Red Door Wealth Management Review
Red Door Wealth Management is a financial advisor firm located in Memphis, Tennessee with roughly $642 million in assets under management. The firm works mostly with individuals and high net worth individuals, but it also advises several pension plans.
The firm was founded in 2010 by four of its advisors, and it has since grown to offer investment advisory services to more than 250 clients. Red Door Wealth Management provides a range of advisory, planning and consulting services to its clients, tailoring everything to each client’s objectives and preferences.
Red Door Wealth Management Background
Red Door Wealth Management was founded in 2010 by Fred Hiatt, John Phillips V, Doug Wright and Jud Cannon. All four founders are still current owners. William Allen is also an owner. The firm works with each client to establish a portfolio, financial plan or retirement plan that makes sense for that client’s timeline, financial goals and risk tolerance.
What Types of Clients Does Red Door Wealth Management Accept?
Red Door Wealth Management works with individuals, high net worth individuals and pension and profit sharing plans.
Red Door Wealth Management Minimum Account Sizes
Generally, Red Door Wealth Management doesn’t maintain an account minimum for advisory accounts.
Services Offered by Red Door Wealth Management
Red Door Wealth Management offers the following range of advisory and consulting services to its clients:
- Portfolio Management Services
- Financial Planning Services
- Retirement planning
- Estate planning
- Education planning
- Charitable gift planning
- Insurance needs analysis
- Advisory Consulting Services
- Family Office and Wealth Planning Services
- Cash flow management
- Tax minimization strategies
- Pension Consulting Services
Red Door Wealth Management Investment Philosophy
When analyzing securities, Red Door Wealth Management uses a mix of technical analysis, fundamental analysis and Modern Portfolio Theory. The firm primarily recommends a mix of exchange-traded funds (ETFs), mutual funds, stocks, bonds, option contracts, certificates of deposit (CDs), US government securities, real estate limited partnerships, money market funds, real estate, and real estate investment trusts ("REITs").
Fees Under Red Door Wealth Management
Red Door Wealth Management charges fees for asset management services according to the following fee schedule. These fees are billed and paid quarterly in arrears.
|Fee Schedule for Managed Accounts*|
|Assets Under Management||Fee Percentage|
|$1,000,000 - $2,000,000||0.75%|
Financial planning fees are generally negotiable and usually are between $1,000 and $20,000. The first half of the fee is due in advance, and the other half will be due after the plan has been completed. The below table shows how Red Door Wealth Management's fees compare to the national median. Remember that these are only estimates and actual fees may vary.
|Estimated Fee Comparison*|
|Your Assets||Red Door Wealth Management||National Median Advisory Fees**|
|$1MM||$12,500||$8,500 - $10,000|
|$5MM||$35,000||$25,000 - $32,500|
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
What to Watch out For
Red Door Wealth Management has an affiliation with Cannon Wright Blount (CWB), an accounting firm. This affiliation presents a potential conflict of interest because the firm may have a direct or indirect financial incentive to recommend clients to CWB regardless of the clients’ needs.
Additionally, Red Door may participate in institutional referral programs with TD Ameritrade and Charles Schwab. The firm may recommend that its clients use one of these brokerage firms for custodial services, and it may receive benefits in return. This also creates a potential conflict of interest because the firm has an incentive to recommend this to all clients in order to continue the relationship.
Regardless of these conflicts, Red Door is bound by fiduciary duty to always put its clients’ above its own.
Red Door Wealth Management doesn’t have any disclosures.
Opening an Account With Red Door Wealth Management
To start the process with Red Door Wealth Management, you can get in touch in a number of ways. You can call the office at (901) 681-0018. You can also email the firm at firstname.lastname@example.org. If you prefer to do things in person, you can also stop by the office on Ridge Lake Boulevard. The first step to opening an account will be to meet with an advisor and discuss your financial goals. Then, you and the advisor can come up with a plan that makes the most sense for you.
Where Is Red Door Wealth Management Located?
Red Door Wealth Management is located on Ridge Lake Boulevard in eastern Memphis, Tennessee, just off Interstate 240.
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