NEW YORK, September 14 — Ten independent registered investment adviser firms made The Wall Street Journal’s Buy Side ranking of wealth managers, and the spread between them is wide: account minimums run from nothing at all to $2 million, while annual fees stretch from 0.10% to 1.30% of assets under management. The bottom line for anyone shopping for a fiduciary: the cheapest headline fee is not always the cheapest relationship.
The list, published by the Journal’s research and commerce team under the title “10 of the Best Wealth Management Firms: Well-Known Fiduciary Investment Companies to Consider,” scored firms on advisor credentials, portfolio options, fees and customer support.
What the top firms share
The highest-rated firms tend to offer low fees, a high percentage of wealth managers who are certified financial planners, quality advisor-client interactions and a wide range of assets for clients to choose from. Every firm on the list connects clients with a wealth manager, but the price of admission varies sharply. Modera Wealth Management and Mariner Wealth Advisors both earned 5.0 ratings, as did Facet Wealth, PCM Encore, Mercer Advisors, Empower Advisory Group and Creative Planning.
Aspiriant Wealth Management and Betterment Premium scored 4.5, and Ellevest came in at 4.0. By the numbers, the entry points diverge fast.
Modera charges no account minimum but levies tiered fees of 0.25% to 1.00% of AUM. Mariner requires $100,000 and charges 0.60% to 1.25%. Facet asks for $500 and bills a flat $2,600 to $8,700.
PCM Encore sits at the other end, with a $2 million minimum and tiered fees of 0.20% to 1.25%. Mercer Advisors sets no account minimum but imposes a minimum fee of $1,200 instead, with tiered fees of 0.50% to 1.30%.
Empower Advisory Group requires $100,000 and charges 0.49% to 0.89%. Aspiriant’s minimum is $1.5 million, with fees of 0.20% to 0.85%. Creative Planning asks for $200,000 and charges 0.25% to 1.20%.
Betterment Premium requires $100,000 and charges 0.10% to 0.65%. Ellevest sets a $500,000 minimum and charges 0.35% to 1.25%.
Why RIAs, and why now
The firms were selected as RIAs because these types of firms employ wealth managers who are fiduciaries, meaning they must act in their client’s best interest. The Journal’s stated purpose is to help readers connect with a fiduciary wealth manager. Wealth management services typically offer a comprehensive approach to financial planning, and in addition to planning clients often receive help managing their investment portfolio.
Integrating wealth management strategies with long-term, holistic financial planning is described as giving a more complete picture of finances and an investment portfolio designed to support financial goals. Two firms got expanded treatment.
Modera offers comprehensive financial planning and wealth management, including investment management, tax and estate planning and trust services. It has no minimum investment requirement but charges minimum quarterly fees of $2,500 for portfolio management and $3,000 for wealth management — a structure the article says could be cost-prohibitive for anyone with a smaller account balance.
Modera is cited as a top service in part because of its depth of expertise: most of its advisors hold financial certifications such as CFP and chartered financial analyst, and clients have access to a large team of specialists supporting their dedicated advisors. Mariner serves clients with at least $100,000 in AUM, though that minimum might be waived in some cases.
Its services include investment and retirement planning, tax planning and preparation, and estate services.
What to watch
Investors will note the caveat attached to the whole exercise. The article says RIA firms are just a starting point for finding a wealth manager, and that no matter which firm is chosen, each wealth manager should be evaluated independently. Full methodology details are provided, and readers can find an advisor through Advisor.com’s website.
The piece carries the standard WSJ Buy Side disclosure that it is the Journal’s research and commerce team, that its commerce content is distinct from newsroom coverage, and that it earns a commission from some links in its articles. The figure that matters most to a prospective client is the one at the bottom of the fee schedule — and on this list, that figure depends entirely on which firm, and which account size, you bring to the table.
