Foundation Wealth Management, LLC (FWM) is a fee-only financial advisor firm that employs just three advisors to handle its more than $300 million in assets under management (AUM). Financial planning, investment management and individual retirement account (IRA) rollovers are the principal services of FWM. The firm is located in St. Louis, Missouri.
Foundation Wealth Management Background
Foundation Wealth Management president Pamela Hardin started the firm in 2003. Hardin remains the majority owner of Foundation to this day. The advisory staff at the firm have an average of more than 16 years in the financial services industry.
Two certified financial planners (CFP) are available through Foundation Wealth Management. Although this is a small amount of advisory certifications, it’s typical of a firm of its size.
What Types of Clients Does Foundation Wealth Management Accept?
More than nine out of every 10 Foundation Wealth Management clients are individuals either with or without a high net worth. Beyond these groups, the firm works with pension plans, profit-sharing plans and state/municipal government entities.
Foundation Wealth Management Minimum Account Size
In its SEC-filed Form ADV, Foundation Wealth Management states that it institutes a $5,000 minimum annual fee. Based on the firm’s fee schedule, this charge equates to a minimum investable asset requirement of $400,000.
Services Offered by Foundation Wealth Management
Foundation Wealth Management’s services are focused on financial planning and investment management. Here’s a detailed breakdown of everything that the firm has to offer:
- Financial planning/consulting
- Investment management analysis
- Retirement planning
- Financial independence analysis
- Capital needs analysis
- Education funding analysis
- Cash management analysis
- Income tax analysis
- Estate planning and analysis
- Investment management
- Discretionary and non-discretionary services available
- Investment portfolio customization based on:
- Risk tolerance
- Current financial situation
- Ultimate financial goals
- Women in Transition program
- Financial and life planning for women
- IRA rollovers to a Foundation-managed account
Foundation Wealth Management Investment Philosophy
Modern Portfolio Theory (MPT) is at the core of Foundation Wealth management’s standard investment strategy. MPT simply states that every increase in risk that an investor takes must be accompanied by a proportionate uptick in return potential. In other words, this theory seeks to help investors get the most out of their respective risk tolerances by ensuring that all decisions relating to your portfolio are risk-adjusted and well considered.
Bonds, stocks, exchange-traded funds (ETFs), mutual funds, individual debt securities and options are the typical investment types utilized by Foundation’s advisors. In an effort to flesh out your portfolio, the firm may also recommend variable annuities and life insurance contracts for its clients.
Fees Under Foundation Wealth Management
The investment management services at Foundation Wealth Management come with a simple, asset-based fee schedule. These fees are tiered so that the higher your balance, the lower the rate you’ll pay. Foundation charges investment management fees on a quarterly basis, in advance, meaning the percentages below are actually split into four equal parts.
|Investment Management Fees|
|Portfolio Value||Annual Fee|
|Up to $1MM||1.25%|
On the other hand, a fixed fee structure is used for financial planning and consulting through FWM. The firm offers no indication as to what these charges could look like, but they’re negotiable and will be agreed upon prior to the initiation of any services. This fee is divided into two halves: one that must be paid at the dawn of your advisory relationship and the other when your financial plan is completed.
Check out the table below to see how Foundation’s fees for its investment 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||Foundation Wealth Management Investment Management Fees||National Median Advisory Fees**|
|$1MM||$12,500||$8,500 - $10,000|
|$5MM||$40,000||$25,000 - $32,500|
What to Watch Out For
In some situations, Foundation Wealth Management may advocate for you to rollover your assets in an IRA to an account managed by the firm for a fee. A conflict of interest arises from this, as an advisor may be inclined to recommend a rollover solely for the purpose of increasing the fee-only revenue of the firm. However, FWM and its advisory team are fiduciaries, which means that they are bound by law to act in the best interests of their clients under all circumstances.
Foundation Wealth Management has a clean legal and regulatory record.
Opening an Account With Foundation Wealth Management
Prior to stopping by Foundation Wealth Management in St. Louis, Missouri, you may want to call its office at (314) 726-6789 for an appointment. If this doesn’t work for you, the firm also provides an email form on its website that allows you to give your personal information so an advisor can reach out to you.
Where Is Foundation Wealth Management Located?
Prospective Foundation Wealth Management clients will find the firm situated in St. Louis, Missouri at 8000 Maryland Avenue, Suite 1165.
Tips to Improve Your Investments
- Although the DIY approach to investing has increased in popularity over recent years, the services of a financial advisor can often be much more beneficial to the right person. The SmartAsset financial advisor matching tool will set you up with as many as three local advisors that offer services related to what you’re looking for. All you need to do is fill out a short questionnaire to ensure that the matches provided to you are as optimized as possible.
- Diversification is one of the golden rules of investing. This all-important principle states that you should have your assets invested as widely across the market as possible. Doing so will protect your money in the event of a market crash, as the overall success of your portfolio won’t be tied to a small group of securities.