Thompson Wealth Management is a full-service investment advisor firm. It also appears on SmartAsset's list of the top financial advisors in Concord, Massachusetts. The firm mostly works with individuals, though it also has some institutional clients.
This is a fee-only, independent financial advisor registered with the SEC and headquartered in Concord. The firm practices in a fiduciary capacity, which means it is obligated under law to act in the client’s best interest. It serves a handful of different 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 such certifications as certified financial planner (CFP).
Thompson Wealth Management Client Types and Minimum Account Sizes
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 generally requires a $750,000 minimum account balance to receive services.
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 main programs are Personal Financial Management (PFM) and Personal CFO (CFO). Prior to engaging the firm for either of these programs, 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.
- Expenses/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.
|PFM Program Fee Schedule|
|Assets Under Management||Fee Rate|
|Up to $1,500,000||1.125%|
|$1,500,000 - $3,000,000||0.75%|
|$3,000,000 - $5,000,000||0.66%|
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.
|Standalone Investment Management Fee Schedule|
|Assets Under Management||Fee Rate|
|Up to $1,500,000||1.00%|
|$1,500,000 to $3,000,000||0.75%|
|$3,000,000 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.
What to Watch Out For
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.
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) 287-5151.
All information is accurate as of the writing of this article.
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