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Allworth Financial Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Based out of Folsom, California, Allworth Financial is a financial advisor firm that manages assets for 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 receive commissions when they sell certain insurance products or securities to clients. That represents a potential conflict of interest, and is why Allworth is considered a fee-based firm. This is very different from a fee-only firm, which avoids conflicts of interest by collecting only client-paid fees.

Allworth Financial Background

Allworth Financial registered as an advisor in 1993. The firm is majority-owned, through subsidiaries, by the Ontario Teacher's pension Plan and Lighyear Capital. The rest of the firm's ownership shares belong to HMG Holdco, Inc., which is a holding company owned by co-founders and senior partners Scott Hanson and Patrick McClain.

Of the advisors working based in Folsom, there are 11 certified financial planners (CFPs) and one certified fund specialist (CFS).

Allworth Financial Client Types and Minimum Account Sizes

Allworth Financial works primarily with 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 of $500,000. However, the firm may, at its discretion, accept clients who have less than that.

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 can 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 firm also offers educational newsletters seminars, webinars, guides, tutorials, podcasts, checklists and articles.

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 advisory 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 sells 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 charges. 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 $1,500 to $30,000 depending on the extent of the planning services that you're requesting. Learn more about what advisors typically cost here.

What to Watch Out For

Allworth Financial has no disclosures of legal or regulatory action on its most recent Form ADV, meaning it has a clean record.

As a fee-based firm, some advisors here are licensed insurance agents or securities brokers who collect transaction-based fees and commissions. This could represent a potential conflict of interest. That said, the firm has the fiduciary duty to act in its clients' best interests, no matter what.

Opening an Account With Allworth Financial

The easiest way to find out more about Allworth Financial's services is to call the firm at (916) 482-2196. You can also fill out the contact form on the firm's website.

All information is accurate as of the writing of this article.

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How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research