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Updated on Wednesday, July 28, 2021
Creative Planning is a wealth management firm that also offers a range of other services, such as financial planning and insurance planning, as well as tax and 401(k) services. While its headquarters is in the Kansas City metro area, the firm has over 30 additional locations throughout the country and works with clients in all 50 states. There are over 400 advisors on staff, including those who hold high-end qualifications like the CFP designation, MBAs and law degrees.
The bottom line: Creative Planning works with individuals and institutions, offering investment management and financial planning services to those with at least $100,000.
- Customizes portfolios for each client’s situation; doesn’t use pre-designed funds
- Advisors hold numerous high-end credentials and awards
- Financial planning only included for larger accounts (those over $500,000)
|Assets under management: $75,589,120,012|
|Minimum investment: $100,000 ($30,000 for retirement accounts and no minimum for 401(k) plans)|
|Individual investor to advisor ratio: 88:1|
|Fee structure: A percentage of AUM, fixed fees, other (carried interest)|
|Headquarters: 5454 W. 110th Street
Overland Park, KS 66211
All information included in this profile is accurate as of July 20, 2021. For more information, please consult Creative Planning’s website.
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Overview of Creative Planning
Creative Planning registered as an investment advisor in 1983. Peter Mallouk, the firm’s president and CEO, bought the firm in 2004 and remains the majority owner through a holding company, CPI HoldCo B. General Atlantic, a private equity fund, bought a minority ownership in the firm in 2020.
Creative Planning has more than 600 employees, over 400 who work in an advisory capacity. The firm’s staff includes a variety of different financial professionals, including certified financial planners (CFPs), certified public accountants (CPAs), MBAs, insurance experts and attorneys. The team currently oversees a little over $75.5 billion in assets under management (AUM).
Creative Planning’s pros
- Customized portfolios: Creative Planning doesn’t offer one-size-fits-all funds — rather, it tailors the portfolios to each client’s situation. Clients are also able to set restrictions on what goes into their portfolio.
- Impressive staff credentials: The advisors at Creative Planning have a range of high-end credentials. There are CFPs, attorneys, MBAs, insurance specialists and CPAs. The firm’s president, Peter Mallouk, has also won awards for being one of the top advisors in the country.
- Moderate account minimums: You can sign on for investment management with Creative Planning for just $100,000 with even lower minimums for retirement accounts, versus other high-end RIAs, which could require $1 million or more.
- Numerous awards for performance: Creative Planning was named No. 1 wealth management firm in the country by Barron’s in 2017 and by CNBC in 2014 and 2015. The firm has also won awards from Forbes and the Financial Times.
Creative Planning’s cons
- Reduced fees only for extremely large accounts: For portfolio management, Creative Planning’s rates start at 1.20% on the first $500,000 under management. This is on the higher side of average, as the typical advisor charges between 0.50% to 1.25%. While Creative Planning does reduce fees for larger accounts, it takes millions to get to this point. You’ll need at least $25 million before the firm reduces the rate to 0.40%, though this is below average for advisor costs.
- Financial planning only included for larger accounts: Creative Planning includes financial planning only for investment accounts that are at least $500,000. Smaller accounts must pay fixed fees in order to receive a customized financial plan.
- Potential conflicts of interest due to common ownership: Creative Planning is under common ownership with a number of other companies, including a trust company and an accounting company. The firm may recommend these companies’ services, which poses potential conflicts of interest due to the affiliation.
What types of clients does Creative Planning serve?
Creative Planning primarily works with individual investors. Its client base includes those who both are and are not considered high net worth, defined by the SEC as a client with at least $750,000 under management with the advisor or a total net worth of at least $1.5 million. At Creative Planning, there’s a close to equal divide between the number of high net worth and non-high net worth clients, though high net worth individuals make up a much larger share of the firm’s assets under management.
Pension and profit-sharing plans are another large share of the firm’s client base and assets under management. Creative Planning also serves corporations, government entities and charitable organizations, though they make up a smaller share of its client list.
For investment management, the minimum portfolio size depends on where the money is located. It’s $100,000 for money outside of a retirement plan, $30,000 when the money is in a retirement plan and there’s no minimum balance requirement for 401(k) plans. Clients with accounts of at least $500,000 receive financial planning included with the investment services.
Services offered by Creative Planning
For individuals, Creative Planning offers portfolio management and financial planning. Its financial planning services can deal with a range of topics, including insurance, taxes, retirement and estate planning. The firm also offers a corporate executive service, to help these clients better understand their workplace benefits.
For institutions, Creative Planning offers consulting, plan design and fiduciary services for workplace 401(k) retirement plans. This includes employee education programs for those enrolled in the plans.
Here is a full list of services that Creative Planning can provide:
- Portfolio management
- Financial planning
- Retirement planning
- Insurance planning
- Tax services
- Estate planning
- Trust planning
- 401(k) services
- Corporate executive services
- Institutional services for nonprofits
How Creative Planning invests your money
Creative Planning doesn’t offer pre-designed portfolios or funds, but rather creates customized portfolios for its clients that are tailored to their specific goals and objectives. The advisors at Creative Planning look at a client’s desired returns, liquidity needs, risk tolerance and other factors to determine how they will build their portfolio. Clients also have the ability to set restrictions and say which types of investments they would like to limit in their portfolio.
The firm could use a range of different investments to build portfolios, including stocks, bonds, mutual funds, variable annuities, options, oil and gas interests, master limited partnerships and alternative assets. Generally, a mix of short-term and long-term investments are used, as well as trading, option strategies and margin trades, where money is borrowed to make investments in an attempt to get a larger return.
When determining which investments to include in a client’s portfolio, Creative Planning focuses on cyclical and fundamental analysis. Cyclical analysis assumes that the economy and asset prices move in the cycles, so advisors aim to buy assets when they fall in value and sell when they’re at a high, timing the market. Fundamental analysis attempts to determine the true market value of investments, using their financial performance and market conditions in order to find assets to buy that are underpriced and sell those that are overpriced.
Fees Creative Planning charges for its services
Creative Planning charges clients based on a percentage of assets under management for its investment management services. For individuals, this fee can range from 0.25% to 1.20%, depending on the size of their portfolio. The firm’s fee schedule is a progressive tier system, in which all clients owe 1.20% on their first $500,000, then 1.00% on their next $1.5 million and so on.
|Creative Planning fee schedule for portfolio management services|
|Portfolio size||Annual fee|
|Assets between $500,001 to $2,000,000||1.00%|
|Assets between $2,000,001 to $5,000,000||0.85%|
|Assets between $5,000,001 to $10,000,000||0.80%|
|Assets between $10,000,001 to $25,000,000||0.70%|
|Assets between $25,000,001 to $50,000,000||0.40%|
|Assets between $50,000,001 to $100,000,000||0.30%|
|Assets over $100,000,000||0.25%|
In addition to the fees listed in the table above, clients could also owe brokerage fees, sub-advisory fees and other expenses for the underlying investments in their portfolios. These fees don’t go to Creative Planning, but rather cover the cost of the investments.
For clients with portfolios of at least $500,000, Creative Planning includes comprehensive financial planning at no additional charge. Creative Planning could also offer financial planning for a fixed fee ranging from $1,500 to $15,000, with the exact rate depending on the complexity of the plan.
Creative Planning disciplinary disclosures
Creative Planning reports one disciplinary disclosure. In September 2018, Creative Planning settled an order against the firm and its president, Peter Mallouk, relating to radio advertisements they’d run. According to the SEC, their advertisements included prohibited testimonials because the radio DJ was also a client of the firm, which was a breach of the firm’s code of ethics.
The SEC found that Creative Planning failed to have the proper written procedures established to prevent such an issue. Both Creative Planning and Mallouk agreed to a cease-and-desist order for running the ads. Creative Planning also paid a $200,000 fine, while Mallouk paid a $50,000 fine.
For more information, please see Creative Planning’s IAPD page.
Creative Planning onboarding process
If you’re interested in working with Creative Planning, you can expect to go through the following steps in order to get started:
- Request an initial meeting with an advisor. On the Creative Planning website, you can request a meeting with an advisor. You’ll need to enter your name, contact information and portfolio size. The firm will then contact you within one business day. Alternatively, you can look up the branch closest to you and call them directly.
- Meet with an advisor. During this meeting, the advisor will get to know your personal financial situation and goals. You may take a new client questionnaire to establish your risk tolerance, liquidity needs and target investment performance. You can also state whether you want any restrictions on your portfolio, such as to avoid investing in options. Come prepared with questions to determine if this firm is the right fit for you.
- Review your advisor’s portfolio recommendation. Based on your meeting, the Creative Planning advisor will create a portfolio tailored to your specific goals. If you’re happy with their recommendation, you can sign an agreement to join as a client and transfer over your portfolio for their investment management.
- Meet yearly to discuss your plan. Creative Planning schedules annual reviews with its clients to discuss results and new strategies. If you need any changes or have questions before then, you can contact the firm before the annual meeting. Creative Planning’s brochure notes that it is the responsibility of the client to let their advisor know about any major changes in their personal and financial situation.
Where Creative Planning is located
Creative Planning has office locations in the following states:
- North Carolina
Is Creative Planning right for you?
Between its customized investment portfolios, range of planning services and quality advisor credentials, Creative Planning has a lot to offer. It’s also widely available, given that it has locations throughout the country and will accept clients with smaller accounts compared to many other financial advisory firms.
That being said, if you want financial planning but have a smaller portfolio (less than $500,000), you won’t receive this service included with investment management. The firm’s fees are also on the higher end of average, unless you have millions in your portfolio.
If you’d like more options to compare before deciding on a financial advisor, check out the MagnifyMoney financial advisor search tool.
The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.