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Tradition Wealth Management Review

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This review was produced by SmartAsset based on publicly available information. The named firm and its financial professionals have not reviewed, approved, or endorsed this review and are not responsible for its accuracy. Review content is produced by SmartAsset independently of any business relationships that might exist between SmartAsset and the named firm and its financial professionals, and firms and financial professionals having business relationships with SmartAsset receive no special treatment or consideration in SmartAsset’s reviews. This page contains links to SmartAsset’s financial advisor matching tool, which may or may not match you with the firm mentioned in this review or its financial professionals.

Tradition Wealth Management is a fee-based financial advisor firm that primarily serves people in Minnesota. In addition to its main office in Edina, it has offices in St. Paul, Wayzata and Woodbury. The advisory staff at Tradition Wealth Management is medium-sized, and the firm ranks on SmartAsset's list of the top financial advisors in Edina.

As a fee-based firm, some advisors at Tradition wealth can receive third-party commissions for enacting certain transactions, such as insurance sales. On the other hand, a fee-only firm earns all of its compensation from client-paid fees.

Tradition Wealth Management Background

Tradition Wealth Management was founded in 2003. Today, the firm has four principal owners: Managing Director Chad Schumacher and Investment Advisors Brad Johnson, Tim Gunderson and John Hause. This quartet has over two decades of experience in financial advising on average.

Advisory certifications at the firm include chartered financial consultant (ChFC), chartered life underwriter (CLU), chartered property and casualty underwriter (CPCU) and certified financial planner (CFP).

Tradition Wealth Management Client Types and Minimum Account Sizes

Though Tradition Wealth Management states that its services are “geared toward high-net-worth individuals" (i.e. clients with a net worth of $1,500,000), the vast majority of its clients are individuals who do not have a high net worth. The firm also works with businesses, charitable organizations, profit-sharing plans and pension plans.

The firm does not require a minimum amount of investable assets. However, some of its partnerships with third-party companies may call for clients to invest at least $100,000 or more. Minimum account size requirements will vary from third-party manager to third-party manager.

Services Offered by Tradition Wealth Management

Tradition Wealth Management provides asset management, financial planning and third-party programs. Here's a list of the firm’s offerings:

  • Asset management
    • Discretionary and non-discretionary services are available
    • Tax-efficient investment planning
    • Asset allocation planning
    • Model portfolio design
    • Rebalances as necessary
  • Financial plan consulting
    • Current financial analysis
    • Face-to-face advisor meetings
    • Qualified retirement plan review
    • Allocation recommendations
  • Client-tailored services
    • Investor profile development
      • Risk tolerance
      • Investment horizon
      • Personal financial goals
    • Retirement planning
    • Estate planning and management
    • Insurance planning
    • Tax minimization
    • Investment discretion
    • Cash flow analysis
    • Cost of living review
    • Education savings planning
  • General financial advice
  • IRA Rollover consultations

Tradition Wealth Management Investing Philosophy

Tradition Wealth Management has a number of pre-created investment portfolio models that are based on clients’ risk tolerance, financial goals, time horizon and liquidity needs. These portfolios each have different risk-adjusted asset allocations that look to diversify your money across stocks, exchange-traded funds, bonds and various mutual funds.

What separates Tradition’s investment ideology from that of much of its competition is the detailed attention it pays to rebalances and reallocations. Your advisor will rebalance your portfolio to ensure that your returns don’t stray too far from your original investment plans. On the other hand, a reallocation is a complete re-imagination of your portfolio and the allocation percentage that each investment type currently occupies within it. Tradition handles either scenario with care and takes pains to decide when a subtle rebalance or a more dramatic reallocation of assets is appropriate.

Fees Under Tradition Wealth Management

The Tradition Wealth Asset Management Program is the most standard offering at Tradition Wealth Management. Although there is a one-time initial setup fee of up to $500, most of the advisory charges associated with this service are bundled into a single fee. While these rates are laid out in annual percentages, you’ll be responsible to pay them in equal divisions once per quarter. Any additional fees are negotiable.

Tradition Wealth Asset Management Program Fees
Account Size Maximum Annual Fee
$0 - $250,000 2.00%
$250,001 - $500,000 1.75%
$500,001 and up 1.50%

For financial planning consulting clients, fees will generally fall into one of two categories: either hourly fees or fixed fees. These charges are negotiable, and the rates below represent the maximums. According to its Form ADV, the firm uses “several factors including time spent with Tradition Wealth, the number of meetings, the complexity of your situation, amount of research, services requested and staff resources” to determine what you will pay. Generally speaking, half of your fees are due upfront, with the rest required when your plans are completed.

Financial Planning Consulting Fees
Fee Type Maximum Fee
Fixed Fees Up to $50,000
Hourly Fees Up to $300/hour

The UMA program comes with a negotiable 0.80% annual fee. Again, this is a quarterly fee that’s paid in advance. All UMA fees are automatically deducted from your account’s balance when they are due.

If you engage a third-party manager through Tradition Wealth, the firm may be paid a portion of the third-party manager's fee in the form of solicitor's fees or consulting fees. The third-party manager will provide this information in its Form ADV.

If you participate in the Pooled Investment Program that Tradition, you'll pay a fee to both Tradition Wealth and to the fund manager of the investment program. These fees are charged quarterly in arrears.

What to Watch Out For

According to Tradition Wealth Management’s Form ADV, the firm has a clean legal and regulatory record.

That said, Tradition Wealth Management has an insurance arm called Tradition Wealth Management Insurance Agency. As a result, some of the firm’s advisors collect commissions when recommending these insurance products to Tradition Wealth Management clients. This has the potential of posing a conflict of interest, though Tradition Wealth Management is a fiduciary, meaning it is bound by law to act in clients' best financial interests.

Opening an Account with Tradition Wealth Management

In the top right corner of Tradition Wealth Management’s website is a “Request a Meeting” link, where you can submit your contact information for an advisor to reach out to you. Alternately, you can call the firm at (952) 252-4692 or reach out via email. 

All information is accurate as of the writing of this article.

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How Long $1mm Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology We analyzed data on average expenditures for seniors, cost of living and investment returns to determine how many years of retirement a $1 million nest egg would cover in cities across America.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research