Edelman Financial Engines
Edelman Financial Engines is a financial advisory firm headquartered in Santa Clara, California. It offers an assortment of services focused on financial planning, investment management, retirement planning and money management.
Edelman Financial Engines Background
Edelman Financial Engines was officially formed on Nov. 1, 2018 via the merger of Edelman Financial Services, LLC and Financial Engines Advisors, L.L.C. Both firms were in the advisory business for some time before merging. Edelman was established in 1986 by Ric and Jean Edelman, and Financial Engines was founded in 1997.
Edelman Financial Engines is under the principal ownership of Edelman Financial Engines, L.P.
Prior to the merger, Edelman Financial Services (EFS) and Financial Engines Advisors each received a number of accolades from various financial publications. In fact, Financial Times previously ranked both firms on its list of the top U.S. registered investment advisors (RIAs). Since the merger, Edelman Financial Engines has consistently been ranked the top registered investment advisor (RIA) in the nation by Barron's.*
Edelman Financial Engines Client Types and Minimum Account Sizes
Edelman Financial Engines serves a wide range of individual and institutional investors. More specifically, the firm works with non-high-net-worth individuals, high-net-worth individuals, pension and profit-sharing plans, charitable organizations, other investment advisors and corporations.
The firm doesn't have a set minimum account requirement. Instead, different types of clients and accounts may be subject to specific minimums. For example, clients enrolled in the firm's wrap fee program with legacy EFS agreements, the household minimum account size is typically $5,000, though this can be reduced or waived at the firm's discretion. For legacy EFS employees, the minimum is $3,000.
Institutional clients generally have a minimum account size of $500,000, which may also be waived or reduced. Clients using the Workplace IRA service may need to maintain a balance of $10,000, although this requirement can also be waived.
Services Offered by Edelman Financial Engines
Edelman Financial Engines offers technology-driven investment advisory services, including financial planning, investment management, and retirement income solutions.
These services cover employer-sponsored retirement accounts – including 401(k), 457, and 403(b) plans – as well as IRAs and taxable accounts. Clients can access comprehensive, personalized plans for saving and investing, retirement income assessments and consultations with advisor representatives.
Services are available online, through workplace programs, or via in-person meetings, and are tailored to clients' individual financial goals and preferences. The firm also acts as a fiduciary, ensuring advice aligns with clients' best interests.
Edelman Financial Engines Investment Philosophy
Edelman Financial Engines' investment philosophy centers on helping clients achieve long-term financial goals through diversified, cost-effective portfolios. The firm builds portfolios that balance growth potential with risk management, using a mix of asset classes and sectors.
Strategies are typically long-term, with periodic rebalancing and strategic reallocations based on changing market conditions or client circumstances. Client portfolios are tailored to individual goals, risk tolerance, and financial situations, while the approach is informed by research, including Modern Portfolio Theory and behavioral finance. Short-term trading is generally avoided in favor of consistent, long-term investment strategies.
Fees Under Edelman Financial Engines
The merger between Edelman and Financial Engines resulted in a new fee schedule with lower rates for both new and legacy accounts. Edelman Financial Engines’ fees vary depending on which service you use. Generally, the firm bases its fees on a percentage of assets under management.
For the most part, Edelman Financial Engines charges clients on a quarterly basis. Fees are charged in arrears and are based on the last day of each quarter.
| Wrap Fee Program Fees | |
| Assets | Fee |
| First $400k | 1.75% |
| Next $350k | 1.25% |
| Next $250k | 1.00% |
| Next $2MM | 0.75% |
| Next $7MM | 0.60% |
| Next $15MM | 0.50% |
| Over $25MM | Negotiable |
| Institutional Fees | |
| Assets | Fee |
| Up to $999,999 | 1.40% |
| $1,000,000 - $1,999,999 | 1% |
| $2,000,000 - $4,999,999 | 0.75% |
| $5,000,000 - $9,999,999 | 0.60% |
| $10,000,000 - $24,999,999 | 0.50% |
| Over $25,000,000 | Negotiable |
Check out the table below to see how Edelman Financial Engines’ fees for its asset management services compare to those at other financial advisor firms. Note that these fees are only estimates and actual costs may vary.
| Estimated Fees for Wrap Fee Clients at Edelman Financial Engines* | |
| Your Assets | Fee Amounts |
| $500K | $8,250 |
| $1MM | $13,875 |
| $5MM | $40,875 |
| $10MM | $70,875 |
What to Watch Out For
Edelman Financial Engines currently has no disclosures listed on its SEC-filed Form ADV.
Edelman is a fee-only firm, meaning its advisors do not receive commissions on trades or sales from affiliates or other entities. Fee-based firms, by comparison, have advisors who are licensed to sell insurance and investment products, and can earn sales commissions. To avoid any conflicts, make sure the firm you work with has a fiduciary duty that puts client interests first.
Opening an Account With Edelman Financial Engines
The best way to get in touch with Edelman Financial Engines is to either visit its website or call the firm at (833) 752-6333. Whichever route you choose, the firm will then help you to locate advisors in your area so you can get started as soon as possible.
Edelman Financial Engines has a massive presence throughout the country. The firm’s headquarters is in Santa Clara, California, at 3945 Freedom Circle, suite 950. Additional offices are located nationwide.
All information is accurate as of the writing of this article.
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*The 2024 Top 100 RIA Ranking issued by Barron’s is qualitative and quantitative, including assets managed by the firms, technology spending, staff diversity, succession planning and other metrics. Firms elect to participate but do not pay to be included in the ranking. Compensation is paid for use and distribution of rating. Investor experience and returns are not considered. The 2024 ranking considers EFE the top firm within the mega RIA category, comprised of firms that manage 2% or more of the total assets of all ranking applicants.
