Vector Wealth Management, LLC is a financial advisor firm based in Minneapolis, Minnesota. It handles the investment management and financial planning needs of mostly individual investors. The firm's team boasts a number of certifications,and includes such certification as certified financial planner (CFP), chartered financial consultant (ChFC), accredited asset management specialist (AAMS), accredited investment fiduciary (AIF), certified public accountant (CPA) and chartered financial analyst (CFA).
Vector Wealth Management Background
Founder and managing partner Tom Fee founded Vector Wealth Management in 1993. In 2017, Vector bought SNS Financial Group, LLC, a wealth planning and asset management firm, and annexed its services and clients to create a single firm. In 2019, Bluespring Wealth Partners, LLC bought all of Vector Wealth Management. The firm has been recognized by Financial Times as one of the top 300 financial advisors in the U.S.
Vector Wealth Management Client Types and Minimum Account Sizes
Vector Wealth Management’s client base consists of a ton of client accounts, and almost all of them belong to individuals with and without a high net worth. Aside from individual investors, the firm can work with trusts, estates, business owners, pension plans, profit-sharing plans, charitable organizations and state and local government entities.
Vector Wealth Management generally requires new clients to have at least $500,000 in investable assets to join the firm. Under certain circumstances, though, the firm may waive this stipulation.
Services Offered By Vector Wealth Management
Vector Wealth Management offers a number of advisory services. These include:
- Wealth management
- Strategic portfolio construction
- Tax minimization
- Active and passive management
- Investment consulting
- Regular and as-needed rebalancing
- Retirement planning
- Tax planning
- Risk management
- Insurance planning
- Social Security benefit planning
- Assesses your financial situation based off of your answers to a series of scenarios
- Personalized portfolio and investment plans
- Cash flow forecasting
- Trust and estate planning
- Charitable gift planning
- Education planning
- Distribution planning
- Financial reporting
- Business planning
Vector Wealth Management Investment Philosophy
Vector Wealth Management favors long-term investing. Its portfolio-building process begins a meeting with an advisor. In this meeting, you’ll discuss your financial goals, risk tolerance, time horizon and other important factors. You will then use the Sojourn™ program created by Vector to review your current financial state based on a series of scenario-based questions. Sojourn™ will then come up with possible investment strategies and investment types that match your investor profile.
In general, the firm tries to construct all of its investment plans to be as tax-efficient as possible, while simultaneously preparing for any possible legacy or estate planning needs you may have. The firm primarily uses mutual funds, exchange-traded funds (ETFs), individual debt and equity securities, CDs, U.S. government and municipal securities, commodities and real estate partnerships in client accounts. Your advisor will continually monitor your investments and make changes as necessary.
Fees Under Vector Wealth Management
Vector Wealth Management charges clients a base annual fee that’s dependent on how much money is in your portfolio. All of the firm’s fees are charged directly to clients’ accounts, in advance, on a quarterly basis. Your rate will be based on the fee schedule below:
|Investment Management Fees|
|Portfolio Value||Base Annual Fee|
|Up to $500,000||1.20%|
|$500,000 - $999,999||1.00%|
|$1,000,000 - $2,999,999||0.85%|
|$3,000,000 - $4,999,999||0.75%|
|$5,000,000 and up||0.65%|
Should you choose to accept it, the firm will also include a risk mitigation strategy in your overall investment plan. The firm charges an additional 0.25% for this safety net, however.
Check out the table below to see how Vector’s fees for its wealth management services might look for a client.
|*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 Vector Wealth Management*|
|Your Assets||Vector Wealth Management Fee Amounts|
What to Watch Out For
Vector Wealth Management lists a single disclosure on its Form ADV, which is the paperwork it files with the U.S. Securities and Exchange Commission (SEC). This disclosure is attributed to an advisory affiliate of the firm.
Vector Wealth Management is a fee-based firm, as some of its employees personally sell securities and insurance policies. They could earn commissions and other forms of additional compensation from sales, which could create a potential conflict of interest. However, the firm and all of its advisors are fiduciaries, meaning that they legally must always act in your best interest.
Opening an Account With Vector Wealth Management
Prospective clients can visit Vector Wealth Management’s website to request a free advisory consultation. You’ll be asked to provide your name, email address, phone number and some other information. You can also stop by the firm’s office in Minneapolis, Minnesota, or call the firm over the phone.
All information is accurate as of the writing of this article.
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