At Covenant Investment Advisors, LLC, the client is always number one. We are a small, friendly company that will seek to meet your personal needs and objectives as much as possible. We seek to tailor our services and our recommendations to suit every customer. In general, though, the services we offer can be classified under two headings:
Most of us strive to make good financial decisions, but life always seems to happen too fast and we find ourselves reacting rather than planning. The result is that we pay more for things we don’t need, don’t pay for things we do need, save less than we should, and invest haphazardly.
With Covenant Investments’s financial planning service, you will get advice on investment management, tax solutions, insurance, real estate transactions, budget planning, and much more.
For clients needing only one-time advice or counsel on a limited set of issues, we offer hourly billing to meet with you, evaluate your situation, and offer thoughtful advice and a financial action plan.
Most clients, however, will find that they are best served by an ongoing relationship, which will enable us to provide you with the full scope of our expertise and help you make the best financial decisions, year-in and year-out. Our objective in this relationship is twofold: to develop (and maintain) a comprehensive and unified financial plan, and to provide solutions for whatever financial questions or needs our clients may have. We will meet with each client twice per year to review their financial situations and advise accordingly, and we will also manage any investment accounts a client has at no extra charge (see the Portfolio Management service below). For this service we charge an annual fee of 1% of a client’s annual income and 0.5% of net worth. We typically break this into monthly payments, according to the following example:
If a client makes $50,000 per year and has a net worth of $100,000, their annual financial planning retainer fee would be: $500 + $500 = $1000, billed as $83 per month.
This service is for clients who have a good handle on their overall finances but want to avoid the time, effort, and stress of managing their own portfolios. For an inexpensive fee paid quarterly, the advisor will consult with the client once a year about their financial situation and investment objectives, design a long-term investment strategy for the client, open them an account with a brokerage firm, execute trades, and send quarterly statements about their account status. The client of course may always choose to become more actively involved and request that the adviser make certain trades on their behalf. In general, though, we recommend that clients allow their advisor to use his professional knowledge to manage the portfolio in a way that meets the risk, return, and time horizon needs of the client. For portfolio management, our firm will charge a percentage of the assets under management, according to the following fee schedule:
<$50,000: 1.5% per year
$50,000-1,000,000: 1.0% per year
>$1,000,000: 0.75% per year
If you would like to schedule a free initial consultation with one of our advisors, or have any questions about our firm and the services we offer, please use the form below. We will get in touch with you as soon as we are able.
5 Pillars of Our Investing Approach:
Covenant Investment Advisors’ approach rests on five pillars that ensure you get the very best service possible.
COMPENSATED FOR SUCCESS
We don’t make money off of commissions, or represent one particular family of funds. We are independent and fee-only, which means our only portfolio management income comes from a small percentage of your assets, not from needless trading. We only succeed if our clients succeed.
We do not have prepackaged funds or portfolios that we slot our clients into. We carefully analyze each client’s circumstances and goals to construct and maintain a portfolio and financial plan specifically tailored for the client’s needs. We recognize that every client is unique.
We take a global approach, avoiding overconcentration in the US markets, and encouraging our clients to diversify their risk across a wide range of global regions and asset classes. More diversification means more opportunity and lower risk.
We do not simply extrapolate forward recent trends to project expected risk and returns. Instead, we rely on time-honored quantitative valuation methods and very long-term historical data to reduce exposure to bubbles and make sure the assets you are investing in are fairly valued. Building on a firm foundation means you can face market fluctuations with confidence.
We are highly motivated to find the most cost-effective funds for implementing our clients’ goals. Within each asset class, we isolate the funds that combine excellent management with the lowest expense ratios, and we stick with them, avoiding excess trading costs. Every dollar that we save in fund management and trading costs is another dollar that is available to work for you.