Formerly known as Southwestern Investment Group (SWIG), SageSpring is a financial advisor firm that's headquartered in Franklin, Tennessee. The firm works with a variety of individual and institutional clients.
This is a fee-based firm, which means some of its advisors may have the ability to earn income from the sale of insurance products, in addition to advisory fees. On the other hand, a fee-only firm would earn solely client-paid fees as compensation.
SageSpring Background
SageSpring has been a registered investment adviser since 2016, but it can trace its history back to 2002. According to the firm's brochure, SageSpring Holdings, LLC owns over 75% of SageSpring.
The firm employs dozens of advisors, and among them are Certified Financial Planners™ (CFPs®), chartered financial consultants (ChFCs), five certified public accountants (CPAs), chartered life underwriters (CLUs), as well as advisors with the accredited investment fiduciary (AIF), enrolled agent (EA) and certified wealth strategist (CWS) designations.
SageSpring Client Types and Minimum Account Sizes
SageSpring serves more than 10,000 clients, the majority of which are individuals below the high-net-worth threshold. The remaining clients include high-net-worth individuals. The firm also offers services to pension and profit-sharing plans, corporations and charities.
The firm says in its brochure that it does not require a fixed minimum balance to open or maintain an advisory account. However, the firm may choose to close an account if the balance becomes too low to manage effectively.
Services Offered By SageSpring
SageSpring provides investment advisory services in several areas, including investment management, financial planning and retirement plan consulting.
Its investment management services are offered on a discretionary basis and include portfolio construction, asset selection and regular monitoring.
Advisors assess each client’s financial goals and risk tolerance, then build portfolios that may include stocks, bonds, mutual funds, ETFs and other public or private investments. Portfolios are adjusted as needed to stay aligned with the client’s objectives.
The firm also offers financial planning and consulting services tailored to the client’s individual needs. These may include retirement planning, estate planning, business planning, insurance review, cash flow analysis, college funding strategies and charitable giving, among others. Clients may receive broad or topic-specific advice depending on the scope of the engagement.
In addition, the firm provides retirement plan consulting for employer-sponsored plans. Services may include assistance with investment policy statements, fund selection, asset allocation models, performance monitoring, and participant education.
It also provides guidance on retirement plan rollovers but notes that recommending a rollover to a managed account may create a conflict of interest. So clients are under no obligation to follow this advice.
SageSpring Investment Philosophy
In order to formulate its investment recommendations, Southwestern Investment Group relies on fundamental analysis, technical analysis and charting. Fundamental analysis involves examining the key financial statistics and documents of a company or fund in order to gauge its intrinsic value. This can be used to identify securities that the market is undervaluing. The latter two methods of analysis work together to use past pricing patterns and market trends to predict how stock prices will move.
How the firm approaches portfolio construction and asset allocation will depend on a number of factors, including the investment program in which the client participates and their risk tolerance, investment goals and cash flow needs. When it comes to time horizon, the firm can utilize both long- and short-term purchases, as well as trading.
Fees Under SageSpring
SageSpring charges fees based on either a percentage of assets under management or a flat amount. The highest annual fee for investment management is 2.25%. Fees are usually billed every quarter, based on the account value at the end of the previous quarter. Fees may be negotiable, and related accounts in the same household can be combined to lower the rate. Clients give written permission for fees to be deducted directly from their accounts.
For financial planning and consulting, SageSpring charges either an hourly fee (up to $500) or a flat fee (typically between $1,500 and $50,000). The exact fee depends on the scope and complexity of the services. Fees are agreed upon in writing before work begins.
Retirement plan consulting may be charged as a flat fee or as a percentage of plan assets, not exceeding 1.00%. Flat fees generally range from $750 to $100,000. For accounts held outside the firm, SageSpring may use the Pontera system to manage them. In those cases, fees are charged from another account the firm manages. Clients do not pay extra for Pontera; the firm pays part of its fee to Pontera directly.
Fees for consulting services at the firm will generally follow a schedule laid out in the client-advisor agreement. Therefore, these charges can vary depending on the nature and complexity of the services being rendered.
What to Watch Out For
Southwestern Investment Group has no disclosures listed on its Form ADV.
As a fee-based firm, certain advisors at Southwestern Investment Group can earn commissions from the sale of specific insurance products and/or securities. This represents a potential conflict of interest. Despite this fee arrangement, the firm abides by fiduciary duty, legally binding it to act in clients’ best interests at all times.
Opening an Account With SageSpring
If you’re interested in learning more about the services Southwestern Investment Group has to offer, you can give the firm a call at (615) 861-6100 or fill out the contact form on its website.
Tips for Retirement Planning
- Financial advisors can be great partners in building a financial plan and choosing investments. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Don’t forget to take Social Security payments into account when you formulate what kind of income you’ll need in retirement. If you don’t know what you’re in line to receive, check out SmartAsset’s Social Security calculator.
