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 currently has just under $1 billion in assets under management (AUM) and almost 1,000 clients to its name.
The fee-only firm has 16 financial advisors on staff. The team boasts a number of certifications,and includes nine certified financial planners (CFP), two chartered financial consultants (ChFC), two accredited asset management specialists (AAMS), one accredited investment fiduciary (AIF), one certified public accountant (CPA) and one 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. As it stands today, the firm’s principal owners are Fee, director of advanced planning Sharon Calhoun, head of portfolio management Daniel Powers and senior wealth advisors Todd Stueve and Tyler Schelhaas.
The firm has been recognized by Financial Times as one of the top 300 financial advisors in the U.S.
What Types of Clients Does Vector Wealth Management Accept?
Vector Wealth Management’s client base consists of nearly 1,000 client accounts, and 99% 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 Minimum Account Size
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 compare. 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||Vector Wealth Management||National Median Advisory Fees**|
|$1MM||$8,500||$8,500 - $10,000|
|$5MM||$32,500||$25,000 - $32,500|
What to Watch Out For
Although Vector Wealth Management is technically a fee-only firm, 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.
Vector Wealth Management lists three disclosures on its Form ADV, paperwork filed with the U.S. Securities and Exchange Commission (SEC). In 2013, the firm was found to be at fault for disregarding the SEC’s asset custody rule. This order dictates that a firm must properly supervise its employees to ensure client funds are not misappropriated. Then-employee Charles Fee wrote checks to himself that totaled $33,147 of money from the dividends of four clients over a two-year time frame. He is no longer an employee of the firm.
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 at (612) 378-7560.
Where Is Vector Wealth Management Located?
Vector Wealth Management has just one office, located in Minneapolis, Minnesota, at 43 Main Street Southeast in Suite 236.
Tips to Shrink Your Retirement Costs
- Speak with a financial advisor about the best ways to lower your living expenses in retirement. Having trouble finding a fiduciary advisor you can trust? 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.
- If you’re not attached to living in a certain place during your golden years, you may want to consider areas that are tax-friendly for retirees. We’ve done in-depth reviews of each state and found the ones that can offer you the best tax benefits.