Allworth Financial is a financial services firm with offices located primarily in California, though it also has some offices in other states throughout the country. The firm offers a variety of services, including financial planning, investment management, tax services and estate planning. It mainly works with individual investors, including those who are high net worth.
The bottom line: Allworth Financial is a Folsom, Calif.-based wealth management firm that also offers comprehensive financial planning services.
|Assets under management (AUM): $13,782,219,676|
|Minimum investment: $500,0000|
|Individual investor to advisor ratio: 146:1|
|Fee structure: A percentage of AUM, hourly charges, fixed fees|
|Headquarters: 340 Palladio Pkwy., Suite 501 Folsom, CA 95630
All information included in this profile is accurate as of May 20, 2022. For more information, please consult Allworth Financial’s website.
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Founded in 1993, wealth management and financial planning firm Allworth Financial was previously known as Hanson McClain Advisors, after its co-chief founders and senior partners, Scott T. Hanson and Patrick C. McClain. In 2020, Allworth Financial was purchased by Lightyear Capital, a private equity firm. Allworth is now officially owned and controlled, through intermediate subsidiaries, by Lightyear and the Ontario Teachers Pension Plan.
Allworth Financial has nearly 350 employees, almost 120 of whom perform investment advisory functions. The majority of the firm’s advisors are certified financial planners (CFPs).
Hanson and McClain co-founded Allworth as Hanson McClain Advisors in 1993. Together they also founded Liberty Reverse Mortgage, which was eventually acquired by Fortune 500 Company Genworth Financial. Liberty is now one of the largest reverse mortgage companies in the U.S.
Both are nationally recognized financial figures, and co-host the long-running Money Matters radio show.
Hanson is the author of the books “Personal Decision Points: 7 Steps to Your Ideal Retirement Transition” and “Money Matters: Essential Tips & Tools for Building Financial Peace of Mind.” He has been named to Barron’s list of the Top 100 Independent Wealth Advisors multiple times and listed as one of the 25 most influential people in the U.S. financial services industry.
McClain was named one of 10 “Icons and Innovators” by InvestmentNews for 2021. He’s also led Allworth to be ranked by Barron’s as one of the best RIAs in America.
Allworth Financial’s largest client group is individuals who aren’t high net worth, though it also has a few thousand high net worth individuals on its client roster. (For reference, the Securities and Exchange Commission [SEC] defines high net worth individuals as those with at least $750,000 in assets under management or a net worth of at least $1.5 million.)
Allworth Financial generally requires a minimum household investment of $500,000 to open an investment account. However, it will occasionally make exceptions for existing clients or those with the potential for larger future investments.
Allworth Financial provides advisory services to clients, mostly on a discretionary basis (meaning the advisor buys and sells investments on behalf of the client without getting authorization for each transaction). It has a particular focus on preparing for retirement. The firm also offers variable sub-account management services, mainly managing variable annuity products.
The firm also offers several levels of financial planning for interested clients for an additional fee. Comprehensive Planning – Advanced provides the most extensive level of service, which includes coordination with your other advisors, such as lawyers or accountants, to develop a personal financial plan that may address issues such as business succession and financial legacy planning. The next level, Comprehensive Planning – Financial Independence, focuses on helping clients achieve financial independence by making sure their portfolio can support them through retirement if they stop working. Clients can also opt to have the firm advise them on specific issues or areas of concern.
Here is a full list at the firm’s services:
Allworth Financial has more than 15 model portfolios that it uses for clients. It selects a portfolio for clients based on their financial situation, goals and risk profile. The model portfolios are made up of a variety of low-fee and no-load mutual funds and exchange-traded funds (ETFs), and range from all equity to all fixed income.
Here’s how they break down:
|Allworth Financial Model Portfolios|
|Active Plus||Mutual funds and ETFs; includes active mutual funds and liquid alternatives|
|Active Plus Conservative Income||Focuses on income first and capital preservation second; includes actively managed bond mutual funds, ETFs and liquid alternative strategies|
|Core-Satellite||Blend of mutual funds and ETFs, with a focus on low-cost ETFs; does not have direct exposure to liquid alternative strategies|
|Core-Satellite Plus||Mutual funds and ETFs, with a focus on low-cost ETFs; does use liquid alternative strategies|
|Dynamic||Blend of mutual funds and ETFs with a focus on low-cost ETFs; the non-core portion of the portfolio may make tactical moves|
|Dynamic Balanced Income||Blend of mutual funds and ETFs meant to generate income and protect against market downturns|
|Dynamic Diversified Income||Mostly equity mutual funds and ETFs meant to generate income|
|Dynamic US||Mutual funds and low-cost ETFs, with no international stocks used|
|Efficient Market Discipline||Blend of passively managed equity-based mutual funds and actively managed fixed-income mutual funds|
|Efficient Market Discipline Core||Blend of a limited number of actively managed fixed income-based mutual funds and passively managed equity-based mutual funds|
|Efficient Market Discipline Core I||Blend of a limited number of passive mutual funds|
|Efficient Market Discipline ESG||Passively managed equity-based mutual funds that use environmental, social and governance factors and actively managed fixed-income-based mutual funds|
|Efficient Market Discipline ESG Core||Blend of a limited number of passively managed equity-based mutual funds that use environmental, social and governance factors, and actively managed fixed-income based mutual funds|
|Efficient Market Discipline Non-U.S.||Blend of passive mutual funds|
|Market Data Discipline||Long/short strategy using ETFs that may use leverage through margin and hold short positions|
|Pure Index||Primarily low-cost, market cap-weighted ETFs|
The firm does not attempt to time the market, but it may adjust cash holdings based on client situations and market behavior. The firm’s in-house investment management team screens thousands of potential investments each year, choosing those that it believes will best create diversification, reduce risk and provide growth potential.
Allworth Financial charges separate fees for its financial planning and asset management services.
Asset management fees: The fee for asset management management services varies and is negotiated on a case-by-case basis, though it typically does not exceed 1.85% of assets under management. Most of Allworth Financial’s asset management services are offered as part of a wrap fee program, which means that you won’t have to pay additional transaction costs when the firm buys or sells a security on your behalf.
Financial planning fees: For the firm’s three levels of financial planning offered, clients are typically billed on a fixed fee basis. The fees for such services generally fall as follows:
|Allworth Financial, Financial Planning Fee Schedule|
|Service||Fixed fee range|
|Comprehensive Planning – Advanced||$15,000 to $30,000|
|Comprehensive Planning||$3,500 to $5,000|
|Comprehensive Financial Review||$1,500 to $4,000|
One-half of the financial planning fee is due at the time the Client Agreement is signed, and the remainder is due upon completion of services.
Allworth Financial does not have any disciplinary disclosures. All registered investment advisors must disclose in their Form ADV filed with the SEC whether they’ve faced any legal, regulatory or civil disciplinary actions within the last decade that would be material to a client’s evaluation of the firm or the management team.
For more information on Allworth Financial, go to its Investment Adviser Public Disclosure (IAPD) page.
Allworth Financial lists offices in the following locations on its website:
Allworth Financial might be a good option for you if you have $500,000 to invest and are looking for a straightforward investment strategy and comprehensive financial planning services. Clients with fewer assets to invest, or those who aren’t located near an Allworth office but want face-to-face financial planning, might find another firm that’s a better fit.
Before you make your decision, be sure to research multiple firms to ensure you find the right advisor for you.
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