Marks Group Wealth Management, Inc.
For a firm with a staff of just eight advisors, Marks Group Wealth Management, Inc. has a sizable almost $1.1 billion in assets under management (AUM). Based in Minnetonka, Minnesota, the fee-only financial advisor is on our list for top advisors in that city. The firm mostly works with individuals, though its financial planning, investment management and wealth management services are available to institutional clients as well.
Marks Group Wealth Management Background
Chief Investment Officer Bennett Marks founded Marks Wealth Management (MGWM) back in 2008. Today, the firm’s principal owners are both Bennett Marks and President John Feste. On average, the team at Marks Group has spent 17 years in the financial services industry. The firm employs four certified financial planners (CFPs) and one chartered financial analyst (CFA).
Marks Group Wealth Management has received significant recognition for its services. In fact, Forbes named the firm one of the top 250 wealth advisors in the U.S. for 2017. On top of this, Barron’s has included MGWM in its list of the top 1,200 financial advisors in the U.S. from 2010 to 2018.
Marks Group Wealth Management Client Types and Minimum Account Sizes
Though its website says its services are best suited for people with assets of at least $1 million, individuals who do not have high net worths outnumbers those who do 366 to 199. The firm also works with businesses, estates, trusts, pension plans, profit-sharing plans and charitable organizations.
In order to become a client of Marks Group Wealth Management, you’ll need to have at least $500,000 ready to invest. Though at its discretion, the practice may waive or reduce this minimum.
Services Offered by Marks Group Wealth Management
Marks Group Wealth Management has no shortage of financial planning, investment management and wealth management services available for its client base. Here’s a detailed list of each of its offerings:
- Financial planning
- Retirement planning
- Investment planning
- Estate planning
- Philanthropic gift planning
- Insurance planning
- Risk management
- Tax planning and minimization
- Cash flow management
- Institutional financial planning
- Consulting services
- Long-term strategic planning
- Investment policy statement (IPS) development
- Consolidated performance reporting
- Investment/Wealth management
- Both discretionary and non-discretionary services
- Personalized investment planning
- Asset allocation planning across:
- Mutual funds
- Exchange-traded funds (ETFs)
- Individual debt and equity securities
- Real estate investment trusts (REITs)
- Master limited partnerships (MLPs)
- Customizable investment restrictions
- Wrap-fee program
Marks Group Wealth Management Investing Philosophy
In order to execute its strongest investment strategies in a speedy manner, Marks Group Wealth Management developed six distinct portfolio models. Some focus on fixed-income securities, whereas others stick to a large percentage of stocks. Check out this breakdown of each model:
- Core Equity: Built around 50 to 75 equally weighted mid- to large-cap stocks that are high quality, but currently undervalued. Looks to shrink volatility as much as possible.
- International Equity ETF: Exclusively uses national ETFs through a combination of around 30 developed and emerging countries.
- Tactical Equity: Usually holds a multitude of U.S. common stocks, foreign stocks, ETFs, REITs, mutual funds and American depositary receipts. Incurs higher trading costs due to more short-term investments.
- Fixed-Income: Consists of open-end and closed-end mutual funds, individual issues and ETFs to provide steady growth.
- Equity Income: Focused on consistent income and long-term capital appreciation through REITs, MLPs, ETFs, stocks and mutual funds. Number of securities normally resides around 20.
- Mutual Fund: Seeks to diversify by utilizing many open-end mutual funds. Asset allocations can be growth- or balance-centric.
Once your assets are invested in the market, Marks Group’s work is not done. The firm makes it a point to continuously monitor its client portfolios to ensure that the original plans are working. In the event that returns cause your portfolio to fall out of its designed asset allocation, your advisor may recommend rebalancing your investments.
Fees Under Marks Group Wealth Management
Every set of services at Marks Group Wealth Management adheres to its own separate fee schedule. MGWM provides financial planning and consulting services on a one-time basis, leading it to charge a fixed fee as opposed to a recurring one. This charge could range anywhere from $1,000 to $50,000 based on “the level and scope of the services” required, according to the firm’s Form ADV. All charges are disclosed to you prior to the opening of your account.
On the other hand, because Marks Group’s investment and wealth management services are ongoing, you’ll need to pay an annual fee ranging from 0.15% to 2.00% of assets under management (AUM), based on the services the firm provides. This rate is divided into quarterly payments, and you must pay them in advance.
With such a wide range, it's hard to say whether MGWM's fees are high or low. According to a 2018 study of 1,500 firms by RIA in a Box, the average investment advisory fee is 0.95% of AUM. Learn more about advisors' typical costs here.
MGWM’s wrap-fee program follows an identical fee structure, although it includes financial planning in its set of services.
|Marks Group Wealth Management Fees
|0.15% - 2.00% annual fee
|Financial planning and consulting
|$10,000 - $100,000 fixed fee
|MGWM Wrap-Fee Program
|0.15% - 2.00% annual fee
What to Watch Out For
Marks Group Wealth Management has a clean legal and regulatory record according to its SEC-filed Form ADV. Also, at this fee-only firm, advisors' compensation comes only from client fees. They do not receive transaction-based fees, which can potentially pose conflicts of interest.
Opening an Account With Marks Group Wealth Management
The best way to contact Marks Group Wealth Management is to call (952) 582-6100. If you’d rather have one of MGWM’s advisors reach out to you, visit the firm’s website and fill out the contact form with your full name, email address and a short description of the services you anticipate you’ll need.
All information is accurate as of the writing of this article.
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