MagnifyMoney 
Geneos Wealth Management is a private wealth management firm that offers financial planning and portfolio management. It has no minimums for two of its three main accounts, and only a $10,000 minimum for its other account, making it accessible for all levels of investors. The firm primarily serves individuals, currently overseeing nearly $4.6 billion in assets under management (AUM). Headquartered in Centennial, Colo., it has over 100 offices nationwide.
The bottom line: Geneos Wealth Management is a portfolio management and financial planning firm with no or low minimum investment requirements.
| Assets under management: $4,580,304,413 | |
| Minimum investment: None for VIP or Ultra managed account; $10,000 for an Axiom managed account | |
| Individual investor to advisor ratio: 88:1 | |
| Fee structure: A percentage of AUM, hourly charges, fixed fees | |
| Headquarters: 9055 East Mineral Circle, Suite 200 Centennial, CO 80112 Website: www.geneoswealth.com Phone: 303-785-8470 |
All information included in this profile is accurate as of December 16, 2021. For more information, please consult Geneos Wealth Management’s website.
Geneos Wealth Management is a privately held firm that offers financial planning and wealth management services. The firm has over 200 employees, all of whom perform investment advisory functions and are registered representatives of a broker-dealer.
Russell Diachok founded the firm with his father, George Diachok, in 2002, after selling their previous firm to ING. Diachok retired as CEO in December 2020 and his nephew, Ryan Diachok, took over as CEO. According to the firm’s Form ADV, GWM Holdings Inc. owns 75% or more of the firm.
The vast majority of Generos Wealth Management’s clients are individual investors, although the firm has some clients who are high net worth individuals. The SEC defines high net worth individuals as those with at least $750,000 in assets under management, or a net worth believed to be above $1.5 million.
There is no minimum account size required to open a VIP or Ultra VIP managed account at Geneos Wealth Management, though the firm’s Axiom managed accounts do have a $10,000 account minimum. However, the firm notes that it may allow exceptions to these requirements at its discretion.
Geneos Wealth Management provides financial planning and asset management services to clients and also refers clients to third-party money managers. Most advisors at the firm are also insurance agents who may make insurance product recommendations and sales.
The firm’s financial planning services range from holistic planning covering all aspects of a client’s financial situation to modular plans that focus on a specific area, such as retirement planning or asset allocation.
For asset management services, Geneos Wealth Management has three programs available:
Here is a full list of services offered by Geneos Wealth Management:
Geneos Wealth Management uses several different investment strategies, including short-term and long-term purchases, trading, short sales, margin transactions, option writing, market timing and strategic asset allocation. Geneos Wealth Management also may refer clients to third-party managers who have different investment philosophies.
The firm’s approach to portfolio design differs depending on which program the client enrolls in, but in general, it is based on a client’s individual goals and objectives. In the VIP program, representatives work with clients to design a portfolio based on a third-party custodian’s platform. In the VIP Ultra program, the advisor creates either a customized portfolio or a portfolio based on the representative’s model. Clients in the Axiom program invest in one or more models created by third-party portfolio strategists.
The portfolios may be comprised of a variety of investments, including:
Investment advisory fees: Fees for investment advisory services at Geneos Wealth Management are negotiated directly between the client and their representative, and rates are based on a percentage of assets under management. Rates can range from 0.50% to 2.50% and can be flat or tiered.
The VIP Ultra and Axiom programs use wrap fees, meaning there are no additional fees for individual transactions, which are bundled with the advisory fee into a single charge. The firm also offers a VIP program, in which the client pays for individual transactions and a separate management fee. Depending on the volume of trades in the account, this fee arrangement can be more or less expensive for clients.
Clients may also incur other charges imposed by third parties in connection with investments made through their account, such as confirmation fees, mutual fund 12b-1 distribution fees and account maintenance fees. A description of these fees and expenses are available in each investment company security’s prospectus.
Financial planning fees: Financial planning rates at Geneos Wealth Management are negotiated directly between clients and their representatives. Fees may be a one-time charge, an hourly rate or a retainer, according to the following limits set by Geneos Wealth Management.
| Geneos Wealth Management Financial Planning Fees | ||
|---|---|---|
| Rate structure | Minimum fee | Maximum fee |
| One-time charge | $125 | $25,000 |
| Hourly fee | $35/hour | $300/hour |
| Periodic* | $50 per period | $25,000 per period |
| *Periodic fees may be charged on a monthly, quarterly or semi-annual basis either prior to the service being provided or after. They may also be charged annually in arrears only. | ||
Geneos Wealth Management has disciplinary disclosures on its record. All SEC-registered firms are required to note any disclosures, which include any past criminal, regulatory or civil penalties, in their Form ADV, paperwork that they must file with the SEC.
In 2018, the Securities and Exchange Commission (SEC) ordered Geneos Wealth Management to pay a fine of more than $1.8 million following charges that the firm had breached its fiduciary duty to clients. The settlement stemmed from allegations that from 2012 to 2017 the firm had profited by putting some advisory clients’ assets into higher-fee share classes of mutual funds even though the clients were eligible for shares with lower fees. The SEC also alleged that Geneos Wealth Management had not properly disclosed the compensation it received for referring clients to some third-party broker-dealers.
Additionally, the firm paid a fine totaling $12,500 in 2015 in response to allegations from the Financial Industry Regulatory Authority (FINRA) that the firm had failed to properly supervise and record transactions made by representatives at a branch office. Geneos Wealth Management neither admitted to nor denied wrongdoing.
Geneos Wealth Management has since revised its policies to prevent such issues in the future. For more about the firm, you can visit its Investment Adviser Public Disclosure (IAPD) page.
Geneos Wealth Management has offices in the following states, according to its Form ADV filings:
In addition to these states where the firm lists physical office locations, Geneos Wealth Management is also registered to serve clients in all 50 states, plus the District of Columbia.
Geneos Wealth Management may be a good choice for clients looking for financial planning and help with their investments. The firm primarily works with individual investors and has no minimum account balance for its VIP accounts, making it a viable option for many investors who may be shut out of other firms that focus on wealthier investors.
However, the firm has some potential conflicts of interest and an unclear fee schedule, so it’s important to understand the cost of its services and why advisors are making a specific recommendation. As is the case before making any financial decision, it’s important to do your research and compare multiple options to find the right advisor for you.
Beth BravermanBeth Braverman is a freelance writer covering personal finance, careers and parenting. Her work has appeared in dozens of publications, including CNN Business, CNBC.com and USNews.
Read More
