Wealth Enhancement Group Joins Forces with Financial Management Concepts, a Fee-Only RIA with More Than $188 Million in Client Assets (2024)

FAQs

What is the fee structure for wealth enhancement group? ›

Wealth Enhancement Advisory Services charges an hourly rate of up to $600 an hour or a flat fee of between $250 to $25,000 for a plan, depending on the complexity. For retirement plan consulting, Wealth Enhancement Advisory Services charges either up to $600 per hour or an asset-based fee of up to 1%.

What Is a Fee-Based Financial Advisor? Fee-based financial advisors also make money through the fees their clients pay. Just as with fee-only advisors, these fees are often based on a percentage of AUM. However, the advisor also may charge clients flat fees, hourly fees or performance-based fees.

The average total fee of 1.17% exceeds the median total fee charged of ~0.98%. Thus, over half of RIA firms are charging a total fee of less than 1.00%. We also looked into the total fees assessed to a client based on whether the firm was managing portfolios directly (in-house) or via third-party (outsourced).

Wealth Enhancement Group is one of the largest independent wealth management firms in the U.S.

Any minimums in terms of investable assets, net worth or other metrics will be set by individual wealth managers and their firms. That said, a minimum of $2 million to $5 million in assets is the range where it makes sense to consider the services of a wealth management firm.

But, if you're already working with an advisor, the simplest way to determine whether a 1% fee is reasonable may be to look at what they've helped you accomplish. For example, if they've consistently helped you to earn a 12% return in your portfolio for five years running, then 1% may be a bargain.

In most cases, a fee-only advisor is going to be the best choice because they're incentivized to act as a fiduciary for their clients, and typically you won't have to worry about potential conflicts of interest when they're making recommendations.

A disadvantage of a fiduciary is that fiduciary advisors are often more expensive than non-fiduciary advisors as they charge higher market rates.

No, they aren't. At least not anymore. The Tax Cuts and Jobs Act (TCJA) of 2017 put an end to the deductibility of financial advisor fees, as well as a number of other itemized deductions. As of January 2018, these fees no longer contribute to reducing your tax bill.

Most states require RIAs to have a net worth of at least $35,000 if they have actual custody of client funds and $10,000 if they do not; RIAs who fail to meet this requirement must post a surety bond. (The rules for this requirement, as well as several other aspects of registration, vary from state to state.)

Is an RIA a wealth manager? ›

New Registered Investment Advisors (RIA Firms)

Included are some broker/dealers, asset managers, hedge funds and other firms that RIA Channel would define as an RIA “Wealth Manager.”

Chris pointed out that operating profit margins in the RIA industry are currently at 29-30%, in part because of market strength and asset growth.

You might not need a wealth manager if you have clear goals and are confident you can create and implement strategies to protect and grow your wealth. However, a wealth manager may be a good idea if you have substantial assets, would benefit from an expert, and have questions you need help answering.

Wealth Enhancement Group, as a fiduciary, has a long history of providing unbiased, independent advice to plan sponsors. We collaborate with you in the areas of prudent investment practices including plan governance, investment due diligence and ongoing monitoring.

Wealth Enhancement Advisory Services (WEAS), the Registered Investment Advisor (RIA) arm of Wealth Enhancement Group, is pleased to announce it has been ranked #5 in the 2023 edition of Barron's Top 100 RIA Firms.

You might not need a wealth manager if you have clear goals and are confident you can create and implement strategies to protect and grow your wealth. However, a wealth manager may be a good idea if you have substantial assets, would benefit from an expert, and have questions you need help answering.

A typical independent financial adviser fee might be between 0.25% and 1%, but some advisers may charge a different percentage depending on your circ*mstances.

Private wealth management can be expensive and requires a significant initial investment. Fees are generally based on the amount of managed assets and typically range from 0.5% to 1%, which may not be feasible for all high-net-worth individuals.

Negotiate a Lower Fee

If you like the advisor but want fewer services than they typically provide for a client, they may be able to justify charging you less. The same is true if you're bringing them more assets than they typically manage.