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
- 401(k)s, 403(b)s
- 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
- Investor profile development
- 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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