Headquartered in St. Louis, Foundation Wealth Management, LLC (FWM) is a fee-only financial advisor firm that offers clients a variety of services, including financial planning, investment management and individual retirement account (IRA) rollovers.
Being a fee-only firm, FWM earns all of its compensation from client-paid fees. On the flip side, a fee-based firm earns compensation from both client-paid fees and third-party commissions.
Foundation Wealth Management Background
Foundation Wealth Management president Pamela Hardin started the firm in 2003. Hardin remains the majority owner of Foundation to this day.
The advisory staff holds multiple certifications, including certified financial planners (CFPs).
Foundation Wealth Management Client Types and Minimum Account Sizes
Foundation Wealth Management works with both non-high-net-worth and high-net-worth individuals, as well as pension and profit-sharing plans and government entities.
In its SEC-filed Form ADV, Foundation Wealth Management states that it institutes a $10,000 minimum annual fee. Clients with an account balance under $1 million will also pay advisory fees at an effective rate above 1.25%. And those with higher account balances will pay lower annual rates.
Services Offered by Foundation Wealth Management
Foundation Wealth Management’s services are focused on financial planning and investment management. Here’s a detailed breakdown of everything that the firm has to offer:
- Financial planning/consulting
- Investment management analysis
- Retirement planning
- Financial independence analysis
- Capital needs analysis
- Education funding analysis
- Cash management analysis
- Income tax analysis
- Estate planning and analysis
- Investment management
- Discretionary and non-discretionary services available
- Investment portfolio customization based on:
- Risk tolerance
- Current financial situation
- Ultimate financial goals
- Women in Transition program
- Financial and life planning for women
- IRA rollovers to a Foundation-managed account
Foundation Wealth Management Investment Philosophy
Modern portfolio theory (MPT) is at the core of Foundation Wealth management’s standard investment strategy. MPT simply states that every increase in risk that an investor takes must be accompanied by a proportionate uptick in return potential. In other words, this theory seeks to help investors get the most out of their respective risk tolerances by ensuring that all decisions relating to your portfolio are risk-adjusted and well considered.
Bonds, stocks, exchange-traded funds (ETFs), mutual funds, individual debt securities and options are the typical investment types utilized by Foundation’s advisors. In an effort to flesh out your portfolio, the firm may also recommend variable annuities and life insurance contracts for its clients.
Fees Under Foundation Wealth Management
The investment management services at Foundation Wealth Management come with a simple, asset-based fee schedule. These fees are tiered so that the higher your balance, the lower the rate you’ll pay. Foundation charges investment management fees on a quarterly basis, in advance, meaning the percentages below are actually split into four equal parts.
| Investment Management Fees | |
| Portfolio Value | Annual Fee |
| Up to $1,000,000 | 1.25% |
| Next $1,000,000 | 1.00% |
| Next $1,000,000 | 0.75% |
| Over $3,000,000 | 0.50% |
Check out the table below to see how Foundation’s fees for its investment management services are borne out in actual dollar amounts:
| *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 Foundation Wealth Management* | |
| Your Assets | Foundation Wealth Management Fees |
| $500K | $6,250 |
| $1MM | $12,500 |
| $5MM | $40,000 |
| $10MM | $65,000 |
On the other hand, a fixed fee structure is used for financial planning and consulting through FWM. The firm offers no indication as to what these charges could look like, but they’re negotiable and will be agreed upon prior to the initiation of any services. This fee is divided into two halves: one that must be paid at the dawn of your advisory relationship and the other when your financial plan is completed.
What to Watch Out For
Foundation Wealth Management has a clean legal and regulatory record in the eyes of the SEC.
Opening an Account With Foundation Wealth Management
Prior to stopping by Foundation Wealth Management in St. Louis, Missouri, you may want to call its office at (314) 726-6789 for an appointment. If this doesn’t work for you, the firm also provides an email form on its website that allows you to give your personal information so an advisor can reach out to you.
All information is accurate as of the writing of this article.
Tips to Improve Your Investments
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- Diversification is one of the golden rules of investing. This all-important principle states that you should have your assets invested as widely across the market as possible. Doing so will protect your money in the event of a market crash, as the overall success of your portfolio won’t be tied to a small group of securities.
