Based in Folsom, California, Allworth Financial is a fee-based financial advisory firm serving individuals, families and institutional clients. Its services include integrated financial planning and investment management, with advisors having access to in-house expertise across areas including tax, estate planning, insurance and retirement income. Allworth also appears on SmartAsset's list of the top financial advisors in California.
As a fee-based firm, some members of the advisory staff at Allworth may receive third-party commissions when they sell certain insurance products or securities. This represents a potential conflict of interest, but Allworth has a fiduciary duty to act in its clients' best interests.
Allworth Financial Background
Allworth Financial was originally founded in 1993 and has been registered with the SEC since 1996. The firm is owned and controlled, through intermediate subsidiaries, by affiliated funds of Integrum Holdings LP, the Ontario Teachers’ Pension Plan and affiliated funds of Lightyear Capital.
With offices and financial advisors across the country, Allworth Financial has a large team of credentialed professionals. Advisors at Allworth Financial hold a variety of designations, including the Certified Financial Planner™ (CFP®), chartered financial consultant (ChFC), chartered financial analyst (CFA), Certified Divorce Financial Analyst® (CDFA®), chartered retirement planning counselor (CRPC), retirement income certified professional (RICP) and accredited investment fiduciary (AIF) certifications, among others.
Allworth Financial Client Types and Minimum Account Sizes
Allworth Financial works primarily with individuals and families, including those with and without a high net worth. The firm reports that an increasing share of new clients are high-net-worth in nature as a result of seeking more sophisticated planning and coordination services. The firm also works with institutional clients like retirement plans, charitable organizations and businesses.
Allworth does not have a general minimum initial investment or account size. Certain services and strategies may have specific minimum requirements, though.
Services Offered by Allworth Financial
Allworth offers investment management and financial planning, with the client’s advisor supported by in-house expertise across investments, tax, estate planning, insurance and retirement income. This allows financial decisions to be considered in the full context of the client’s financial life.
Investment management services are mostly available through a wrap fee program, which is an arrangement that bundles expenses for management, transactions and custodial services into a single charge. The firm offers a similar service for variable annuity sub-accounts.
Financial planning services at the firm may cover a variety of needs, including reviewing a client's financial position investment planning, retirement planning, strategic tax planning, estate planning and retirement consulting. The firm also offers educational newsletters, seminars, webinars, guides, tutorials, podcasts, checklists and articles.
Allworth Financial Investment Philosophy
Allworth considers each client's goals, income needs, tax situation, risk tolerance and time horizon when building an investment portfolio. Advisors then construct portfolios using investment strategies appropriate to those needs, and monitor as clients’ circumstances evolve.
Allworth uses a range of investment approaches and portfolio strategies, including active and passive strategies. Specific investments may include exchange-traded funds (ETFs), mutual funds, individual securities, alternative assets, direct indexes, SMAs and other investment solutions depending on a client's circumstances, objectives and preferences. Allworth also evaluates clients' insurance needs and may offer insurance products including variable life insurance and variable annuities when appropriate.
Fees Under Allworth Financial
Fees for the investment management services at Allworth Financial are generally charged as a percentage of the client's assets under management (AUM).
Investment management fees are subject to a $2,500 annual minimum and cannot exceed 2.00%. The exact rate is specified in the client's Investment Management Agreement and can vary based on factors such as the size and nature of the account. Fees are negotiable, and some clients may pay different rates for the same services. As the firm typically provides asset management via a wrap-fee program, this fee will cover all management, brokerage and custodial charges. These fees are usually deducted directly from your account's balance.
Financial planning services are generally charged on a fixed-fee basis, with fees ranging from $1,500 to $30,000.
What to Watch Out For
Allworth Financial has no disclosures of legal or regulatory action on its most recent Form ADV.
As mentioned above, Allworth Financial is a fee-based firm. Some advisors are licensed insurance agents or securities brokers who may earn commissions from third parties. That represents a potential conflict of interest and is why Allworth is considered a fee-based firm.
Fee-only firms, by comparison, receive compensation only from clients and do not earn sales commissions. That said, the firm still has a fiduciary duty to act in its clients' best interests, no matter what.
Opening an Account With Allworth Financial
To learn more about Allworth Financial or inquire about opening an account, you can call the firm at (916) 482-2196. You can also fill out the contact form on the firm's website.
All information is accurate as of the writing of this article.
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