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Matson Money Review

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Matson Money

Based in Mason, Ohio, Matson Money provides asset allocation advisory services primarily to non-high-net-worth individuals. With more than $15.70 billion in assets under management (AUM), it generally allocates client assets across model portfolios built with its proprietary mutual funds and securities managed by other firms. Matson Money works through unaffiliated partners such as other registered investment advisors (RIAs) to serve its clients. 

Matson Money Background

Matson Money first opened its doors in 1991. It’s also known as Matrix Asset Allocations and Abundance Technologies. The firm’s main business is delivering asset allocation services through unaffiliated RIAs and other entities such as broker-dealers or co-advisors. 

CEO and Founder Mark Matson solely owns the firm. Matson has not only shared his vision on investing as an advisor but also as an author and producer. He’s made hundreds of TV appearances as a financial commentator. Matson leads an advisory team that also features a chartered financial analyst (CFA). 

What Types of Clients Does Matson Money Accept?

Matson works with individuals including high-net-worth ones, corporations and other investment advisors. It also extends its services to pensions and corporate profit-sharing plans. 

Matson Money Minimum Account Size

If you’re interested in opening an asset management account with Matson Money, you don’t need to worry about a minimum investment. There isn’t one.

Services Offered by Matson Money

Unlike other firms that combine stand-alone financial planning with investment portfolio management services, Matson Money’s main line of business is providing asset-allocation advice. It does this through unaffiliated RIAs and broker-dealer representatives. 

In other words, a typical client spends most financial advisory time with another registered firm or co-advisor. In fact, the firm notes that it usually communicates directly with clients only in unusual circumstances. The client would come into separate agreements with the co-advisor as well as Matson Money. 

Matson Money also manages its own mutual funds, which it calls the Free Market Funds. These are the Free Market U.S. Equity Fund, the Free Market International Equity Fund and the Free Market Fixed Income Fund. Matson Money and its co-advisors may allocate client assets across different mutual funds, especially Free Market Funds as it sees fit based on the client’s risk tolerance and investing goals. 

Additionally, Matson Money offers two investment advisory programs for new clients: the Matson Fund Platform and the Frontier Adjusted Portfolio Program. We describe them below: 

Matson Fund Platform

The Matson Fund Platform generally involves Free Market Funds. But it may also invest in variable insurance products also managed by Matson Money. The asset allocation of your portfolio will be based on your answers to a questionnaire. Depending on your answers, your assets may be allocated based on one of the following models: 

Model Portfolio Asset Allocation
Aggressive Growth 95% equities; 5% fixed income
Long-Term Growth 85% equities; 15% fixed income
Long-Term Growth 75% equities; 25% fixed income
Balanced Growth 60% equities; 40% fixed income
Balanced Growth 50% equities; 50% fixed income
Balanced Growth 40% equities; 60% fixed income
Income and Growth 25% equities; 75% fixed income
Fixed Income 0% equities; 100% fixed income

Should Matson Money recommend that your asset allocation involve a separate insurance account, the firm would determine the appropriate percentage. 

Frontier Adjusted Portfolio Program 

The Frontier Adjusted Portfolio Program generally invests in Free Market Funds, and advisors adjust your asset allocation annually to reflect your risk profile at the time. The starting asset allocation can be based on any of the models in the Matson Fund Platform as long as the equity portion is at least 15% and the firm finds it suitable to the client’s risk profile. Clients enrolled in this program currently can’t invest in the Matson Money insurance products.

Additionally, the firm manages the Private Account Asset Allocation program, which mainly invests in no-load mutual funds managed by Dimensional Fund Advisors. This program, however, is not currently available to new clients. 

Matson Money Investment Philosophy

Matson Money adheres to the Modern Portfolio Theory, which suggests that diversifying portfolios across asset classes is key to capturing upside returns, while protecting against downside risk. 

The firm also relies on the Efficient Market Hypothesis (EMH), which proposes that share prices reflect all available information, making it impossible to time the market (since all shares are priced at their fair value). EMH makes the case for investing in low-cost, passive funds. 

In addition, the firm’s investment philosophy is influenced by the Three Factor Model. This illuminates the different risk factors that investors should analyze when creating portfolios: 

  • Market factor: the extra risk of stocks vs. fixed income
  • Size effect: the extra risk of small-cap stocks over large-cap stocks
  • Value effect: the extra risk of high book-to-market (BtM) over low BtM stocks

Using these three principles, Matson Money mainly invests client assets among its proprietary Free Market Funds along with other mutual funds. It may also utilize exchange-traded funds (ETFs), variable annuities and life insurance contracts. 

If you have an existing portfolio when you establish a relationship with Matson Money, the firm would recommend you sell the securities in that portfolio to free up funds to purchase shares of the securities that Matson Money recommends. 

Fees Under Matson Money

Matson Money clients in the Matson Fund Platform and the Frontier Adjusted Portfolio Programs bear all fees and expenses associated with the portfolio program they’re enrolled in and the funds that these programs invest in. The latter include embedded advisory and other fees and expenses that may be paid Matson or other fund managers.

In other words, as Matson Money states, clients “bear their asset-based share of the fees and expenses of each underlying fund as well as of the Free Market Fund series or Matson Money Fund series in which their assets are invested.”

That said, neither Matson Money nor any other party receives a sales load in connection with client investments in its funds. Also, clients do not pay Matson Money any separate advisory fee above the fees embedded in the Funds to participate in the Matson Fund Platform or the Frontier Adjusted Portfolio Platform. 

However, clients do pay separate fees to co-advisors who refer them to Matson Money’s funds. The firm has capped the maximum allowed for all new clients to 1.2% of client AUM (historically, it went as high as 1.4%). 

So if your account size is $3 million and the co-advisor charges you an annual asset-based fee of 1.2%, that would translate to a $36,000 annual fee. These fees are charged quarterly in advance. But they do not reflect the underlying fund fees and expenses detailed above. 

For Private Account Asset Allocation accounts, clients pay fees generally according to the following fee schedule (fees may be negotiable under certain circumstances and at the firm’s discretion).

Assets Under Management Annual Rate
First $500,000 2.00%
Next $500,000 1.00%
Next $3 million 0.75%
More than $4 million  0.50%

What to Watch Out For

As described above, Matson Money tends to limit its scope to allocating client assets across its Free Market funds and other mutual fund families from firms such as DFA. However, Matson Money doesn’t collect compensation from DFA or other mutual fund companies for allocating client assets among their funds. It collects its fees solely as an asset-based portion of your portfolio program account.

But unlike firms that offer a variety of stand-alone financial planning services in addition to portfolio management, Matson Money provides solely the latter. It focuses on asset-allocation services through co-advisors and other firms in the financial services industry. 

So if you’re looking for advice around specific financial goals like debt management or estate planning, you may want to look elsewhere. 

Disclosures

At the time of this writing, Matson Money has no legal or disciplinary events involving the firm or its officers or principals to disclose. 

Opening an Account With Matson Money

The best way to establish a relationship with Matson Money is by visiting its website at https://www.matsonmoney.com and sending a secure message. You can do so by scrolling toward the bottom of the home page and clicking on the “Contact us” tab. 

Where Is Matson Money Located?

You can find Matson Money at 5955 Deerfield Blvd. Mason, Ohio 45040. You can also call at (513) 204-8000 or learn more at https://www.matsonmoney.com. 

All information was accurate as of the writing of this article. 

Investing Tips

  • Make sure you diversify your portfolio in a way that reflects your risk tolerance and can meet your long-term investment goals. You can use our asset-allocation calculator to get a glimpse of what an appropriate investment mix looks like based on your personal profile. 
  • If Matson Money isn’t the right fit for you, narrow your search for a financial advisor with our SmartAsset financial advisor matching tool. After you answer some simple questions, the tool links you with up to three local professionals, all vetted by us. We provide their profiles and expertise to help inform your decision.

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 the cost of living in retirement for that location.

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

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. 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. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

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