Modera Wealth Management is an East Coast-based wealth management firm that provides customized portfolios and wealth management services, mostly to high net worth individuals. Though the firm technically does not have an investment minimum, it notes that its strategies may work best for clients who have at least $2 million to invest, and its minimum fees may not be worth it for lower net worth individuals.
The bottom line: Modera Wealth Management is a New Jersey-based wealth management firm catering largely to high net worth clients, although there is no investment minimum.
|Assets under management: $4,957,474,109|
|Minimum investment: None|
|Individual investor to advisor ratio: 37:1|
|Fee structure: A percentage of AUM, hourly charges, fixed fees|
|Headquarters: 56 Jefferson Avenue
Westwood, NJ 07675
All information included in this profile is accurate as of August 5, 2021. For more information, please consult Modera Wealth Management’s website.
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Modera Wealth Management’s origins date back to 1983, when Gary Greenbaum of Greenbaum & Associates established an early incarnation of the advisory firm. In 2010, Modera Wealth Management was formed. The firm has since merged with or acquired a number of other firms throughout the country. Today, Modera Capital Inc. is the firm’s majority owner, though Tria Asset Holdings A, LLC and a number of individuals also hold stakes.
Modera Wealth Management has over 80 employees across six offices. Of those employees, around 50 serve as investment advisors. Many of the firm’s staff members have earned designations such as certified financial planner (CFP), certified financial analyst (CFA) and certified public accountant (CPA) designations.
The majority of Modera’s clients are high net worth individuals. However, the firm also has hundreds of individual clients who are not classified as high net worth individuals, which the SEC defines as those with at least $750,000 under management or a net worth of $1.5 million. Modera’s website notes that it services the unique needs of clients who are business owners, corporate executives and medical or dental professionals. In addition, the firm notes that it addresses the needs of LGBTQ+ clients, surviving spouses, clients who are divorcing and clients with special needs and chronic illnesses.
There is technically no minimum account size requirement at Modera. Due to its minimum fee requirements for its services, however, working with Modera may be more accessible to those with larger portfolios. Additionally, the firm states that its services are designed for those with at least $2 million to invest.
Modera Wealth Management splits its services into two broad categories: wealth management and portfolio management. Wealth management clients receive financial planning and consulting services, which can include business coaching or real estate services, along with discretionary- or non-discretionary asset management for all or a portion of their portfolio. For clients who have chosen discretionary management, the firm may make trades on their behalf without getting approval for individual transactions. Clients can also choose standalone financial planning services.
The firm also provides investment consulting and monitoring services on outside accounts held with other institutions to some existing clients, as well as retirement plan consulting and management services.
Here is a full list of the services offered by Modera Wealth Management:
Modera Wealth Management makes investment decisions based on Modern Portfolio Theory, which holds the following tenets:
Modera works with each client to create a portfolio tailored to their financial situation that achieves the highest rate of return with the least amount of risk. The firm also focuses on minimizing taxes and keeping overall costs down.
The firm’s portfolios primarily include:
However, portfolios may also include the following:
For accredited investors that meet a certain net worth or income minimum, the firm may also recommend private investments, such as pooled investment vehicles that invest in securities including debt and equity.
Modera Wealth Management’s fee types and rates vary depending on which service a client receives.
Fees for wealth management and portfolio management: For wealth management, the firm typically charges between 0.15% to 1.00% of assets under management, with a minimum quarterly fee of $5,000. The typical fee for portfolio management services is 0.10% to 0.80% of assets under management, with a minimum quarterly fee of $4,000.
Clients may also have to pay transaction costs, commissions or other fees to third-party financial institutions if their portfolio includes such investments.
Fees for financial planning: Financial planning costs are included in wealth management services, but those who opt for portfolio management services will need to pay separately for financial planning. Typical financial planning fees range from $200 to $500 per hour, or $2,000 to $10,000 on a fixed fee basis.
Modera usually imposes a minimum fee of $2,000 for all financial planning and consulting services, which can be assessed on a per-project basis. If a client later engages the firm for wealth management, it may offset the cost of wealth management by the fees already paid.
Fees for other services: Business and real estate coaching carry separate fees, ranging from $2,000 to $25,000 per quarter. Clients who use Modera Wealth Management for investment monitoring or consulting may pay additional fees of $7,000 to $50,000 per year, which may cover financial planning services as well.
Modera Wealth Management has a clean disciplinary record. If an SEC-registered firm or its employees face a disciplinary action, such as a criminal charge, regulatory infraction or civil lawsuit, the firm must report that incident on its Form ADV, paperwork that registered firms must file with the SEC.
For more information, you can go to the firm’s IAPD page.
If you’re interested in working with Modera Wealth Management, you can navigate to the firm’s calendar on its website to schedule a 30-minute chat, or call a local office. From there, you can expect to go through the following steps:
Clients of Modera can expect to be contacted at least annually for a review of services and recommendations, and to discuss any life changes that may impact their financial situation or investment goals.
Modera Wealth Management has offices in:
If you have at least $2 million to invest, Modera Wealth Management may be a good choice. You’ll get personalized services, financial planning and conflict-free advice, thanks to the firm’s fee-only business model.
While the firm does have many clients who are not high net worth investors, those with smaller portfolios may pay proportionally higher fees. For investors with less money to invest, other wealth management firms may offer similar services at a lower price. Be sure to research multiple firms to ensure you find the right advisor for you.
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