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.
The bottom line: Modera Wealth Management is a wealth management firm catering largely to high net worth clients, although there is no formal investment minimum.
All information included in this profile is accurate as of April 25, 2022. For more information, please consult Modera Wealth Management’s website.
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.
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.
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:
Modera Wealth Management makes investment decisions based on Modern Portfolio Theory, which holds the following tenets:
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:
However, portfolios may also use the following to add further diversification:
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 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.
No disclosures reported in the past 10 years.
Modera Wealth Management has offices in the following locations:
It also has a client meeting space in New York City.
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.
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