Valley National Financial Advisors (legally known as Valley National Advisers, Inc.) is a large fee-based advisory firm. Based in Bethlehem, Pennsylvania, the firm employs a sizable team of financial advisors that are responsible for managing thousands of client accounts. Valley National also holds a spot on SmartAsset's list of the top financial advisors in Bethlehem.
As a fee-based firm, certain advisors at Valley National can receive extra commissions on top of advisory fees. This differs from a fee-only firm, as they only receive compensation from the fees that clients pay.
Valley National Financial Advisors Background
Valley National Financial Advisors was established in 1985 by firm founder and chairman Thomas M. Riddle, who still owns the firm today. Matthew E. Petrozelli serves as the firm’s CEO and chief compliance officer (CCO). Valley National specializes in financial planning, investment management and supervisory services, and it uses portfolio building software such as Tamarac and Morningstar.
Valley National’s team offers a range of qualifications, including certified financial planner (CFP), personal financial specialist (PFS), enrolled agent (EA), accredited estate planner (AEP), certified public accountant (CPA) and more.
Valley National Financial Advisors Client Types and Minimum Account Sizes
Valley National Financial Advisors serves both non-high-net-worth and high-net-worth individuals, charitable organizations, pension and profit-sharing plans, trusts, estates and businesses. However, the majority of its client base is comprised of non-high-net-worth individuals.
The firm doesn’t have a minimum account size requirement, though it does impose a minimum annual fee of $1,500. For certain clients, this may make the firm's services cost-prohibitive.
Services Offered by Valley National Financial Advisors
Clients have access to the following advisory services at Valley National Financial Advisors:
- Portfolio management
- Financial planning
- Tax services
- Retirement planning
- Insurance planning
- Estate planning
- Education planning
- Trust services
The firm also provides a handful of proprietary programs. One of them is VNFA NEXT, which is a financial planning service for individuals with an income above $100,000. Another is called ExecutiveEdge, which is designed specifically to help executives of companies with their financial planning and investment needs.
Valley National Financial Advisors Investment Philosophy
Valley National Financial Advisors has a mission that involves enabling people and organizations to meet their long-term financial goals. The firm’s planning and investing philosophy is built on relationships, communication and direction, according to its website.
The firm's key security analysis methods include technical, cyclical and fundamental analysis. When it comes to investment strategies, Valley National employs margin transactions, long-term purchases (securities held for more than a year) and short-term purchases (securities held for less than a year).
Fees Under Valley National Financial Advisors
Valley National Financial Advisors has two separate fee schedules: one for discretionary accounts and one for institutional accounts. The firm’s discretionary fee schedule applies to individuals holding stocks, bonds and mutual funds. The firm also offers accounts managed and held at American Funds and Nationwide Advisory Solutions. Institutional accounts come with a flat rate of 0.50%, though this may be negotiable.
All clients may be subject to an annual minimum advisory fee of $1,500. The firm's discretionary fee schedule is below:
|Valley National Financial Advisors Fee Schedule|
|Up to $1,000,000||1.00%|
|$1,000,000 to $2,000,000||0.70%|
|$2,000,000 to $5,000,000||0.50%|
|$5,000,000 and above||0.40%|
Here's a breakdown of how the advisory fee rates above translate to potential fee amounts:
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount.|
|Estimated Investment Management Fees at Valley National Financial Advisors*|
|Your Assets||Valley National Financial Advisors Fee Amount|
What to Watch Out For
Valley National Financial Advisors doesn’t have any disclosures listed on its Form ADV.
Though Valley National is a fiduciary, its advisors, some of whom are also broker-dealer representatives, may recommend securities or insurance products and earn commissions for doing so. This can pose a potential conflict of interest. Despite this, the firm is legally bound to act in clients' best interests due to its fiduciary duty.
Opening an Account With Valley National Financial Advisors
You can contact Valley National Financial Advisors about opening an account by calling (610) 868-9000. The firm's headquarters are located in Bethlehem, Pennsylvania, but it also operates offices in Phillipsburg, New Jersey and Johnstown, Pennsylvania.
All information is accurate as of the writing of this article.
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