Efficient Wealth Management, LLC is a fee-only financial advisor firm that mostly focuses on financial planning and investment management services. The firm employs five financial advisors who look over $373 million in client assets under management.
Efficient Wealth Management Background
Managing member, CCO and senior wealth manager Paul J. Carroll founded Efficient Wealth Management in 2005. Today, Carroll remains the firm’s sole principal owner.
Efficient Wealth currently employs three certified financial planners (CFPs). Additionally, a trio of the firm’s planning associates are currently pursuing a CFP designation.
What Types of Clients Does Efficient Wealth Management Accept?
For the most part, Efficient Wealth Management’s client base consists of high-net-worth individuals and individuals without a high net worth. The firm maintains advisory relationships with charitable organizations and businesses as well.
Efficient Wealth Management Minimum Account Size
You’ll need at least $1 million in investable assets to become a client of Efficient Wealth Management. However, the firm does reserve the right to waive this requirement under certain circumstances.
Services Offered by Efficient Wealth Management
Efficient Wealth Management focuses on a number of advisory services, such as financial planning and investment management. Here’s an overview of all services available at Efficient:
- Discretionary portfolio management
- Asset allocation planning
- Investment planning
- Portfolio monitoring
- Periodic and as-needed rebalances
- Investment goal determination
- Financial planning
- Retirement planning
- Wealth accumulation
- Financial analysis
- General consulting
- Specialized services for:
- Aviation professionals
- Energy industry employees
- Third-party investment advisor selection
Efficient Wealth Management Investment Philosophy
Modern Portfolio Theory (MPT) is the strategy at the core of Efficient Wealth Management’s investment ideology. This Nobel Prize-winning theory details the ever-important relationship between risk and the the allocation of assets in your portfolio. This means it looks to maximize your return potential without exceeding a prespecified risk tolerance. In turn, the only time the composition of your portfolio will be altered is if there is a greater return potential opportunity at the same level of risk tolerance.
Because of Efficient Wealth Management’s use of MPT, it’s not surprising that the firm’s favorite investment types principally include mutual funds and exchange-traded funds (ETFs). These securities are inherently diversified across entire markets, while still trading like stocks. This allows the firm to get involved in the stock and bond markets without worrying about having to pick the securities that will beat the rest.
Fees Under Efficient Wealth Management
The fees associated with Efficient Wealth Management’s portfolio management services feature asset-based, tiered and annualized percentages. These costs are charged on a quarterly basis, in advance. Once you provide authorization to do so, the firm will begin pulling your fees directly from your account’s balance. Your custodian will send you a statement at least quarterly.
|Discretionary Portfolio Management Fees|
|Portfolio Value||Annual Fee|
|$0 - $2,000,000||1.00%|
|$2,000,001 - $4,000,000||0.90%|
|$4,000,001 - $7,000,000||0.80%|
|$7,000,001 - $10,000,000||0.70%|
|$10,000,001 - $25,000,000||0.60%|
|$25,000,001 and up||0.50%|
Similar to much of its competition, Efficient Wealth Management’s financial planning services adhere to an hourly fee schedule that usually ends up at around $250 per hour. This only applies, however, to non-portfolio management clientele. These fees are negotiable, with the complexity of your situation, total investment and more personal factors informing the firm as to what your rates should be.
Check out the table below to see how Efficient’s fees for its management services compare to those at similar financial advisor firms. 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||Efficient Wealth Management Discretionary Portfolio Management Fees||National Median Advisory Fees**|
|$500K||n/a (below required minimum)||$5,000|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$40,000||$25,000 - $32,500|
What to Watch Out For
Efficient Wealth Management allows its financial advisors to buy and sell the same securities as it recommends to clients. This could cause a conflict of interest, as the firm states in its Form ADV that “we have the ability to trade ahead of you and potentially receive more favorable prices than you will receive.” Even with this, the firm abides by fiduciary duty, legally binding it to act in your best interests at all times.
Efficient Wealth Management has a clean legal and regulatory record, according to its Form ADV.
Opening an Account With Efficient Wealth Management
Those who want to become a client of Efficient Wealth Management can call the firm at (281) 528-1200 or email firstname.lastname@example.org.
Where Is Efficient Wealth Management Located?
Efficient Wealth Management operates a single office location in The Woodlands, Texas at 2829 Technology Forest Boulevard, Suite 300.
Retirement Planning Tips
- Reducing your exposure to taxes is a major contributor to the success of any retirement plan, with some areas of the U.S. offering a lower tax burden than others. SmartAsset has completed a full analysis of the most tax friendly states in the U.S. So if you find yourself living in a state where taxes for retirees are high, it might be worth checking out where you could move with lower rates.
- There’s no shame in admitting you need help planning for your retirement. In fact, looking for financial planning assistance could be one of the best decisions you ever make to ensure that you’re financially secure in your golden years. Financial advisors are great retirement planning partners, and the SmartAsset financial advisor matching tool can pair you with as many as three fiduciary advisors in your area.