Homrich Berg Review 2022 - MagnifyMoney
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Homrich Berg Review 2022

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Homrich Berg is an Atlanta-based financial advisory firm that provides financial planning and investment management services. It works mostly with high net worth individuals, although it has many clients who are not in the high net worth category. Homrich Berg takes a team-based approach to serving its clients, assigning three to four employees to each account.

The bottom line: Homrich Berg is a wealth management firm located in Georgia that caters largely to high net worth individuals, although there is no minimum account balance required.

  • Offers financial planning services
  • Assigns three to four employees to each client
  • Charges a minimum annual fee of $10,000

All information included in this profile is accurate as of August 10, 2021. For more information, please consult Homrich Berg’s website.

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Overview of Homrich Berg

Homrich Berg is a fee-only firm founded in 1989. The firm has over 120 employees, close to 70 of whom perform investment advisory and research functions. Many of Homrich Berg’s client service associates have earned the designation of certified financial planner (CFP) or chartered financial analyst (CFA), and some are certified public accountants (CPA) as well.

The firm has five offices throughout Georgia, but serves families across 44 states.

A look at the founders of Homrich Berg

Andy Berg and David Homrich launched Homrich Berg with a $100,000 loan from Berg’s father. They were both CPAs who had transitioned into being wealth managers. As Berg is quoted on the firm’s website, “We started HB with a simple vision — to serve clients, not sell products, and to help them with every part of their financial life.”

Homrich left the firm in 2001. Berg, who is the firm’s CEO, remains the principal owner, with over 20 co-owners, all of whom are principals at the firm.

Homrich Berg’s pros

  • Fee-only model: Advisors at Homrich Berg don’t receive commissions for selling products or making recommendations, so they do not have a financial incentive to do so. This eliminates potential conflicts of interest, better ensuring the firm is always working in the client’s best interest.
  • Dedicated team: You won’t have just one advisor with Homrich Berg. The firm takes a team-based approach to serving its clients, assigning three to four employees to each account.
  • Industry accolades: Homrich Berg has regularly appeared on lists of the top firms in the industry, including The Financial Times’ 300 Top U.S. Registered Investment Advisors and Financial Advisor’s Top 50 Registered Investment Advisors.

Homrich Berg’s cons

  • Limited geographic footprint: While Homrich Berg serves clients throughout the country, its four offices are located in Georgia. Out-of-state clients who want face-to-face services might be better served by a local firm. That said, the firm has jurisdiction throughout most of the U.S.
  • Minimum annual management fee: While there is no minimum investment required to work with Homrich Berg, there is generally a minimum annual fee of $10,000.
  • Potential conflict of interest regarding investment managers and private investment sponsors: The firm has relationships with investment managers and other private sponsors to which they advise their clients to invest. Some of these managers and sponsors may become clients of Homrich Berg. A potential conflict of interest exists if the firm advises clients to invest in private instruments managed or sponsored by other Homrich Berg clients. To mitigate this potential conflict, the firm discloses this information to clients when it’s relevant.

What types of clients does Homrich Berg serve?

The firm’s client base is mostly individual investors, with the majority of those being high net worth individuals. (For reference, the SEC defines high net worth individuals as those with at least $750,000 under management or a net worth of at least $1.5 million).

The firm does not have a minimum account balance. However, it generally imposes a minimum annual fee of $10,000, which may make it best for those with more money to invest.

Services offered by Homrich Berg

Homrich Berg offers a full suite of financial planning and wealth management services to its clients. The firm also provides investment management services, which include a review of a client’s objectives, obligations and outside assets and the formulation of investment advice based on the client’s specific goals and risk tolerance, as well as the firm’s market outlook.

Clients have the option of just getting investment management services, or for a single asset-based fee, they can get both investment management and financial planning services. Financial planning is offered on a stand-alone basis as well.

Here is a full list of services offered by Homrich Berg:

  • Investment advisory services/portfolio management
  • Financial planning/wealth management
    • Retirement planning
    • Cash flow planning
    • Spending analysis and budgeting
    • Estate planning
    • Wealth transfer
    • Income tax planning and management
    • Insurance/risk management
    • Charitable planning
    • Education planning
    • Business planning
    • Divorce planning
  • IRA and 401(k) rollovers
  • Collaboration with clients’ lawyers, accountants, etc.
  • Selection of other advisors

How Homrich Berg invests your money

Homrich Berg creates personalized portfolios for its clients, based on their financial picture, goals and risk tolerance. In addition to focusing on diversification, the firm’s portfolios aim to minimize fees and taxes, and to take advantage of potential market opportunities without engaging in large market timing shifts. More specifically, the firm adheres to the following seven key investment principles:

  • Independence and objectivity
  • Diversification
  • Personalized portfolios
  • Cost and tax efficiency
  • Tactical shifts for opportunities
  • Rebalancing and risk management
  • Private alternatives

Homrich Berg has a dedicated investment committee, which evaluates third-party managers and individual securities using a range of analysis, including liquidity analysis and counterparty risk evaluation. Investments used in client portfolios may include:

Alternative investments, such as private equity funds, real estate funds and structured notes

Fees Homrich Berg charges for its services

The firm typically charges clients a fee based on a percentage of assets under management. It has two separate tiered schedules, depending on whether the client uses just investment management services or investment management and financial planning services.

Homrich Berg Investment Management and Financial Planning Fee Schedule
Assets under management Annual rate
First $1 million 1.25%
Next $4 million 1.00%
Next $5 million 0.75%
Over $10 million 0.50%
Homrich Berg Investment Management Only Fee Schedule
Assets under management Annual rate
First $1 million 1.25%
Next $1 million 1.00%
Next $3 million 0.75%
Over $5 million 0.50%

Occasionally, the firm charges hourly fees to financial planning clients instead. In addition to the fees listed above, clients may pay additional investing-related fees to third-party managers, such as brokerage commissions or transaction fees, as well as any costs associated with investing in funds.

Homrich Berg disciplinary disclosures

Homrich Berg does not have any disciplinary disclosures. All registered investment advisors are required to disclose any legal, regulatory or criminal events in the Form ADV documents they file with the SEC.

For more information, you can go to the firm’s IAPD page.

Homrich Berg onboarding process

To learn more about working with Homrich Berg, you can reach out in the following ways:

Clients can expect to work with a team of three to four people, including a principal, a director, an associate and a client care coordinator.The team will use interactive financial planning software to help you see your “wealth forecast” and how it changes over time, based on scenarios like buying a second home or changing your intended retirement date. From there, the team will create a customized portfolio, which you can view via a digital platform at any time.

Clients of Homrich Berg can expect to receive quarterly investment reports.

Where Homrich Berg is located

Homrich Berg has five offices, all of which are in Georgia:

  • Atlanta (3)
  • Alpharetta, Georgia
  • Sandy Springs, Georgia

Is Homrich Berg right for you?

Homrich Berg might be the right wealth management firm if you can afford the firm’s minimum annual fee of $10,000 and are located in the Georgia region. Clients with fewer assets might be able to find lower fees with another wealth management firm.

If you do have a large amount of assets to invest, you may benefit from the firm’s team approach to wealth management, as it assigns three to four employees to each client account.

As always, when selecting a financial institution, you should be sure to research multiple firms to ensure you find the right advisor for you.

The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.