Allworth Financial is a financial advisor firm based out of Sacramento, California that manages $4.2 billion in client assets. Founded in 1996, the firm has grown to serve almost 7,400 clients and employ 46 advisors. The firm works with both individual and institutional clients, and it offers several services within the realms of financial planning, consulting and portfolio management.
Some members of the advisory staff at Allworth can receive commissions when they sell certain insurance products or securities to clients. That represents a potential conflict of interest, and it means that Allworth is a fee-based firm. That's very different from a fee-only firm, which avoids conflicts of interest by receiving all of its compensation from client fees.
Allworth Financial Background
Allworth Financial was founded in 1996. The firm is majority owned, through subsidiaries, by Parthenon Capital Partners, a private equity firm. The rest of the firm's ownership shares belong to HMG Holdco, Inc., a holding company; and co-founders and senior partners Scott Hanson and Patrick McClain.
Of the 46 advisors working at Allworth, 34 are certified financial planners (CFPs), four are chartered financial consultants (ChFCs), two are chartered retirement planning counselors (CRPCs), three are accredited investment fiduciaries (AIFs) and one is a chartered financial analyst (CFA).
Allworth Financial Client Types and Minimum Account Sizes
Allworth Financial works with more than 7,000 clients. Most of these clients are individuals (both with and without a high net worth). Other clients of the firm include retirement plans, charitable organizations and businesses.
In general, Allworth Financial imposes a minimum account size requirement of $100,000. However, the firm reserves the right to alter this requirement.
Services Offered by Allworth Financial
Allworth Financial provides a range of advisory services to its clients, most notably investment management and financial planning. Investment management services are mostly available through a wrap fee program, which is an arrangement that bundles expenses for management, transactions and custodial services into a single charge. The firm offers a similar service for variable annuity sub-accounts.
Financial planning services at the firm meet a multitude of needs. Some examples are the review of a client's financial position, insurance planning, investment planning, retirement planning, strategic tax planning, estate planning and consulting for retirement. The firms also offers educational newsletters and seminars.
Allworth Financial Investment Philosophy
Allworth Financial has designed 16 broad investment categories to choose from when constructing client portfolios. These range from active to passive strategies, along with options for both the risk-averse and risk-tolerant. The firm will consider each client's objectives, comfort with risk, income needs, time until retirement and other factors when determining which strategy is most appropriate for them.
The firm generally constructs client portfolios using some combination of mutual funds and exchange-traded funds (ETFs). These funds tend to focus on variations of fixed-income securities and equities. Allworth also dabbles with variable life insurance and variable annuities.
Fees Under Allworth Financial
Fees for the investment management services at Allworth Financial are generally charged as a percentage of the client's assets under management (AUM). The exact rate you'll pay will be laid out in your initial advisory agreement, but it will never exceed 1.85%. As the firm typically provides asset management via a wrap-fee program, this fee will cover all management, brokerage and custodial fees. These fees are usually deducted directly from your account's balance.
This firm will generally charge a flat fee for financial planning services. Rates can range from $1,950 to $30,000 depending on the extent of the planning services that you're requesting.
What to Watch Out For
Allworth Financial is considered a fee-based firm, as certain advisors here are licensed insurance or securities agents who may earn commissions for selling products to clients. While this could represent a conflict of interest, the firm abides by a fiduciary duty to act in your best interest.
Opening an Account With Allworth Financial
The easiest way to find out more about Allworth Financial's services is to call the firm at (615) 861-6100. You can also fill out the contact form on the firm's website.
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