Conducting business since 1986, Austin Asset is one of the first financial advisor firms in Austin to offer fee-only services. The company offers wealth planning and wealth management. It takes the No. 4 spot in SmartAsset's list of top financial advisors in Austin, Texas.
Austin Asset Background
The company's principal shareholders are CEO William Eric Hehman and Gregory Van Wyk. Hehman was one of the top young certified financial planners (CFPs) in the country at one point and his passion for financial planning has been constant since graduating from the University of Texas at Austin with a degree in business economics.
Gregory Van Wyk, CFP, is the executive vice president and the head of wealth planning and client relationships. He’s also a graduate of UT. Jonathan Davison, the chief investment officer and chief compliance officer, is also a CFP. Davison is a Baylor University alum and chairs the investment policy committee at Austin Asset.
Austin Asset Client Types and Minimum Account Sizes
Austin Asset works with individuals, families, pension and profit-sharing plans, charitable organizations, corporations and other businesses. It does not have a set account minimum, but it does have a minimum annual fee of $5,000.
Services Offered by Austin Asset
Austin Asset places clients in wealth management programs that offer both financial planning advice and portfolio management services. Its advisors can offer guidance on such topics as:
- Financial planning services
- Portfolio management for individuals and/or small businesses
- Portfolio management for businesses or institutional clients
- Wealth planning
- Financial consulting
The advisory employees at Austin Asset often work as a team, such as during the wealth planning process as well as when its committee reviews investment choices monthly. Of its advisors, 12 are CFPs.
While the company is not an accounting firm (meaning it’s not licensed to provide bookkeeping services or prepare financial statements), there are three certified public accountants (CPAs) on staff. Usually, those with CPA training are useful for help with tax planning and other accounting needs.
Austin Asset will recommend and advise on the following types of securities your portfolio potentially might include:
- Municipal securities
- Variable life insurance
- Variable annuities
- Exchange-listed securities
- Securities traded over-the-counter
- Foreign issuers
- Corporate debt securities
- Certificates of deposit (CDs)
- Mutual fund shares
- U.S. governmental securities
- Options contracts on securities
Each of these investments involves different degrees of risk. Your wealth manager will keep that in mind when recommending investments to you: the recommendations will be based on your objectives, tolerance for risk, suitability and liquidity.
Austin Asset Investment Philosophy
The overarching philosophy behind Austin Asset’s investing is that there is no place for speculation and that diversification spreads risk. That means the company tries to capitalize on already existing efficiencies in the market rather than try to profit from perceived inefficiencies. Additionally, Austin Asset believes in taking more risk in equities rather than fixed income. The company also looks to invest in funds with low transaction costs and minimal portfolio turnover. This means equity allocation is diversified globally and spread across companies, industries and asset classes. Fixed income is invested in short-term debt instruments of high quality.
Your portfolio’s asset allocation is constructed based on your risk and return goals developed during your initial discussions with an advisor. Your assets will be managed using a number of analysis methods, including:
- Asset allocation
- Mutual fund and ETF analysis
- Risks for all forms of analysis
Ultimately, your portfolio will be allocated and rebalanced to have the highest probability of meeting your financial goals outlined in your investment policy statement. Your portfolio is rebalanced when you reach a minimum or maximum tolerance level (as outlined in your statement), but not as a reactive to short-term volatility.
Fees Under Austin Asset
Austin Asset’s fees are based on your portfolio’s value. As a fee-only company, this is the sole way that the company collects compensation. The fee percentage decreases as your portfolio value increases, but the percentages are calculated cumulatively. Fees are calculated on a cumulative basis and are payable in quarterly installments in advance. AUM is determined on a quarterly basis.
There is a minimum annual fee of $5,000. In addition, clients pay fees based on their assets under management.
|Wealth Management Fees|
|Portfolio Value||Annual Fee|
|Up to $7,500,000||$5,000 + 0.65%|
|$7,500,001 - $15,000,000||$5,000 + 0.40%|
|$15,000,001 - $25,000,000||$5,000 + 0.30%|
|Over $25,000,000||$5,000 + 0.25%|
For context, the industry average fee for investment management is 0.95%, according to a 2018 study of 1,500 firms by RIA in a Box. Here is the estimated dollar amount you'd pay in advisory fees based 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 Nicolet Bank Wealth Management*|
|Your Assets||Annual Fee Amount|
Brokerage fees have to be paid separately. This includes transaction charges, brokerage commissions and asset-based fees. For example, if your account purchases a mutual fund from Fidelity, you will have to pay the cost of the transaction to Fidelity through your account. This is the general arrangement for most financial advisor firms.
Learn more about advisors' typical costs here.
Austin Asset Awards and Recognitions
Austin Asset was recognized by Financial Advisor Magazine as one of its top 250 financial advisors in the country in 2017. It was named one of the top 10 Financial Advisors in Austin by Advisory HQ from 2016-2019 and the No. 1 Financial Planning Firm by Austin Business Journal from 2016-2021.
What to Watch Out For
The firm had no disclosures of legal or disciplinary action in its most recent filings with the Securities and Exchange Commission.
Opening an Account With Austin Asset
To make an appointment to discuss your financial needs, you can call (512) 453-6622, email email@example.com or fill out a contact form on the company’s website.
All information is accurate as of the writing of this article.
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