An abacus may be a primitive counting tool, but rest assured that the advisors at this firm use more high tech methods when managing money for clients.
Through its 24 office locations across the country, Abacus Wealth Partners provides comprehensive financial planning and investment advisory services. Its financial advisors have earned a spot near the top of SmartAsset's top financial advisor list for Santa Monica.
Abacus Wealth Partners Background
Abacus has been in operations since 2004, following the merger of Abacus Wealth Management, LLC (AWM) and Sherman Financial, Inc. (SFI). Both of these firms serve as the principal owners of Abacus today.
Abacus Wealth Partners Client Types and Minimum Account Sizes
Abacus serves the following clients:
- High-net-worth individuals, couples and families
- Pension and profit-sharing plans
- Charitable organizations
- Business entities
Abacus doesn’t require a minimum account size to receive its services. However, the firm imposes a minimum $2,400 annual fee per account. The firm may alter or waive these minimums at its discretion.
Services Offered by Abacus Wealth Partners
Advisors with Abacus work with individual clients to build holistic financial plans. Depending on the needs and goals of the client, this plan may cover some or all of the following topics:
- Business planning
- Retirement planning
- Education funding
- Estate planning
- Tax and cash flow needs
In addition, the firm’s advisors can create, manage and monitor a diversified investment portfolios on behalf of its clients.
Abacus Wealth Partners Investment Philosophy
Abacus doesn’t engage in market timing or stock picking. Instead, it believes that a well-diversified portfolio can outperform an actively managed one during long-term market cycles. For this reason, it primarily builds client portfolios with mutual funds.
That said, Abacus may also provide advice about exchange-traded funds, individual securities such as stocks and bonds, options and variable annuities. Ultimately, the asset allocation for any portfolio depends on the individual needs of the client and circumstances such as risk tolerance and time horizon.
Fees Under Abacus Wealth Partners
For financial planning services, the firm usually charges an hourly fee. The rate depends on the complexity of the services requested. Hourly fees typically range from $150 to $300.
Investment management fees are based on a percentage of the client's account size and follow the current fee schedule we detail below.
|Portfolio Value||Base Fee|
|Up to $3,000,000||1.00%|
|$3,000,001 - $5,000,000||0.75%|
|$5,000,001 - $15,000,000||0.50%|
|More than $15,000,000||0.25%|
These fees are prorated and charged quarterly in advance, based upon the market value of the assets being managed by Abacus on the last day of the previous quarter. If investment advisory clients with account sizes more than $10,000 request financial planning services, the charges for those services are included in the investment management fee.
Here's how much you'll pay at Abacus based on how much money you have invested:
|*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 Abacus Wealth Partners*|
|Your Assets||Abacus Wealth Partners Annual Fee Amount|
What to Watch Out For
Abacus had no legal or disciplinary events to disclose on its more recent Form ADV filed with the Securities Exchange Commission (SEC).
One thing to note: Abacus is entitled to management and performance fees from partnerships it sponsors, namely the Abacus Sustainable Fund and Align Impact Fund 2013. However, it has chosen to waive or credit those fees for investors who are clients of Abacus’s investment advisory and financial planning business.
Opening an Account With Abacus Wealth Partners
To contact the firm, send a message on its website at abacuswealth.com/contact/ or call (888) 422-2287.
All information was accurate as of the writing of this article.
Tips for Finding the Right Financial Advisor
- Speak to at least three financial advisors before choosing one. That way, you'll have a sense of the range of advisor costs, services and investment strategies. For more advisor possbilities, use SmartAsset financial advisor matching tool. It links you with up to three advisors in your area. The process takes about five minutes and is free.
- Before deciding on an advisor, ask if he or she is a certified financial planner (CFP) or has any other professional designations. Then look up online what those certifications required. CFPs, for instance, would have undergone extensive training and testing. They also work as fiduciaries, a higher standard that requires them to always provide financial planning advice in clients' best interests.