Taking its name from its two founders, Ross Gerber and Danilo Kawasaki, Gerber Kawasaki Wealth & Investment Management is an independent advisory with offices in Santa Monica, California and San Francisco. You've likely heard of it from watching or reading CNN, CNBC, Fox Business News or Reuters, where Gerber is often commenting on the markets or being quoted. He’s also a contributing writer for Forbes.com.
The firm has nearly $2 billion in assets under management (AUM), all of which is managed is on a discretionary basis. You'll find Gerber Kawasaki on SmartAsset's short list of top financial advisors in Santa Monica.
Gerber Kawasaki Wealth & Investment Management Background
Gerber Kawasaki launched in 2010, following the recent financial crisis. It offers two programs: one that targets young individuals and families (ages 25 to 45) and focuses on wealth building and one that targets older people and focuses on wealth management.
In addition to Gerber, who serves as CEO and president, and Kawasaki, who serves as COO and vice president, the firm is led by five managing partners: Zachary Bainter, Hatem Dhiab, Ben Dunbar, Matthew Iantosca and Ayal Shmilovich. With a focus on diversity, the team includes people who are fluent in Arabic, Chinese, French, Portugese, Russian and Spanish.
Gerber and Kawasaki remain the principal owners of the firm.
Gerber Kawasaki Client Types and Minimum Account Sizes
The bulk of Gerber Kawasaki’s clients are individuals who are not uber wealthy. That said, it does have high-net-worth clients. It also serves pension and profit-sharing plans, trusts, estates, charitable organizations, as well as corporations, other business entities and foreign investors.
The firm does not have a minimum investment requirement. It does, however, reserve the right to close accounts that it deems are too small for it to manage effectively.
Services Offered by Gerber Kawasaki Wealth & Investment Management
As mentioned earlier, Gerber Kawasaki offers a program for people looking to build wealth and a program for people who need help managing their wealth. The asset level cut-off for the former is $250,000.
Additionally, the advisory offers financial planning services, selection of third-party money managers and pension consulting services.
Gerber Kawasaki Wealth & Investment Management Investing Philosophy
The firm does not have one overarching investment philosophy. It is an active manager, though, and may engage in frequent trading to harvest tax losses (when an investment drops 15%) and to rebalance. Generally, it uses fundamental and technical analyses when evaluating investments.
Fees Under Gerber Kawasaki Wealth & Investment Management
As part of the wealth building program, the firm offers a free consultation and portfolio review. For a $250 one-time fee, it will then set up the investment accounts it recommends, including retirement accounts.
If you wish to continue with the firm and receive its standard investment management services, it will then monitor and rebalance your investments for an annual fee of 1.50% of your assets under management. For assets that exceed $250,000, the firm charges a management fee of 1%.
The fees follow this tiered schedule:
This chart shows you what you'll pay in asset management fees based on how much money you have at the firm:
|*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 Gerber Kawasaki Wealth and Investment Management*|
|Your Assets||Gerber Kawasaki Fee Amounts|
The fee for financial planning is negotiable, but is generally $350 per hour. The advisory provides these time estimates for its different services:
- Comprehensive financial planning - 10 hours
- 401(k) review - 2 hours
- Portfolio makeover - 2 hours
- Education planning - 2 hours
- Insurance analysis - 2 hours
- Small business planning - 2 hours
- Financial check-up - 2 hours
- Financial education seminars and workshops - 1 hour
For recommending a third-party investment advisor, the firm will not charge a flat fee. Instead, it will receive a share of the advisor’s fee, which the advisor sets with clients.
What to Watch Out For
In the 10 years of its existence, Gerber Kawasaki has had no disciplinary events to report in its annual filings with the Securities and Exchange Commission.
One thing to note: advisors may also be brokers or insurance agents. These multiple roles may present conflicts of interest. When you receive any investment or insurance product recommendations, be sure you know what this advice is based on, as well as whether and how the advisor and firm may benefit from your following the recommendation. As a fiduciary, your advisor is obligated to tell you.
Opening an Account at Gerber Kawasaki Wealth & Investment Management
Fill out the form on this page if you want to speak with someone at the firm about opening an account.
All information was accurate as of the writing of this article.
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