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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Our FA is also our CPA. We are paying him .5% annually to manage just under $3M. We have a other assets in other funds (401K, Deferred Comp, Company Stock, Stock Options, 529, donor advised fund, etc.) which he doesn't manage, but still gives advice on allocations and other issues that would have tax implications.  Our total investments, including the assets he manages, are about $12M.

He also helped us update our estate plan and made sure we are insured appropriately.

We like the convenience of having a CPA who understands our tax situation manage our funds and advise us on our other funds.  My husband is also approaching retirement, so it has been reassuring having someone who can help us plan, which will be in about a year.[/quote]

Our FA is not our CPA, but they work closely with our CPA and our Estate Planner and everyone involved in our Wealth management team.  They are the "glue that holds it all together".  Sure I could pay less and manage it myself.  But it's nice to just call/email/text and have them manage it for me.  That is what you get for your 0.5% for everything they manage (for us it's $~10M).  They also advise on our 529, 401K and everything financial even if they are not collecting a fee on that portion.  They handle all of our treasury/CD/short term investments with out any fees (that is much more than $10M).  Making sure it's all in best options for highest return when they come due.  Also follows up when some has been in CDs at banks that have gone under (there have been a few in last 2 years----that happens when you spread it all out to keep FDIC insurance).  That means I don't have to have accounts at 20+ banks to manage myself.  That part all comes at "no fee" to us.  Sure paying $25K+ per year may seem like a lot for most people, but when you are at HNW/UHNW it's just a part of managing your finances.  And a great FA makes it all run smoothly.  I know, because I used to manage our CD/Treasuries/MM previously and am very happy I don't have to do it anymore.  
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Thanks for sharing this. You mentioned you were paying approximately $25K in fees for $10M, so is your rate .25%? And do you feel for $3M in assets that .5% is a good rate?[/quote]

I think that is a good rate for $3M.  Especially if they do not charge a fee for your "cash" holdings (Treasuries/CD/MM/etc) or your 529s.  And are very responsive to your needs.

We have been with our FA for 20+ years.  So since we were only worth $1-2M.  We chose to stay with them because we trust them.  Even when we made the quick switch to UHNW 3 years ago we stayed---because they showed us they could (and would ) manage everything for us, [b]they had access to wealth management team that is amazing.[/b]  At that level, most of the FA who want your business are slimy and pushy and I didn't want to work with any of them.  We interviewed a few just to see and I couldn't' stomach it.  They are just annoying and sleezy to me.

I like that we are most likely our FA top client, not just another UHNW/HNW family.

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What in tarnation does a wealth management team do?[/quote]

Mostly it's about adding detailed tax advice (slash avoidance let's be honest), and estate planning.  Those usually aren't a major part of traditional financial planning/management.[/quote]

Not really. Tax advice and estate planning are literally what a financial planner does. This is nothing special and you don't need a wealth management team to get that advice.

But you do need to pay for this wealth management team's salaries. If you are the caring, charitable type, you could find a firm to do similar and donate the savings to the many non-profits that need your money.[/quote]

No, typical financial planners do NOT provide estate planning when you are higher net worth.  Sure, they know when to harvest tax losses, etc.  And they know the basics of when the death tax kicks in at federal and state levels (if applicable).  But unless they are also a lawyer, they definately do not know the intricacies of UHNW/HNW estate planning.

As far as "WM team salaries", those are at our investment firm, whether we use them or not.  When we only had $5M with them, we didn't need (or really qualify ) for the advanced services.  Now that we have more $$$ we still don't pay any higher percentage, if anything, we negotiated lower rates over various tiers. So our FA would still be getting our percentage of investments, whether we use these advanced services or not.

Most do NOT need the wealth management team.  But once you hit a certain level, you certainly do. And its easiest to have it all "under one roof".  Our FA coordinates it all as needed.

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What do you consider higher net worth? Anything under $10M is does not require a special team. Financial planners work with clients under 10M every day. They partner with regular old estate planning attorneys.

You are always paying, with one hand or the other.[/quote]

Well aware of that.  Once you hit $10-15M+, with the ability for it to increase and assuming over $20M eventually,  you need a special team.  Yes, you pay one way or the other.  But it would be stupid to not use the "free" services within our specialized financial management team.  We are not paying extra for them, it's the perks of having a large amount invested with them and the likelihood of having more in the future.  But we pay our percentage fee no matter what.  Might as well save $10K+ per year in consultation fees.  And in our case, the lead coordinator/wealth management manager besides our FA is actually someone we already knew who is highly qualified (they were our estate lawyer and then made the switch to Wealth Planning).   So we have worked with them in other capacities for over a decade and love them and trust them.  Except now, we don't pay $400+/hr to consult with them as a lawyer---it's all included at no additional cost to us.  So we go to our lawyer with a well defined plan and only pay for 3-5 hours of work to make changes. Much better than 10-15 additional hours of consulting with the lawyer. 
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