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Tolleson Wealth Management Review 2022

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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 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.

  • Caters to ultra-high net worth families and individuals
  • Offers holistic planning services, including tax, philanthropic and estate planning
  • Can provide private banking services

All information included in this profile is accurate as of December 13, 2021. 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 around 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. 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.

The senior Tolleson was inducted into the Dallas Business Hall of Fame in 2014.

Tolleson Private Wealth Management’s pros

  • Award-winning: Firm president Richard Joyner has appeared on Barron’s list of the “Top Independent Wealth Advisors” several times, and in 2021, Tolleson Private Wealth Management was nationally ranked No. 58 out of 607 firms on Financial Advisor Magazine’s Annual RIA 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.
  • Competitive fees: The firm’s fees — which run from 0.35% to 1% of a client’s assets under management annually for financial advisory services and 0.15% to 0.20% for fixed-income portfolio management — are relatively low. For comparison, 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

  • High account minimum: Tolleson Private Wealth Management generally requires 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 for the firm to recommend those funds over others, presenting 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?

All of the firm’s individual clients are high net worth investors, defined by the U.S. Securities and Exchange Commission (SEC) as those with at least $750,000 under an advisor’s management or a net worth believed to be at least $1.5 million.

While the firm may waive its minimum investment requirement at its discretion, it generally has a minimum account size of $10 million for advisory clients.

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 it also offers other services, including tax, bookkeeping, bill pay, cash management, estate planning, philanthropy and risk management.

Additionally, clients of Tolleson Private Wealth Management have access to trust services and other private banking services provided through the firm’s affiliate, Tolleson Private Bank.

Here is a full list of services provided by Tolleson:

  • Investment advisory services/portfolio management
  • Strategic wealth management and financial planning
  • Taxes and bookkeeping
  • Trusts and estates
  • Philanthropy
  • Family engagement
  • Private banking (via Tolleson Private Bank)

How Tolleson Private Wealth Management invests your money

Tolleson Private Wealth Management focuses on helping clients form their asset allocation strategy and advising them on setting goals as opposed to honing in on security analysis. Investment strategies are determined based on each client’s risk tolerance and goals, as well as their income needs.

Once determined, the firm implements the client’s policy and reports at least once per quarter on the portfolio results. The firm states that its focuses when managing a client’s portfolio are asset protection and tax efficiency.

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.

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. The firm also may charge 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
Type of service Basic fees
Financial advisory services 0.35%-1% per annum of client assets under management or annual fixed fees
Discretionary fixed-income portfolio management 0.15%-0.20% per annum of client assets under management

The firm typically bills for its services each quarter, but clients can also request that their fees are deducted directly from their accounts. Typically, clients who receive both financial advisory services and fixed-income portfolio management pay a comprehensive advisory fee, plus a supplemental fee for the fixed-income 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 no disciplinary disclosures. The SEC requires registered investment advisors 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 Investment Adviser Public Disclosure (IAPD) page.

Tolleson Private Wealth Management onboarding process

  1. Contact the firm: Prospective clients can reach out to the firm via the contact form provided on the firm’s website, which requests your contact information, 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.
  2. Meet with the firm: Next, you’ll meet with the firm so the team can learn more about your goals. The firm will work with you to create an investment policy statement and a fixed-income investment policy statement, which it uses to evaluate and recommend investments.
  3. Get assigned a team: The firm 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.
  4. Receive regular reports and stay in touch: 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 a Dallas-area firm focused on assisting ultra-high 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.

Before choosing an advisor, 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.