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The Ultimate Guide to Fiduciary Duty

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

Fiduciary duty is the legal obligation for one person to act in the best interests of another person. A fiduciary is someone who or an entity that has the obligation to act in the best interest of another.

When people are placed in positions of trust and power, they should be held to higher ethical standards. When people are legally required to adhere to higher ethical standards, it’s known as having a fiduciary duty.

Fiduciary duty is a concept that applies in certain financial, legal, corporate and real estate regulations. In this guide, we’ll look at just what it means to follow a fiduciary duty and how it could apply to the people who are managing your money.

What is fiduciary duty?

When someone accepts fiduciary duty, not only do they agree to handle certain tasks for their client, they also agree to put the client’s interests ahead of their own. Since a fiduciary is legally bound to put their client’s interests first, they can face legal consequences if they don’t do so.

In a fiduciary arrangement, there are two parties: the fiduciary, who is the professional providing a service; and the beneficiary, the client who is being aided by the fiduciary.

The fiduciary could be managing the beneficiary’s money or assets, representing them in a transaction or legal case, or even agreeing to take care of them personally, like a guardian watching over minors.

What is fiduciary duty for financial advisors?

When it comes to managing your money, a financial advisor who is bound by fiduciary duty must take actions and advise you honestly and in good faith.

In a recent speech clarifying new fiduciary rules and standards for the financial industry, SEC Chairman Jay Claton described fiduciary duty for advisors as being met this way: “The general obligation is satisfied only if the broker-dealer complies with the four specified component obligations: disclosure, care, conflict of interest and compliance obligations.”

In order to meet these fiduciary duty obligations, a financial advisor should:

  • Put the interests of any client ahead of their own
  • Work to avoid any conflicts of interest
  • Properly disclose and explain their fees to the client as well as any potential conflicts of interest
  • Make sure to follow all rules from the SEC and other regulatory agencies
  • Be honest with clients and avoid misleading them
  • Never use a client’s assets for personal use or for the benefit of other clients

Why is fiduciary duty important for financial advisors?

When you’re dealing with a trained financial professional, chances are there will be a gap in how much you know about rules versus what they know. As a result, the advisor has the potential to negotiate unfair terms or recommend overpriced products without you realizing it.

Since you’re trusting the advisor with your savings and your future, it’s unsettling to think they wouldn’t put your interests first. That’s why Karl Hicks, a financial advisor and CFP from California, believes that fiduciary duty is essential for all financial advisors.

“I feel the fiduciary duty is important to our profession because of the nature of the work. When you state that you are a professional making a client’s life better, and particularly charging them a fee to do so, I think being a fiduciary should be the minimum requirement. People are putting their trust in you and their faith.”

How are financial advisors bound by fiduciary duty?

Just because someone is a financial advisor doesn’t mean they are required by law to follow fiduciary duty. While there are regulations preventing outright illegal behavior — like an advisor stealing a client’s money or lying about the terms of an investment — the high bar of fiduciary duty is not always in force.

Non-fiduciary investment advisors need to meet something called a suitability standard. Suitable product recommendations need to make sense for your situation, but they don’t need to necessarily be the very best available. For example, an advisor might recommend a product that’s slightly less advantageous for their client because they earn a higher commission from it. This would be against fiduciary rules, but acceptable behavior for an advisor following the suitability standard.

Harold Pollack, financial author and professor at the University of Chicago, supports a new rule that would make a fiduciary standard apply to all advisors. Not only would it help clients, it would also make the industry fairer.

“The rule helps maintain a level playing field in which professionals who charge transparent fees for valuable services and advice do not face unfair competition from others who receive hidden compensation from third parties or who charge hidden fees for unnecessary services,” said Pollack.

For now, some advisors may willingly agree to work as a fiduciary in order to stand out from the competition but others do not. That’s why when you meet with a new advisor, this should be one of the questions to ask before signing on. There are also certain types of advisors that need to follow fiduciary duty as part of their designation, which we cover below.

Fiduciary duty and certified financial planners (CFPs)

The CFP Board is a nonprofit that looks to set higher professional standards for the financial planning industry, beyond what is required from the state regulatory agencies. Advisors who meet these standards can use the CFP designation and this will show up when you check their qualifications.

In order to become a CFP, an advisor must complete an extensive financial course approved by the CFP Board, pass an examination showing they’ve mastered the concepts, have at least 4,000 hours of professional experience and meet the CFP Board’s ethical standards, which includes fiduciary duty. If an advisor fails to meet any of these conditions, including not meeting their fiduciary duty, then they cannot classify themselves as a CFP.

If you meet an advisor with this designation, you can feel more confident in their fiduciary responsibility since they are being monitored by an additional nonprofit on top of the government agencies.

Fiduciary duty and registered investment advisors (RIAs)

Registered investment advisors are another type of advisors for your financial life. RIAs enroll with the SEC or a state securities agency. The employees of an RIA, referred to as investment advisor representatives (IARs), meet with clients to discuss investments. Part of this registration means agreeing to tougher ethical standards than those asked of regular brokers. This used to mean agreeing to fiduciary duty, but a recent SEC ruling may have weakened the rules.

Before, RIAs needed to actually sign a document with clients binding them as fiduciaries. But now, they just need to sign a document saying they will put their clients’ “best interests first.” While that language is similar, it does hold an RIA to a slightly weaker standard. If you meet with an RIA, consider asking whether they would still meet a fiduciary standard or not.

What are other relationships bound by fiduciary duty?

Besides certain financial advisors and RIAs, other professionals follow fiduciary duty:

  • Trustees and beneficiaries: A trust fund manages assets on behalf of another person, like a parent who leaves a trust fund behind for their young children. Rather than giving their child the assets directly, the parents put them in a trust, which is then managed by a financial professional called a trustee. The trustee must follow fiduciary duty for the trust beneficiaries.
  • Retirement plan trustees and employees: If you have a pension, 401(k) or other retirement plan at work, your employer will pick a trustee to supervise the plan funds. The trustee is another fiduciary and is regulated by a government act called ERISA.
  • Executors and heirs: When a person passes away, an executor goes over their will to make sure the assets are passed along to the heirs according to the deceased’s instructions. The executor has a fiduciary duty to the heirs.
  • Lawyers/real estate agents and clients: Lawyers have a fiduciary duty to their clients in legal matters. When representing clients in a real estate deal, agents also have a fiduciary duty.
  • Board members and the shareholders: Corporations with shareholders set up a board of directors to supervise company decisions. The board members represent the shareholders to make sure their interests are served and they have a fiduciary duty.
  • Guardians and their wards: If the courts pick summon to be a legal guardian of children or other people who can’t take care of themselves, the guardian has a fiduciary duty to the ward.

These are some of the most common examples. In all of them, you can see the fiduciary is in a position of power and trust, so they need to hold themselves to a very high standard to protect the other people.

Who enforces fiduciary duty?

Hicks pointed out that since so many different types of professionals can call themselves an advisor for different types of financial work, the actual enforcement depends on how the financial advisor is licensed. It may be:

  • The SEC
  • The Financial Industry Regulatory Authority (FINRA)
  • The CFP Board
  • State insurance regulatory agencies, state business regulatory agencies and state real estate regulators

If you think an advisor has acted inappropriately and you’d like to report an issue, you need to consider how they are licensed, what type of transaction went wrong and the state where the advisor is located to figure out who you can turn to for enforcement.

What is a breach of fiduciary duty?

A breach of fiduciary duty is when a financial advisor fails to put their client’s interest above their own. Naturally, cases of outright fraud or other forms of misconduct would be a breach and these are considered outright violations by the government regulatory agencies like the SEC. But there can be grey areas as well based on how an advisor is compensated.

“One classic breach of fiduciary duty would for a financially-conflicted professional to steer a consumer towards a suitable investment product that is obviously over-priced relative other available products known to the financial professional but not known to the consumer,” said Pollack. “For example, they might recommend a total stock market index fund with an annual expense ratio exceeding 1%, when the same product is readily available from major vendors with an expense ratio below 0.2%.”

While this is a breach of fiduciary duty, it could end up being legal depending on the terms of the financial advisor.

What can you do after a breach of fiduciary duty?

If what the advisor did was against the law, like they stole money or made unnecessary trades to drive up fees, then you could file a formal complaint with the SEC or another regulatory agency. That way you could seek damages to recover fees and other money lost from improper activity.

But what about the gray area breaches of fiduciary duty, like an advisor recommending a second-best but still suitable investment? In this case, it all depends on whether the advisor agreed to meet the fiduciary standard. If so, you could then file a complaint with the SEC or other government agencies along with the CFP board for CFPs.

But if the advisor did not agree to the fiduciary standard, then you might not have any recourse. This leads to some situations where even though an advisor acted clearly inappropriately, the client still wasn’t able to take action.

Considering risks like this, it’s one more good reason to use a fiduciary to manage your money.

Conclusion

With the potential for abuse, you would think that fiduciary duty would be a requirement for any financial advisor. But that’s just not the case just yet. However, things could be changing thanks to new government regulations. For more information, check out the second part of our series where we cover the various past and present fiduciary rules launched to tackle this issue.

This blog does not provide legal advice. If you need legal advice, please contact an attorney directly.

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.

David Rodeck
David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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Fidelity Cash Management Account Review 2020

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

Fidelity’s cash management account gives its customers a convenient place to keep cash balances with the firm, rather than moving them back and forth between external bank accounts. Like some of the other cash management products offered by brokerages, it’s not necessarily a perfect replacement for your conventional checking account. However, customers can benefit from Fidelity’s generous unlimited ATM fee reimbursement program, even if the APY isn’t the highest available.

Fidelity Cash Management Account Pros

Fidelity Cash Management Account Cons

  • Unlimited ATM fee reimbursements
  • No monthly fees
  • No minimum balance requirement
  • FDIC insurance up to the legal limit
  • Uncompetitive APY
  • Few branch office locations

This review will take a closer look at how Fidelity’s Cash Management Account stacks up in comparison to offerings from traditional banks and other fintech competitors, to help you determine if it’s a good fit for your savings needs.

Fidelity Cash Management Account features

Fidelity markets its cash management account is marketed as a convenient way to enjoy checking-account-like features with FDIC insurance, without corresponding bank fees.

While the account is designed as a home for your idle cash when its not invested in other Fidelity products, the firm has gone the extra mile by adding ease of use and a generous ATM fee reimbursement program, which no doubt helps encourage many investors to keep their extra cash with Fidelity.

You can deposit funds to your Fidelity Cash Management Account in a number of ways. The fastest option is to transfer money from one of your existing Fidelity accounts. If you have a paper check, you can use the Fidelity app to make a remote deposit, just as you could with many online savings accounts. The account accepts direct deposits, and you can also make a one-time transfer at any time from your linked external bank account, or mail a check to Fidelity directly.

Since Fidelity is a brokerage firm, not a bank, it holds its customers’ funds at accounts with partner banks, which also provide FDIC insurance. Fidelity automatically transfers your deposits to these partner banks in increments not exceeding $245,000 to ensure that your deposit at each bank doesn’t exceed the $250,000 FDIC insurance per account. The partner banks offer a combined $1.25 million in FDIC insurance.

Fidelity Cash Management Account vs. online savings accounts

Here’s how Fidelity’s Cash Management Account compares to some of the highest-earning online savings accounts from our best online savings accounts review:

Financial Institution

APY

Minimum balance to earn APY

Fidelity

0.82%

$0.01

Vio Bank

1.95%

$100

Customers Bank

1.95%

$25,000

Barclays Bank

1.70%

$0.01

Goldman Sachs Bank USA

1.70%

$0.01

Ally Bank

1.60%

$0.01

In terms of APY, Fidelity’s cash management account doesn’t stack up to the best online savings banks. Vio Bank and Customers Bank both offer APYs in the neighborhood of 2%, far above Fidelity’s 0.82%.

That said, Fidelity’s generous unlimited ATM fee reimbursement program is better than most of its online savings competitors. Marcus by Goldman Sachs®, for example, doesn’t even offer ATM access at all, let alone have any fee reimbursement policy.

Fidelity Cash Management Account vs. robo-advisor cash management accounts

Many robo-advisor firms have also launched their own cash management accounts to help them compete with both conventional brokerages and online banks. The features and benefits can vary widely from firm to firm, but overall they tend to provide a combination of checking and savings account functionality. This includes high APYs, free ATM access, remote check deposit and FDIC insurance via partner banks.

Account name

APY

Fidelity Cash Management Account

0.82%

Wealthfront Cash Account

1.78%

Betterment Everyday Cash Reserve

1.83%

SoFi Money

1.60%

Fidelity Cash Management Account vs. Wealthfront Cash Account

The comparison of cash management accounts from Fidelity and Wealthfront comes down to ease of access versus a high interest rate. Fidelity offers a debit card and unlimited ATM fee rebates, making for a highly accessible account. Wealthfront doesn’t offer any ATM access, period. However, the Wealthfront Cash Account’s current APY is much higher than Fidelity’s APY. (Wealthfront has claimed that it does intend to offer ATM access at some future date.)

Beyond these important distinctions, Fidelity and Wealthfront share similar features. For both firms, balances in are held in accounts at multiple partner banks, which provide FDIC insurance — Fidelity’s partner banks provide a total of up to $1.25 million in FDIC coverage, while Wealthfront’s partner banks provide up to $1 million in FDIC insurance. Neither firm charges monthly fees, and both offer unlimited withdrawal and deposits.

However, Fidelity offers mobile check deposit and direct deposit funding options, while Wealthfront still only accepts deposits via ACH bank transfer, wire transfer or account transfer.

Fidelity Cash Management Account vs. Betterment Everyday Cash Reserve

The Betterment Everyday Cash Reserve pays 1.83% APY and allows unlimited withdrawals and deposits. Betterment holds your cash at accounts with multiple partner banks, which provide up to $1 million in FDIC coverage.

Unlike the Fidelity Cash Management Account, withdrawals from the Everyday Cash Reserve account are via ACH bank transfer only. Both deposits and withdrawals are generally completed within one or two business days, depending on when in the day they are set.

Betterment has been promising to launch checking features that would expand the utility of its cash management account with ATM access and related features, however it remains unclear when this component will arrive. Until that time, the Fidelity Cash Management Account remains a much more liquid option.

Fidelity Cash Management Account vs. SoFi Money

SoFi offers a full-fledged line of savings, lending and investment products. SoFi Money offers features of both checking and savings accounts in one high-yielding account, including paper checks, bill pay and ATM access.

Like the Fidelity Cash Management Account, SoFi Money offers unlimited ATM fee rebates. It’s competitive APY isn’t the best available from competing robo-advisors or online savings accounts, but it’s still higher than the APY offered by Fidelity.

Similar to Fidelity, Wealthfront and other cash management accounts, SoFi Money holds its customer’s deposits with partner banks, in multiple FDIC-insured accounts. SoFi’s six partner banks offer customers up to $1.5 million in FDIC insurance. SoFi Money charges no monthly or transaction fees.

Who should get a Fidelity Cash Management Account?

The target market for the Fidelity Cash Management Account is existing Fidelity customers. The convenience of having your money swept into FDIC-insured bank accounts, with easy access to your investment account has real value. So does the ATM access, which isn’t always found with cash management accounts from competing brokers.

However, Fidelity’s ATM reimbursement policy makes the account of added interest to anyone looking for a place to store cash in a readily accessible, interest-bearing account seeking to avoid ATM fees.

An important thing to note is that although Fidelity’s Cash Management Account APY is much higher than that paid by large, traditional banks, it pales in comparison to those paid by other cash management accounts and online savings accounts.

The bottom line is that the Fidelity Cash Management Account can be a good option for existing Fidelity customers, and it’s a definite step up from the rates paid by traditional banks. However, those seeking the highest APYs may prefer alternatives.

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.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

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Review of Evercore 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.

Evercore Wealth Management is a registered investment advisor (RIA) that specializes in investment advisory services for high net worth individuals, families and legal entities, such as trusts. The firm, which has 50 investment advisors on staff, typically only works with clients who have at least $5 million in investable assets. It currently has a little over $7.5 billion in assets under management (AUM). The firm’s headquarters is in New York City, but it also has locations in Minneapolis, San Francisco and both Palm Beach and Tampa, Fla.

All information included in this profile is accurate as of January 15th, 2020. For more information, please consult Evercore Wealth Management’s website.

Assets under management: $7,559,815,731
Minimum investment: $5 million
Fee structure: A percentage of AUM, ranging from 0.25% to 1.00%, depending on account size and investments
Headquarters:55 East 52nd Street
23rd Floor
New York, NY 10055
https://www.evercorewealthandtrust.com/
(212) 822-7620

Overview of Evercore Wealth Management

Evercore Wealth Management launched in September 2008. The firm is a subsidiary of Evercore, a global investment bank also based out of New York. Evercore founded Roger Altman in 1995; prior to the company’s founding, Altman was the co-head of investment banking for Lehman Brothers and served two years as deputy secretary of the U.S. Treasury in the Clinton administration.

Evercore owns 62.5% of Evercore Wealth Management. The remainder of the firm is owned by the partners of Evercore Wealth Management.

Evercore Wealth Management currently has over $7.5 billion in assets under management. The firm has 84 employees, of which 50 perform investment advisory services. Aside from investment advice, some of these advisors also provide trust fund services for their clients.

What types of clients does Evercore Wealth Management serve?

Evercore Wealth Management mostly works with high net worth individuals and families. Investors typically must have at least $5 million in investable assets in order to open an account with the firm. While Evercore Wealth Management’s SEC documents show that the firm does have a few non high net worth clients, the vast majority of its AUM comes from high net worth individuals. The SEC defines high net worth individuals as those with at least $750,000 in assets under management or a net worth believed to be at least $1.5 million.

Besides individuals, Evercore Wealth Management also serves entities that can meet their investment minimums, including trusts, estates, endowments, pension and profit-sharing plans, foundations, charitable organizations and insurance companies.

Services offered by Evercore Wealth Management

Evercore Wealth Management focuses on providing investment advisory services to its high net worth clients. The firm offers investment management on both a discretionary basis (meaning they can execute trades on behalf of a client) and on a non-discretionary basis (meaning the client makes all trading decisions). However, the firm has a much larger number of discretionary investment accounts than non-discretionary accounts.

In addition to portfolio management, Evercore Wealth Management also provides financial planning, both as a standalone service or as part of an investment advisory service.

The firm also has an affiliate service, Evercore Trust, that manages trust fund services for the firm’s high net worth clients. If a client needs something beyond what Evercore Wealth Management can provide, the firm offers an outside advisor selection service. Finally, Evercore Wealth Management holds investment training seminars and publishes advice through its quarterly journal, Independent Thinking.

Evercore’s services include:

  • Investment advisory services/portfolio management (mainly discretionary, but some non-discretionary)
  • Financial planning
    • Retirement planning
    • Trust and estate planning
    • Charitable planning
    • Education planning
    • Tax planning and management
    • Insurance planning
    • Cash flow forecasting
    • Spending analysis and budgeting
    • Long-term care planning
    • Debt management
    • Divorce planning
  • Collaboration with clients’ lawyers, accountants, etc.
  • Workshops and seminars
  • Newsletters and publications

How Evercore Wealth Management invests your money

Evercore Wealth Management doesn’t offer standardized funds for all of its clients; instead, the firm creates customized portfolios for each client. When someone first signs on, Evercore Wealth Management advisors get to know their goals, priorities and constraints.

With this information, the advisors will recommend a portfolio of bonds, equities and mutual funds as well as third-party exchange traded funds, alternative assets and cash. Clients have the option to weigh in on their strategy: for example, they can declare that they do not want certain assets in their portfolio. From time to time, Evercore Wealth Management may also recommend investments from outside third parties.

Evercore Wealth Management uses a broad investment strategy and can consider domestic, foreign and global assets, as well as small, mid-size and large-cap stocks. Through this approach, Evercore Wealth Management believes it can achieve the highest after-tax and after-fee returns for its clients while also meeting their unique financial goals.

Fees Evercore Wealth Management charges for its services

Evercore Wealth Management charges a fee based on a percentage of assets under management for its investment advisory services. The firm typically charges a flat 1.00% annual fee for portfolios of up to $10 million. For portfolios over $10 million or those with at least $5 million in fixed income investments, the annual rate can range from 0.25% to 1.00%, depending on the investments and portfolio size (see the chart below for specifics).

The Evercore Wealth Management brochure notes that clients can negotiate their annual rate before signing up, so the actual amount may be higher or lower than the rates listed in the firm’s fee schedule. In addition to an asset-based fee, clients may also need to cover the related costs of their investment strategy, such as brokerage fees, commissions, custody fees, tax preparation fees and investment management fees from third-party mutual funds.

If a client wants standalone financial planning, Evercore Wealth Management charges a fixed fee that the firm negotiates on a case-by-case basis.

Finally, Evercore Wealth Management can make money from intercompany arrangements for referring clients to other parts of Evercore, like when the firm refer a client to the company’s trust division.

PortfoliosAnnual asset-based fee rate
Accounts up to $10 million1.00%
Accounts over $10 million, or those with at least $5 million in fixed incomeFixed income:

  • 0.35% on the first $10 million in fixed income
  • 0.25% on the remaining fixed income balance

Growth assets:

  • 1.00% on the first $10 million in growth assets
  • 0.75% on the next $10 million
  • 0.60% on the remaining growth assets balance

Evercore Wealth Management’s highlights

  • Multiple awards for size and performance: Based on 2018 end-of-year assets under management, Evercore Wealth Management ranked No. 30 on Financial Advisor’s list of the leading RIAs. The firm is also on the short list to win multiple awards in 2020 from Family Wealth Report, in categories recognizing its private client investment platform, thought leadership and multi-family office, among others.
  • Custom, personalized portfolios and financial plans: Evercore Wealth Management does not offer standalone funds or model portfolios. Instead, the firm customizes investment recommendations for each of its clients based on their unique goals.
  • Extensive range of services: In addition to portfolio management and investment advice, Evercore Wealth Management offers comprehensive financial planning and trust services. The firm also holds training workshops and publishes a quarterly journal, which recently featured articles on subjects including wealth planning and how to sell a business.
  • Personalized advisor attention: When a new client signs up to work with Evercore, they are matched up with at least two financial professionals to look after their account: a wealth advisor and a portfolio advisor.

Evercore Wealth Management’s downsides

  • Extremely high investment minimums: You can only open an account with Evercore Wealth Management if you have at least $5 million in investable assets. The firm’s high minimum largely puts it out of reach for all but investors who have a high net worth.
  • Focused on costly, active investment strategies: Since Evercore Wealth Management designs custom portfolios with more hands-on discretionary advice, the firm’s fees are quite high. Evercore charges a flat 1.00% AUM fee on equity accounts up to $10 million. —that’s double the median 0.50% investment management fee typically charged on accounts over $5 million, according to financial planning site Kitces.
  • Fees not reduced except for massive accounts: While Evercore Wealth Management does reduce fees for larger accounts, the firm only starts giving a discount for accounts with over $10 million in assets or those that put at least $5 million in fixed income. You’ll need over $20 million to qualify for the firm’s lowest 0.60% rate on growth assets, which is still not that low in comparison to industry average fees.
  • Potential conflict of interest with intercompany services: Evercore Wealth Management makes money from intercompany arrangements, such as a recommendation of services from other parts of the company, like the trust division. This could create a conflict of interest where advisors recommend a service that is not necessarily the best fit for the client due to financial incentives.

Evercore Wealth Management disciplinary disclosures

Over the past 10 years, Evercore Wealth Management has not been involved in any legal or disciplinary actions. Financial advisory firms that are registered with the SEC must report any such disciplinary actions in their Form ADV (SEC-filed paperwork). Disciplinary disclosures may include instances of criminal behavior, regulatory infractions and civil suits against an RIA.

Evercore Wealth Management onboarding process

For its onboarding process, Evercore Wealth Management starts by reminding investors they only work with clients who have $5 million or more in investable assets. If you can meet the investment threshold, the firm suggests you contact the regional investment office closest to you. Offices are located in New York; Minneapolis; San Francisco; Palm Beach, Fla; and Tampa; Fla. You can also email the firm’s CEO directly for information.

The firm then will match you up with several members of its advisory team to discuss your personal investment and financial goals and to explore how Evercore Wealth Management could be a good fit for you. If you are happy with the discussion, you then sign the firm’s investment management agreement to launch your account and transfer over your assets.

From there, your advisors will put together your personalized investment plan, based on your goals and strategies. Evercore Wealth Management notes that each of its clients work with at least two financial professionals, a wealth advisor and a portfolio manager, so you will have lots of personal attention for your account.

Is Evercore Wealth Management right for you?

If you’re an extremely high net worth individual and want an RIA that goes above and beyond for your specialized needs, Evercore Wealth Management could be worth a look. The firm customizes clients’ portfolios to their unique situations, and each client has at least two financial professionals managing their account. However, for this level of service, you must be able to meet the firm’s steep minimum of $5 million in investable assets.

Additionally, this high-end service comes at a price. Evercore Wealth Management charges a relatively costly fixed asset-based fee, even for accounts over $20 million. If you don’t think you need as sophisticated an investment strategy, you could find other advisors charging significantly less. With a firm like Evercore Wealth Management, though, you get what you pay for.

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.

David Rodeck
David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here