MPM Wealth Advisors
Holland, Ohio-based MPM Wealth Advisors is a mid-size financial advisor firm that specializes in investment management and financial planning services. The firm also offers services to other advisory firms, including back office support and investment services. Most of the firm's clients are individuals, though it does have a few institutional clients.
As a fee-based firm, certain advisors at MPM Wealth can receive commissions from securities and insurance sales. These are in addition to the advisory fees that clients personally pay. A fee-only firm, on the other hand, would only receive client-paid fees.
MPM Wealth Advisors Background
MPM Wealth Advisors was established in 1995. Today, the firm is principally owned by co-presidents and founders Bryan F. Ohm and G. Thomas Damasco II. They decided to create the firm after working for about a decade at a Wall Street brokerage firm. Sean Shinaberry is the firm's CEO, and he also has 10 years of experience in the financial services industry.
MPM Wealth Advisors Client Types and Minimum Account Sizes
MPM Wealth Advisors works with both institutional and individual clients, though the majority of its client base is made up of individuals, both with and without a high net worth. Its institutional clients include pension and profit-sharing plans, charities and businesses.
MPM doesn't typically require a minimum account size for its services. However, if you want to enter into a flat-fee arrangement, you'll need to maintain an account balance of at least $1 million.
Services Offered by MPM Wealth Advisors
MPM Wealth Advisors provides portfolio management services through its proprietary offering called the MPM Managed Account Program. Services offered through this program are customized based on the needs of each client. These services may be broad or narrow depending on what each client needs help with. Clients who use the program may see their assets placed in one or more model portfolios.
This firm also provides clients with stand-alone financial planning and financial consulting services. Financial planning engagements may be ongoing, or they may be offered on a one-time basis.
MPM Wealth Advisors Investment Philosophy
MPM Wealth Advisors will tailor its investment strategies to the financial objectives of each of its clients. Advisors meet with clients to determine an investment profile based on their liquidity needs, tolerance for risk, time horizon and other relevant information. Using this information, advisors at MPM decide how to best manage each client's assets. They may develop an investment approach from scratch, or, where appropriate, they may place some or all of a client's assets into a model portfolio. These model portfolios are usually made up of mutual funds, equities, fixed-income securities and other investments.
While specific strategies vary, the firm's overall investment approach is rooted in modern portfolio theory. Advisors may also use fundamental analysis and mutual fund and ETF analysis.
Fees Under MPM Wealth Advisors
The fees MPM Wealth Advisors typically charges in conjunction with the MPM Managed Account Program are based on an annual percentage of each client's total assets under management (AUM). The maximum annual fee is 1.50%, though specific rates are determined on an individual basis. Clients with an account balance of $1 million or more may request a flat-fee arrangement instead. Again, these rates may be negotiated individually.
Clients using the firm's financial planning and consulting services are charged an hourly or flat fee. Hourly fees range from $100 to $400, whereas fixed fees typically go up to $15,000 or more.
What to Watch Out For
MPM Wealth Advisors has two disclosures listed on its Form ADV. Of these disclosures, one relates solely to an advisory affiliate of the firm, whereas the other relates to the firm and an advisory affiliate. For the latter disclosure, which is from 2013, the firm was found to have failed to correct SEC violations that were first noted in 2008. As a result, the firm was forced to pay a $175,000 fine and submit to censure and a cease and desist order.
MPM Wealth Advisors is a fee-based firm. That means some of its advisors can receive commissions from specific insurance and securities sales. In turn, this creates a potential conflict of interest at the firm. Despite this, the firm is bound by fiduciary duty to act in clients' best interests at all times.
Opening an Account With MPM Wealth Advisors
Those looking to open an account with MPM Wealth Advisors should go to the firm's website contact page and submit a form. You can also visit the firm at its Holland office or call (419) 861-1400.
All information is accurate as of the writing of this article.
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