Choate Investment Advisors
Choate Investment Advisors is a large financial advisory firm based in Boston. The firm works with both individual and institutional clients and has a high minimum investment requirement. It provides clients with investment advisory services, as well as financial planning and wealth management services. This fee-only firm receives all of its compensation from the fees clients pay as opposed to third-party commissions.
SmartAsset has recognized Choate Investment Advisors on its list of the top financial advisor firms in Boston, as well as in all of Massachusetts. In addition, the firm has been featured as a top advisor by other publications, like Barron's and Financial Times.
Choate Investment Advisors Background
Choate Investment Advisors was established back in 1996. The firm is a subsidiary of the Boston-based law firm Choate, Hall & Stewart, LLP. At its inception, the firm was designed to mainly provide advice to attorneys at the parent firm who serve as trustees, though it has expanded its offerings since.
Lanny Throndike is currently the firm's president and group leader. The firm employs advisors with advisory certifications like chartered financial analyst (CFA) and certified financial planner (CFP).
Choate Investment Advisors Client Types and Minimum Account Sizes
The overwhelming majority of Choate Investment Advisors' client base is comprised of individuals with a high net worth. The firm has a handful of non-high-net-worth individual clients too, though. Institutional clients of Choate include pooled investment vehicles, pension and profit-sharing plans and charities.
Choate Investment Advisors has a minimum investment requirement of $10 million, which is higher than most similar firms. This minimum may be waived at the firm's discretion.
Services Offered by Choate Investment Advisors
Choate Investment Advisors provides clients with three main types of services: investment advice, financial planning and wealth management. It uses a handful of different investment strategies to help grow clients' portfolios, ranging from conservative growth to aggressive to bond and income strategies as well.
When it comes to financial planning and wealth management services, the firm aims to help clients with whatever their specific needs are. However, these offerings typically revolve around some combination of estate planning, gift tax planning and income tax planning and preparation.
Choate Investment Advisors Investment Philosophy
Choate Investment Advisors utilizes a number of strategies when investing client assets. Here's an overview of each:
- All bond: Assets are only invested in fixed-income securities to provide short-term income.
- Conservative Income: While fixed-income securities and current income are the priority, some assets are invested in equity-linked and alternative securities.
- Income and Growth: Fixed-income securities still dominate this strategy, but growth is still a focus, with investments in equity-linked and alternative securities.
- Balanced: The balance between income-focused fixed-income securities and growth-centric equity-linked and alternative securities is completely even.
- Growth and Income: This strategy is mostly designed to attain growth, though some fixed-income securities will be used for income purposes.
- Growth: The majority of this strategy involves investing in equity-linked and alternative securities, though a small percentage of assets will still be invested in fixed-income securities.
- Aggressive Growth: This moderate risk-based strategy is almost entirely focused on growth, with investments in equity-linked and alternative securities being the dominant choice.
- Opportunistic Growth: Rather than focus on equity-linked and alternative securities, this high-risk strategy is based around individual stock selection across multiple market sectors. There are no restrictions on the types of securities this strategy might invest in.
These strategies will likely be altered slightly to meet your individual needs. These changes will be based on your tolerance for risk, time horizon, income needs and more. In general, advisors at Choate take a long-term approach to investing, as they believe that short-term trading is both difficult and expensive. They typically use both index funds and exchange-traded funds (ETFs) to help drive growth.
Fees Under Choate Investment Advisors
Choate Investment Advisors charges clients advisory fees based on a percentage of their total AUM. Beyond these fee rates, the firm will also charge a $1,000 administrative fee to each account. For reference, a 2018 study by RIA in a Box shows the average annual advisory fee is 0.95% of AUM.
|Choate Investment Advisors Fee Schedule|
|Portfolio Value||Annual Fee|
Financial planning services are charged at an hourly rate of $250 to $400 per hour. Should you need legal work completed in relation to your financial plan, the firm will charge you $700 to $1,300 per hour.
|*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 Choate Investment Advisors|
|Your Assets||Choate Investment Advisors Maximum Fee Amount|
What to Watch Out For
There are no legal or regulatory disclosures on Choate Investment Advisors' Form ADV.
Opening an Account With Choate Investment Advisors
Opening an account with Choate Investment Advisors is as easy as reaching out to the firm online or over the phone. You can visit its website to submit a contact form or you can call (617) 973-4900 to connect with a representative. You also have the option to visit the firm in person at its Boston office.
All information is accurate as of the writing of this article.
Finding the Right Financial Advisor
- Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.