Modera Wealth Management Review

Modera Wealth Management is an East Coast-based wealth management firm that provides customized portfolios and wealth management services, mostly to high net worth individuals. Though the firm technically does not have an investment minimum and it does serve clients who aren’t considered high net worth, it notes that its services are intended for those who have at least $2 million to invest.

Assets under management (AUM): $6,950,534,211

Minimum investment: None

Individual investor-to-advisor ratio: 43:1

Fee structure: A percentage of AUM, hourly charges, fixed fees

Headquarters: 56 Jefferson Avenue Westwood, NJ 07675 Phone: 201-768-4600 Modera Wealth website and SEC Form ADV

All information included in this profile is accurate as of April 25, 2022. For more information, please consult Modera Wealth Management’s website.

Overview of Modera Wealth Management

Modera Wealth Management’s origins date back to 1983, when Gary Greenbaum of Greenbaum & Associates established an early incarnation of the advisory firm. In 2010, Modera Wealth Management was formed. The firm has since merged with or acquired a number of other firms throughout the country. Today, Modera Capital Inc. is the firm’s majority owner, though Tria Asset Holdings A, LLC, and a number of individuals also hold stakes.

Modera Wealth Management has nearly 90 employees. Of those employees, around 50 serve as investment advisors. Many of the firm’s staff members have earned certifications such as the certified financial planner (CFP), certified financial analyst (CFA) and certified public accountant (CPA) designations.

Types of clients

The majority of Modera’s clients are high net worth individuals. However, the firm also has hundreds of individual clients who are not classified as high net worth individuals, which the U.S. Securities and Exchange Commission (SEC) defines as those with at least $750,000 under management or a net worth of $1.5 million. Modera’s website notes that it services the unique needs of clients who are business owners, corporate executives and medical or dental professionals. In addition, the firm notes that it addresses the needs of LGBTQ+ clients, surviving spouses, clients who are divorcing and clients with special needs and chronic illnesses.

There is technically no minimum account size requirement at Modera. Due to its minimum fee requirements for its services, however, working with Modera may be more accessible to those with larger portfolios. Additionally, the firm states that its services are designed for those with at least $2 million to invest.

Services offered

Modera Wealth Management splits its services into two broad categories: wealth management and portfolio management. Wealth management clients receive financial planning and consulting services, which can include business coaching or real estate services, along with discretionary or non-discretionary asset management for all or a portion of their portfolio. For clients who have chosen discretionary management, the firm may make trades on their behalf without getting approval for individual transactions. Clients can also choose standalone financial planning services.

The firm also provides investment consulting and monitoring services on outside accounts held with other institutions to some existing clients, as well as retirement plan consulting and management services.

Here is a full list of the services offered by Modera Wealth Management:

• Portfolio management
• Wealth management
• Financial planning and consulting services
  • Business planning
  • Investment planning
  • Insurance planning
  • Retirement planning
  • Education planning
  • Estate planning
  • Tax planning
  • Tax preparation
  • Cash flow forecasting
  • Life transition planning
  • Charitable giving
  • Wealth transfer strategies
  • Risk management
• Real estate coaching
• Business coaching
• Investment consulting and monitoring services
• Retirement plan consulting and management services
• Collaboration with clients’ lawyers, accountants, etc.

Investment strategy

Modera Wealth Management makes investment decisions based on Modern Portfolio Theory, which holds the following tenets:

• The markets do a fairly good job of pricing securities.
• Diversification is essential.
• Increased risk can create the potential for greater returns.

The firm works with each client to create a portfolio tailored to their financial situation that achieves the highest rate of return with the least amount of risk. It also focuses on minimizing taxes and keeping overall costs down. Modera eschews market timing and instead aims to keep clients fully invested within their parameters.

The firm’s portfolios primarily include the following types of investments:

• Mutual funds
• Exchange-traded funds (ETFs)
• Bonds

However, portfolios may also use the following to add further diversification:

• Allocation to third-party independent managers
• Commodities
• Real estate
• Currencies
• Non-correlated trading strategies

For accredited investors that meet a certain net worth or income minimum, the firm may also recommend private investments, such as pooled investment vehicles that invest in securities including debt and equity.

Modera Wealth Management’s fees

Modera Wealth Management’s fee types and rates vary depending on which service a client receives.

Fees for wealth management and portfolio management: For wealth management, the firm typically charges between 0.15% to 1.00% of assets under management, with a minimum quarterly fee of $5,000. The typical fee for portfolio management services is 0.10% to 0.80% of assets under management, with a minimum quarterly fee of $4,000.

Clients may also have to pay transaction costs, commissions or other fees to third-party financial institutions if their portfolio includes such investments.

Fees for financial planning: Financial planning costs are included in wealth management services, but those who opt for portfolio management services will need to pay separately for financial planning. Typical financial planning fees range from $200 to $400 per hour, or a minimum of $2,000 on a fixed fee basis.

Modera usually imposes a minimum fee of $2,000 for all financial planning and consulting services, which can be assessed on a per-project basis. If a client later engages the firm for wealth management, it may offset the cost of wealth management by the fees already paid.

Fees for other services: Business and real estate coaching carry separate fees, ranging from $2,000 to $25,000 per quarter. Clients who use Modera Wealth Management for investment monitoring or consulting may pay additional fees of $7,000 to $50,000 per year, which may cover financial planning services as well.

Disciplinary disclosures

No disclosures reported in the past 10 years.

Becoming a client

1. Contact the firm: If you’re interested in working with Modera Wealth Management, you can navigate to the firm’s calendar on its website to schedule a 30-minute chat, or you can call a local office.
2. Have a meeting: The process begins with a meeting in which you’ll discuss your financial situation and goals.
3. Receive your plan: Your team will then use that information to come up with a portfolio and, if you’re a wealth management client, a financial plan.
4. Have your plan implemented: Next, advisors will work toward implementing your plan. The process may include conversations with other professionals in your life, such as your lawyer, accountant or insurance agent.
5. Stay in touch: Clients of Modera can expect to be contacted at least annually for a review of services and recommendations and to discuss any life changes that may impact their financial situation or investment goals.

Locations

Modera Wealth Management has offices in the following locations:

• Westwood, N.J.
• Boston
• Atlanta
• Inverness, Fla.
• Charlotte, N.C.
• Wayne, Penn.

It also has a client meeting space in New York City.

Is Modera Wealth Management right for you?

If you have at least $2 million to invest and live on the East Coast, Modera Wealth Management may be worth considering. You’ll get personalized services, financial planning and conflict-free advice thanks to the firm’s fee-only business model.

While the firm does have many clients who are not high net worth investors, those with smaller portfolios may pay proportionally higher fees. For investors with less money to invest, other wealth management firms may offer similar services at a lower price.

Of for any reason you don’t find Modera Wealth to be your perfect fit, MagnifyMoney can help match you with a fiduciary advisor. Take the first step today.