Redwood Wealth Management
Fee-only financial advisor Redwood Wealth Management, LLC (RWM) has $240 million in client assets under management (AUM). The company employs five financial advisors, and its services are centered around financial planning, retirement planning, tax management and, most importantly, investment management. Redwood Wealth Management currently ranks fifth on SmartAsset's list of the top financial advisors in Alpharetta, Georgia.
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 two entities: Steinberger Incorporated and Redwood Financial Services, Inc. Steinberger Incorporated is, in turn, owned by CIO Lane Steinberger, and Redwood Financial Services is owned by lead wealth manager Shawn Meade.
There are plenty of advisory certifications across the team at RWM. This list includes six certified financial planners (CFPs), one certified public accountant (CPA), one chartered financial analyst (CFA), one certified divorce financial analyst (CDFA) and one enrolled agent (EA).
Redwood Wealth Management Client Types and Minimum Account Sizes
Although Redwood Wealth Management has services available for businesses, pension plans, profit-sharing plans and other retirement plans, its client base consists of individuals, both with and without a high net worth.
Rather than instituting a minimum account size, Redwood Wealth Management requires a minimum annual fee of $5,000. To make things simpler, this fee works out to be a $500,000 minimum, according to Redwood's fee schedule.
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 |
| First $2MM | 1.00% |
| Next $3MM | 0.75% |
| $5MM - $10MM | 0.50% |
| Above $10MM | Negotiable |
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** |
| $500K | $5,000 | $5,000 |
| $1MM | $10,000 | $8,500 - $10,000 |
| $5MM | $42,500 | $25,000 - $32,500 |
| $10MM | $67,500 | $50,000 |
What to Watch Out For
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) 390-3300 or send an email to info@redwoodwm.com. Redwood’s website also offers a contact firm that you can fill out to have an advisor reach out directly to you.
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.
All information is accurate as of the writing of this article.
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