Twelve Points Wealth Management is a small and young firm in Concord. While it doesn't have many accolades to its name yet, it currently sits on our list of the top financial advisors in Concord, Massachusetts.
This fee-based financial advisor firm has branch locations in Concord, Massachusetts, and Boston, Massachusetts. With investment supervisory, financial planning and retirement plan services at its core, the firm employs a small team of advisors that altogether handle nearly $500 million in client assets under management (AUM).
Twelve Points Wealth Management Background
CEO Dave Clayman and principals Emanuel Frangiadakis and Francesca Federico founded Twelve Points Wealth Management in 2014. The trio has more than 40 years of combined experience in financial services.
Twelve Points has no shortage of advisory certifications throughout its team. Clients will find the following certifications at the firm: accredited investment fiduciary (AIF), certified financial planner (CFP), certified private wealth advisor (CPWA), chartered market technician (CMT), certified divorce financial analyst (CDFA), certified plan fiduciary advisor (CPFA) and chartered advisor in philanthropy (CAP).
Twelve Points Wealth Management Client Types and Minimum Account Sizes
Almost 80% of Twelve Points Wealth Management’s client base consists of individuals, high-net-worth individuals and families. Other common clients of the firm include trusts, corporations, pension and profit-sharing plans, family offices and accredited investors.
As things currently stand, Twelve Points has no minimum initial investment size. It should be noted, though, that the firm works mostly with individuals that fall below the SEC’s definition of “high net worth.” More specifically, these guidelines state that an individual has a high net worth if they have $750,000 in AUM or a $1.5 million net worth.
Services Offered by Twelve Points Wealth Management
Twelve Points Wealth Management serves a broad range of clients, and it provides a variation of services to match their needs. Below you’ll find a detailed breakdown of the firm’s investment management, financial planning and retirement plan services:
- Investment supervisory services
- Portfolio planning based on:
- Personal investment objectives
- Risk tolerance
- Liquidity needs
- Tax considerations
- Wrap-fee program
- “Twelve Points Portfolio Plan”
- Portfolio planning based on:
- Financial planning
- Retirement plan services
- Drafting of an investment policy statement (IPS)
- Fiduciary training for plan committee members
- Webinars for participant education
- Investment monitoring and updates
- Communication assistance
Twelve Points Wealth Management Investment Philosophy
To start, Twelve Points Wealth Management utilizes a plethora of investment research tools to select the securities it will eventually include in clients’ portfolio. For example, the firm may comb through annual financial reports, SEC filings, press releases, professional research materials and more. Twelve Points principally invests in exchange-traded funds (ETFs), mutual funds, corporate and municipal bonds, variable annuities and options.
When the time comes to plan your portfolio, Twelve Points will look for investments that increase return potential while continuing to lower risk. This approach is in direct relation to modern portfolio theory (MPT), a strategy that looks to take on more risk only if there’s a proportionate rise in possible returns. Twelve Points may sporadically recommend that your portfolio be redistributed and rebalanced in order to strengthen its diversification.
Fees Under Twelve Points Wealth Management
Twelve Points Wealth Management’s robust portfolio management service, Twelve Points Portfolio Plan, is a wrap-fee program, meaning all of its charges are combined into a single rate. While these percentages are technically negotiable, they typically adhere to the stipulations in the table below. All wrap fees are charged on a quarterly basis, in advance, based on the market value of your assets on the last trading day of each quarter.
|“Twelve Points Portfolio Plan” Wrap Fee-Program|
|Assets Under Management||Annual Fee|
|$5MM - $15MM||0.60%|
On the other hand, financial planning clients will likely pay a fixed fee of $2,500 and/or an hourly fee of $400 to $1,000. These rates are negotiable, but Twelve Points will describe your exact fee schedule in your financial planning agreement. Fees are typically negotiable.
Similar to the aforementioned wrap-fee program, retirement plan advisory clients receive a negotiable, asset-based fee schedule. All annualized fees are split into quarterly charges, in advance, based on the market value of your assets on the last trading day of each quarter.
|Fees for Retirement Plan Advisory Services|
|Assets Under Management||Annual Fee|
|$500K - $1MM||0.75%|
|$1MM - $5MM||0.40%|
|$8MM - $10MM||0.30%|
|$10MM - $15MM||$25K|
|$15MM - $25MM||$30K|
For retirement plans above $25MM, there is a customized flat fee.
Check out the table below to see how Twelve Points’ fees for its management 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||“Twelve Points Portfolio Plan” Wrap Fee-Program||National Median Advisory Fees**|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$50,000||$25,000 - $32,500|
What to Watch Out For
There are no legal or regulatory disclosures listed on the Form ADV of Twelve Points Wealth Management.
Certain members of Twelve Points Wealth Management’s team sell insurance products. This creates the potential for a conflict of interest, as these employees can earn commissions via these sales. Even with this, though, the firm abides by fiduciary duty, legally forcing it to act in clients’ best interests no matter what.
Opening an Account With Twelve Points Wealth Management
Twelve Points Wealth Management offers a free consultation for new clients. To schedule this, you can either call the firm at (978) 318-9500 or visit its website and fill out the contact form with your name, number, email address and a brief description of your situation.
All information is accurate as of the writing of this article.
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