Stratos Wealth Partners is a financial advisor firm in Beachwood, Ohio that’s been doing business since 2008. The firm’s large team of advisors work to manage the assets of thousands of clients, including individuals, businesses, charities and institutions.
Stratos is a fee-based firm, meaning some of the firm’s advisors may earn compensation via insurance or securities commissions. This is in contrast with fee-only, which is a status that indicates 100% of a firm’s earnings come from fees that clients pay.
Stratos Wealth Partners Background
Stratos Wealth Partners has been providing investment advice since its founding in 2008. However, the firm wasn’t registered with the U.S. Securities and Exchange Commission until 2016. Stratos is owned by a holding company called Stratos Wealth Holdings, LLC. The firm’s headquarters are in Beachwood, Ohio, which is a suburb of Cleveland.
Stratos's advisors include many who have earned advisory certifications, such as certified financial planner (CFP), chartered financial consultant (ChFC) and accredited investment fiduciary (AIF).
Stratos Wealth Partners Client Types and Minimum Account Sizes
About half of Stratos's clients are individuals beneath the high-net-worth threshold. The rest of the firm’s client base is made up of high-net-worth individuals, banking institutions, pensions and other retirement plans, charitable organizations, insurance companies and businesses.
Stratos Wealth Partners requires different minimum account sizes for its asset management services. Minimums vary from $5,000 to $250,000. For clients looking to take advantage of the firm’s financial planning and consulting services, there’s no minimum investment to worry about. The required minimums may be waived at the sole discretion of the firm.
Services Offered by Stratos Wealth Partners
Stratos Wealth Partners offers a standard range of services, including:
- Financial planning
- Retirement planning
- General, segmented and comprehensive financial planning
- Educational planning
- Cash flow analysis
- Estate planning
- Budget planning
- Tax planning
- Insurance needs analysis
- Business continuity, succession and exit planning
- Asset allocation services
- Executive planning
- Corporate benefit consulting
- Hourly consulting
- Other planning and consulting services as requested by the client
- Financial Wellness Program
- Provides financial planning services to employers that will, in turn, offer these services to their employees as a fringe benefit
- Investment management
- Third-party advisor selection
- Portfolio management
- Mutual fund asset allocation programs
- Wrap fee programs
Stratos Wealth Partners Investment Philosophy
Stratos Wealth Partners typically recommends a range of different securities, including mutual funds, unit investment trusts (UITs), closed-end funds, exchange-traded funds (ETFs), exchange-traded notes (ETNs), variable annuity sub-accounts, equities, fixed-income securities, options, hedge funds, managed futures and structured products.
Advisors will choose from these investment options to build an investing plan that fit your needs. This process involves taking into account your risk tolerance, time horizon, income needs, investment objectives and financial preferences. Once this is complete, the firm will invest your assets according to a diversified asset allocation. As your portfolio ages, Stratos will keep an eye on it to ensure the original asset allocation remains in place and rebalance as needed.
Fees Under Stratos Wealth Partners
As most of Stratos Wealth Partners’ investment management services are offered through third-party advisors, fees can vary wildly. Therefore, clients will have their fee schedule individually set by their third-party advisor on a negotiable basis. These fees are normally charged as a percentage of clients’ assets under management (AUM). The maximum annual advisory fee is 2.25% fo rSWM and AWM accounts.
Financial planning and consulting fees at Stratos are negotiable and can come in the form of either a flat or an hourly fee. Flat fees will top out at $25,000, and hourly fees won’t usually exceed $500.
What to Watch Out For
Stratos Wealth Partners has one disclosure on its SEC-filed Form ADV, but it is for an action taken by an affiliated firm and not the firm itself. There are also currently not many details surrounding the action.
As a fee-based firm, certain advisors at Stratos Wealth Partners can earn commissions from the sale of specific insurance products or securities. Despite this fee arrangement, Stratos abides by fiduciary duty, legally binding it to act in clients’ best interests at all times.
Opening an Account With Stratos Wealth Partners
You can call to get in touch with Stratos Wealth Partners or visit the firm in person. Prospective clients can also visit the firm’s website and fill out its contact form to have an advisor reach out to them.
All information is accurate as of the writing of this article.
Tips for Retirement Planning
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