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Austin Wealth Management Review

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Austin Wealth Management

Austin Wealth Management, LLC is a fee-based financial advisor firm in Austin, Texas, that has four financial advisors on staff and $95 million in assets under management (AUM). Available services at the firm include comprehensive wealth management, investment advisory services, financial planning and qualified retirement plan advisory services for businesses and other institutions.

Austin Wealth Management Background

Managing partners Kevin Smith and Daniel Davila III co-founded Austin Wealth Management in 2009. Altogether, the firm’s four-person advisory team averages 23 years’ experience in investment management and financial services.

Every employee at Austin Wealth Management holds a certification. There are two certified financial planners (CFPs), one chartered financial analyst (CFA) and one certified public accountant (CPA).

What Types of Clients Does Austin Wealth Management Accept?

Austin Wealth Management is a firm focused on individual investors. It mostly works with individuals and high-net-worth individuals as well as their trusts and estates. Banks, corporations, small businesses, trusts and estates are common clients of Austin Wealth’s qualified retirement plan investment advisory services.

Austin Wealth Management Minimum Account Size

This firm does not require a minimum initial investment. Therefore, clients with any level of investable assets are technically eligible for Austin Wealth Management’s services.

Services Offered by Austin Wealth Management

The holistic wealth management service offered at Austin Wealth combines financial planning and investment advising. You can, however, choose to get financial planning as a standalone service. The firm’s available services include:

  • Financial planning
    • Personalized plan design and implementation
    • Ongoing plan management
    • Estate planning
    • Retirement income planning
    • Annuity review
    • Education planning
    • Insurance policy review
    • Asset protection
    • Tax management and planning
    • Cash flow analysis
    • Budgeting
  • Wealth management
    • Combination of financial planning and investment advisory
    • Current financial situation review
    • Asset allocation and investment strategy recommendations
    • Rebalances
    • Financial goal setting assistance
    • Personal consultations as needed
    • Risk management profile
    • Investment research
    • Quarterly portfolio statements
    • Possible use of third-party money managers
  • Qualified retirement plan advisory services
    • Investment recommendations and monitoring
      • Investment policy statement
    • Fiduciary services
    • Plan participant education
    • 401(PRO)

Austin Wealth Management Investment Philosophy

Austin Wealth Management largely makes its investment decisions based on modern portfolio theory. This investing theory looks to maximize the return potential of your portfolio based on your risk tolerance. So if you have a high risk tolerance, you’ll open yourself up to better possible returns but also to higher levels of volatility. The opposite is true of risk-averse investors.

Because Austin Wealth’s aforementioned investment philosophy is so dependent on clients’ personal preferences, the firm may use a wide range of investments. Stocks, bonds, exchange-traded funds (ETFs), mutual funds, equity options and futures are some of its most typical investment choices.

Fees Under Austin Wealth Management

The premier service at Austin Wealth Management is wealth management, which includes both investment advisory and financial planning services. The financial planning portion of this service calls for a fixed monthly fee of $250, though the rate can vary. The investment advisory portion carries an annualized fee that’s charged quarterly, in arrears.

Wealth Management Investment Advisory Fees
Total Assets Under Management Annual Fee
First $250K Free
Next $750K 0.75%
Next $4MM 0.50%
Over $5MM Negotiable

If you want financial planning on its own, you’ll pay a much larger fixed fee of $2,500 to $20,000. Your rate will depend on the complexity of your situation.

Check out the table below to see how Austin Wealth Management’s fees for its investment management services compare to the national median. Note that these fees are only estimates and actual costs may vary.

*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.
Estimated Fee Comparison*
Your Assets Austin Wealth Management Investment Advisory Fees National Median Advisory Fees**
$500K $1,875 $5,000
$1MM $5,625 $8,500 - $10,000
$5MM $25,625 $25,000 - $32,500
$10MM Negotiable $50,000

What to Watch Out For

Austin Wealth Management is only registered with the SEC to conduct business in Louisiana and Texas. This could make the firm somewhat inaccessible to residents outside of these two states.

Some members of Austin Wealth Management’s staff also may act as independent insurance agents or registered representatives of broker-dealer Purshe Kaplan Sterling Investments. Advisors in these roles can earn commissions for the sale of specific insurance products and securities. Although this presents a conflict of interest, the firm is a fiduciary, meaning it must act in your best interest at all times.

Disclosures

Austin Wealth Management’s legal and regulatory record is completely void of disclosures.

Opening an Account With Austin Wealth Management

Calling Austin Wealth Management at (512) 467-2000 is the easiest way to set up a consultation with an advisor. On the contact page of the firm’s website, you can also fill out an email form with your name, phone number, email address and a concise description of your needs or questions. After you send this in, an Austin Wealth advisor will reach out to you.

Where Is Austin Wealth Management Located?

Austin Wealth Management’s office is in Austin, Texas, at 1301 South Capital of Texas Highway. More specifically, you’ll find the firm in Building C on the second and third floors, Suite C-200.

Tips for Developing an Investment Plan

  • Determining an asset allocation that matches your personal risk tolerance is the first step towards building a successful investment portfolio. SmartAsset’s asset allocation calculator can help you do this more easily. First, select the level of risk with which you’re comfortable. The tool will then recommend a standard asset allocation based on your risk tolerance level. Remember, though, that everyone’s situation is different, so this is not a one-size-fits-all approach.
  • If you find yourself a bit overwhelmed with investing or you simply don’t have the time to manage your own portfolio, you can always work with a financial advisor. The SmartAsset financial advisor matching tool can pair you with up to three local financial advisors with investing and financial planning experience.

How Many Years $1 Million 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 cost of living in retirement there.

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

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. 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.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

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