Labrum Wealth Management, LLC (LWM) is a fee-based financial advisor based in Carlsbad, California that also has branches throughout other areas of California, Florida, Texas and Arizona. LWM employs a 10-person team of advisors with just under $300 million in client assets under management (AUM).
Labrum Wealth Management Background
President Jason Labrum and senior wealth advisor Richard Labrum opened Labrum Wealth Management for business in 2009. As things stand today, Jason Labrum is the principal owner, with COO Alex Klingensmith and CCO Jordie Czapinski each holding no more than 5% of the firm’s shares.
The advisory staff at Labrum Wealth Management boasts five certified financial planners (CFP), two accredited investment fiduciaries (AIF), one chartered retirement plans specialist (CRPS), one certified plan fiduciary advisor (CPFA), one accredited asset management specialist (AAMS), one certified divorce financial analyst (CDFA) and one life underwriter training council fellow (LUTCF).
What Types of Clients Does Labrum Wealth Management Accept?
More than nine out of every 10 clients at Labrum Wealth Management are either high-net-worth individuals or non-high-net-worth individuals. LWM also manages relationships with businesses, charitable organizations, estates, trusts, profit-sharing plans and pension plans.
Labrum Wealth Management Minimum Account Size
For the vast majority of new client accounts, Labrum Wealth Management calls for a minimum investment of $250,000. However, depending on the specifics of your account, LWM reserves the right to waive this stipulation.
Services Offered by Labrum Wealth Management
Financial planning and investment management are the main areas of focus for Labrum Wealth Management’s services. Here is what you can expect from LWM:
- Investment management services
- LWM Model Portfolios
- 11 portfolios featuring mostly exchange-traded funds (ETFs) and mutual funds
- Client-advisor meetings
- Long-term focus
- LWM Custom Account Management
- Extremely customizable based on risk tolerance, time horizon and personal goals
- Typical investments include stocks, fixed income, bonds, mutual funds, ETFs and more
- Retirement planning solutions for plan sponsors
- Available for 401(k)s, 403(b)s, pension, profit-sharing, cash balance and deferred compensation plans
- Discretionary management
- Fiduciary services
- Robo-advisor recommendations at Betterment, LLC
- LWM Model Portfolios
- Financial planning and consulting
- Select from comprehensive or one-time planning services
- Income management
- Asset protection
- Tax planning
- Estate planning
- Retirement planning
- Alternative investment review
Labrum Wealth Management Investment Philosophy
When introducing a new client into its firm, Labrum Wealth Management will utilize one of two major investment programs: LWM Model Portfolios and LWM Custom Account Management. LWM Model Portfolios employs a cookie-cutter approach, as it looks to match clients to one of 11 asset allocations, such as capital preservation, conservative, moderate, growth and aggressive growth. These largely consist of ETFs and mutual funds, though the firm could incorporate other investment types.
LWM Custom Account Management takes an entirely different approach, as its advisors customize each client’s portfolio. This program uses a wider range of investments than LWM Model Portfolios. Equities, mutual funds, ETFs, fixed income securities, bonds, cash management instruments and closed-end funds are some of the most common investment types.
Fees Under Labrum Wealth Management
Financial planning fees at Labrum Wealth Management come in two distinct variations: fixed fees and hourly fees. The firm formulates these fees separately for each client depending on the services they are receiving. Hourly fees usually fall between $100-$475 per hour, with fixed fees around $1,000-$10,000. In some situations, clients may encounter brokerage fees and other transaction charges.
LWM combines its financial planning suite within all investment management accounts, making the above fees irrelevant for any client who subscribes to the firm’s investment management services. The rates in the table below are tiered depending on your portfolio’s overall balance. Although they’re shown as an annual fee, investment management fees are charged in quarterly amounts in advance. All fees are based on the value of your account on the last business day of the preceding quarter.
|Investment Management Fees|
|Portfolio Value||Annual Fee|
Check out the table below to see how Labrum’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||Labrum Wealth Management Investment Management Fees||National Median Advisory Fees**|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$38,000||$25,000 - $32,500|
What to Watch Out For
A portion of Labrum Wealth Management’s earnings comes in the form of life, health, long-term care and disability insurance sales. LWM conducts this business under the insurance arm of its company, LWM Insurance Solutions, LLC. Because some of Labrum’s advisors are associated with both sides of the firm, they have the opportunity to receive commissions from the sale of insurance products. While this represents a conflict of interest, the firm is a registered fiduciary and therefore is legally bound to act in clients’ best interests.
According to its SEC-filed Form ADV, Labrum Wealth Management does not have any legal or regulatory issues in its past.
Opening an Account With Labrum Wealth Management
Prospective clients with interest in joining Labrum Wealth Management can call (888) 401-2083 to get an advisory consultation at the nearest office location. Alternatively, if you provide your first name, last name, phone number, email address and a short message reviewing your financial needs through Labrum’s online contact form, one of its advisors will email you directly.
Where Is Labrum Wealth Management Located?
Labrum Wealth Management’s principal office is in Carlsbad, California at 6128 Innovation Way. The firm operates five other locations as well, including:
- 888 Prospect Street, Suite 200 in La Jolla, California
- 29995 Technology Drive, Suite 100 in Murrieta, California
- 420 Throckmorton Street, Suite 200 in Fort Worth, Texas
- 30410 Sea Grape Terrace in Big Pine Key, Florida
- 14646 North Kierland Boulevard, Suite 125 in Scottsdale, Arizona
Tips for Your Retirement Savings
- Saving for retirement is an important part of ensuring financial security during your golden years. But the process for accruing a solid retirement nest egg is easier said than done. That makes the services of a fiduciary financial advisor all the more necessary. SmartAsset’s financial advisor matching tool can set you up with as many as three such advisors in your area. Answer a few questions, and we’ll pair you with an expert in your area best suited to your financial needs.
- Although every American has his or her own set of unique circumstances and considerations when planning for retirement, it can be useful to compare what you have with others in your age bracket. SmartAsset’s retirement experts have taken the time to put such a comparison together on the average retirement savings in the U.S.