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Updated on Monday, January 13, 2020
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|
|Headquarters:||4428 Route 27
Building C, Suite 2
Kingston, NJ 08528
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.