Connecticut Wealth Management is an SEC-registered financial advisor firm headquartered in Farmington, Connecticut. The firm employs 15 advisors and has $677,560,893 in assets under management (AUM).
It generally provides holistic financial planning and investment guidance to individuals, businesses, non-profit organizations, trusts and estates. It also offers tax advice.
Connecticut Wealth Management Background
Connecticut Wealth Management emerged in 2010 under the guidance of CEO Kevin C. Leahy. The 15-person staff of financial advisors includes certified financial planners (CFPs) and certified public accountants (CPAs).
As a fiduciary registered investment advisor (RIA), Connecticut Wealth Management is obligated by law to work in the client’s best interest. It runs one office headquartered in Farmington, Connecticut.
What Types of Clients Does Connecticut Wealth Management Accept?
Connecticut Wealth Management mostly works with individuals, including high-net-worth ones. It also provides services to some pension and profit-sharing plans, as well as businesses of all sizes and some charitable organizations.
Connecticut Wealth Management Minimum Account Size
To open an account through Connecticut Wealth Management, you need a minimum investment of $1 million.
Services Offered by Connecticut Wealth Management
Connecticut Wealth Management offers comprehensive financial planning for individuals. The firm can assist clients in several aspects of their financial life, including the following:
- Retirement planning
- Personal savings
- Debt management
- Income tax planning
- Investing in education, including 529 college savings plans
- Long-term care needs analysis
In addition, the firm provides customized investment management services. Connecticut Wealth Management advisors review each client’s financial situation and risk tolerance to determine recommendations on how to invest their assets. Connecticut Wealth Management typically builds portfolios utilizing no-load mutual funds, exchange-traded (ETF) funds, stocks, bonds, alternative investments and certificates of deposits.
From there, advisors may rebalance asset allocations and take other actions based on factors like market conditions. Connecticut Wealth Management may also recommend selling positions based on several factors including capital gains harvesting or risk to a particular asset class.
Connecticut Wealth Management Investment Philosophy
Connecticut Wealth Management aims to develop an investment strategy that caters to each client’s risk tolerance and financial goals. It devises asset allocations based on these factors and more. Research strategies may be influenced by various sources including but not limited to the following:
- Third-party research material
- Financial media findings
- Annual reports
- Internet sources
Fees Under Connecticut Wealth Management
Connecticut Wealth Management works as a fee-based firm. Depending on what kind of services you receive, you may encounter fees based on a percentage of your assets under management (AUM) or on a fixed basis. Any client receiving investment advice will sign an Investment Advisory Agreement that explains these fees in detail.
When you’re receiving investment advice from Connecticut Wealth Management, you will incur an Investment Advisory Fee based on a percentage of your AUM. This percentage gradually reduces as your assets climb past certain thresholds. The maximum asset-based fee is 1.25%, according to records the firm filed with the SEC. According to those records, “The investment advisory fee may be negotiable at the discretion of the advisor and is set out in the investment advisory agreement.”
You’d owe these fees quarterly. They are based on the market value of AUM at the end of each calendar quarter. These are taken directly out of your account. They are calculated by dividing the annual fee by four (So 1.00/4 = 0.25% per quarter).
The firm may make adjustments based on withdrawals and deposits occurring throughout the quarter to make sure you’re charged the investment advisory fee based on assets that have lived in your account throughout the quarter. These fees are prorated from the inception date to the end of the first quarter.
The advisor’s fee is exclusive to any other charges you may incur, including custodian fees, transaction fees, mutual fund and ETF expenses, as well as other charges related to account management. But the advisor won’t receive a portion of those fees.
When it comes to financial planning and consulting fees, clients typically pay on a fixed-fee basis. The amount depends on the scope of services rendered and may be negotiable. The maximum fee is $10,000. Usually, clients would pay half of this fee when they sign the advisory agreement. The remaining balance would be due at the end of the financial planning period. However, clients may pay this fee in increments generally on a monthly or quarterly basis.
What to Watch Out For
Most clients who work with Connecticut Wealth Management won’t have much to look out for. Because the firm doesn’t collect any third-party fees such as expenses charged by mutual funds or ETFs, it has no financial incentive to recommend one investment over another.
However, CEO Kevin C. Leahy in a separate capacity is a registered representative of broker-dealer Purshe Kaplan Sterling Investments (PKS) based in Albany, New York. Thus, he may receive commissions and 12b-1 distributions based on recommendations to move assets into certain investments. In addition, he may work as a sales agent for various insurance companies in a capacity separate from Connecticut Wealth Management. This arrangement may provide incentive for him to recommend certain insurance products.
He won’t, however, earn any of Connecticut Wealth Management's Investment Advisory Fees in such cases. Clients with Connecticut Wealth Management are not under any obligation to receive services from Leahy in his separate capacity as registered representative with PKS or through any of his insurance-related business practices.
Connecticut Wealth Management has reported no disclosures that it has undergone disciplinary actions, according to its latest Form ADV. Firms registered with the SEC are required to fill this form to maintain their status.
Opening an Account with Connecticut Wealth Management
The easiest way to open an account with Connecticut Wealth Management is to walk into the firm's office located in Farmington, Connecticut. You can also reach the firm by dialing (860) 470-0290.
Where Is Connecticut Wealth Management Located?
Connecticut Wealth Management currently runs one office headquartered in Farmington, Connecticut.
Tips on Working With a Financial Advisor
- Finding the right financial advisor that fits your needs 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 that will help you achieve your financial goals, get started now.
- Remember that not all financial advisors are equally qualified. Some just carry the title with no proper certification. However, Certified Financial Planners (CSPs) go through rigorous training and typically work on a fee-only basis. This means they don’t get commissions from mutual fund companies. So they won’t have any incentive to recommend one investment over another just for greater compensation.
- Seek out fidicuary financial advisors. These firms and/or individuals are required by law to work in your best interest over personal gain.