Tiedemann Advisors is a financial advisor firm based in New York City. It also has locations in Texas, California, Florida, Washington, Colorado, Delaware and Maryland. The firm has more than $12 billion in assets under management and 77 financial advisors on staff.
Tiedemann uses a “manager-of-managers” approach to financial advising. The firm’s emphasis is on investment management, but it also offers education and general financial planning for clients. It is focused almost exclusively on high-net-worth individuals and also has a small number of institutional clients.
Tiedemann Advisors Background
Tiedemann Advisors is a subsidiary of a larger financial service company, Tiedemann Wealth Management Holdings, LLC. The parent company was founded in 1999. The advisory arm was founded in December 2007 and began operating in January 2008.
Tiedemann Advisors is wholly owned by its parent company, which is a privately owned Delaware limited liability company headquartered in New York. The firm is fee-only, and it does not sell any products internally, focusing only on picking the best investment options for each client.
What Types of Clients Does Tiedemann Advisors Accept?
Tiedemann Advisors primarily offers financial advisory services to high-net-worth individuals and families. The SEC defines high-net-worth investors as individuals who have at least $1 million in investable assets. Additionally, Tiedemann works with trusts, foundations, endowments, charitable organizations and other business or family-related entities.
Tiedemann Advisors Minimum Account Sizes
There is no hard-and-fast minimum account size required across the board at Tiedemann Advisors. Each individual fund that investors choose to invest in may have a minimum investment requirement. The firm generally only works with high-net-worth individuals though, who have at least $1 million in investable assets.
Services Offered by Tiedemann Advisors
Services available at Tiedemann Advisors for individual investors include:
- Financial planning
- Financial education
- Investment management
- Impact investing
- Trust planning
- Estate planning
- Tiedemann Advisors Investment Philosophy
Tiedemann Advisors employs a “manager-of-managers” approach to financial advising, finding and selecting the third-party investment advisors, portfolio managers and investment funds with which to invest their clients’ money. Advisors at Tiedemann look for managers who invest in diverse asset classes and who invest globally.
The firm still looks to manage risk and continually monitor the managers with whom they invest. It considers performance, personnel turnover and any strategy deviation when selecting managers. The firm typically invests its clients’ assets in mutual funds and exchange-traded funds, though other options, like individual equities and real estate, may be used.
Fees Under Tiedemann Advisors
Tiedemann Advisors’ fees vary based on the type of account, the asset classes under management and each client’s total assets under management. Fees are generally based on a percentage of assets under management, though the advisor can choose to charge a flat or minimum fee.
The top rate for Tiedemann’s advisory fee tends to be 1.25%. Though Tiedemann does not earn any commissions, clients may also be responsible for management fees or other charges from mutual funds or other investment vehicles in which they choose to invest their money.
The chart below compares fees at Tiedemann with the national median. Tiedemann’s fee estimates are based on the maximum rate of 1.25%.
|Estimated Fee Comparison*|
|Your Assets||Tiedemann Wealth Management||National Median Advisory Fees**|
|$1MM||$12,500||$8,500 - $10,000|
|$5MM||$62,500||$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
Tiedemann Advisors specializes in serving high-net-worth investors and families. The firm’s current client base only includes one individual investor who is not a high-net-worth individual. If you are an investor who is just starting out or who is still building wealth, it likely won’t be the right option for you.
Also of note is that the firm mostly uses third-party investment management options, considering itself a “manager of managers” that picks active managers to invest their clients’ money. Tiedemann may not meet your needs if you are looking for a manager who actively manages your portfolio themselves. Clients should also note that the firm primarily invests clients’ asset in funds, which may incur additional costs.
There are no recorded disclosures for Tiedemann Advisors from the past decade.
Opening an Account With Tiedemann Advisors
To open an account with Tiedemann Advisors, a potential client can call or visit one of the firm’s eight offices. Another option is to fill out a form on the company’s website. The form asks for your contact information, details on why you are getting in touch and a brief comment.
Where Is Tiedemann Advisors Located?
The firm’s main office is in New York City on Madison Avenue between East 53rd Street and East 54th Street in Midtown Manhattan. The firm also has branches in Dallas; San Francisco; Seattle; Bethesda, Maryland; Palm Beach, Florida; Aspen, Colorado; and Wilmington, Delaware.
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