Modern Wealth Management, which is headquartered in Kansas City with branches across the U.S., is a financial advisor firm that specializes in a handful of services, including financial planning, investment management and more. The firm works with over 10,000 households as clients, most of whom have a net worth below the high-net-worth threshold.
Perhaps the most unique offering of Modern Wealth Management is its "Modern Confidence Score." This proprietary tool developed by the firm is designed to give a snapshot into how confident you are about your financial plan based on four main areas: investments, taxes, insurance and your estate.
This is also a fee-based firm, which means it can receive commissions for the sale of certain insurance products available through an affiliate. While this presents a potential conflict of interest, the firm serves clients in a fiduciary capacity, meaning it seeks to recommend strategies in support of clients’ long-term financial goals. This differs from a fee-only firm, which is one that would avoid these types of commissions and instead receive compensation only based on client-paid fees.
Modern Wealth Management Background
Modern Wealth Management was founded in 2023 by president Jason Gordo and co-CEOs Mike Capelle and Gary Roth. Today, the firm is owned by a handful of direct and indirect entities including employees of the firm, and operates 29 total locations.
Various members of the advisory staff at the firm hold certifications. These include Certified Financial Planner™ (CFP®), accredited investment fiduciary (AIF), certified public accountant (CPA), chartered financial analyst (CFA), qualified 401(k) administrator (QKA), chartered alternative investment analyst (CAIA), certified fund specialist (CFS) and more.
Modern Wealth Management Client Types and Minimum Account Sizes
Modern Wealth Management's client base is quite large. While individuals with less than a high net worth make up the majority, high-net-worth individuals hold the largest share of its assets under management (AUM). Other clients of the firm include charitable organizations, businesses and pension/profit-sharing plans.
Although specific services or programs may have their own minimums, the firm does have a $250,000 household minimum investment requirement. It also reserves the right to waive or adjust this minimum at its discretion.
Services Offered by Modern Wealth Management
There are a multitude of services available to clients of Modern Wealth Management. While they all generally fall under the umbrella of wealth management, they are more specifically split between financial planning and investment management. Investment management involves exactly what it sounds like: the management of your portfolio according to the firm's investment philosophy, as well as your goals, risk tolerance, time horizon and more.
For financial planning, its services involve a few different areas that include, but are not limited to:
- Financial goal prioritization
- Retirement planning, including income planning
- Social Security planning
- Estate planning
- Tax prep and planning
- Insurance planning
- Cash flow management
Modern Wealth Management Investment Philosophy
Modern Wealth Management uses a specific process when working with clients on their investment portfolios. According to its website, this involves these five high-level steps, which are intimately connected to the aforementioned Modern Confidence Score tool:
- Welcome: Meet your advisor and learn how the firm can help you. This is when you'll establish your Modern Confidence Score.
- Discover: Iron out your financial goals, risk tolerance and more. You'll also review your Modern Confidence Score here.
- Prepare: Review your existing portfolio and build an investment plan accordingly.
- Connect: Align on the plan going forward and set steps for action. At this point, you'll address any gaps in your Modern Confidence Score.
- Enjoy: Implement your plan, but continue to monitor and adjust as needed. This is when you'll ideally see your Modern Confidence Score increase over time.
According to its SEC-filed Form ADV, the firm tends to invest client assets in some or all of the following: stocks, bonds, ETFs, mutual funds, alternative investments, money market funds, federal government treasuries, cash and cash equivalents. What your individual portfolio looks like will depend on how the five steps above shake out, as well as your investment objectives and other investor characteristics.
Fees Under Modern Wealth Management
Investment management fees at Modern Wealth Management operate based on a percentage of each client's AUM. These fees are marginal, so the assets within each tier will be charged that tier's respective rate, up until all of a client's assets are accounted for. Here's a breakdown:
| Modern Wealth Management Fee Rates | |
| Amount of Assets | Annual Fee Rate |
| First $499,999 | 1.50% |
| $500,000 - $999,999 | 1.25% |
| $1,000,000 - $2,999,999 | 1.00% |
| $3,000,000 - $4,999,999 | 0.75% |
| $5,000,000 - $9,999,999 | 0.65% |
| Over $10,000,000 | 0.55% |
These fees are charged quarterly in advance, and are based on the value of a client's portfolio on the last day of the previous calendar quarter. Clients may also incur separate costs, such as investment, custodial and other fees, but the firm also utilizes a wrap fee program for some clients.
Fees for planning and other similar services vary based on what the client utilizes. For financial planning, fees typically vary from $2,500 to $10,000. For estate planning, fees are also variable between $500 and $15,000.
What to Watch Out For
Modern Wealth Management has no legal or regulatory disclosures listed on its SEC-filed Form ADV.
As a fee-based firm, Modern Wealth Management can earn commissions from the sale of insurance products to clients, which is a potential conflict of interest. The firm, however, has a fiduciary duty to act in clients' best interests. Clients are also under no obligation to purchase related insurance products from the firm directly.
Opening an Account With Modern Wealth Management
You can become a client of Modern Wealth Management by calling (913) 393-1000, filling out the contact form on its website or visiting one of its nearly 30 locations.
All information is accurate as of the writing of this article.
Financial Planning Tips
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