Thompson Wealth Management is a fee-only, independent financial advisor registered with the SEC and headquartered in Concord, Massachusetts. The firm practices in a fiduciary capacity, which means it is obligated under law to act in the client’s best interest. With more than $200 million in assets under management (AUM), it serves a handful of clients, including high-net-worth ones.
Thompson Wealth Management Background
Thompson Wealth Management was founded in 1991 by Bruce Thompson, who continues to serve as the firm’s president and chief compliance officer. Thompson brings more than 30 years of experience in the financial services spaces to the table. In addition, the firm currently employs at least one certified financial planner (CFP).
What Types of Clients Does Thompson Wealth Management Accept?
Thompson Wealth Management mostly works with individuals. About half of these are high-net-worth ones. However, the firm also extends its services to corporations, trusts, estates, profit-sharing plans and more. As a bonus, Thompson also provides complementary counseling to clients' children and grandchildren following college graduation.
Thompson Wealth Management Minimum Account Size
Thompson Wealth Management doesn’t generally require a minimum account balance to receive services. If any is determined, it will be decided on an individual basis.
Services Offered by Thompson Wealth Management
Thompson Wealth Management provides a range of services surrounding ongoing investment portfolio management and financial planning. Two of its programs are Personal Financial Management (PFM) and Personal CFO (CFO).
Prior to receiving either of these plans, a client can have a non-obligatory “chemistry session,” in which the firm aims to learn about the individual's personal financial and investment goals.
Through the PFM program, the firm charges an asset-based fee that covers investment management and holistic financial planning.
With the CFO program, a client receives unlimited financial planning advice as well as collaboration opportunities with outside professionals such as CPAs, estate attorneys and real estate agents. This service is primarily designed for high-net-worth individuals.
Thompson Wealth Management Philosophy
Thompson Wealth Management primarily gathers its research from independent sources. It also says it avoids “compensation-related influences" on its thinking and in its business with clients.
When it comes to investment decisions, it focuses on the following facets:
- Asset allocation: The mix of different investment types to hedge against potential market downturns and other risks.
- Diversification: Allocating across different asset classes to minimize risk.
- Expense/costs: Aims for less frequent trading and investing primarily in low-cost mutual funds.
Fees Under Thompson Wealth Management
Thompson Wealth Management operates on a fee-only basis. So it doesn't take commissions or referral fees. During its review period, the firm typically requests an up-front fee of about $1,500 to $5,000 based on the complexity of the plan established.
The firm charges an asset-based fee for its PFM program, which combines investment management and overall financial planning. The fee is calculated on a percentage of assets in your account based on the fee schedule detailed below.
|Assets Under Management||Fee|
|$0 - $1,500,00||1.125%|
|$1,500,001 to $3,000,000||0.75%|
|$3,000,001 to $5,000,000||0.66%|
Check out the table below to see how Thompson Wealth Management's asset-based fees compare to median fees across different advisory firms.
|*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||Thompson Wealth Management PFM program||National Median Advisory Fees**|
|$500K||n/a (below required minimum)||$5,000|
|$1MM||n/a (below required minimum)||$8,500 - $10,000|
|$5MM||$25,000||$25,000 - $32,500|
For the CFO program, the firm charges a fee based on the client’s net worth. This fee generally ranges from 0.40% to 0.75%, depending on the complexity of the plan as well as the client’s assets and liabilities.
For financial planning services not covered under the PFM program, the firm charges a fee of $200 per hour.
Meanwhile, it charges the following asset-based fees for standalone investment management without financial planning.
|Your Assets||Asset-Based Fee|
|$1,500,001 to $3,000,000||0.75%|
|$3,000,001 to $5,000,000||0.66%|
However, the fees described above account for advisory fees paid to Thompson Wealth Management only. They don’t include transaction fees or commissions charged by broker-dealers or custodians. They also don’t cover mutual fund or exchange-traded fund (ETF) expenses that fund managers charge. These would be detailed in fund prospectuses.
What to Watch Out For
Thompson Wealth Management doesn’t engage actively in any other business. So there is not much to watch out for when it comes to working with Thompson Wealth Management beyond the arrangement you form with your advisor and how well he or she meets its obligations. Moreover, the firm has a fiduciary duty to work in the best interest of the client. You can also review its code of ethics published on its Form ADV.
Thompson Wealth Management has not undergone any disciplinary actions regarding its business practices. It has published no disclosures, according to the latest Form ADV it has filed with the SEC. This is a form all advisory firms that manage more than $25 million must file with the SEC.
Opening an Account with Thompson Wealth Management
The simplest way to open an account with Thompson Wealth Management is by visiting its main office in Concord, Massachusetts, to discuss the different services available. You can also call the firm at (978) 278-5151.
Where Is Thompson Wealth Management Located?
Thompson Wealth Management is located at 30 Monument Square, Suite 101, Concord, MA 01742.
Tips for Finding a Financial Advisor
- Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
- Before deciding to work with an advisor, you should know that not all financial advisors have the same certifications or any at all. Typically, you should seek out individuals that are certified financial planners (CFPs) with a fiduciary obligation to work in your best interests.
- If you’re considering Thompson Wealth Management, you should compare their offerings with those of the top 10 financial advisors in Massachusetts.