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Primerica Advisors is a financial services firm that serves individual investors — namely middle-class families — with a relatively modest minimum balance requirement of $25,000. The firm, which has over 1,600 offices throughout the United States, has nearly 3,800 advisors on staff, many of whom are also life insurance agents. Clients of the firm are invested in one of several model portfolios managed by third-party providers.
The bottom line: Primerica Advisors is a national firm focused on providing financial services to middle-income families.
| Assets under management (AUM): $5,090,244,164 | |
| Minimum investment: Generally $25,000 | |
| Individual investor to advisor ratio: 9:1 | |
| Fee structure: A percentage of AUM | |
| Headquarters: 1 Primerica Parkway Duluth, GA 30099 Website: www.primerica.com Phone: (800) 544-5445 |
All information included in this profile is accurate as of September 15, 2021. For more information, please consult Primerica Advisors’ website.
Primerica Advisors is the name under which PFS Investments, also registered as a broker-dealer, conducts its investment advisory business. PFS Investments is owned by the public company Primerica, Inc., a financial services firm that began as a life insurance agency in 1977. Today, Primerica, Inc. offers term life insurance in addition to mutual funds, annuities and mortgage loans, among other financial products and services.
Primerica Advisors offers its clients an investment management platform through which the firm’s team provides advisory services.
Most of Primerica Advisors’ clients are individuals who are not considered high net worth (for reference, the SEC defines a high net worth individual as someone with at least $750,000 under an advisor’s management or a net worth believed to be at least $1.5 million). In fact, Primerica Advisors specializes in serving middle-income families, which sets it apart from many financial firms that are more focused on serving clients with high net worth.
The firm generally requires a minimum account balance of $25,000. However, it notes that certain model portfolios within its program can have a higher minimum investment requirement.
Primerica Advisors specializes in offering investment management as well as term life insurance and other financial products to individual investors.
The firm offers its investment services through a wrap fee program that offers a number of model portfolio strategies. Portfolio management services are offered on a discretionary basis, meaning that Primerica Advisors can make trades on behalf of their clients. However, advisors do not have the discretion to switch model portfolios without a client’s authorization.
The firm does not offer ongoing financial planning. It can offer a financial needs analysis, which examines a client’s current financial situation and offers strategies to help ensure their future financial security.
Here’s a full list of the services offered by the firm:
Primerica Advisors invests client money into one of four model portfolios, which are run by third-party asset management firms that Primerica Advisors selects. These programs are offered through that firm’s investment management platform designed to support various investment objectives while accounting for a client’s preferences on taxes, market exposure and which securities are used.
Clients are matched with one or more of the following model portfolios based on an investor profile that they complete with the help of their advisor, which looks at factors such as their goals, risk tolerance and time horizon.
| Primerica Advisors Model Investment Strategies | |
|---|---|
| Model | Investment strategy |
| Tactical Model | Portfolios in this model emphasize shorter term economic conditions and may adjust holdings and asset allocation more frequently than other models. |
| Strategic Model | This model approach takes a longer term view of economic conditions and remains fully invested according to a predetermined asset allocation. |
| Income Distribution Model | These models aim to distribute income in set amounts over a specific period of time. |
| Tax-Managed Model | These models include three general categories: active tax-loss harvesting, tax-exempt strategies and tax-aware investment allocations. |
The firm also offers some portfolio solutions using environmental social and governance (ESG) strategies for investors who want their portfolio to align with their values. In those portfolios, advisors incorporate factors such as environmental practices, diversity and inclusion and corporate governance when considering how a company fits into their investing strategy.
For portfolio management services, Primerica Advisors charges a fee based on a percentage of assets under management. Since it’s a wrap fee program, investors typically do not have to pay for individual transactions, as wrap fee programs bundle all of these costs into a single fee. However, clients will still be responsible for the fees and charges from the mutual funds or exchange-traded funds (ETFs) used in their account.
Specifically, the program fees charged by Primerica Advisors include three components:
As evidenced in the table below, rates drop somewhat the larger a client’s account:
| Primerica Advisors Program Fee Schedule | |
|---|---|
| Account value | Maximum program fee |
| $250,000 or less | 2.24% |
| $250,000.01 to $500,000 | 2.21% |
| $500,000.01 to $1 million | 2.17% |
| $1 million+ to $3 million | 1.98% |
| $3 million+ | 1.70% |
Primerica Advisors reports several disciplinary disclosures on its Form ADV. For reference, the SEC requires all registered investment advisors to report such information that may be relevant to a client’s evaluation of the firm or its leadership, including any civil, criminal or regulatory actions within the last 10 years involving the company, its employees or its affiliates.
Primerica Advisors notes the following incidents within the last decade in its Form ADV:
The firm also lists a number of separate disciplinary incidents related to certain individuals at the firm.
For more information on Primerica Advisors’ disciplinary history and to view its Form ADV, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.
Primerica Advisors has over 1,600 office locations throughout the U.S. While Primerica Advisors’ website lists offices in every state, its Form ADV only notes office locations in the following states:
Primerica Advisors could be a good choice for middle-income families with at least $25,000 to invest, as well as for those who are also interested in purchasing term life insurance. Since the firm has offices throughout the country, you can likely find a local advisor to work with.
Those looking for more personalized services or ongoing financial planning assistance might be better suited by a different firm, as Primerica Advisors uses model portfolios and has limited financial planning help available. Additionally, potential clients should be aware that some Primerica Advisors are also insurance agents, which could create a conflict of interest when they recommend a product.
Before choosing a financial advisor, be sure to research multiple firms to ensure that you 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.
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