What Is Our Service Model?
Our service model begins with several face to face meetings as we establish the client-advisor relationship and initial planning and investment strategy. After that, it combines quarterly business reviews (either face to face or over the phone), with email, phone and web-based communication depending on what works best for the client. We are available during business hours in all US time zones and make ourselves available for meetings after business hours. Clients also have full internet access to their accounts 24 hours a day, 7 days a week.
What Is Our Fee Structure?
Broadview Wealth Management offers a highly competitive fee structure for the value we provide.
We generally find our total cost (advisory fees plus investment expenses) for clients with a $1M portfolio is less expensive than the average actively managed mutual fund. We have also created a fee structure that allows clients without existing advisors to often hire us and keep their expense level roughly the same. In some cases, depending on the cost structure of a client’s investments, we can reduce the overall expense, including our fee.
We encourage you to compare our rates and breakpoint levels to the market and welcome your feedback on how we compare.
|Asset Range||Annual % of Assets|
|up to $750,000||1.00%|
|between $750,001 and $1,500,000||0.75%|
|between $1,500,001 and $5,000,000||0.50%|
|between $5,000,001 and $10,000,000||0.35%|
|Assets held in current employer 401(k) plan||0.50%|
|Assets held in education savings plans (eg 529s)||0.50%|
Because 401(k) and education savings plan choices are often limited and at times have higher management costs we attempt to hold down your total costs by charging no more than 0.50% for those assets, regardless of your portfolio size.
- BWM charges a minimum fee for service of $4,000 per year ($1,000 per quarter). If client AUM fees do not equal at least $1,000 for a given quarter, BWM will charge the client $1,000 for that quarter.
- BWM uses AUM on the last day of the billing period for the purposes of determining the market value of the assets upon which the advisory fee is based.
- BWM is not compensated on the basis of a share of capital gains upon or capital appreciation of the funds or any portion of the funds of Client.
In addition to our comprehensive financial planning, investment management and financial advisory services that are based on assets under management, we will also work with clients to create standalone financial plans. We offer this service for $1,500 and clients will receive a comprehensive financial plan and financial plan review for this standalone service.
How does Broadview Wealth Management differ from brokerage firms, trust companies, banks, and asset management firms?
We have ensured that our financial interests are aligned with those of our clients. Broadview Wealth Management is independently owned and operated. We are not subject to outside influences regarding service, product or investment recommendations. Our sole source of revenue has always been from client fees. We do not accept any commissions, product placement fees or any other revenue from third parties.
In addition, our investment management services offering provides expert counsel across the entire capital market spectrum, rather than in a single asset class or investment style. For those with more complex needs, our services and approach provide the high–touch experience and resources you might expect to find in a private office serving an exceptionally wealthy family.
What services do you provide? What are your specialties?
We offer holistic wealth management strategies. Over the course of our relationship we will engage deeply on the following areas: financial planning, retirement planning, education planning, insurance planning, estate planning, portfolio management, advanced tax planning and more.
We have a depth of knowledge and experience in all of the areas above but if there is a “specialty” it’s that we serve as the client’s Chief Financial Officer, quarterbacking all of the key financial activities to ensure that they are maximizing their wealth creation in a smooth and effective manner throughout their lives. We endeavor to provide white glove service in everything we do.
How does Broadview Wealth Management work with my current Advisors (attorneys, CPAs, and other professionals)?
We work closely with client’s current financial “team” to ensure that the client gets the best service and outcome possible. Our goal is to build a strong relationship with the client’s advisors in order to complement and enhance their work. In some cases, we may serve as the overall project manager or quarterback to ensure the financial team has timely and accurate information. In all cases, our job is to work together, provide context and obtain the benefit of their expertise. As the client’s overall financial advisor, we will be in a position to anticipate issues and opportunities that can be referred to tax advisors, lawyers or other service providers, for prompt consideration and resolution.
Where will my assets be held? What financial institution(s) do you represent?
Broadview Wealth Management is a registered investment advisor and is completely independent. Our custodian, who holds client assets, is TD Ameritrade. They house IRAs, individual 401K’s and brokerage accounts. They provide monthly statements, tax documents, and online access. We also provide advisory services on a client’s workplace 401K/403B/457 plan assets but those assets remain custodied by the 401K plan custodian.
Who Is Dimensional Fund Advisors and Why Do You Use Them?
Dimensional Fund Advisors is one of the leading mutual fund companies in the world. They were founded in 1981 and provide an exclusive class low-cost, institutional mutual funds that as of October 2018 boast over $580 Billion in assets.
The Dimensional approach focuses on academic research that isolates the factors that tend to outperform the broad market over long time periods and the risk characteristics that can be eliminated from a portfolio. While indexes are simply measures of an asset class, DFA funds aim to efficiently capture the excess returns of an asset class without taking uncompensated risk—and at a low cost.
As an example, value stocks have outperformed growth stocks over time. The same can be said for small cap stocks compared to large cap stocks. Likewise, company profitability is another “dimension” that exhibits potentially higher returns without a commensurate increase in risk to obtain those returns. DFA funds allow Broadview Wealth Management to act as portfolio engineers, strategically tilting our portfolios to efficiently capture these effects in both the domestic and international markets.
The cornerstone of many of our investment recommendations are DFA funds because of their long history of solid investment performance, low-cost and tax efficiency for investors and the quality of the firm itself. DFA limits access to its funds to a select group of fee-only financial advisory firms – including Broadview Wealth Management — who share their structured investment philosophy based on our five core investment principles.
For more information on Dimensional Fund Advisors and their approach to investment strategy and portfolio construction go here (here is the link to their site: https://us.dimensional.com/
How many clients do you currently manage?
We current have relationships with over 45 clients.
Who Is Your Typical Client?
Our typical client is comfortable trusting an advisor as a long term partner, aligned with a structured/index-based investing philosophy, and has investable assets of greater than $500K (although we do not require a minimum amount of investable assets).
Do you have a minimum amount of assets for clients you work with?
We typically engage with people who have $400,000 in investable assets or greater. Investable assets include assets in brokerage accounts, IRAs, 401Ks and the like. Investible assets do not include primary and/or vacation homes. This is consistent with our minimum annual fee of $4,000 per year ($1,000 per quarter). We work with individuals and families with less than $400,000 in investable assets who agree to our minimum annual fees.
Do you provide a free initial consultation?
Yes. We find it essential to interview prospective clients to ensure that we are a good fit for one another. We are also willing to spend some time together talking about key financial questions you may have and provide what will likely be answers or perspectives that will be immediately useful to you.
If you are going to manage client’s accounts, do you obtain their permission every time you buy or sell something?
Broadview Wealth Management is a “non-discretionary” investment advisory firm. That means that we get client’s permission before making portfolio modifications. We believe this is in the best interest of the client and our firm as it ensures that we are tightly aligned with our client’s interests at all times and there are no surprises for the client when we do things on their behalf.
How much risk should I be willing to take?
This is a very personal decision. To help client’s answer this question, we need to learn more about your family history, employment status, other income and resources, cash flow, and short-term needs, among other things. In addition to understanding how much risk a client may need to take, there is also the question of how much risk a client can tolerate. We also spend time understanding this dynamic as well to help clients determine what their risk tolerance is for designing investment portfolios.
Does Broadview Wealth Management ensure discretion and confidentiality in managing my affairs?
How will we work together? Will you be the only person working with me?
The client advisor relationship includes working with Tom in all facets of this. This includes financial planning, portfolio design and implementation and the range of financial topics we’ll engage in from education and estate planning to advanced tax and retirement planning. Tom engages with a network of people from his backoffice support team to investment managers and the client’s network of financial professionals (eg accountant, estate planner, etc.) to ensure the highest quality service for the client.