Review of Tolleson Wealth Management 2021

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Updated on Friday, June 4, 2021

Dallas-based Tolleson Private Wealth Management works with wealthy families, so investors with less than $10 million are generally shut out. Tolleson Private Wealth Management currently manages over $6.8 billion for clients, 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 their plan.

The bottom line: Tolleson Private Wealth Management is a firm for ultra high net worth individuals and families offering portfolio management, holistic planning and private banking services.

  • Is an advisory firm for ultra high net worth families and individuals
  • Offers holistic planning services, including tax, philanthropic and estate planning
  • Provides private banking services
Assets under management: $6,878,346,390
Minimum investment: Generally $10 million
Individual investor to advisor ratio: 
Fee structure: A percentage of assets under management for portfolio management and advisory services, or annual fixed fees for advisory services
Headquarters: 5500 Preston Road, Suite 250 Dallas, Texas 75205
Website: www.tollesonwealth.com
Phone : 214-252-3250

All information included in this profile is accurate as of May 19, 2020. For more information, please consult Tolleson Wealth Management’s website.

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Overview of Tolleson Private Wealth Management

What began as a single-family office in 1997 grew to serve other wealthy families when Tolleson Private Wealth Management was launched three years later. The firm activated its trust charter in 2006 to serve as a corporate trustee for families, and in 2014, it added philanthropy and foundation management services.

The privately owned firm has over 80 employees, including more than 60 who provide advisory services. The advisory team collectively holds a range of designations, including certified public accountant (CPAs) and certified financial planner (CFPs).

One of the largest wealth management firms in Dallas, Tolleson Private Wealth Management is a wholly owned subsidiary of Tolleson Wealth Management, of which John Tolleson is the majority owner.

A look at the founder 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. He was inducted into the Dallas Business Hall of Fame in 2014.

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.

Tolleson Private Wealth Management’s pros

  • Award-winning: Richard Joyner has appeared on Barron’s list of the “Top Independent Wealth Advisors” several times, and in 2020 Tolleson was #53 of over 300 firms in the over $1 billion AUM category of Financial Advisor Magazine’s Annual Registered Investment Advisors Rankings.
  • Holistic support for family offices: Tolleson Private Wealth Management not only provides investment and wealth management, but also offers holistic support for all of the issues facing families, including trust and estate planning, philanthropy, family learning and bookkeeping.
  • Lower fees: Fees, at 0.35% to 1% of AUM annually for financial advisory services and 0.15% to 0.20% for fixed-income portfolio management, are relatively low. For comparison, MagnifyMoney reported in 2020 that the average annual fee among investment advisory firms ranges from 0.50% to 1.25% of assets under management.

Tolleson Private Wealth Management’s cons

  • A high account minimum: Tolleson Private Wealth Management has a minimum account balance of $10 million, which is beyond the reach of most investors.
  • 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 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 vehicles: The firm also recommends that some clients invest in its donor-advised fund, for which it receives a separate fee, creating a potential financial incentive for the firm to recommend that vehicle.

What types of clients does Tolleson Private Wealth Management serve?

The firm has zero individual clients who are not high net worth investors. All of the firm’s clients are located in the Dallas area, although 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
    • Wealth transfer
    • Business sales
    • Buying a home or aircraft
    • 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 serves as an investment manager, helping clients form their asset allocation strategy and advising on setting goals. 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 private investment funds, for which it provides advisory services. The funds invest primarily in pooled investment vehicles, including mutual funds, run by third-party managers.

Among the assets Tolleson invests in for its clients are:

  • Exchange-traded equity securities
  • U.S. government/agency bonds
  • U.S. state and local bonds
  • Investment-grade corporate bonds
  • Securities issued by registered investment companies
  • Securities issued by pooled investment vehicles
  • Cash and equivalents

Fees Tolleson Private Wealth Management charges for its services

Depending on the services offered, Tolleson Private Wealth Management can earn money through a percentage of assets under management or fixed fees. There also may be hourly fees for some services. 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.

Tolleson Wealth Management Fees for Advisory Services and Portfolio Management
Service typeBasic fees
Financial advisory services0.35%-1.00% per annum of client assets under management, payable quarterly, or annual fixed fees, payable quarterly
Discretionary fixed-income portfolio management0.15%-0.20% per annum of client assets under Portfolio Management 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 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. For more information, see the firm’s IAPD page.

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
  • Works with them to create an “investment policy statement” and a “fixed-”income investment policy statement,” which it uses to evaluate and recommend investments
  • Then 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.

Where Tolleson Private Wealth Management is located

The firm has just one office, located in Dallas.

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.  Be sure to research multiple firms to ensure you find the right advisor for you.

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.