McDonald Partners, LLC is a financial advisor firm in Cleveland, Ohio with more than $1 billion in assets under management (AUM). The firm’s 49 advisors serve a client base numbering more than 1,300. Clients will have access to a number of investment management, financial planning and retirement plan consulting services.
McDonald Partners is classified as a fee-based firm, as some of its advisors can earn commissions from insurance sales on top of customary client fees. This is different from a fee-only firm, which avoids conflicts of interest by only receiving income from fees charged directly to clients.
McDonald Partners Background
McDonald Partners’ CEO and president Thomas McDonald founded the firm in 2005 and still owns it to this day. McDonald has been employed in the financial services industry for more than 20 years and previously worked for KeyBank and Wayne Hummer Investments.
The advisory staff at this firm includes three certified financial planners (CFPs), one chartered financial analyst (CFA) and two accredited investment fiduciaries (AIFs).
The firm has a few wealth management groups that are legally separate companies, but their employees are registered representatives of McDonald Partners. These include Mansour Wealth Management, the Park Edge Group, CapTrust Financial Advisors, the Lowrie Wealth Management Group and Pareto Wealth Management.
What Types of Clients Does McDonald Partners Accept?
McDonald Partners is a bona fide individual-centric firm, as all but 31 of its 1,300 clients are individuals (either with or without a high net worth). Other clients of the firm include businesses, charitable organizations, pooled investment vehicles, pension and profit-sharing plans and foundations.
McDonald Partners Minimum Account Sizes
McDonald Partners generally requires a minimum account size of $25,000 to participate in either of its Flex Account or RBC Advisors wrap fee programs. To receive investment management through the Hegarty Asset Management program, though, you’ll need at least $250,000 in investable assets.
Services Offered by McDonald Partners
McDonald Partners provides investment management and financial planning services, among other offerings. Here’s a breakdown:
- Individual portfolio management
- Hegarty Asset Management: a proprietary asset management program operating as a division of McDonald Partners and specializing in large-cap equity investing.
- Investment wrap fee programs
- Financial planning
- Educational fund planning
- Retirement planning
- Risk management
- Estate planning
- Business succession planning
- Business planning
- Corporate retirement planning
- Insurance planning
McDonald Partners Investment Philosophy
- Fundamental analysis: This attempts to measure the intrinsic value of a security by examining overall economic factors as well as financial documents pertaining to the security.
- Technical analysis: This involves studying past market movements in an attempt to predict future activity.
- Cyclical analysis: This is the practice of analyzing security prices in the context of larger economic cycles.
- Mutual fund/ETF analysis: This studies fund managers’ past performance to try and understand if they have demonstrated an ability to achieve success over time and in different economic conditions.
Fees Under McDonald Partners
Like most financial advisor firms, McDonald Partners charges fees as a percentage of each client’s overall AUM. Although the firm has implemented the fee schedules below, it is willing to negotiate rates under certain circumstances.
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What to Watch Out For
McDonald Partners is a fee-based firm. This is because certain advisors here are licensed insurance agents and may earn commissions for selling insurance products. While this arrangement represents a conflict of interest, McDonald Partners abides by fiduciary duty at all times, legally binding it to act in your best interest.
McDonald Partners has three disclosures listed on its Form ADV. These involve failing to properly register a branch and its representatives in the state of Arkansas; violating Financial Regulatory Authority (FINRA) rules in regard to two separate contingent offers of securities; and failing to report certain municipal securities transactions to the Municipal Securities Rulemaking Board's (MSRB) real-time reporting system.
Opening an Account With McDonald Partners
To start the process of opening an account with McDonald Partners, you can give the firm a call at (216) 912-0567. You can also visit the firm’s website and fill out the contact form with your name, email address and a brief message.
Where Is McDonald Partners Located?
McDonald Partners has its headquarters in Cleveland, Ohio on East 9th Street between Superior Avenue and Cleveland Memorial Shoreway. In addition to its main office, the firm also has branches in Ann Arbor, Michigan; Boyne City, Michigan; and Toledo, Ohio.
Tips for Retirement Planning
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