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Marks Group Wealth Management Review

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Marks Group Wealth Management

Marks Group Wealth Management, Inc. (MGWM) is a fee-only financial advisor firm based in Minnetonka, Minnesota. For a firm with a staff of just eight advisors, MGWM has a sizable $836 million in assets under management (AUM). Marks Group is a mostly individual-centric firm, though its financial planning, investment management and wealth management services are readily available for its institutional clients as well.

Marks Group Wealth Management Background

Chief investment officer Bennett Marks founded Marks Wealth Management 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 three 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.

What Types of Clients Does Marks Group Wealth Management Accept?

About 40% of Marks Group Wealth Management’s AUM comes from the accounts of its high-net-worth individual clients. Money belonging to non-high-net-worth individuals, businesses, estates, trusts, pension plans, profit-sharing plans and charitable organizations rounds out the rest of what the firm manages.

Marks Group Wealth Management Minimum Account Size

In order to become a client of Marks Group Wealth Management, you’ll need to have at least $250,000 ready to invest.

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 Investment Philosophy

In an attempt to execute its strongest investment strategies in a speedy manner, Marks Group Wealth Management took the time to develop 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.

Just because your assets are invested in the market doesn’t mean that Marks Group’s work is done. As a matter of fact, 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%. This rate is divided into quarterly payments, though, and you must pay them in advance. 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
Program/Service Fees
Investment/Wealth management 0.15% - 2.00% annual fee
Financial planning and consulting $1,000 - $50,000 fixed fee
MGWM Wrap-Fee Program 0.15% - 2.00% annual fee

What to Watch Out For

While Marks Group Wealth Management is technically a fee-only financial advisory firm, some of its employees have opportunities to earn compensation from other places. For example, certain advisors at MGWM earn commissions off the sale of specific insurance policies and/or securities to clients. It is important to note , though, that Marks Group Wealth Management is a fiduciary financial advisor, meaning it is legally bound to act in clients’ best interests no matter what.

Disclosures

Marks Group Wealth Management has a clean legal and regulatory record according to its SEC-filed Form ADV.

Opening an Account With Marks Group Wealth Management

Aside from stopping by the firm’s lone office in Minnetonka, Minnesota, the best way to get into contact with Marks Group Wealth Management is to call (952) 582-6100. If you’d rather 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.

Where Is Marks Group Wealth Management Located?

Marks Group Wealth Management has just one office in Minnetonka, Minnesota at 4350 Baker Road, Suite 245.

Tips for Starting Your Investment Journey

  • The SmartAsset financial advisor matching tool can pair you with up to three local fiduciary financial advisors that will help you get your money invested in the market. Many advisors will even allow you to dictate what investments to include in your portfolio. To find your matches, take a few minutes to answer our questionnaire about your personal financial situation.
  • Although fairly new to the market, robo-advisors can get you investing for a much smaller fee than a typical financial advisor. These financial tools use a plethora of algorithms and specific investment strategies to customize your portfolio to your personal risk tolerance, time horizon and liquidity needs.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research