This post was originally published on this site.
Pros explained
- Offers comprehensive financial planning services: Cerity Partners offers a variety of financial planning and management services that a high-net-worth family might need.
- Robust asset selection and personalized portfolios: The firm provides access to a wide range of assets, and will build a custom portfolio based on your needs.
- Large advisor team with a specialized approach: Cerity Partners employs a wide array of experts, from financial planners to tax advisors to attorneys to meet all of your financial needs.
Cons explained
- High portfolio minimum: You’ll need a portfolio of at least $2 million to work with Cerity Partners, which is a threshold most investors won’t reach.
- Fees are relatively high and not disclosed up front: Cerity Partners doesn’t fully disclose its fees because they’re negotiated on a case-by-case basis. The firm also charges an AUM fee up to 1.5%, which is higher than that of many other advisors.
- Potential conflicts of interest: Cerity Partners earns commissions from some of its partners, so conflicts of interest are possible.
Who should consider Cerity Partners?
Because of its high minimum portfolio size, Cerity Partners is best for individuals and families who have higher net worths. Its family office services, in particular, will be attractive to wealthy families, as Cerity Partners can help them manage household employees, personal security and their real estate holdings, among other complex aspects of their finances they might prefer to outsource.
Cerity Partners’ array of investment choices will also likely appeal to investors who want more than a simple stock-and-bond portfolio. In addition to traditional investment, it also offers access to options like hedge funds, private equity funds, venture capital and commercial real estate that might appeal to more experienced investors.
However, not all high-net-worth families require the array of services that Cerity Partners has to offer. If you don’t need Cerity Partners’ family office services or its variety of portfolio options, you might find a wealth management firm that offers everything you need for a much lower fee.
FAQ
What types of accounts does Cerity Partners support?
Cerity Partners can help you with a variety of accounts, including your taxable brokerage accounts, tax-advantaged retirement accounts, trusts and private investment accounts.
Is Cerity Partners safe?
Cerity Partners is a registered investment adviser with the Securities and Exchange Commission, and its advisors are fiduciaries, meaning they must act in their clients’ best interests. Generally speaking, you can feel safe trusting the company with your finances.
However, investing comes with inherent risks and each investor has a unique risk tolerance, so it’s important to thoroughly research the company, understand its investment strategies and decide whether you feel comfortable working with them.
How does Cerity Partners compare to other advisors?
Cerity Partners has a much higher investment minimum than most other advisors. It requires at least $2 million in AUM, while many other advisors either have no investment minimums or require less than a few hundred thousand dollars.
However, for investors who do qualify for its services, it offers more wealth management services than the majority of other firms we’ve reviewed and a greater selection of assets than many other firms.
Is Cerity Partners suitable for beginners?
Not really. Cerity Partners’ significant investment minimum means it would be a better fit for people who are further along in their investing journey and have sufficient assets.
What customer support options are available with Cerity Partners?
Cerity Partners has a client portal in its mobile app where existing clients can get in touch with their advisors. As a client, you should also have direct contact information for your dedicated advisor. For prospective clients, the firm offers an online form and lists its main phone number on its website (though not the phone number for its individual offices).
Methodology
We analyzed hundreds of data points and assigned ratings on a scale of 1 to 5 stars to create a list of advisors that cater to different preferences. We assign points based on weighted factors, with a maximum score of 100. Advisors with the highest point values are assigned 5 stars, and other advisors are assigned their ratings based on their total point values, with the lowest-scoring firms receiving 2 stars.
Each factor is weighted based on our assessment of how important features are to consumers, using information and data collected from Dow Jones surveys and the expertise of Buy Side team members.