The Institute for Wealth Management, also known as The Institute, is a registered investment advisor located in Denver. The firm provides a range of advisory services, including financial planning, portfolio management (through managed accounts) and wrap fee programs. The firm's client base is almost entirely made up of individuals. However, the firm does work with several institutional clients.
In addition to providing direct portfolion management, The Institute alo contracts with investment advisor representatives (IARs), who offer the firm's services to their clients. Certain IARs may operate under a separate business name or doing business as (DBA) name.
The Institute is a fee-based firm. This means that certain IAR may receive outside compensation for selling or recommending products and services, in addition to the advisory fees that clients pay. This is different from a fee-only firm.
The Institute for Wealth Management Background
Founded in 2003, the firm is principally owned by The Institute for Wealth Holdings, Inc., which is in turn owned by Matthew Medeiros, the president and CEO of both companies.
The Institute for Wealth Management Client Types and Minimum Account Size
Advisors at The Institute work almost exclusively with individuals, though it does have retirement plans, charitable organizations, businesses and one investment fund as clients too. The vast majority of individual clients here do not have high net worths, although some do.
Clients looking to open an account with The Institute will need to meet the minimum investment requirement of $100,000. The firm reserves the right to accept clients with less than this, though.
Services Offered by The Institute for Wealth Management
The Institute provides a range of financial services to its clients. These include investment portfolio management through managed accounts, financial planning, consulting and wrap fee programs. All services are comprehensive and take into account the financial needs and goals of each client. Portfolio management is carried out on a discretionary basis, meaning advisor assume full control of all trading and transaction decisions.
Financial planning services may be broad or narrow in scope, covering such topics as:
- Net worth analysis
- Asset distribution
- Asset growth and cash flow
- Estate planning
- Retirement planning
The Institute for Wealth Management Investment Philosophy
Whether a client is receiving financial planning services, investment management services or a mix of both, The Institute tailors its advice to the individual needs of each client. By determining the personal risk tolerance, time horizon, liquidity needs, net worth and overall financial situation of each client, the firm and IARs attempt to adequately determine how to help them meet their financial goals and objectives. The firm's investment committee develops strategies for each client type and subsequently builds a model portfolio for each strategy.
The Institute's investment committee uses a mix of fundamental and technical analysis to help inform their investment decisions. The firm utilizes multiple investment styles, including strategic and tactical asset allocation, and individual stock and bond investments. Each focuses on specific types of investments and maintains predetermined levels of risk.
Fees Under The Institute for Wealth Management
Investment advisory fees at this firm are negotiable. Typically speaking, the maximum annual fee for these services is 2.25% of a client's assets under management (AUM). Some smaller accounts that do not meet the firm's minimum may incur a $10 monthly fee.
For the firm's wrap fee program, fees range from 1% to a 2.50% maximum, but include transactional and custodial fees.
| The Institute for Wealth Management Wrap Fee Schedule | |
| AUM | Maximum Fee |
| First $249,999 | 2.50% |
| $250,000 - $499,999 | 2.00% |
| $500,000 - $999,999 | 1.50% |
| $1,000,000 and up | 1.00% |
While fees are negotiable, here are the maximum fees that you'll pay for The Institute's wrap fee program based on the size of your account:
| Estimated Investment Management Fees at The Institute for Wealth Management* | |
| Your Assets | The Institute for Wealth Management Fee Amounts |
| $500K | $11,250 |
| $1MM | $18,750 |
| $5MM | $58,750 |
| $10MM | $108,750 |
Financial planning services feature a flat fee of between $1,000 and $10,000, or a neogtiable hourly fee. Fees are calculated and billed on either a monthly or quarterly basis.
What to Watch Out For
The Institute for Wealth Management does not have any legal or regulatory disclosures listed on its Form ADV.
As mentioned earlier, some IARs affiliated with The Institute may earn outside compensation, like commissions for selling advisory clients insurance. This presents a conflict of interest, as IARs may have financial incentive to recommend certain products or services instead of purely serving the client's needs. Then again, IARs must abide by their fiduciary duty to always act in their clients' best interests.
Opening an Account With The Institute for Wealth Management
Those looking to open an account at The Institute should visit the firm's website, where you can fill out a contact form. You can also reach the firm by phone at (303) 572-3500.
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