Flourish Wealth Management is an SEC-registered investment advisor in the state of Minnesota. It currently operates more than $125 million in assets under management (AUM). It provides a suite of financial planning services including portfolio management and projects tailored to individual needs.
Flourish Wealth Management Background
Flourish Wealth Management formed in 2014, and founder Kathleen M. Longo currently owns it. It is a boutique firm, and its employees collectively hold titles like certified financial planner (CFP), accredited investment fiduciary (AIF) and chartered financial consultant (ChFC). The firm is held to a fiduciary standard. This means it’s legally obligated to place its clients' best interests ahead of its own.
What Types of Clients Does Flourish Wealth Management Accept?
Flourish Wealth Management primarily works with high-net-worth individuals. According to the latest reports filed with the SEC, most of its clientele falls into that category. However, the firm also provides services to profit-sharing plans, trusts and foundations.
Flourish Wealth Management Minimum Account Size
To receive wealth management services from this firm, you’d generally need a minimum investment of $1 million or the ability to pay a minimum annual fee of $10,000. However, advisors may work with clients who can’t meet these requirements on a case-by-case basis depending on several factors. This may include projected additional assets and future earning capacity.
Services Offered by Flourish Wealth Management
Flourish Wealth Management can help clients build customized investment portfolios based on their individual risk tolerance and financial objectives. The firm primarily recommends no-load mutual funds by Dimensional Fund Advisors, as well as exchange-traded funds (ETFs).
The overall asset allocation strategy would be detailed in a written Investment Policy Statement, which also lays out the client’s investment goals and other key factors. Flourish Wealth Management would periodically examine a client’s portfolio as well as his or her financial situation and other factors to consider re-balancing.
In addition, the firm can offer project-based consulting services on a fixed-fee or hourly-fee basis. Flourish makes recommendations based on in-depth interviews with clients and collection of relevant records outlining their financial situation and objectives.
Flourish Wealth Management Investment Philosophy
Flourish Wealth Management makes investment decisions based partially on Modern Portfolio Theory. The firm believes that the market is efficient in the long term, and that returns are influenced more by asset allocation strategy than market timing or stock picking. It primarily recommends investing in mutual funds or conservative fixed-income securities where appropriate.
In addition, it utilizes research that Dimensional Fund Advisors provides. This includes historical market analysis reports, continuing education material and more. Flourish also generally utilizes passively managed funds from this firm.
Fees Under Flourish Wealth Management
For wealth management services, the firm charges a fee based on percentage of assets under management (AUM). These fees follow the schedule detailed below. They are collected quarterly and deducted from your account.
|Total AUM||Annual Fee|
|First $0 - $1,000,000||1.00%|
|Next $1,000,001 - $5,000,000||0.80%|
|Next $5,000,001 - $10,000,000||0.60%|
|Next $10,000,001 - $15,000,000||0.40%|
Check out the table below to see how Flourish Wealth Management's asset-based fee compares to average fees across the industry.
|*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||Flourish Wealth Management Fees||National Median Advisory Fees**|
|$500K||n/a (below required minimum)||$5,000|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$30,000||$25,000 - $32,500|
However, fees paid to Flourish Wealth Management are independent of other fees you may encounter. These include mutual fund manager expenses, brokerage commissions and transaction fees. The fees related to fund expenses would be laid out in the prospectus of the fund.
In addition, the firm also charges fixed or hourly-based fees for separate financial consulting services. These negotiable fees typically extend from $5,000 to $15,000 on a fixed basis. And they usually stretch from $150 to $400 on an hourly basis.
What to Watch Out For
There is not much to watch out for when working with Flourish Wealth Management, which serves as a fee-only financial advisor. The firm doesn’t collect external compensation such as commissions or payments from fund or insurance companies. This arrangement essentially decreases potential instances of conflicts of interest. However, it does generally recommend DFA mutual funds. But the firm works in a fiduciary capacity. So its advisors are obligated by law to work in the best interests of the client.
Flourish Wealth Management hasn’t undergone any disciplinary investigations or penalties, according to its latest Form ADV. This is a document that registered firms with more than $25 million AUM must file with the SEC. The Form ADV contains detailed information about a firm’s business practices and fee structure.
Opening an Account with Flourish Wealth Management
To open account with Flourish Wealth Management, you can visit its headquarters in Edina, Minnesota. You can also visit its website to schedule an introductory call or send a secure message. Of course, you can also simply call the firm at (952) 392-4474.
Where Is Flourish Wealth Management Located?
Flourish Wealth Management is based in 3300 Edinborough Way, Suite 420, Edina, Minnesota 55435.
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