Beacon Pointe Advisors Review - MagnifyMoney
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Beacon Pointe Advisors Review

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Beacon Pointe Advisors, LLC is an independently owned, fee-only firm offering financial planning and wealth management services to both individuals and high net worth individuals. The firm has a particular focus on working with women and clients who are going through life milestones. Beacon Pointe is one of the largest RIAs in the U.S., and it has advisory teams located across the country.

The bottom line: Beacon Pointe Advisors, an RIA with offices throughout the U.S., offers wealth management and financial planning, generally to those with at least $1 million to invest..

  • Focuses on serving women investors
  • Requires a high minimum investment, though it can be waived
  • Prefers an active approach to investing

All information included in this profile is accurate as of April 27, 2022. For more information, please consult Beacon Pointe Advisors’ website.

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Overview of Beacon Pointe Advisors

Beacon Pointe Advisors is an independent firm primarily founded in 2002 by Shannon Eusey, who remains the firm’s CEO. In March 2020, Beacon Pointe Advisors merged with sister firm Beacon Pointe Wealth Advisors in order to form a single registered investment firm called Beacon Pointe Advisors. As part of the transaction, private equity firm Abry Partners took a minority stake in the merged firm. However, the firm is majority-owned by its employees.

Beacon Pointe Advisors has roughly 350 employees, around 200 of whom work in an advisory capacity. The firm has a focus on serving women and their unique financial needs.

A look at the founder of Beacon Pointe Advisors

Eusey founded Beacon Pointe in 2002 based on a business school project. Before launching Beacon Pointe, Eusey worked as senior managing director and portfolio manager at Roxbury Capital Management, overseeing socially responsible investments for many years.

Eusey is a member of the CNBC Financial Advisor Council and is regularly featured in publications including The Wall Street Journal, Barron’s, Financial Planning magazine and Investment News. She co-authored the bestselling book “Your Dollars, Our Sense: A Fun and Simple Guide to Money Matters.”

Beacon Pointe Advisors’ pros

  • Fee-only firm: Beacon Pointe Advisors is fee-only and majority employee-owned, which minimizes the firm’s potential conflicts of interest. Since the firm only earns money through the fees its clients pay, it doesn’t have financial incentives to recommend certain products or make referrals.
  • Customized advice: The firm works with each client to create an individualized investment policy from which it makes asset allocation recommendations. This means that each portfolio reflects its owner’s specific financial situation and risk profile.
  • Industry recognition: Together, Beacon Pointe and Beacon Pointe Wealth Advisors have won more than 60 awards in the past 15 years. Recent accolades include mentions in Forbes (America’s Top Women Wealth Advisors), Investment News (40 Under 40 Advisors) and OC Business Journal (100 Fastest Growing Companies). Beacon Pointe Advisors’ CEO and founder, Shannon Eusey, appeared on Worth Magazine’s 2020 list of 50 Women Changing the World.
  • Focus on women: The firm’s Women’s Advisory Institute is committed to helping women investors meet their financial goals and manage major life events. This attention to the unique needs of women may appeal to that group of investors.

Beacon Pointe Advisors’ cons

  • High account minimum: The firm requires a $1 million minimum account balance to open an account. This may exclude many potential clients, although the firm may waive the minimum. In fact, its current client base includes more individuals than high net worth individuals.
  • Less transparent fee schedule: The firm publishes a fee schedule with ranges that give an idea of how much you may pay for its services, but you won’t know for sure until you speak with an advisor to explore becoming a client. Some other firms offer clear fee schedules telling you exactly what you’ll pay based on the assets you have invested, which can make it easier to comparison shop.
  • Potential conflict of interest with insurance product: Beacon Pointe is under joint ownership and control with Beacon Pointe Insurance Services, a California licensed insurance agency. Some Beacon Pointe Advisors personnel are also licensed insurance agents with Beacon Pointe Insurance Services. This may present a conflict of interest if there is an incentive for an advisor to recommend an insurance project in order to receive compensation from the insurance company. The firm’s Form ADV brochure stresses that clients are under no obligation to accept such insurance recommendations.

What types of clients does Beacon Pointe Advisors serve?

The firm serves mostly individuals and high net worth individuals. (For reference, the Securities and Exchange Commission [SEC] defines a high net worth individual as someone with at least $750,000 in assets under management or a net worth of over $1.5 million.) While the minimum account balance required for clients is technically $1 million, the firm may waive or reduce that minimum at its discretion, as evidenced by the fact that it serves more individuals than high net worth individuals.

Beacon Pointe Advisors has a particular focus on women investors. In 2011, it founded the Women’s Advisory Institute, aimed at helping female clients. Additionally, half of the firm’s leadership team are women. Beacon Pointe also specializes in helping multi-generational families; entrepreneurs and business owners; and clients going through financial life changes, such as divorce or the death of a spouse.

Services offered by Beacon Pointe Advisors

Beacon Pointe Advisors offers both consulting services and a managed account program. Financial planning services fall under the consulting part of the business.

Clients interested in financial planning have the option of getting a holistic plan that looks at their entire financial picture and results in the creation of a written financial plan with specific recommendations. Clients can also request limited-scope financial planning focused on a specific goal, such as saving for retirement or paying for a college education. Other consulting services offered by Beacon Pointe include assistance with creating an investment policy or asset allocation strategy; recommendations of managers, mutual funds, or custodians; and the monitoring of managers and portfolios on a non-discretionary basis.

Clients in the managed account program have access to the above services as well as investment management on a discretionary basis. That means that the firm invests the money on clients’ behalf and has the authorization to make changes to keep the client’s portfolio in line with their investment policy.

The firm also offers an automated investment program, which is essentially a robo-advisory service. The automated investment program invests clients in a range of investment strategies that the firm constructs and manages, each consisting of exchange-traded funds (ETFs), mutual funds and cash. Clients can open an automated investment account on the firm’s website, and the program is available to those who open a brokerage account with Charles Schwab.

Beacon Pointe also offers a suite of institutional-focused services, including for institutions, retirement plans and insurers. It also can provide outsourced CIO services.

Here is a complete list of services currently offered by Beacon Pointe Advisors:

  • Portfolio management
  • Financial planning
    • Wealth and retirement planning
    • Estate and tax strategy
    • Insurance review and risk assessment
    • Charitable giving
    • Education planning
    • Tax planning and management
    • Life transitions
    • Generational wealth transfers and legacies
  • Automated investment program
  • Selection of other advisors
  • Manager or mutual fund search
  • Custodial search
  • Retirement plan consulting
  • Workshops and seminars
  • Newsletters and publications

How Beacon Pointe Advisors invests your money

Beacon Pointe works with each client to learn about their financial situation to create an individual investment policy based on their goals and risk tolerance and the firm’s models.

When possible, the firm recommends investments with active managers who have undergone a rigorous screening process that includes quantitative and qualitative analysis, portfolio analysis and product evaluation. Beacon Pointe also offers a custodial search service, helping clients choose from a group of custodial candidates.

The core asset classes that the firm uses in client portfolios include the following:

  • U.S. equity
  • Non-U.S. equity (developing and emerging markets)
  • U.S. and global fixed income
  • Public and private real estate
  • Private equity
  • Hedge funds
  • Real assets

Fees Beacon Pointe Advisors charges for its services

The fees Beacon Pointe Advisors charges vary depending on the service provided. Here are the firm’s fees for its major service categories:

Fees for asset management: Private clients in the managed account and wrap fee programs pay negotiated asset-based fees, typically ranging from an annual 0.50% to 1.15% of assets under supervision. The maximum rate the firm will charge is 1.65% of assets under management. For clients in the managed account program, these fees are in addition to any manager or transaction fees that clients may owe custodians.

Fees for consulting services: For consulting services provided on a one-time or project basis, Beacon Pointe Advisors charges either a fixed, project-based fee, with a typical minimum of $25,000, or an hourly fee that typically runs from $350 to $500 an hour. If the consulting services are provided on an ongoing basis, the firm will charge an asset-based fee. The annual retainer fee for discretionary portfolios generally ranges from 0.20% to 0.50%, while the rate ranges from 0.08% to 0.50% for non-discretionary portfolios. Clients with a portfolio worth more than $500 million typically pay a negotiated fixed fee.

Fees for the automated investment program: Beacon Pointe charges a rate of 0.50% of assets under management for clients in the automated investment program. Other fees may include fund fees, custodian fees and fees charged by independent managers.

Beacon Pointe Advisors disciplinary disclosures

The firm doesn’t have any disciplinary disclosures on its record. Registered investment advisors who face disciplinary action, including criminal charges, regulatory infractions or civil actions, must report those incidents on the Form ADV that they file with the SEC.

For more information on the firm, visit its Investment Adviser Public Disclosure (IAPD) page.

Beacon Pointe Advisors onboarding process

  1. Contact the firm: Interested clients can get in touch with the firm by calling the nearest office. The firm provides each office’s contact information on its website.
  2. Create a plan and an investment policy: Once in contact, advisors work with the client to create either a limited-scope or holistic financial plan and an investment policy based on that plan.
  3. Implement the plan: The firm then recommends custodians to implement the plan, and clients can either implement the strategy on their own or allow the firm to manage their portfolio on their behalf.
  4. Get regular account reviews: Advisors review client accounts quarterly and aim to meet with clients once a year to discuss portfolio performance and any necessary changes to their portfolio. Clients in the managed account receive monthly reports from their custodian showing their portfolio and quarterly written reports from their Beacon Pointe advisors. The firm reviews financial plans as needed, on request from the client. Clients also have access to a client portal and an AllWealth financial hub.

Where Beacon Pointe Advisors is located

The firm lists offices in the following states on its website:

  • Arizona
  • California
  • Colorado
  • Florida
  • Louisiana
  • Massachusetts
  • New Jersey
  • New York
  • North Carolina
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Washington
  • Wisconsin

Is Beacon Pointe Advisors right for you?

Beacon Pointe Advisors may be a good choice for you if you have at least $1 million to invest and are interested in active management for your portfolio. Women investors, in particular, may be well served by the firm, which specializes in many of the financial issues and life events facing women investors.

However, Beacon Pointe Advisors also has a relatively high minimum balance at $1 million. Another firm may be a better choice if you don’t have the funds, though it’s worth noting that the firm may waive this minimum at its discretion and that it does have a good number of non-high net worth investors. Be sure to research multiple firms to ensure you find the right advisor for you.

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Reviewed By: Jessica Sain-Baird

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