Traphagen Financial Group is a financial advisor firm based in Oradell, New Jersey that manages roughly $610 million in client assets. Throughout its two decades in business, the firm has cultivated a client base of more than 1,200 individuals, retirement plans and charities. The firm is heavily focused on investment management services, though it also has a collection of offerings for retirement plan sponsors and participants.
Traphagen is a fee-only firm, meaning its compensation is solely derived from the advisory fees that clients pay. This differentiates it from a fee-based firm, where advisors may earn commissions for conducting certain securities or insurance transactions.
Traphagen Financial Group Background
Traphagen Financial Group has been providing clients with investment advice for over 20 years, as it was founded in 2007 by father and son duo V. Peter Traphagen Sr. and V. Peter Traphagen Jr. They both still own the firm today, and they hold the positions of managing director and director of investment strategies, respectively.
The firm has six advisors, all of whom hold a certified financial planner (CFP) designation. Additionally, three advisors are certified public accountants (CPAs), one is a chartered financial analyst (CFA) and one is a chartered alternative investment analyst (CAIA).
Traphagen Financial Group Client Types and Minimum Account Sizes
According to Traphagen Financial Group’s Form ADV, the firm has more than 1,200 clients under its care. The vast majority are individuals without a high net worth, with rest consisting of high-net-worth individuals, charitable organizations and pensions and other retirement plans.
Traphagen doesn’t impose any sort of minimum account size requirements.
Services Offered by Traphagen Financial Group
Traphagen Financial Group offers a range of services that most notably include investment management. Additionally, the firm provides access to an online investment monitoring platform called eMoney. This allows clients to view the entirety of their portfolio's asset allocation at any time. Financial planning is also available to clients upon request.
Retirement plan sponsors can take advantage of multiple services at Traphagen, including investment management, consulting, portfolio monitoring and plan participant education.
Traphagen Financial Group Investment Philosophy
When assembling client portfolios, advisors at Traphagen Financial Group typically invest in some combination of equities, corporate debt securities, commercial paper, certificates of deposit (CDs), municipal securities, investment company securities, variable life insurance, variable annuities, mutual fund shares, exchange-traded funds (ETFs), exchange-traded notes (ETNs), government securities, options contracts and interests in partnerships investing in real estate, businesses, and oil and gas interests.
While the above set of securities is rather vast, the firm will only choose to invest in those that it believes fit your investor profile. When selecting investments, the firm primarily employs fundamental analysis in order to evaluate securities. Fundamental analysis is the attempt to discern a company’s intrinsic economic value by analyzing factors like its balance sheet, management and other financial documents rather than focusing only on the movement of its stock price.
Fees Under Traphagen Financial Group
Traphagen Financial Group charges clients an annual advisory fee that's based on a percentage of their total assets under management (AUM). These fees are negotiable, but the firm generally sticks to the schedule below:
|Traphagen Financial Group Investment Management Fees|
|Assets Under Management||Annual Fee Rate|
|Up to $100,000||1.50%|
|$100,001 - $300,000||1.25%|
|$300,001 - $700,000||1.00%|
|$700,001 - $2,000,000||0.75%|
|$2,000,001 - $10,000,000||0.50%|
|$10,000,001 and above||0.40%|
For financial planning services, the firm will typically charge fees through to an hourly rate. The exact fee that you'll be on the hook for will generally range from $150 to $425, depending on the amount of work involved in developing your financial plan.
There are no disclosures on Traphagen Financial Group's SEC-filed Form ADV.
Opening an Account With Traphagen Financial Group
You can easily reach out to Traphagen Financial Group by sending an email to firstname.lastname@example.org or calling (201) 262-1040. If you’d rather do things in person, you can also stop by the firm’s office on Kinderkamack Road in Oradell, New Jersey.
Retirement Planning Tips
- A financial advisor can be a great partner as you plan for retirement. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
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