Goldman Sachs Personal Financial Management
Headquartered in Newport Beach, California, Goldman Sachs Personal Financial Management provides a national client base with wealth counseling and investment advisory services. It also supports its thousands of clients with a suite of technological tools and platforms designed to help them reach and maintain financial wellness.
Goldman Sachs Personal Financial Management advisors are responsible for more than $17 billion in assets under management (AUM). Previously known as United Capital Financial Advisers, the firm landed the No. 2 spot on Barron’s "Top 40 RIA Firms" list in 2018.
As a fee-based firm, representatives of Goldman Sachs Personal Financial Management may earn commissions or other compensation for selling or recommending certain products and services to clients, in addition to the advisory fees that clients pay. This is different from a fee-only firm, whose revenue comes solely from client-paid fees, not third-party commissions.
Goldman Sachs Personal Financial Management Background
Goldman Sachs Personal Financial Management has been offering its services as a registered investment advisor (RIA) since 2005. Though it's owned by The Goldman Sachs Group and conducts business as Goldman Sachs Personal Financial Management, the firm's legal name remains United Capital Financial Advisors, LLC.
Joe Duran, the firm's founder, previously sold his former comapny, Centurian Capital, to General Electric. Duran, a chartered financial analyst (CFA), continues to lead the Goldman Sachs Personal Financial Management executive team.
Goldman Sachs Personal Financial Management Client Types and Minimum Account Sizes
Goldman Sachs Personal Financial Management serves individuals, high-net-worth individuals, pension and profit-sharing plans, corporations and charitable institutions. The firm generally works with clients who have at least $500,000 in household assets.
Services Offered by Goldman Sachs Personal Financial Management
Advisors with Goldman Sachs may help people meet various financial goals including:
- Cash flow management
- Investment management recommendations for 401(k) and 403(b) plans
- Retirement planning
- Insurance needs analysis
- Education planning through 529 plans
- Estate planning
- Tax planning (not including tax preparation and filing)
- Divorce planning
The firm’s advisors can also design and continuously manage investment portfolios tailored to the client’s individual risk tolerance, tax situation and investment goals. With the InvestmentViewfinder platform, clients can visualize how their investment preferences may affect their portfolios.
Goldman Sachs Personal Financial Management advisors also can provide clients with asset-allocation recommendations, net-worth summaries, portfolio snapshots and more. They regularly meet with clients to evaluate their financial plans and help them know if they are on the right track or need to make adjustments.
Goldman Sachs Personal Financial Management Investment Philosophy
Goldman Sachs Personal Financial Management generally believes in investing for the long term. However, it may implement short-term strategies if it deems them appropriate to help the client meet personal objectives.
Meanwhile, the Goldman Sachs Private Wealth Management Investment Strategy Group informs both strategic and tactical asset allocation decisions for the firm's clients. A risk management team also monitors investment risk and individual clients' investment exposures.
Fees Under Goldman Sachs Personal Financial Management
For financial planning services, Goldman Sachs Personal Financial Management typically charges between $2,500 and $55,000 per year for its Financial Guidance offering, which typically includes a goals assessment, retirement, cash flow, cash management, investment and insurance planning. Meanwhile the firm charges between $2,500 and $5,000 per year for its Financial Management service designed to assist clients in developing personal financial plans.
Investment advisory fees are negotiable, but are usually charged as a percentage of assets under management (AUM). While the firm does not publish its fee schedule for investment advisory services, these fees will not exceed 1.50% of a client's assets under management.
What to Watch Out For
According to Goldman Sachs Personal Financial Management's Form ADV, the firm has 17 disclosures of legal and/or regulatory events that involved the firm itself or affiliates.
In 2020, the firm's parent company paid a $400 million civil penalty and over $600 million in restitution after the SEC alleged the The Goldman Sachs Group "failed to reasonably maintain a sufficient system of internal accounting controls between 2012 and 2015 with respect to the process by which it reviewed and approved the commitment of firm capital in large, significant and complex transitions..."
As a part of Goldman Sachs, the firm is affilliated with a number of other financial services entities, including insurance agencies. These affiliations may present conflicts of interest, as advisors may earn commissions or have an interest in recommending an affiliated product over others. That said, as a fiduciary registered with the SEC, Goldman Sachs Personal Financial Management is legally obligated to provide advice only in the best interests of the client.
Tips for Finding the Right Financial Advisor
- SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Ask prospective advisors how much liability insurance they have. The right answer should cover how much you plan on putting in the advisor’s hands. So if they say $25,000 per incident and you have $50,000 to invest, that’s not enough coverage.
All information was accurate as of the writing of this article.