Firm Info
Firm Size
Services Offered
- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Portfolio Management for Businesses or Institutional Clients
- Pension Consulting Services
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Pension & Profit Sharing Plans
- Charitable Organizations
- Corporations or Other Businesses Not Listed Above
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Fixed Fees (Other than subscription)
Advance Capital Management Inc Overview
Advance Capital Management Inc is a registered investment advisory firm that has been providing investment advice only since 1986. The firm is headquartered in Southfield, MI, and operates on a fee-only fee arrangement. This means that the firm does not earn commissions or receive any form of compensation from third parties, ensuring that its clients receive unbiased financial advice. The firm offers a range of services to its clients, including financial planning, portfolio management for individuals and small businesses, portfolio management for businesses or institutional clients, and pension consulting services. These services are designed to help clients achieve their financial goals and objectives, whether that be growing their wealth, managing their investments, or ensuring a comfortable retirement. With over 30 years of experience in the financial industry and a team of experienced financial professionals, Advance Capital Management Inc is well-equipped to offer sound financial advice and management services to its clients. The firm's commitment to providing fee-only investment advice ensures that clients can trust that their best interests are at the heart of every decision made on their behalf.
Advance Capital Management Inc caters to a diverse array of clients, ranging from individuals to high net worth individuals, pension or profit sharing plans, charitable organizations, and other types of corporations not listed. With a focus on helping clients achieve their financial goals, the firm is committed to providing expert guidance and customized solutions that meet the unique needs and preferences of each client. Their team of professionals boasts extensive experience in wealth management, investment planning, and financial consulting, making them well-equipped to serve clients from a variety of backgrounds and industries. In terms of fee structures, Advance Capital Management Inc offers a range of options depending on the specific service provided. Clients may choose to pay a percentage of their assets under management (AUM), which is a common fee structure in the investment management industry. This percentage is usually around 1%, though it can vary based on the size of the account and the complexity of the portfolio. Alternatively, fixed fees may be available for certain services, such as financial planning or retirement income planning. These fees are typically agreed upon in advance and do not fluctuate based on changes in the portfolio's value. Ultimately, Advance Capital Management Inc works closely with clients to determine the fee structure that best meets their needs and aligns with their financial goals.
Typical Clients, Fee Structures & Investment Minimum
Based on the Part 2 Brochure of Advance Capital Management Inc, their investment minimum varies between their different investment strategies. On page 3, it is noted that "investment minimums for each of our strategies may vary". However, they do provide some specific investment minimums for certain strategies on page 4. For example, their "Global Equity Portfolio" has a minimum investment of $500,000 while their "US Income Portfolio" has a minimum investment of $50,000. Therefore, the exact investment minimum for Advance Capital Management Inc cannot be determined without knowing which specific strategy a client is interested in.
How This Office Can Help Southfield, MI Residents
Advance Capital Management, Inc. provides a range of financial services to clients in Southfield, MI, to help them achieve their financial goals and secure their financial future. The firm offers personalized investment planning and management services that are tailored to meet the unique needs and circumstances of each client. These services can include retirement planning, wealth management, tax planning, estate planning, and more. People living in Southfield, MI, may face a variety of financial situations that require professional assistance. For instance, someone nearing retirement may need help creating a retirement plan that will ensure a sustainable income stream in their golden years. Others may be grappling with debt and need guidance on how to manage their finances to get out of the red. Advance Capital Management, Inc. has the expertise and experience needed to help clients navigate these complex financial challenges and develop effective strategies for success.
Services Offered by Advance Capital Management Inc
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Advance Capital Management Inc most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Unavailable
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
This firm has no other locations.
State Registrations
Advance Capital Management Inc is registered to service clients in the following states:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- West Virginia
- Wisconsin
Disciplinary History
Advance Capital Management Inc does not have any disclosures. Please visit it's Form ADV for more details.