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Tradition Wealth Management Review

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Tradition Wealth Management

Tradition Wealth Management, LLC is a fee-based financial advisor firm that’s located in Edina, Minnesota. The firm operates branches throughout the state, including in Woodbury, Saint Paul and North Oaks. The 14-person advisory staff at Tradition Wealth Management works with nearly $466 million in assets under management (AUM).

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 around 22 years of experience in financial advising on average.

The firm employs one chartered financial consultant (ChFC), one chartered life underwriter (CLU), one chartered property and casualty underwriter (CPCU) and one certified financial planner (CFP).

What Types of Clients Does Tradition Wealth Management Accept?

In its SEC-filed Form ADV, 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).” In reality, more than 80% of Tradition’s client base is individuals without a high net worth. The firm also has advisory relationships with businesses, charitable organizations, profit-sharing plans and pension plans.

Tradition Wealth Management Minimum Account Size

Tradition Wealth Management 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.

Services Offered by Tradition Wealth Management

Tradition Wealth Management has a wide array of services throughout the realms of asset management, financial planning and third-party programs. Check out the full list of the firm’s offerings here:

  • Asset management
    • Discretionary and non-discretionary services 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
  • Third-party managed programs through:
    • Stonebridge Capital Advisors, LLC
    • JAForlines, LLC
    • Envestnet and TD Ameritrade
      • Unified Managed Account (UMA) Program
    • Crystal Capital Partners, LLC
      • Pooled Investment Program

Tradition Wealth Management Investment Philosophy

Tradition Wealth Management has a number of pre-created investment portfolio models  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 (ETFs), 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 rellocation 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
$100,000 - $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, number of meetings, 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 $5,000
Hourly Fees Up to $150/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 Tradition Wealth’s third-party managed program through JAForlines, LLC, you’ll be paying three fees. One goes to Tradition, and the other two are paid to JAForlines, LLC and your account’s custodian, respectively. Note that Tradition’s fees in the upcoming table are not typical rates, but instead are the maximums you could receive.

Tradition Wealth Fees for JAForlines, LLC Managed Program
Account Value Maximum Annual Fee
$100,000 - $500,000 1.75%
$500,001 - $1,000,000 1.25%
$1,000,001 - $2,000,000 1.10%
$2,000,001 and up 1.00%

There are a few other third-party managed programs at Tradition Wealth that adhere to the following fee schedules:

  • Stonebridge Capital Advisors Program: fee agreement completed directly through Stonebridge
  • Marketplace or Connection Programs: fees begin at 0.80% for equity account managers and 0.50% for fixed-income account managers
  • Select Program: fee agreements completed separately through Schwab, third-party managers, Callan Associates, Inc. (a third-party manager analysis firm) and Tradition Wealth
  • Access Program: look at the table below
Fees for Access Program
Account Value Annual Fee
$100,000 - $500,000 1.75%
$500,001 - $1,000,000 1.25%
$1,000,001 - $2,000,000 1.10%
$2,000,001 and up 1.00%

The Pooled Investment Program that Tradition offers via Crystal Capital Partners, LLC requires you to pay a fee to each firm individually. These rates are based on how much you have invested with Crystal Capital, and they are charged quarterly in arrears.

Fees for the Pooled Investment Program Through Crystal Capital Partners, LLC
Interest Subscribed in Crystal Capital Fund Crystal Capital Fund Manager Fee Tradition Wealth Fee Total Advisory Fee
Less than $9,999,999 1.50% 1.00% 2.50%
$10,000,000 - $24,999,999 1.25% 1.00% 2.25%
$25,000,000 and up 1.00% 1.00% 2.00%

Look over this table to see how Tradition’s fees for its services compare to those at similar financial advisor firms. Note that these fees are only estimates and actual costs may vary.

*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 Tradition Wealth Management Asset Management Program Fees National Median Advisory Fees**
$500K $8,750 $5,000
$1MM $15,000 $8,500 - $10,000
$5MM $75,000 $25,000 - $32,500
$10MM $150,000 $50,000

What to Watch Out For

Tradition Wealth Management has an insurance arm called Tradition Wealth Management Insurance Agency. Through this, some of the firm’s advisors may offer clients of Tradition Wealth Management insurance products. These sales could then result in commissions for advisors. Tradition Wealth Management is a fiduciary financial advisor firm, though, meaning it is bound by law to act in your best financial interests.

Disclosures

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

Opening an Account With Tradition Wealth Management

In the top right corner of Tradition Wealth Management’s website is a “Request a Meeting” link that affords you an abundance of methods to become a client. Once you click, you’ll find the firm’s direct phone number and email address - (952) 563-6500 and info@traditionwealth.com, respectively. There’s also a contact form that asks for your name, email address and a message so an advisor can reach out to you.

Where Is Tradition Wealth Management Located?

Edina, Minnesota houses the headquarters of Tradition Wealth Management at 7601 France Avenue South, Suite 100. The firm runs three other locations in:

  • 7616 Currell Boulevard, Suite 110 in Woodbury, Minnesota
  • 55 East Fifth Street, Suite 314 in Saint Paul, Minnesota
  • 100 Village Center Drive, Suite 244 in North Oaks, Minnesota

Tips to Take Control of Your Finances

  • Financial advisors are customarily associated with investing, but they often deal with far more than that. In fact, financial planning is another area of focus for advisors, as they integrate retirement planning, tax minimization and other services into your investment portfolio. SmartAsset’s financial advisor matching tool can simplify your search for an advisor. It will take your answers to a short personal finance questionnaire and pair you with three fiduciary advisors in your area.
  • Budgets seem like a relic of the past, but they’re more important than ever considering the growing costs of living in the modern world. It’s undoubtedly difficult to create a detailed budget that’s still flexible enough to accept the changing factors of everyday life. SmartAsset’s budget calculator should make this process quite a bit easier, though.

How Many Years $1 Million 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 cost of living in retirement there.

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

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. 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.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

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