Fee-only financial advisor Redwood Wealth Management, LLC (RWM) has nearly $632 million in client assets under management (AUM). The company employs seven financial advisors, and its services are centered around financial planning, retirement planning, tax management and, most importantly, investment management.
Redwood Wealth Management Background
Prior to 2009, Redwood Wealth Management did business under the name Niagara Financial Advisors. Therefore, Redwood can trace its roots back to 2001 when Niagara was founded. The firm is principally owned by four partners: CIO Lane Steinberger and lead wealth managers Raj Chokshi, Shawn Meade and Rachael Neil. Chokshi, Steinberger and Meade hold their shares through these separate companies:
- Steinberger Incorporated (owned by Lane Steinberger)
- Bluerock Advisors, Inc. (owned by Raj Chokshi)
- Redwood Financial Services, Inc. (owned by Shawn Meade)
There are plenty of advisory certifications across the team at RWM. This list includes 10 certified financial planners (CFP), two certified public accountants (CPA), one chartered financial analyst (CFA) and one certified divorce financial analyst (CDFA).
What Types of Clients Does Redwood Wealth Management Accept?
Although Redwood Wealth Management has services available for businesses, pension plans, profit-sharing plans and other retirement plans, the vast majority of its client base consists of individuals, both with and without a high net worth.
Redwood Wealth Management Minimum Account Size
Rather than instituting a minimum account size, Redwood Wealth Management requires an annual fee of $5,000. To make things simpler, this fee works out to be a $500,000 minimum.
Services Offered by Redwood Wealth Management
Redwood Wealth Management bases its offerings around financial planning and investment management. If you’re looking for a one-time consultation, Redwood’s advisors can do that as well. Here’s a detailed breakdown of the firm’s services:
- Financial planning
- Annual net worth statements
- Cash flow statement and income planning
- Current investment review
- Investment recommendations
- Tax planning and minimization
- Tax return preparation
- Retirement savings analysis and planning
- Education cost planning advice
- Estate planning and review
- Charitable gift planning
- Risk management
- Life and disability insurance review and planning
- Investment portfolio management
- Discretionary services
- Investment planning
- Investment discretion available to clients
- Asset class analysis and research
- Risk-adjusted portfolios
- General consulting
- One-time, project-based services
- Cash-flow planning for retirement or other financial goals
- Income tax planning analysis
- Estate planning analysis
- Insurance review
Redwood Wealth Management Investment Philosophy
Redwood Wealth Management bases their overarching investment philosophy on Modern Portfolio Theory (MPT). Modern portfolio theory holds that rather than just picking individual stocks, investors can create diversified portfolios that will deliver optimal returns given their particular tolerance for risk. In other words, if you’re risk averse, you may want to invest in more fixed-income securities with a few stocks, whereas the opposite is true for those who are willing to accept higher volatility.
Due to its use of MPT, Redwood Wealth Management must be willing to invest in a number of different securities. For the most part, the firm focuses on individual equities, bonds, bond funds, exchange-traded funds (ETFs) and mutual funds. RWM uses both long- and short-term purchase strategies depending on whether you have a high need for liquidity or not, along with other factors.
Fees Under Redwood Wealth Management
Redwood Wealth Management employs an asset-based fee schedule in conjunction with its portfolio management services. These fees are decided based on the individual circumstances of each client, including the amount of investable assets, anticipated services and more. All fees are charged in quarterly sections, in advance. Note that some clients may receive a negotiable fixed fee instead.
|Portfolio Management Fees|
|Total Portfolio Value||Portfolio Fee Tiers|
|$5MM - $10MM||0.50%|
Financial planning clients will need to pay either a fixed fee or hourly fee. Should you abide by a fixed fee schedule, your rates will be negotiated in advance, while hourly fees typically fall within $150 to $300 an hour. RWM’s general consulting services follow essentially the same fee structure.
Check out the table below to see how Redwood’s fees for its portfolio management services compare to those at similar financial advisor firms. Note that these fees are only estimates and actual costs may vary.
|*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.|
|Estimated Fee Comparison*|
|Your Assets||Redwood Wealth Management Portfolio Management Fees||National Median Advisory Fees**|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$42,500||$25,000 - $32,500|
What to Watch Out For
Redwood Wealth Management may recommend the custodial services of TD Ameritrade for your portfolio’s assets. Because of this, RWM receives benefits from TD Ameritrade, such as research tools, client management services, electronic communication networks and more. This relationship could potentially result in a conflict of interest, as these perks may incentivize Redwood to recommend TD Ameritrade regardless of whether or not doing so would be beneficial for clients. Redwood Wealth Management abides by fiduciary duty, though, meaning it is legally bound to act in clients’ best interests at all times.
Based on its Form ADV, Redwood Wealth Management has a clean legal and regulatory record with the SEC.
Opening an Account With Redwood Wealth Management
The best way to get in touch with a Redwood Wealth Management advisor is to call the firm at (678) 527-2800 or send an email to firstname.lastname@example.org. Redwood’s website also offers a contact firm that you can fill out to have an advisor reach out directly to you.
Where Is Redwood Wealth Management Located?
Redwood Wealth Management has just one office in Alpharetta, Georgia at 11175 Cicero Drive, Suite 650. You’ll find the firm located directly off of North Point Parkway.
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