CL Wealth Management, LLC
CL Wealth Management, LLC is a New York City-based financial advisor firm. The firm is relatively small given the sizeable financial advisors it has on staff. When it comes to clients, the firm primarily works with non-high-net-worth individuals, though it has a few institutional clients as well. Services offered at this firm include portfolio management and financial planning.
As a fee-based firm, certain advisors working at CL Wealth can receive commissions in addition to the fees clients pay. This differs from a fee-only firm, which avoids all third-party compensation in favor of client-paid fees.
CL Wealth Management Background
CL Wealth Management is a relatively young firm, as it opened in 2005 under its original name, CBS Advisors, LLC. In 2013, the firm changed its name to CL Wealth Management, as it reamins to this day. The firm is affiliated with Cabot Lodge Securities, LLC, a broker-dealer, and most advisors at CL are registered with Cabot Lodge Securities. Both CL Wealth Management and Cabot Lodge Securities are owned by PKS Holdings, LLC.
CL Wealth Management Client Types and Minimum Account Sizes
The vast majority of CL Wealth Management's client base is comprised of non-high-net-worth individuals, though it also works with a handful of high-net-worth individuals. When it comes to institutional clients, the firm maintains advisory relationships with pension and profit-sharing plans.
This firm imposes a $25,000 minimum account size for new clients. If the firm chooses to invest your assets using third-party money managers, they may impose different account minimums, though.
Services Offered by CL Wealth Management
CL Wealth Management works with clients to provide both investment management and financial planning services. The firm manages client assets on both a discretionary and non-discretionary basis, seeking to tailor its investment strategies to the goals of each client. The firm may also use third-party money managers when allocating client assets.
The firm's financial planning services also include financial consulting and, to a certain extent, educational workshops. When it comes to financial planning, the firm and its advisors may give advice on a range of topics. Some examples include retirement planning, estate planning, insurance planning, cash flow analysis, budgeting and more.
CL Wealth Management Investment Philosophy
As noted above, CL Weath Management adjusts its investment strategies to the particular needs and objectives of each individual client. Advisors works with clients to determine their risk tolerance, time horizon, financial goals, liquidity needs and investment preferences before making any decisions. Using this information, advisors will develop a custom investment plan that suits you.
Advisors at CL Wealth may invest in stocks, bonds and a wide range of other securities. They also use several methods of analysis to inform their investment decisions, such as charting analysis, technical analysis, fundamental analysis and cyclical analysis. They also take into account tax considerations.
Fees Under CL Wealth Management
Fees for portfolio management services at CL Wealth Management are calculated based on an annual percentage of each client's total AUM. The firm uses one common fee schedule for these services. For reference, a 2018 study by RIA in a Box shows the average annual advisory fee is 0.95% of AUM.
| CL Wealth Management Fee Schedule | |
| Portfolio Value | Annual Fee |
| $25,000 - $100,000 | 2.25% |
| $100,000 - $250,000 | 2.00% |
| $250,000 - $500,000 | 1.75% |
| $500,000 - $1,000,000 | 1.50% |
| $1,000,000 - $2,000,000 | 1.25% |
| More than $2,000,000 | Negotiable |
Below is a breakdown of what you can expect to pay as a client of CL Wealth Management:
| *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 CL Wealth Management* | |
| Your Assets | CL Wealth Management Fee Amount |
| $500K | $9,625 |
| $1MM | $17,125 |
| $5MM | Negotiable |
| $10MM | Negotiable |
Financial planning fees at CL Wealth are charged on either an hourly or flat fee basis. The typical hourly fee is $350, and flat fees typically won't exceed $3,000.
What to Watch Out For
CL Wealth Management has eight regulatory disclosures listed on its Form ADV. All of these disclosures relate to advisory affiliates of the firm.
Most of the advisors working at fee-based CL Wealth Management are also registered as broker-dealer representatives and insurance agents. Since these advisors can earn commissions from selling products to clients, there is a potential conflict of interest at play. However, despite this arrangement, the firm is still a fiduciary, which means it's legally obligated to act in the best interests of clients.
Opening an Account With CL Wealth Management
Those interested in opening an account with CL Wealth Management should go to the firm's website and submit a contact form. If you prefer dealing over the phone, you can also give the firm a call.
All information is accurate as of the writing of this article.
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