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Investing

Review of Global Wealth Management

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

With just six investment advisors in its Kingston, N.J., office, Global Wealth Management is a relatively small, independently owned financial advisory firm. This fee-only operation provides holistic financial planning to all of its investment management clients. Global Wealth Management currently manages $538 million for just over 400 clients, more than half of whom are high net worth individuals.

All information included in this profile is accurate as of January 8th, 2020. For more information, please consult Global Wealth Management’s website.

Assets under management: $538,257,578
Minimum investment: $500,000
Fee structure:
  • For investment management and pension plan consulting: A percentage of assets under management
  • For advanced financial planning: Retainer-based or hourly fees
Headquarters: 4428 Route 27
Building C, Suite 2
Kingston, NJ 08528
http://www.globalwealthllc.com/
609-452-2929

Overview of Global Wealth Management

Global Wealth Management is a successor to a financial institution that has changed names and ownership several times over the past four decades. Ram Kolluri, one of the original founders in 1983 of what was then called Individual Asset Planning Corporation, repurchased the firm, called Global Investment Management, Inc., in 2010 and reorganized it as Global Investment Management, LLC. In 2015, he changed the name to Global Wealth Management.

In 2017, Kolluri sold his majority ownership stake to the Martin Tuchman Revocable Trust, which now owns 85% of the firm and remains its principal investor. During his career in the shipping industry, Martin Tuchman co-founded multiple companies, selling two with his partner for $1 billion in 2007. He is now the chairman and CEO of the Tuchman Group, which invests primarily in real estate, banking and international shipping.

Global Wealth Management has six employees, all of whom perform investment advisory functions and half of whom are certified financial planners (CFPs). The firm has about $538 million in assets under management.

What types of clients does Global Wealth Management serve?

The bulk of Global Wealth Management’s clients are high net worth individuals, but the firm also works with some other individuals and provides services to pension plans, trusts and charitable organizations as well.

The minimum account balance required for investment management services is $500,000.

Services offered by Global Wealth Management

Global Wealth Management works with wealthy individuals, family offices, pension plans, trusts and foundations to develop an individual investment policy statement. The firm then uses that statement to create and manage a portfolio on the client’s behalf. As part of the process, individuals also receive comprehensive financial planning services.

The firm also offers advanced financial planning consultation services to private family offices and small businesses, providing pension consulting services to retirement plan sponsors as well.

Here is a full list of services offered by the firm:

  • Investment management
  • Financial planning
    • Income tax planning and management
    • Cash flow forecasting
    • Investment planning
    • Education planning
    • Retirement planning
    • Trust and estate planning
    • Business planning
    • Charitable giving
    • Risk management and insurance planning
  • Advanced financial planning consultation services
  • Pension consulting

How Global Wealth Management invests your money

Global Wealth Managers creates individual portfolios for each of its clients with a variety of asset classes, including ETFs, mutual funds and individual securities. The firm relies mostly on low-cost mutual funds and ETFs, from TD Ameritrade or Charles Schwab, in order to achieve portfolio diversity.

The firm does not try to time the market with investments, but rather to improve overall returns by reducing short-term portfolio volatility. It relies on the financial plans and investment strategies created for individual investors to avoid making investment decisions based on stock market gyrations.

Fees Global Wealth Management charges for its services

Global Wealth Management charges a percentage of asset management for its investment management services, which includes its holistic financial planning services. The rate charged depends on the client’s account balance.

Assets under management Annual rate
Up to $2 million 1.00%
Next $3 million 0.75%
Next $5 million 0.50%
More than $10 million 0.50% (flat fee on all assets)

In addition, clients may have to pay brokerage commissions or other fees to cover the costs of transactions that the firm executes on their behalf.

Clients who use advanced financial planning services pay additional fees, either as a retainer or on an hourly basis. These fees will be laid out in the client’s contract.

Global Wealth Management’s highlights

  • Financial planning included with investment management services: Global Wealth Management includes holistic financial planning as part of its investment management services.
  • Internal code of ethics for employees: The firm requires employees to adhere to an internal code of ethics that meets or exceeds regulatory standards. Additionally, half of the firm’s employees are CFPs, a well-respected designation that has its own strict code of ethics.
  • Below-average fees: Global Wealth Management’s fees are below the industry average, which is 1.17%, according to RIA in a Box. The firm’s fees start at 1.00% for clients with up to $2 million under management and decrease thereafter for larger portfolios. Additionally, the firm is fee-only, meaning it only earns money through the fees its clients pay.
  • No disciplinary issues: Global Wealth Management does not have any disciplinary disclosures (see below).

Global Wealth Management’s downsides

  • No awards in the investment space: The firm has not won any high-profile awards for its overall investment performance.
  • Preferred brokers: Global Wealth Management has relationships with TD Ameritrade and Charles Schwab, and it may recommend that clients choose those brokerages as their custodian. While the firm does not receive compensation for sending clients to those brokerages, it may be possible for clients to buy their investments at a lower price elsewhere.
  • Limited geographic footprint: Given that the firm has only one office and a small staff, it may not have the resources to serve clients that aren’t located near its Kingston, N.J. office.

Global Wealth Management disciplinary disclosures

Global Wealth Management currently has zero disciplinary disclosures. The SEC requires RIAs to report disciplinary disclosures on its Form ADV, paperwork that registered firms must file with the SEC. These include any regulatory actions, criminal charges or legal developments like liens or civil judgments that have been taken against the firm.

Global Wealth Management onboarding process

Prospective clients can reach out to the firm via the contact form provided on its website, which requests your name, email address, phone number and a brief note. You can also set up an appointment by calling the office at (609)-452-2929 or emailing [email protected].

When working with a new client, Global Wealth Management meets with them to learn more about their goals for their portfolio as well as their tax situation, time horizon, risk tolerance and liquidity preferences. Then, Global Wealth Management creates a written investment policy statement and designs a custom investing strategy and asset allocation based on that information.

As part of its investment management service, Global Wealth Management also provides comprehensive financial planning services to clients. After a meeting in person or over the phone to collect information, a certified financial planner creates an individual plan for clients, who can choose which aspects of the plan to put in place.

The bottom line: Is Global Wealth Management right for you?

With just six employees, Global Wealth Management is a relatively small firm that’s focused primarily on serving high-net worth individuals. In addition to wealth management, clients receive holistic financial planning advice from the firm’s team of CFPs. With a focus on long-term returns and low-cost funds, this firm may be a good fit for clients who don’t want their wealth manager making frequent trades.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Beth Braverman
Beth Braverman |

Beth Braverman is a writer at MagnifyMoney. You can email Beth here

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Investing

Review of Tolleson Wealth Management

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

With 83 employees in its Dallas office, Tolleson Private Wealth Management works with extremely wealthy families — the minimum investment to work with the firm is generally $10 million. Tolleson Private Wealth Management currently manages nearly $5.6 billion for about 180 clients in the Dallas area, providing them with not only wealth management but also holistic financial planning services, such as philanthropic, tax and estate planning. Each client has a primary advisor who works with other advisory staff to create and execute the agreed upon plan.

All information included in this profile is accurate as of December 13th, 2019. For more information, please consult Tolleson Private Wealth Management’s website.

Assets under management: $5,563,283,533
Minimum investment: $10 million
Fee structure: Percentage of AUM; hourly charges; fixed fees
Headquarters: 5500 Preston Road
Suite 250
Dallas, Texas 75205
www.tollesonwealth.com
(214) 252-3250

Overview of Tolleson Private Wealth Management

John Tolleson founded Tolleson Private Wealth Management in 1997 as a single-family office to serve his own family’s needs. In the more than 20 years since, the firm has grown to serve other families, launching Tolleson Private Bank in 2003. Tolleson Private Wealth Management activated its trust charter in 2006 to serve as a corporate trustee for families, and in 2014, it added philanthropy and foundation management services.

In 2017, John Tolleson became the firm’s executive chairman, passing the CEO title to his son, J. Carter Tolleson. Longtime employee J. Richard Joyner took over as president. The privately owned firm has 83 employees, including 58 who provide advisory services. The advisory team collectively holds a range of designations, including several certified public accountants (CPA), certified financial planners (CFP) and certified personal wealth advisors (CPWA).

The largest wealth management firm in Dallas, Tolleson Private Wealth Management currently has about $5.6 million in assets under management. It is a wholly owned subsidiary of Tolleson Wealth Management, of which John Tolleson is the majority owner.

What types of clients does Tolleson Private Wealth Management serve?

With a minimum account balance generally set at $10 million, Tolleson Private Wealth Management primarily provides investment advisory services to ultrahigh net worth individuals and families. Though high net worth individuals and families comprise the vast majority of the firm’s clients, the firm also provides portfolio management services to estates, trusts, foundations, private investment funds and trust accounts at Tolleson Private Bank and National Philanthropic Trust.

All of the firm’s clients are located in the Dallas area, though Tolleson is registered to work with investors in other states.

Services offered by Tolleson Private Wealth Management

Tolleson Private Wealth Management takes a comprehensive approach to helping its family clients manage their wealth. The firm’s primary focus is on investment advisory services, but 40% of the firm’s business comes from other services, including tax, bookkeeping, bill pay, cash management, estate planning, philanthropy and risk management.

Additionally, clients of Tolleson Private Wealth Management also have access to trust services and other private banking services provided through its affiliate, Tolleson Private Bank.

Here is a full list of services provided by Tolleson:

  • Investment advisory services/portfolio management
  • Private banking (via Tolleson Private Bank)
  • Financial planning
    • Retirement planning
    • Trust and estate planning
    • Charitable planning
    • Tax planning and management
    • Cash flow forecasting
  • Workshops and seminars; newsletters and publications
  • Family learning

How Tolleson Private Wealth Management invests your money

Tolleson Private Wealth Management crafts individual investment policy statements and fixed-income investment (if desired) policy statements for each of its individual and family clients. It uses those statements to find investment alternatives consistent with that policy.

Rather than selecting securities, Tolleson serves as an investment manager, helping clients form their asset allocation strategy and advising on whether it makes sense to use derivative investments, such as collars, swaps or options. The firm then implements the policy and reports at least once per quarter on the portfolio results.

Among the funds Tolleson Private Wealth Management recommends are its own 17 private investment funds, for which it provides advisory services. The funds focus on equity income, international equity, private equity, domestic equity, fixed income, energy, private equity and high-yield. Each fund invests in other pooled investment vehicles run by third-party managers.

Fees Tolleson Private Wealth Management charges for its services

Depending on the services offered, Tolleson Private Wealth Management can earn money through hourly fees, a percentage of assets under management and fixed fees. Below is a breakdown of its rates, but the firm’s policy is that all fees are negotiable, depending on several factors, including a client’s net worth and the complexity of the services provided.

Type of Services Basic Fees
Financial advisory services 0.35%-1% of assets under management, payable quarterly

OR annual fixed fees, payable quarterly

Discretionary fixed income portfolio management 0.15% to 0.20% of client assets under management, payable quarterly

The firm typically bills for its services each quarter, but clients can also request that their fees come directly from their accounts. Typically, clients who receive both financial advisory services and fixed income portfolio management pay a comprehensive advisory fee, plus a fee for the portfolio management. Additional services, such as bookkeeping and philanthropic planning, also carry a separate charge.

Depending on which funds clients invest in, they may also owe additional fees and expenses to outside firms such as custodians, brokers, mutual funds companies, money managers or private investments funds. Additional fees may cover fund overhead, such as legal and auditing expenses, and the cost of preparing financial statements and tax returns.

Tolleson Private Wealth Management’s highlights

  • Award-winning: Richard Joyner has appeared on Barron’s list of the “Top Independent Wealth Advisors” for the past two years, and the firm has made the “Annual Registered Investment Advisors Rankings” by Financial Advisor Magazine for the past seven years.
  • Holistic support for family offices: Tolleson Private Wealth Management not only provides investment and wealth management, but it also offers holistic support for all of the issues facing family offices, including trust and estate planning, philanthropy, family learning and bookkeeping.
  • A good work environment for employees: The firm treats its employees well, landing on “Best Places to Work” for financial advisors from Investment News for the past two years.
  • No disclosures: Tolleson Private Wealth Management doesn’t have any disciplinary disclosures (see more below).

Tolleson Private Wealth Management’s downsides

  • A high account minimum: Tolleson Private Wealth Management has a minimum account balance of $10 million, which is beyond the reach of many would-be investors.
  • High rate to work with the firm: The firm’s fees, as a percentage of assets under management, are lower than industry total fee averages, which RIA in a Box estimates to be around 1.17%. However, with a required minimum balance of $10 million, even clients who pay the Tolleson’s lowest rate will owe at least $35,000 per year for financial advisory services.
  • Potential conflicts of interest related to funds: Tolleson Private Wealth Management may recommend that clients invest in one of the 17 private investment funds for which it acts as an advisor. Those funds pay a 0.3% fee to the firm, which could provide an incentive to recommend those funds over others and present a potential conflict of interest.
  • Financial incentive to recommend certain investment vehicle: The firm also recommends that some clients invest in its donor-advised fund, for which it receives a separate fee, creating a financial incentive for the firm to recommend that vehicle.

Tolleson Private Wealth Management disciplinary disclosures

Tolleson Private Wealth Management currently has zero disciplinary disclosures. The SEC requires RIAs to report disciplinary disclosures on its Form ADV, paperwork that registered firms must file with the SEC. These include any regulatory actions, criminal charges or legal developments like liens or civil judgments that have been taken against the firm.

Tolleson Private Wealth Management onboarding process

Prospective clients can reach out to the firm via the contact form provided on the firm’s website, which requests your name, email address, phone number, a brief note and an indication of which services you’re interested in. You can also set up an appointment by calling the office at (214) 252-3250.

When working with a new client, Tolleson Private Wealth Management meets with them to learn more about their goals for their portfolio. Based on these meetings, the firm works with clients to create an “investment policy statement” and a “fixed income investment policy statement,” which it uses to evaluate and recommend investments. The firm creates an individualized team, led by a primary advisor and support staff, to provide other financial planning services, such as tax and bookkeeping, philanthropy and estate planning.

Most clients meet quarterly with their Tolleson Private Wealth Management team and receive at least quarterly statements about their accounts. As part of its estate planning service, the firm offers coaching and mentorship to future heirs.

The bottom line: Is Tolleson Private Wealth Management right for you?

Tolleson Private Wealth Management is focused on Dallas-area, ultrahigh net worth individuals and families at all points of their financial lives. It provides holistic financial planning advice and wealth management. While the firm may be a good fit for potential clients who fit that description, individuals and families with less than the $10 million to invest will likely need to look elsewhere.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Beth Braverman
Beth Braverman |

Beth Braverman is a writer at MagnifyMoney. You can email Beth here

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Investing

Review of BBR Partners

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

With 115 employees across offices in New York, San Francisco and Chicago, BBR Partners works with extremely wealthy families and individuals — the minimum investment with the firm is generally $20 million. BBR partners currently manages nearly $16 billion for around 1,200 clients, working with them to create and execute a portfolio strategy with an emphasis on tax efficiency using third-party managers. BBR Partners also consolidates record keeping for its clients, allowing them to see the performance of their entire portfolio at a glance.

All information included in this profile is accurate as of November 26th, 2019. For more information, please consult BBR Partners website.

Assets under management: $15,886,200,000
Minimum investment: $20 million
Fee structure: Percentage of assets under management, performance-based fees
Headquarters: 140 East 45th Street
New York, N.Y. 10017
212-313-9870
https://www.bbrpartners.com/

Overview of BBR Partners

Founded in 1999, BBR Partners is a privately held multifamily office principally owned by Brett Barth and Evan Roth. The firm also has 17 equity partners. Co-founders Mike Anson and Todd Whitenack serve as BBR Partners’ chief compliance officer, and head of investment research, respectively.

BBR Partners has 115 employees across offices in New York, Chicago and San Francisco, 75 of whom perform investment advisory functions. The firm’s 17 partners have diverse backgrounds, including several lawyers, accountants and MBAs. Rather than directly managing client money, BBR works with third-party investment managers throughout the industry.

What types of clients does BBR Partners serve?

With a minimum account balance generally set at $20 million, BBR Partners focuses primarily on serving ultra-high net worth families and individuals, but it also works with their associated family partnerships, foundations and charitable organizations. The firm serves entrepreneurs, Fortune 500 and finance executives, and those with inherited wealth.

Services offered by BBR Partners

BBR Partners works with wealthy individuals and families to develop an asset allocation strategy based their investment objectives, selecting and hiring managers to put the tailored strategy to work. While asset allocation remains the firm’s primary focus, it may also offer guidance on other issues, including estate and tax planning, charitable planning and insurance planning.

The firm also offers comprehensive reporting services, allowing clients to see their entire financial picture, including assets under management by other firms.

  • Investment advisory services
  • Financial planning
    • retirement planning
    • trust and estate planning
    • charitable planning
    • education planning
    • tax planning and management
    • IRA and 401(k) rollovers
  • Insurance/risk management
  • Comprehensive reporting services
  • Collaboration with clients’ lawyers, accountants, etc.
  • Miscellaneous services, such as helping wealthy families vet their employees or connect with labor lawyers

How BBR Partners invests your money

BBR Partners crafts individual portfolios for each of its family clients with a variety of asset classes and strategies. Based on that family’s objectives, the portfolio will include a mix of individual equity and fixed-income investments, third-party managers, exchange-traded funds, exchange-traded notes and private investment funds. The same applies to individuals.

The firm uses a mix of passive and active strategies, as well as illiquid investments, with a focus on the after-tax returns of the total portfolio. It also offers socially responsible and values-based investing options to interested families.

Fees BBR Partners charges for its services

BBR Partners charges investment advisory fees that are based on a percentage of assets under management, with a minimum annual fee of $150,000:

Investment value of portfolio Fee (% of assets)
First $30 million 0.75%
More than $30 million — $150 million 0.50%
More than $150 million negotiable

Clients who invest in BBR-administered private investment vehicles pay an additional fee, ranging from 0.35% to 1.00%, on the balance of their investment in that fund. They also pay additional fees to any third-party managers, broker-dealers or custodians who manage their money.

BBR Partners highlights

  • One of the largest RIA firms (by asset size) in the Northeast, BBR Partners, consistently ranks among the top 10 firms on Barron’s list of top RIA firms.
  • BBR Partners acts as a “manager of managers,” which means it selects other firms to make investments for its clients. This BBR can offer a greater diversity of investment options while reducing the potential for conflicts of interest.
  • Turnover at BBR Partners is low — none at the partner level in its 20-year history.
  • BBR Partners does not have any disciplinary disclosures (see below).

BBR Partners downsides

  • BBR Partners has a minimum account balance of $20 million, which is beyond the reach of many if not most would-be investors.
  • The firm’s fees, as a percentage of assets under management, are lower than the industry average, but with a required minimum balance of $20 million, they amount to $150,000 per year or more.
  • The firm has a tiered fee schedule, so clients with fewer assets pay higher fees than they might at a firm with a different fee structure.

BBR Partners disciplinary disclosures

BBR Partners currently lists zero disciplinary disclosures. The SEC requires RIAs to report disciplinary disclosures on Form ADV. These include any regulatory actions, criminal charges, or legal developments like liens or civil judgments that have been taken against them.

BBR Partners onboarding process

BBR Partners meets with the family members of each of its clients to learn more about their goals for their portfolio. Based on these meetings, the firm creates and executes a customized, tax-efficient investment plan, working with multiple managers on behalf of its clients. In addition, depending on the needs of the family, the firm offers advice around tax and insurance planning, family education and charitable giving.

In addition to monthly statements, clients have access to a secure website, updated daily, where they can view their entire portfolio — including assets that aren’t managed by BBR Partners — at a glance.

The bottom line: Is BBR Partners right for you?

This firm focuses exclusively on high net worth families and individuals, including those managing the transition of wealth from one generation to the next. It provides personalized investment advice to those families and oversees the investment of their assets with third-party firms. Individuals whose family net worth is less than the $20 million minimum requirement need to look elsewhere.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Beth Braverman
Beth Braverman |

Beth Braverman is a writer at MagnifyMoney. You can email Beth here