Financial Synergies is a Houston-based financial advisor firm serving individuals and institutions on a fee-only basis. This means the company's compensation comes solely from the advisory fees that clients pay, not commissions for selling third-party products and services.
The majority of clients at Financial Synergies are individuals. The firm markets its services to families and individuals, business owners, retirees, oil and gas professionals, as well as young professionals and physicians.
Financial Synergies appeared on the Financial Times' 300 Top Registered Investment Advisers list in 2020. The list recognizes firms based on assets under management (AUM), AUM growth rate, years in existence, advanced industry credentials of the firm’s advisors, online accessibility and compliance records.
Financial Synergies Background
Financial Synergies was established in 1986 by firm president Michael Booker. While Booker remains the majority shareholder, Michael Minter, Heath Hightower and Brian Zschiesche are minority shareholders. The firm is also known by its legal name, Financial Synergies Wealth Advisors.
The advisory team at Financial Synergies includes Certified Financial Planners™ (CFPs®), as well as advisors with the certified public accountant (CPA), certified investment managment analyst (CIMA) chartered financial consultant (ChFC), certified fund specialist (CFS) and certified divorce financial analyst (CDFA) designations.
Financial Synergies Client Types and Minimum Account Sizes
Financial Synergies imposes a minimum account size requirement of $1 million for wealth management services, which include both portfolio management and financial planning. However, the minimum investment requirement for the firm's Pathway program – "a financial goals-based investment program designed for people in the early stages of building wealth" – is $500,000. If a Pathway account falls below the $500,000 minimum, the client is charged a $395 fee each month, which will be paid with an outside account.
The firm works with individuals and high-net-worth individuals, as well as pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and other businesses.
Services Offered by Financial Synergies
Financial Synergies primarily offers both discretionary and non-discretionary portfolio management, as well as financial planning services. The firm can assist clients with a variety of financial needs including:
- College education planning
- Portfolio allocation
- Cash flow
- Budget and savings
- Major purchases
- Basic retirement projections
The firm also offers what it calls The Retirement Salary, a planning service that aims to generate retirement income from investments while ensuring a client's savings lasts for the duration of their retirement.
Financial Synergies Investment Philosophy
Financial Synergies strives to achieve long-term investment returns by diversifying across asset classes and by basing its investment recommendations on historical, observable market behaviors and price patterns, according to its website.
The firm’s primary investment strategies are long-term purchases and asset allocation. Financial Synergies typically constructs client portfolios using individual stocks, bonds, exchange-traded funds (ETFs), exchange-traded notes, closed-end funds, mutual funds, structured products, alternative investments and cryptocurrencies.
Fees Under Financial Synergies Wealth Advisors
Financial Synergies is primarily compensated through asset-based fees. The firm’s asset-based fees generally range from 0.75% to 1.50% of assets under management (AUM). Here's a range of what your fees may look like based on the size of your account:
| *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 Financial Synergies Wealth Advisors* | |
| Your Assets | Financial Synergies Wealth Advisors Fee Amounts |
| $500K | $3,750 - $7,500 |
| $1MM | $7,500 - $15,000 |
| $5MM | $37,500 - $75,000 |
| $10MM | $75,000 - $150,000 |
However, some clients may prefer to hold performance-based accounts. For these accounts, the firm may charge fees up to 20% of the client’s net profits earned per calendar quarter. The firm also offers “held away accounts” services for which it charges an annual fee. The exact fee isn't specified.
What to Watch Out For
The firm’s Form ADV doesn’t list any legal or regulatory disclosures.
The firm’s side-by-side management of asset-based and performance-based accounts could create an incentive for advisors to favor accounts that generate higher fees, potentially neglecting the needs of other clients. However, the firm has a fiduciary obligation and it says it takes steps to educate its representatives about the responsibilities of a fiduciary.
All information was accurate as of the writing of this article.
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