funding these innovations.

47% of investors regret not investing in pharmaceuticals stocks in the past

For investors sitting on the sidelines, it was tough watching the recent gains in pharmaceutical stocks. In fact, 47% of investors regret not investing in these stocks in the past:

Male investors (53%) were more likely to regret not investing in pharmaceutical stock than female investors (38%). This makes sense given that men were more involved with managing their investments, so they may be more aware of what they’ve missed. It would likely be even more frustrating for the 42% of investors who sold stock at the start of the pandemic, as nearly all regret doing so.

When asked why they regretted not investing in pharmaceutical stocks, the top reasons these investors gave were:

  • The news of the vaccines would have increased the value of their portfolios should they have invested in those stocks (59%)
  • They would have been able to benefit from longer-term gains (42%)
  • Many people are buying these stocks now, so the price has gone up (13%)

Still, not all investors regret keeping their money out: Nearly a third who don’t invest in pharmaceutical stocks said it’s because they don’t trust big pharma.

Here are the rest of their reasons:

When it comes to not investing, female investors (52%) were more likely to not have a specific reason than male investors (39%).

Getting started with pharmaceutical stocks

Kapfidze’s main piece of advice for investors looking to get in on pharmaceutical stocks is to do so cautiously.

“Make sure your investments in pharma are part of a diversified portfolio in order to manage risk,” he said.

Even if you are optimistic about pharma’s potential, you should still make these investments only a part of your portfolio rather than the entire thing, so you don’t have all your eggs in one basket. After all, diversification is one of the most important strategies for trading stocks.

Tip: You should avoid putting all your money in just one or two pharmaceutical companies, even if you think they’ve got great developments in the pipeline. Since it’s difficult and unlikely for any one drug to reach the market, spreading your money across multiple stocks increases your chances of finding one that comes through.

Another option is to invest through an ETF or mutual fund (used by 37% of investors). These funds take your money to buy a large portfolio of pharmaceutical stocks, managed by a professional investor. That way, they handle the research and picks for you.

Finally, consider meeting with a financial advisor before making trades and putting more money into pharmaceutical stocks. Given the high interest in this sector these days, it should be a topic they’re used to discussing.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 954 consumers with at least one investment account. The sample base was proportioned to represent the overall population, and all responses were reviewed by researchers to ensure quality control. The survey was fielded Dec. 17, 2020 through Dec. 21, 2020.

We defined generations as the following ages in 2020:

  • Millennial: 24 to 39
  • Generation X: 40 to 54
  • Baby boomer: 55 to 74

The survey also included responses from Generation Z (ages 18 to 23) and the silent generation (75 and older). However, their responses weren’t included in the generational breakdowns due to low sample size among investors in those age groups.

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Fidelity Review 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It may not have not been reviewed, commissioned or otherwise endorsed by any of our network partners or the Investment company.

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The Fidelity Account is a low-cost brokerage account offered by Fidelity Investments that allows investors to trade U.S. stocks, exchange-traded funds (ETFs) and options online with $0 commission fees. Fractional share trading is also available through the Fidelity mobile app.

The account is a standout for its fee structure and range of investment choices. Broker-assisted trades are pricey, but otherwise, there are few downsides. This Fidelity review is designed to help you decide if it’s the right brokerage for you.

Fidelity Brokerage Services LLC
Visit Fidelity Secured
on Fidelity’s secure website
The bottom line: Fidelity may appeal to beginning and more experienced investors alike with its diverse investment options and competitive pricing.

  • Full-service broker with a strong brand reputation
  • Extensive options for all investor types
  • Low or no fees/commissions on most products

Minimum deposit $0
Account types
  • Individual brokerage accounts
  • Joint brokerage accounts
  • Cash management accounts
  • Fidelity accounts for business
  • Rollover IRA
  • Traditional IRA
  • Roth IRA for kids
  • Inherited IRA
  • Inherited Roth IRA
  • SEP IRA
  • Self-employed 401(k)
  • SIMPLE IRA
  • Investment-only plans for business
  • 401(k) plans for small business
  • Managed accounts with Fidelity Go
  • 529 college savings accounts
  • Coverdell ESAs
  • Health Savings Accounts
  • ABLE accounts
  • Trust accounts
Tradable securities
  • U.S. and international stocks
  • ETFs from Fidelity, iShares and other industry leaders
  • Options
  • Fidelity Mutual funds and funds from other companies
  • Bonds
  • Certificates of deposit
  • Precious metals
Fees
  • $0 commission fees for online U.S. stock, ETF and Options trades
  • Additional fees apply for broker-assisted trades and purchases of transaction fee non-Fidelity funds
  • No annual account fee
Sign-up bonus None currently available

What Fidelity offers and who it’s for

Fidelity is a full-service online brokerage that offers an extensive range of investment Options, including stocks, Mutual funds, ETFs, Options and precious metals. Both beginning and more experienced investors may find Fidelity‘s low trading costs an attractive incentive for opening an individual or joint brokerage account. You also may choose to invest in an IRA or Solo (401)k through Fidelity to save for your retirement.

Fractional share trading is something else that sets Fidelity apart, as not all online brokerages offer this option. In terms of where Fidelity tends to fall short, cryptocurrency and futures trading aren’t included in the list of investment Options. And if you need a broker’s help to execute a trade, that means paying an added fee.

Pros

  • Wide range of investment choices: Fidelity makes it relatively simple to build a diversified portfolio with its range of investment Options, which includes both Fidelity and non-Fidelity funds.
  • Low-cost trading: Like a number of online brokerages, Fidelity has adopted a $0 commission fee model for online trades of U.S. stocks, ETFs and Options.
  • No account minimum: While some brokerages require a larger minimum deposit to open an account, Fidelity allows you to get started with a $0 minimum.
  • Extensive research tools: Fidelity is generous when it comes to providing investors with the research and analytical tools they need to make investment decisions.

Cons

  • Broker-assisted trades will cost you: Getting broker assistance in executing a trade will require paying an additional fee.
  • No crypto or futures: Investors who are interested in trading cryptocurrency  or futures will need to look elsewhere.
  • High mutual fund fees: Investing in non-Fidelity funds could trigger a steep trading fee.
  • Holding period for initial withdrawals: While you can open and fund an account with Fidelity online in minutes, it can take up to 10 business days to verify banking information for withdrawals from your account.

Fidelity fees and costs

Option trading fees $0 + $0.65 per contract for online trades; $12.95 + $0.65 per contract for FAST trades (by phone); $32.95 + $0.65 per contract for broker-assisted trades
Stock trading fees $0 for online trades of U.S. stocks; $12.95 for FAST trades (by phone); $32.95 for broker-assisted trades
ETF trading fees $0 for online trades of U.S. stocks; $12.95 for FAST trades (by phone); $32.95 for broker-assisted trades
Mutual fund trading fees $0 for Fidelity funds; $0 on purchase and $49.95 on redemption for no transaction fee non-Fidelity funds held less than 60 days; $49.95 per purchase and $0 at redemption for transaction fee non-Fidelity funds
Bond and CD trading fees $0 for new issues, $1 per bond for secondary issues; $0 for online U.S. Treasury auctions and secondary issues; $19.95 for representative-assisted U.S. Treasury auctions and secondary issues
Account fees (annual, transfer, inactivity) No annual fee, no transfer fees and no inactivity fees; only additional fees may be:

  • Up to 3% of principal for foreign exchange wire transfers
  • $50 Depository Foreign Trust Company foreign settlement fee
  • $100 stock certificate transfer fee
  • 1% of principal foreign dividends and reorganization transaction fee
  • $32.95 per margin liquidation

Fidelity has followed the example of other online brokerages and moved toward commission-free trading for U.S. stocks, ETFs and  Options when trading online. You can also trade Fidelity‘s impressive collection of Mutual funds with $0 commission fees.

You will, however, run into fees if you want to trade non-Fidelity funds. Again, you’ll pay $0 on purchase for no transaction fee funds from issuers other than Fidelity and $49.95 at redemption for funds held less than 60 days. Transaction fee non-Fidelity funds require a $49.95 fee per purchase but charge $0 on redemption.

Fidelity investing tools and research

Online trading tools

Fidelity‘s online trading platform includes monitoring tools to help investors:

  • Track stock price movements and profit/loss positions in real time
  • Research specific market sectors
  • Execute trades
  • Research individual securities
  • Read the latest market news
  • Chart their comprehensive financial picture

Investors have access to an ETF screener that allows them to compare more than 2,000 commission-free ETFs, along with mutual fund, stock and bond screeners. Fidelity aggregates investment news and reports from a variety of well-known sources, including Reuters, Zacks Investment Research and Argus Analyst.

Mobile trading tools

The Fidelity mobile app allows investors to track their portfolio on the go. The app, which is free to download for iPhone and Android, makes it easy to:

  • Manage your portfolio and watch lists
  • Execute trades
  • Invest with fractional shares
  • View balances and get real-time quotes
  • Set up account alerts and notifications
  • Save articles and take notes

The most notable feature of the Fidelity mobile app is the ability to trade fractional shares. Through fractional share investing, you can purchase more expensive stocks in smaller increments. With dollar-based investing from Fidelity, you can trade shares of more than 7,000 U.S. stocks and ETFs for as little as $1. That could be appealing to newer investors who are just getting started and don’t have a lot of money to put into the market.

Active Trader Pro

Active Trader Pro is Fidelity‘s dynamic online trading platform. To use Active Trader Pro, you have to request access through Fidelity. You may access this feature automatically if you trade 36 times or more in a rolling 12-month period. If you’re approved for Active Trader Pro, it’s free to use.

Once you download Active Trader Pro for PC or Mac, you’ll have access to tools and research that allow you to take an even deeper dive into trading. For example, the Trade Armor feature allows you to visualize risk and reward for a particular investment while tracking price movements. Real-time analytics make it easy to track technical indicators for stocks to identify trading opportunities.

As the name suggests, Active Trader Pro is designed for investors who take a more active approach to portfolio management. While it’s accessible for active Fidelity investors of any skill level, it may be a little overwhelming for a beginner.

Fidelity user experience

Between online and mobile investing, Fidelity makes investor accounts easily accessible. If you’re unfamiliar with the Fidelity website and its layout, however, you could get lost when moving between different pages. The mobile app, on the other hand, is easier to navigate as you move through different screens and tabs.

In terms of customer service, Fidelity offers support by phone, live chat and secure messaging. Phone support is available 24/7 by calling 800-343-3548. You can also use live chat to connect with Fidelity Support, but it may take time to be connected to a representative. During one attempt, we were put in the queue at number 24 in line.

We also called customer support, which responded promptly with a hold time of less than a minute. Likely, this will all depend on the volume of calls at the time of your attempt. The customer service representative we spoke with on the phone was knowledgeable and able to answer all of our questions, which included requesting information on minimum deposits and how to withdraw money from a brokerage account.

Fidelity investor education

The Fidelity Learning Center offers numerous educational resources to help investors shape their portfolio strategy. The educational tools on hand include:

  • Live webinars
  • On-demand webinars
  • Weekly Fidelity classes for beginning investors
  • Interactive coaching sessions
  • Investment guides
  • Articles

While some online brokerages take a bare-bones approach to investor education, Fidelity equips you with plenty of tools to make informed decisions. These tools are free to access as a Fidelity customer, which is great if you don’t have a dedicated financial advisor yet because you’re unable or unwilling to pay a fee for professional investment advice.

Fidelity security

SIPC coverage

The Securities Investor Protection Corporation (SIPC) insures against financial losses if a brokerage goes bankrupt. All Fidelity brokerage accounts have SIPC coverage, which extends to money market funds as well as other securities. The coverage limit is up to $500,000, including a $250,000 limit for cash held inside your brokerage account.

Online security

Fidelity uses a number of strategies to protect client accounts online. That includes the use of two-factor authentication to verify accounts, the ability to lock accounts to prevent money transfers, security text alerts and voice recognition through Fidelity MyVoice when accessing your account by phone.

Customer protection guarantee

Fidelity offers a Customer Protection Guarantee to reimburse investors for losses associated with unauthorized account activity. That includes both cash and securities held in Fidelity brokerage accounts. This coverage is automatic, but to use this benefit, you must contact Fidelity at 800-544-6666 as soon as you become aware of any suspicious or unauthorized activity.

Alternatives to Fidelity to consider

Fidelity could be a good fit for investors who want to make commission-free trades, invest with fractional shares or take advantage of Fidelity‘s extensive research and investment tools. It’s important, however, to consider where other brokerages might outshine Fidelity in terms of cost, investment Options and overall user experience. Here are two other Options to compare to Fidelity when opening a brokerage account.

Fees

$0.00 per trade

Account Minimum

$0

Promotion
N/A
Fees

$7.00 per trade for the first 25 trades per year, $20 per trade thereafter for accounts with less than $50,000

  • $7 per trade for accounts with $50,000 to $500,000
  • Account Minimum

    $1,000 for Vanguard Target Retirement Funds and Vanguard STAR® Funds; $3,000 for most other Vanguard funds

    Promotion
    N/A
    Fees

    $0.00 per trade

    Account Minimum

    $0

    Promotion
    N/A

    Fidelity vs. Vanguard

    Vanguard is a well-known name in the online brokerage space, thanks largely to its suite of low-cost index funds and ETFs. In terms of fees and account minimums, Fidelity and Vanguard are almost identical, though it will cost you slightly more per Options contract with the latter.

    In terms of investment offerings, they’re similar, but the main point to consider is whether you lean more toward Fidelity funds or Vanguard funds. When it comes to user experience and investment tools, Fidelity has a slight edge with Active Trader Pro. Fidelity‘s website is also easier to navigate.

    Open a Vanguard account Secured
    on Vanguard’s secure website

    Fidelity vs. TD Ameritrade

    Fidelity and TD Ameritrade are neck and neck in terms of investment costs and minimums, though you will need at least $2,000 to trade on margin with TD Ameritrade. But this brokerage does offer a few things Fidelity doesn’t, including cryptocurrency and futures trading, as well as multiple online trading platforms designed to meet different investors’ needs.

    One other thing worth pointing out is that TD Ameritrade‘s broker-assisted trade fee is lower than Fidelity‘s, at $25 versus $32.95. Whether it makes sense to choose Fidelity over TD Ameritrade or vice versa may ultimately come down to which brokerage’s funds you prefer.

    Open a TD Ameritrade account Secured
    on TD Ameritrade’s secure website

    All information included in this profile is accurate as of 1/14/2021. For more information, please consult Fidelitys’s website.

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    Review of Florida Financial Advisors

    Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It may not have not been reviewed, commissioned or otherwise endorsed by any of our network partners or the Investment company.

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    Florida Financial Advisors provides financial planning, wealth management and insurance services specifically designed for people living in Florida. With 85 advisors and fewer than 50 clients, the firm’s service is personal and individualized. It currently oversees $5.8 million in assets under management (AUM), and has three office locations in Florida.

    All information included in this profile is accurate as of January 13, 2021. For more information, please consult Florida Financial Advisors’ website.

    Assets under management: $5,843,643
    Minimum investment: None
    Fee structure: A percentage of AUM; fixed fees; a percentage of net worth or assets for financial planning clients
    Headquarters: 2330 W. Horatio Street
    Tampa, FL 33609
    https://www.floridafa.com/
    813-333-1683

    Overview of Florida Financial Advisors

    Florida Financial Advisors was founded in 2017 by Jason Mickool, who currently serves as the firm’s chief compliance officer. Mickool also owns Trinity Wealth Securities, a brokerage firm in Tampa, Fla., and some employees of Florida Financial Advisors are registered representatives of Trinity Wealth Securities. Florida Financial Advisors is also the parent company of Tristate Financial Advisors in Philadelphia, which provides the same investment advisory and insurance services to those in the tristate area of New Jersey, New York and Pennsylvania.

    Florida Financial Advisors currently has 85 employees that provide investment advisory services and are licensed insurance agents. Beyond the firm’s Tampa headquarters, it also has offices in Miami and Winter Park, Fla.

    What types of clients does Florida Financial Advisors serve?

    Florida Financial Advisors offers services to individuals, trusts, estates, charitable organizations, corporations, businesses and state and municipal government entities. The firm currently has fewer than 50 clients, all of whom are individual investors. It specifically caters to those who live in Florida and have “Floridian” goals, which may include owning a boat or beach house, in addition to traditional goals, such as saving for children’s education and getting ready for retirement.

    Florida Financial Advisors doesn’t require a minimum account balance for clients.

    Services offered by Florida Financial Advisors

    Florida Financial Advisors offers financial planning, wealth management and insurance services, specializing in the needs of Florida residents.

    The firm’s services include the following:

    • Asset management
    • Financial planning
      • Retirement planning
      • Trust and estate planning
      • Education planning
      • Tax strategies
      • Cash flow forecasting
      • Spending analysis and budgeting
      • Long-term care planning
      • Debt management
      • IRA and 401(k) rollovers
    • Family hardships
    • Insurance/risk management
    • Employee benefit plan fiduciary services; 401(k) and pension consulting
    • Workshops and seminars, newsletters, videos and other publications

    How Florida Financial Advisors invests your money

    Florida Financial Advisors uses three primary types of analysis to make investment recommendations to its clients:

    • Fundamental analysis: This method looks at a company’s overall financial health both now and as projected in the future.
    • Technical analysis: This method attempts to predict the trading behavior of a security by analyzing past market trends and patterns.
    • Cyclical analysis: While the firm states that it does not try to time the market, it does use cyclical analysis in which trends and the status of the economy nationwide and globally are considered.

    The firm also subscribes to Modem Portfolio Theory, which refers to diversifying investments to minimize risk and looks at the market as a whole when considering investments.

    Florida Financial Advisors typically recommends one of six model portfolios determined by a client’s goals, timeline and risk tolerance. The portfolios range from conservative to extremely aggressive. Most frequently, the firm recommends the following investment strategies:

    • Long-term purchases (securities held for a year or more)
    • Short-term purchases (securities sold within a year)
    • Trading (securities sold within 30 days)
    • Short sales
    • Margin transactions
    • Option writing

    Fees Florida Financial Advisors charges for its services

    Clients of Florida Financial Advisors pay an annual fee for investment management services, with the rate based on a percentage of their total assets under management. Maximum rates range from 1.40% to 2.65% depending on the value of a portfolio (see table below for specifics).

    While no client will owe more than the maximum rate for each portfolio tier, fees may vary based on factors such as anticipated future earning capacity and anticipated future additional assets. Additionally, because the advisors determine the exact rate within the parameters outlined in the table below, there is potential for a conflict of interest to arise, as advisors stand to earn more when they charge clients a higher rate.

    Florida Financial Advisors Asset Management Fee Schedule
    Portfolio value Maximum rate
    First $250,000 2.65%
    Next $250,000 2.45%
    Next $500,000 1.90%
    Next $1,000,000 1.65%
    Next $3,000,000 1.65%
    Next $5,000,000 1.40%
    Above $10,000,000 1.40%

    In some cases, Florida Financial Advisors may recommend that its clients work with a third-party investment advisor, such as Morningstar Advisory Services or Brinker Advisory Services. In these cases, Florida Financial Advisors receives a portion of the fee that the third-party advisor receives, as outlined in the charts below.

    Annual Fee Schedule for Morningstar Advisory Services 
    Total assets Florida Financial Advisors’ fee Morningstar’s fee Total fee
    $1-$500,000 0.75% 0.55% 1.30%
    $500,001-$1,000,000 0.75% 0.50% 1.25%
    $1,000,001-$2,000,000 0.75% 0.45% 1.20%
    $2,000,001 and up 0.75% 0.40% 1.15%
    Annual Fee Schedule for Brinker Advisory Services
    Total Assets  Florida Financial Advisors’ fee Brinker’s fee Total Fee 
    All assets Up to 2.51% 0.14% Up to 2.65%

    A client may also owe additional third-party fees, which could include costs like brokerage commissions, transaction fees and other expenses.

    For financial planning and consulting, clients are either charged a fixed fee, which ranges from $200 to $7,500, or a fee based on their net worth or assets, which may be up to 2%. The exact rate will vary based on the scope of the services provided and the advisor’s discretion.

    Florida Financial Advisors highlights

    • Specializes in Florida residents’ unique needs: Florida Financial Advisors specializes in meeting the specific needs of those living in the state of Florida. In addition to offering the standard fare, like investment management and financial planning, the firm can also help clients to achieve dreams specific to their Florida residency, such as someday owning a boat or a beach house.
    • Personalized service thanks to low client-to-advisor ratio: Florida Financial Advisors stands out for having more advisors than it does clients. The firm currently has fewer than 50 clients and 85 employees serving in investment advisory functions, translating to a roughly 1:2 client-to-advisor ratio. This means that clients will likely receive personal attention and individualized service.
    • Clean disciplinary history: Florida Financial Advisors reports no legal or disciplinary incidents, meaning it has a clean record. See more on this below.

    Florida Financial Advisors downsides

    • Potential for conflict of interest due to insurance and broker affiliations: Advisors at Florida Financial Advisors may earn additional compensation and be able to receive incentive rewards from the sale of some insurance policies, which could present a conflict of interest. Some members of Florida Financial Advisors’ team also represent Trinity Wealth Securities and other broker-dealers, through which they may receive a commission for recommendations to clients. This could also present a conflict of interest.
    • Fee schedule could present further conflicts of interest: While there are maximum fees for various portfolio tiers provided in the firm’s fee schedule, advisors ultimately determine the exact rate within those tiers. Again, this could present a conflict of interest, as advisors may be financially incentivized to charge higher rates.
    • Higher than average fees in comparison to national averages: Florida Financial Advisors’ rates may be higher than the national average fee for investment advisors. Clients may pay up to 2.65% of assets for the first $250,000 in their portfolio, which is significantly higher than the national average of 1.17%, according to a 2019 study by RIA in a Box. That being said, Florida Financial Advisors only lists its maximum rates, so clients may end up paying a lower rate than what’s listed in the publicly available fee schedule.

    Florida Financial Advisors disciplinary disclosures

    Florida Financial Advisors reports no disclosures. This means that neither the firm nor its employees or affiliates have faced any civil, criminal or regulatory events in the past 10 years.

    For more information, you can visit the firm’s Investment Adviser Public Disclosure (IAPD) page, where you will find the firm’s Form ADV, which all registered investment advisors must file with the SEC. One section of this form asks for disclosure information that may be pertinent to current or potential clients’ evaluation of the firm.

    Florida Financial Advisors firm onboarding process

    Florida Financial Advisors begins by analyzing a client’s overall financial status, including their taxes, debt, credit, business planning, retirement savings and insurance needs. It will then provide services for all or some of these areas. The firm consults with clients on an initial and ongoing basis, though it doesn’t state a minimum number of times that its team reviews or rebalances portfolios each year.

    Florida Financial Advisors offers free consultations, which you can sign up for through its website to get started. The firm also provides free workshops, newsletters, online videos and other resources to current and prospective clients.

    Is Florida Financial Advisors right for you?

    If you live in Florida and are looking for a financial advisor, Florida Financial Advisors may be worth considering. As a small, local firm, it provides personalized service to meet the unique needs of state residents. That service may come at a cost, however, as Florida Financial Advisors’ fees may be higher than average, though it is difficult to predict your exact fee as the firm only provides maximum rates.

    Be aware that advisors at the firm may stand to make financial gains by recommending certain products, so there is potential for conflict of interest. Additionally, while the firm may be of interest to Florida residents, its specialized focus on Floridians and the fact that all of its offices are located in the Sunshine State means it may not be a good fit for residents of other states, who may be better served by another financial advisor firm.

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