Flourish Wealth Management is an SEC-registered investment advisor located in Edina, Minnesota. It focuses its services on comprehensive wealth management, which includes both asset management and financial planning.
Flourish Wealth Management is a fee-only firm, meaning its revenue comes solely from the advisory fees that clients pay, and commissions from insurance agencies or broker-dealers.
Flourish Wealth Management Background
Flourish Wealth Management formed in 2014. Its founder Kathleen M. Longo remains the firm's owner. Flourish Wealth Management is a boutique firm with a small team of employees that features a variety of financial certifications. The firm has one certified financial planner (CFP) on staff, as well as one accredited investment fiduciary (AIF), one certified investment management analyst (CIMA) and a certified public accountant.
Flourish Wealth Management Client Types and Minimum Account Sizes
Flourish Wealth Management primarily works with high-net-worth individuals. According to the latest reports filed with the SEC, all of its clients fall into that category. However, the firm also offers its services to qualified retirement plans, trusts, charities and businesses.
To receive wealth management services from this firm, you’ll generally need a minimum investment of $1 million or the ability to pay a minimum annual fee of $10,000. However, advisors may work with clients who can’t meet these requirements on a case-by-case basis depending on several factors. This may include projected additional assets and future earning capacity.
Services Offered by Flourish Wealth Management
Flourish Wealth Management can help clients build customized investment portfolios based on their individual risk tolerance and financial objectives. The firm primarily recommends no-load mutual funds by Dimensional Fund Advisors, as well as exchange-traded funds (ETFs).
The overall asset allocation strategy would be detailed in a written Investment Policy Statement, which also lays out the client’s investment goals and other key factors. Flourish Wealth Management will periodically examine a client’s portfolio as well as his or her financial situation and other factors to consider re-balancing.
In addition, the firm can offer project-based consulting services on a fixed-fee or hourly-fee basis. Flourish makes recommendations based on in-depth interviews with clients and the collection of relevant records outlining their financial situation and objectives.
Flourish Wealth Management Investment Philosophy
Flourish Wealth Management incorporates the principles of Modern Portfolio Theory into its investment advice. The firm believes that the market is efficient in the long term and that returns are influenced more by asset allocation strategy than market timing or stock picking. It primarily recommends investing in mutual funds, ETFs or conservative fixed-income securities where appropriate.
In addition, Flourish Wealth Management utilizes research provided by Dimensional Fund Advisors, Vanguard Advisors, JP Morgan Asset Management, BlackRock and others. This includes historical market analysis reports, continuing education material and more. Flourish also generally utilizes passively managed funds from Dimensional.
Fees Under Flourish Wealth Management
For wealth management services, the firm charges a fee based on a percentage of assets under management (AUM). These fees follow the schedule detailed below. They are collected quarterly and deducted from your account.
| Total AUM | Annual Fee |
| First $0 - $1MM | 1.00% |
| Next $1,000,001 - $5MM | 0.80% |
| Next $5,000,001 - $10MM | 0.60% |
| Next $10,000,001 - $15MM | 0.40% |
| $15,000,001 plus | Negotiable |
Check out the table below to see what your management fees will look like depending on the size of your account:
| *Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. | |
| Estimated Investment Management Fees at Flourish Wealth Management* | |
| Your Assets | Flourish Wealth Management Fee Amounts |
| $500K | N/A (below required minimum) |
| $1MM | $10,000 |
| $5MM | $30,000 |
| $10MM | $40,000 |
However, fees paid to Flourish Wealth Management are independent of other fees you may encounter. These include mutual fund manager expenses, brokerage commissions and transaction fees. The fees related to fund expenses would be laid out in the prospectus of the fund.
In addition, the firm also charges fixed or hourly-based fees for separate financial consulting services. These negotiable fees typically extend from $5,000 to $15,000 on a fixed basis. And they usually stretch from $150 to $400 on an hourly basis.
What to Watch Out For
Flourish Wealth Management hasn’t undergone any disciplinary investigations or penalties, according to its latest Form ADV. This is a document that registered firms with more than $25 million in AUM must file with the SEC. The Form ADV contains detailed information about a firm’s business practices and fee structure.
There is not much to watch out for when working with Flourish Wealth Management, which serves as a fee-only financial advisor. The firm doesn’t collect external compensation such as commissions or payments from mutual funds or insurance companies. This arrangement essentially decreases potential instances of conflicts of interest. However, it does generally recommend DFA mutual funds. But the firm works in a fiduciary capacity. So its advisors are obligated by law to work in the best interests of the client.
Opening an Account with Flourish Wealth Management
To open an account with Flourish Wealth Management, you can visit its headquarters in Edina, Minnesota. You can also visit its website to schedule an introductory call or send a secure message. Of course, you can also simply call the firm at (952) 392-4474.
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