3 Best Wealth Management Services

Facet: Best for predictable, low fees

High-earners looking to become high-net-worth individuals are likely navigating complex financial decisions, but they may be perfectly happy with simple investing strategies. Facet offers those, plus guidance about tackling those complex choices, at a low fee that doesn’t increase with the size of your assets under management. For that reason, I think it’s a great starting point if you’re accumulating wealth and encountering financial questions you’ve never had before, like how to balance competing savings goals or how to strategize upcoming windfalls (via employee equity, perhaps, or an inheritance).

What I like about Facet

Predictable fees. Unlike most wealth management firms, Facet charges an annual flat fee for comprehensive planning services. Its top tier most closely resembles the typical wealth advisor and costs $8,700 per year. That doesn’t change based on the size of your portfolio, which gives an advantage to wealthy investors. A member with $1 million in assets under management is effectively paying 0.87% in fees.

Uncomplicated investment strategies. Top-tier members have access to private market investing and direct indexing but low-cost ETFs are Facet’s bread-and-butter. That’s an investing approach that works for most people because it keeps fees low and portfolios diversified. When it comes to building wealth, it’s totally okay — preferred, even! — to be boring.

• 👉 See how we rate Facet's fees, services and more.

  Investment minimum	$0.
  Account management, planning or subscription fee	$2,600 - $8,700 annually based on the complexity of the plan.
  Advisor access and credentials	All advisors are certified financial planners and fiduciaries. Advisor access and methods of contact are determined by membership tier.
  Financial planning services	Depending on the level of membership, Facet advisors can advise on the majority of situations covered by full-service financial planning firms. In addition to tax planning, they now also offer tax filing services.
  Investment expense ratios	Average 0.08%
  Portfolio construction	Facet portfolios can cover the following asset classes with portfolios build from low-cost ETFs: All U.S. stock types: large cap, small cap, growth, value. An ESG option. Developed non-U.S. Emerging markets. Government, mortgage, corporate and municipal bonds. Asset-backed securities. Commercial mortgage-backed securities. Alternative income (for qualified members only).
  Brokerage options	Facet manages discretionary investment accounts and opens accounts with Apex and Fidelity as the custodian.
  Accounts supported	Direct management: Non-retirement brokerage accounts Roth, traditional, SEP, rollover and inherited IRAs Revocable living trusts Investment account recommendations provided for workplace retirement plans and guidance provided on managing stock option plans.
  Tax strategy	Tax-loss harvesting on all taxable accounts as part of the investment service included in the flat planning fee. Direct indexing is available at the Complete tier with a minimum balance of $200,000. Tax planning, preparation and filing services are available at the Plus and Complete tiers.
  Customer support options (includes how easy it is to find key details on the website)	Email support daily from 8 a.m. to 9 p.m. Eastern. Phone support can be scheduled at the member's convenience.

Where Facet falls short

Facet’s approach to investment management could be the wrong fit for wealthy investors whose finances are structured in more complex ways. That could mean your wealth is tied up in illiquid assets like businesses or real estate or your estate plans require a customized strategy. Facet’s certified financial planners (CFPs) can address some basic planning needs in these areas. But when more complex needs arise, they will refer clients to third-party specialists (i.e. attorneys or accountants) and won’t play the kind of centralized and proactive role that you might get from an advisor at a high-touch wealth management firm.

Edelman Financial Engines: Best for retirement income planning

The math changes when you’re finished accumulating and ready to start drawing down your savings. If you’re looking for a wealth advisor as you approach retirement, you likely want one that specializes in helping you sail through this pivotal moment. Edelman Financial Engines feels like it’s built to shepherd investors through this transition.

What I like about Edelman

Custodial options with broad appeal. Edelman’s brokerage options include Fidelity and Charles Schwab – two of the most common workplace plan custodians. So, if your nest egg is sitting in accounts with one of these brokerages, you won’t have to jump through hoops to move it over to work with Edelman.

Tiered fee structure that favors high balances. EFE charges an annual fee of 1.75% on the first $400,000 of assets under management (AUM). That’s higher than many other advisors, making it a less competitive option for workers still squarely in the early accumulation phase. But those approaching retirement would likely see a lower effective rate with Edelman. For example, someone with $1 million in AUM would pay an effective rate of 1.39%, and the rate continues to get lower as balances get larger. You can review our star ratings chart below for a full breakdown of Edelman’s tiered fee schedule.

Retirement Paycheck service. Edelman clients can enroll in a service that automatically generates a predictable income stream during retirement. For someone using the service, Edelman moves a portion of assets — about three years’ worth of income — into lower risk investments and leaves the rest in diversified, long-term investments. One potential downside, though, is that the fixed income trades that might be used to execute the Retirement Paycheck service can carry additional fees.

• 👉 See how we rate Edelman's fees, services and more.

  Account minimum	Declined to disclose. Opening an account may be subject to a minimum account size, which is determined based on proprietary models developed by EFE. This minimum may be increased, decreased or waived at the firm's discretion.
  Account management, planning or subscription fee	The fee drops the more assets you have under management. 1.75% on the first $400,000. 1.25% on the next $350,000. 1% on the next $250,000. 0.75% on the next $2 million. 0.60% on the next $7 million. 0.50% on the next $15 million. The AUM fee covers financial planning services as well as investment management. But clients who only want a financial plan would pay a one-time fee of up to $10,000.
  Advisor access and credentials	All wealth planning clients are supported by a dedicated advisor, who provides unlimited access throughout the year. Advisors are available via email, chat/text, phone, video or in-person meeting.
  Financial planning services	EFE provides personalized, comprehensive support for complex financial planning needs, including tax optimization, estate planning, and insurance strategies.
  Investment expense ratios	Average 0.14%.
  Portfolio construction	95% of portfolios are unique to the individual. EFE wealth advisors work closely with clients to ensure their portfolio is aligned with their unique needs, goals and risk tolerance. The process is intended to create personalized, age-appropriate, diversified portfolios for each client selecting from among thousands of available investment options and maximizing the risk-adjusted returns of these portfolios by optimizing asset-class exposures, manager performance, fund-specific risk and fees.
  Brokerage options	EFE managed assets are held with one of its custodian partners, including Fidelity, Schwab and Axos.
  Accounts supported	EFE provides comprehensive account management across taxable and non-taxable accounts, including managing assets within most 401(k) plans or other workplace retirement plans.
  Tax strategy	Services include asset location and tax-loss harvesting — offered at no additional cost — as well as direct indexing capabilities. EFE also provides tax planning support.

What Edelman Financial Engines doesn’t do as well

Edelman is providing financial services on a very large scale. That requires efficiency. For clients, that means Edelman advisors will likely guide you toward standardized investment models rather than tailor-making your investment portfolio. Take the Retirement Paycheck service as an example. The firm is making decisions about short-term vs. long-term investments for all clients enrolled in the service at the same time. That’s not a bad thing. But it means EFE may not be the right choice for someone who wants a highly customized experience. Edelman can customize portfolios, but that’s an exception, not the rule.

Mariner: Best for high-touch service

In some situations, standardized systems and model portfolios won’t cut it. A high-touch service can give you flexibility when you find that your financial life needs less automation and more personal attention. Of the wealth management firms we review, Mariner seems best poised to deliver that.

What I like about Mariner

Highly customized portfolios. As a client, you could expect a Mariner advisor to design an investment portfolio around your goals rather than following a standardized strategy. It’s the difference between a tailor who will shorten the length of an off-the-rack suit and one who will take your measurements and create a custom piece. This could be important to you for any number of reasons, but here are some potential scenarios:

• You have unique needs or preferences that are best addressed with a bespoke portfolio.

• The complexity of your financial life is evolving and you need a plan that readily flexes and adapts.

• You need an advisor who can coordinate every aspect of your financial life.

Financial services under one roof. Mariner has in-house specialists and next-level services that could allow you to take care of all your financial services needs in one place. Financial planning and consulting services are a standard offering under its AUM fee, with an advisor coordinating with specialists to cover investment and non-investment planning topics. Additionally, Mariner offers family office services (including banking, bill-paying, record keeping, authorizing users and other administrative work) and coordinated tax services.

• 👉 See how we rate Mariner's fees, services and more.

  Account minimum	There's no firmwide minimum, but some investment strategies or custodial platforms may require a starting balance. Mariner offers a complimentary consultation to determine if it's a good fit.
  Account management, planning or subscription fee	Fees vary by service. Typical rates are: 1.25% on the first $1 million. 1% on assets of $1 million to $5 million. 0.80% on assets of $5 million to $10 million. 0.60% on assets above $10 million. There's a quarterly minimum fee of $1,875.
  Advisor access and credentials	Each client is typically paired with a dedicated advisory team that may include an advisor, investment specialist and planning support staff. Advisors meet a fiduciary standard and may hold CFPs, CPAs, CFAs or JDs. Clients may communicate with their advisory team in person, virtually or by phone.
  Financial planning services	Financial plans are customized to address clients' goals, priorities and financial complexity. Services include wealth and investment planning, retirement planning, tax, estate, insurance and trust planning.
  Investment expense ratios	Not rated. Investments used and portfolio costs vary.
  Portfolio construction	Each portfolio is customized to meet a client’s goals, time horizon and risk tolerance. Portfolios can be constructed using individual securities, exchange-traded funds (ETFs), mutual funds, separately managed accounts and/or limited partnerships when appropriate.
  Brokerage options	Mariner clients can hold assets at multiple third-party custodians, including Fidelity, Schwab and Pershing.
  Accounts supported	Mariner supports a broad range of account types, including individual, joint and family accounts; retirement accounts (IRA, Roth IRA, 401(k) rollovers); and trust, charitable and business accounts.
  Tax strategy	The firm’s advisory teams work closely with in-house tax professionals to help identify potential tax efficiencies. That means: Tax-loss harvesting and asset location strategies may be implemented. Coordination with CPAs and tax professionals. Focus on proactive, year-round tax awareness.

My word of caution about Mariner

It’s hard to pick apart a firm that promises to do anything and everything for you. So, more out of caution than anything else, I humbly suggest that Mariner may be the kind of wealth advisor you graduate to when you’ve worked with someone else for a while and start to stretch the limits of their capabilities or service offerings.

What is a wealth management service?

Wealth management is generally considered one of the most advanced forms of financial advisory services. A wealth advisor typically works with high-net-worth individuals to create a tailored investment and financial strategy to help them manage their assets, reduce risk and leave a legacy. Wealth management generally includes comprehensive financial advice, investment guidance — including access to exclusive investments like private equity — tax planning and filing, estate planning and even legal assistance.

If a wealth management firm can't handle all those areas, they often offer clients access to a network of other trusted professionals who can step in when specific needs arise. This might include lawyers, accountants and charitable giving advisors.

What do wealth management companies do?

Because advisors at wealth management firms provide financial services to the highly affluent, they tend to have expertise in the types of financial questions that affect the ultrawealthy, such as how to reduce estate taxes or set up a donor-advised fund. As mentioned above, many private wealth managers will coordinate with other financial experts — such as accountants or estate planning specialists — on behalf of clients to offer holistic financial management and advice.

For instance, a wealthy individual who has been married and divorced, owns multiple properties and has numerous investments and accounts may need expertise in legal matters, property taxes and investments. A wealth manager could create a complex financial plan that takes each of those needs into consideration, either on their own or with outside counsel.

Wealth advisors typically offer guidance (or referrals to someone who can offer that guidance) in these areas:

A large part of a wealth manager's focus will be on executing investment strategies. Advisors use a variety of approaches to help increase their clients’ wealth, from value investing (Warren Buffett’s favorite) to growth investing. Wealth managers tend to have slightly different approaches since they are working with such large accounts. They may:

• Give their clients access to a wider range of investments than regular financial advisors, like hedge funds and private equity offerings. 

• Use strategies that are more holistic, meaning that any financial plan a wealth manager puts together should incorporate all aspects of a wealthy individual’s life, including things like estate and tax planning, not just their investments.

The strategy a wealth manager employs should also match your risk tolerance and financial goals. For example, if you're nearing retirement, a wealth manager might start shifting the focus from risky growth investments to safer investments that can help you maintain your wealth.

What is the difference between a financial advisor and a wealth advisor?

The main difference between a financial advisor and a wealth manager is client size and breadth of offerings. Wealth managers tend to offer more services than financial advisors do, and they specialize in financial planning for extremely wealthy clients. They are more likely to handle estate planning or tax filing for you, or connect you with a network of professionals, including lawyers and accountants, who are experienced working with high-net-worth clients. Wealth advisors are also more likely to offer specialized services like family offices, charitable giving assistance or business planning.

What is the average fee for wealth management?

The average fee for a wealth advisor is 1.05% of assets under management^[1]. The range is typically 0.25% to 2% of assets under management^[2]. Wealth management firms tend to charge higher fees than traditional financial advisors.

Keep in mind that it’s common for wealth management fees to be tiered, which means fees are highest for the lower portion of your asset balance, and then the fee drops as asset levels increase. For example, Mariner charges 1.25% on the first $1 million of assets under management. The rate drops to 1% on assets of $1 million to $5 million. It drops even further as AUM increases above that level. If you had $5 million, you'd pay $12,500 per year on the first $1 million but $10,000 on each additional million up to $5 million. Your total blended fee would be 1.05%, right in line with the average.

Knowing what you’ll pay for services and how that fee is applied is critical to choosing the right wealth manager. You should always ask a potential advisor what their fee structure is. It’s a good rule of thumb to work with a fee-only fiduciary, which means that they are paid directly by you for their services and they can’t receive compensation for recommending certain products. Having a fiduciary duty means that they are legally obligated to put your needs first.

How much money do you need for wealth management?

Wealth management makes the most sense for investors who already have significant investable assets — say, $1 million or more.

For one thing, some wealth management services require steep account minimums, which exclude investors with low balances from becoming clients. Minimums of at least $250,000 are the norm; $500,000 is not at all uncommon. Some firms also have a minimum fee, which would kick in if your account balance isn't high enough to generate a minimum amount from the AUM fee alone. For example, if a firm's AUM fee is 1% and you have $500,000 invested, your fee should amount to $5,000 per year. But if the firm's minimum fee is $10,000, you'd pay that instead until your balance hits $1 million, enough for the 1% AUM fee to equal the $10,000 minimum.

And then as previously noted, wealth management fees tend to drop as the investor’s asset level moves into higher tiers. Depending on the advisor you choose, you'll pay a lower effective rate (as a percentage of your assets under management) if you have a higher asset balance.

If wealth-management minimums are more than you bargained for, then you probably don’t need wealth management. Financial advisors also offer portfolio management and in-depth financial planning. And if you solely want investment management, you may want to consider a robo-advisor.

The services offered vary by provider, so it’s important to shop around and choose the financial advisor who best meets your needs.

» View our list of the best financial advisors

What credentials should you look for in a wealth advisor?

The titles “wealth advisor” and “financial advisor” don't technically require any level of accreditation. However, many wealth managers are registered investment advisors or certified financial planners. CFPs possess the most rigorous certification for financial planning and are held to a fiduciary standard. Some wealth advisory firms have other experts on staff, such as certified public accountants or chartered financial analysts, who can work together to help you manage your full financial picture.

Use the Financial Industry Regulatory Authority's BrokerCheck tool to verify that an advisor is registered as an investment advisor with the Securities and Exchange Commission or their state, regardless of what title they use. You can use the CFP Board’s site to verify a CFP’s certification and CPAverify.org to verify a CPA.