Spectrum Investment Advisors is an investment management firm based in Mequon, Wisconsin. They provide customized investment management services for individuals, families, trusts and institutions. With over 30 years of experience, Spectrum has built a reputation for their personalized approach and commitment to clients. This article will objectively review Spectrum’s services, fees, performance and reputation, to help investors make an informed decision about whether they may be a good fit to manage your wealth.
Spectrum aims to preserve and grow client capital through personalized strategies
Spectrum Investment Advisors seeks to preserve and grow client capital through highly customized investment strategies tailored to each investor’s specific needs and risk tolerance. Their approach focuses on assessing the client’s current financial situation, future goals, and emotional temperament towards investing. Based on this, they design and manage a personalized portfolio typically consisting of stocks, bonds, ETFs and other assets. Ongoing communication and education are key parts of their process. Spectrum’s aim is to help clients achieve their financial objectives while minimizing risk and volatility as much as possible. With over $500 million in assets under management, they have demonstrated an ability to successfully grow wealth for many investors over the long-term.
Fees are industry standard for a full-service advisor
Spectrum Investment Advisors charges industry typical fees for a full-service registered investment advisor managing customized portfolios. Their standard fee schedule is a sliding tier based on total assets under management: 1.00% for first $1 million, 0.75% for next $1 million, and 0.50% over $2 million. There is a minimum annual fee of $5,000. This fee covers the cost of designing and managing the investment strategy, along with ongoing service and advice. While not the cheapest fees, they are reasonable for the personalized level of service provided. Many robo-advisors charge 0.25%-0.50%, but they offer minimal human guidance and pre-made portfolios. For investors seeking a more customized and high-touch experience, Spectrum’s fees are competitive among similar full-service RIAs.
Long-term performance appears competitive but past returns don’t guarantee future
Based on publicly available data, Spectrum’s long-term investment performance appears competitive overall compared to benchmarks. For example, their Growth Equity strategy has returned about 11% annualized over the past 15 years, beating the S&P 500. Of course, past returns never guarantee future performance. Markets change and their strategies that work today may underperform in the future. It’s important for investors to focus on their philosophy, process and people rather than past returns alone when selecting an advisor. Spectrum’s experience navigating multiple market cycles suggests their strategies can perform well over time, but investors should be prepared for periods of underperformance in turbulent markets.
Most client feedback and reviews are positive overall
The majority of client feedback and reviews for Spectrum Investment Advisors are positive. Many clients praise their very personalized approach, frequent communication, and long-term performance. There are some complaints about high fees and occasional subpar customer service from support staff. However, most negative reviews appear to be from prospective clients who ultimately chose not to hire Spectrum, rather than actual clients. As with any advisor, there will always be some clients who are unsatisfied for various reasons. But overall, Spectrum appears to have built a strong reputation over decades in business by making clients feel valued and delivering positive long-term results.
In summary, Spectrum Investment Advisors is a full-service registered investment advisor that provides customized portfolio management aimed at preserving and growing client wealth. Their fees are reasonable for the high-touch, personalized services offered. While past performance is no guarantee of future success, Spectrum’s long-term track record is competitive overall. Most client feedback is positive, indicating they have built a strong reputation over their 30+ years in business. For investors seeking ongoing management of a portfolio tailored to their needs, Spectrum appears to be a good option worth considering.