Acorn Financial Advisory Services, Inc. is a well-known firm and has been featured in the media by the Wall Street Journal, the Financial Times, Forbes, CNBC and Reuters. It was also named one of the top 50 fastest-growing firms in 2019 by Financial Advisor Magazine and has been rated as a top financial advisor by the Financial Times for the past three years.
This firm, which is fee-based rather than fee-only, is headquartered in Reston, Virginia, but has several other offices in Virginia, Maryland, North Carolina and Florida. The firm has also expanded north with an office in Massachusetts.
The firm's financial advisors work with non-high-net-worth and high-net-worth individuals, as well as pension and profit-sharing plans. The firm makes an appearance on SmartAsset's list of the top financial advisors in Reston, Virginia as well.
Acorn Financial Advisory Services Background
Acorn Financial Advisory Services was founded in 1996. James M. Gambaccini, a Certified Financial Planner™ (CFP®), is the sole shareholder. Gambaccini oversees a team of 29 advisors that features several other CFPs®. Today, the firm manages more than $1 billion in assets under management (aum).
Acorn Financial Advisory Services Client Types and Minimum Account Sizes
The firm serves individuals, families, pension and profit-sharing plans, trusts, estates, charitable organizations, corporations and business entities.
Acorn Financial Advisory Services generally requires a minimum investment of $1 million for asset management services, but other services may require different minimum requirements.
Depending upon circumstances where asset values have diminished significantly below account minimums due to withdrawals or other circumstances, AFAS may substitute a Financial Planning and Analysis Contract on an hourly basis in place of the Portfolio Management Contract. This would only be considered temporarily after discussion with the client.
Services Offered by Acorn Financial Advisory Services
Acorn Financial Advisory Services can tailor a financial plan to your needs and preferences. Plans may cover:
- Budgeting
- Cash flow analysis and debt management
- Charitable planning
- College planning
- Estate planning
- Insurance planning and analysis
- Investment planning and analysis
- Tax planning
In addition, the firm’s advisors can offer different portfolio programs to help clients meet their long-term financial goals.
Acorn Financial Advisory Services Investment Philosophy
Acorn Financial Advisory Services generally relies on portfolio diversification to help its clients meet their goals. Its portfolios are designed for varying risk tolerances and utilize various types of securities, including mutual funds and exchange-traded funds (ETFs). The firm’s advisors work with clients to help them decide which one is best for their goals, time horizon and profile.
Fees Under Acorn Financial Advisory Services
Acorn charges financial planning fees on a fixed price or hourly basis. The minimum flat fee is $2,400 and the maximum is $5 million. The hourly fees for consultations with advisors range between $595 - $1,095 and the hourly rate for staff time is $155. The firm requires a minimum of two hours of financial planning advice.
Fees for non-discretionary portfolio management are based on a percentage of assets under management (AUM). They generally follow this tiered fee schedule:
| Acorn Financial Advisory Services Fee Schedule | |
| AUM | Annual Fee Rate |
| First $1MM | 1.70% |
| Next $4MM | 1.00% |
| Next $5MM | 0.80% |
| Next $10MM | 0.70% |
| Next $30MM | 0.60% |
| Above $50MM | 0.50% |
Below is an overview of what you can expect to pay for advisory services at Acorn. For reference, a recent study completed by RIA in a Box found that the average annual advisory fee is 0.95% of AUM.
| *Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. | |
| Estimated Investment Management Fees at Acorn Financial Advisory Services* | |
| Your Assets | Acorn Financial Advisory Services Fee Amount |
| $500K | N/A (below firm minimum) |
| $1MM | $17,000 |
| $5MM | $50,000 |
| $10MM | $80,000 |
Acorn Financial Advisory Services Awards and Recognition
Acorn Financial Advisory Services has several awards to boast. These include:
- Named to Financial Times 300 Top Registered Investment Advisers three (3) times.
- Named to Financial Advisor Magazine’s Top 50 Fastest-Growing Firms
What to Watch Out For
Acorn Financial Advisory Services does not disclose any SEC-filed Form ADV disclosures.
As a fee-based firm, some advisors at Acorn may also be registered representatives of broker-dealers or licensed insurance agents. These other roles may present potential conflicts of interest. Despite this, though, the firm's fiduciary duty requires it to act in clients' best interests at all times.
Opening an Account with Acorn Financial Advisory Services
Those interested in working with Acorn Financial Advisory Services can go online to the firm's website and submit a contact form. You can also visit the firm in person at one of its offices or call them on the phone at (703) 870-2412.
All information is accurate as of the writing of this article.
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