Capital Wealth Management Review
Recognized as one of the 2018 Financial Times Top 300 Registered Investment Advisors, Capital Wealth Management has distinguished itself as a competitive advisory firm for years. The firm is a financial advisor firm based in West Warwick, Rhode Island. Capital Wealth Management has more than $568 million in assets under management and multiple financial advisors on staff.
Lee Alan Duckworth founded the firm in 2011. Today, the firm offers a range of financial services, including personal wealth management, 401(k) planning, retirement planning and investment management. Capital Wealth Management also ranks eighth on our list of Rhode Island top financial advisors.
Capital Wealth Management Background
Lee Alan Duckworth founded Capital Wealth Management in 2011 and still serves as president of the firm. Today, the firm has 9 advisors serving just over 500 clients with millions in assets under management. The majority of the firm’s clients are individuals, and the firm engages in a range of services like retirement planning and investment management.
Capital Wealth Management Client Types and Minimum Account Sizes
The majority of this firm's clients are individuals and high-net-worth individuals. Capital Wealth Management also advises pensions, profit-sharing plans and charitable organizations.
The minimum account size for investment advisory services is generally set at $750,000, although the firm has the right to negotiate this minimum at its sole discretion. The firm may also group related accounts together in order to reach this minimum.
Services Offered by Capital Wealth Management
Capital Wealth Management offers a standard range of services to its clients, primarily personal wealth management and investment advisory services. The firm also offers financial planning services, which include 401(k) planning and retirement planning.
Capital Wealth Management Investment Philosophy
Capital Wealth Management rolls a number of factors into its overall investment philosophy. These factors include risk tolerance, time horizon, extensive research, diversification and careful stock selection. That said, the firm stresses that every investment portfolio should reflect its owner, so the firm seeks to tailor each investment strategy to the client’s individual financial goals and preferences.
Capital Wealth Management Fees
For portfolio management services, fees are charged quarterly in advance and are generally based on the rates listed in this table:
|Account Size||Annual Fee|
|Up to $1,000,000||1.25%|
|$1,000,000 to $2,000,000||1.00%|
|$2,000,000 to $5,000,000||0.85%|
Financial planning fees will be charged as a fixed amount, ranging from $450 to $4,000, depending on the nature and complexity of the account’s circumstances. For retirement planning services, the firm will charge either an annual percentage fee of up to 1.25% or an annual fixed fee of $20,000. The fixed fee will generally not exceed 1.00% of the plan's assets, except in specific cases.
The firm does not charge performance-based fees. Depending on the complexity of the individual account, the firm maintains discretion to negotiate a different fee as well.
The below table shows how Capital Wealth Management's fees compare to the national median. Remember that these are only estimates and actual fees may vary.
|Estimated Fee Comparison*|
|Your Assets||Capital Wealth Management||National Median Advisory Fees**|
|$1MM||$12,500||$8,500 - $10,000|
|$5MM||$48,000||$25,000 - $32,500|
|*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.|
According to a 2018 study of 1,500 firms by RIA in a Box, the average financial advisor's investment advisory fee is 0.95% of AUM.
What to Watch Out For
Capital Wealth Management does not have any disclosures. Certain advisors at Capital Wealth Management are registered representatives of Triad Advisors, LLC, which is a broker-dealer. This means that these advisors receive additional compensation for selling certain securities and investment products, and they will therefore be incentivized to recommend certain products over others. These incentives create a potential conflict of interest.
All that said, the firm is bound by fiduciary duty, which means that it’s required by law to act in the best interest of its clients. So while you should be aware of the financial incentives the firm has, you can be confident knowing the firm is acting in your best interest.
Opening an Account With Capital Wealth Management
You can get started with Capital Wealth Management in a number of ways. You can use the Savings & Retirement Calculator on the firm’s website to get a rough estimate of your financial needs, and from there, you can request a consultation with the firm. If you’d prefer just to contact the firm right away, you can call the firm to request a consultation or fill out the contact form on the firm’s website.
Tips for Finding a Financial Advisor
- Finding the right financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors, get started now.
- If you're at the very beginning of the investment process, you may be interested in our investment calculator. You can plug in how much you're thinking of investing and how long you'd like your money to grow, and the calculator will determine what you can expect to earn.
All information is accurate as of the writing of this article.