What does Composition Wealth do?
Founded in 2007, Composition Wealth is a registered investment advisor that provides hands-on wealth management.
The firm, owned by Composition Wealth Holdings LLC, manages over $6.7 billion in assets for a diverse clientele, including individuals, families, businesses, and charitable organizations across the country.
With more than 125 specialists on its team, Composition Wealth has built client relationships across more than 40 states.
The firm's approach is centered on personal guidance from a dedicated advisor, combining portfolio management with financial planning, rather than relying on automated platforms. They also support other independent advisory firms by providing resources to better serve their clients.
Core wealth management services
The firm’s main service is wealth management, which pairs continuous portfolio management with in-depth financial planning.
Advisors create and manage investment portfolios using a mix of ETFs, mutual funds, stocks, and bonds, making adjustments based on your goals and market changes. This is combined with financial planning that can cover everything from saving for retirement and education to insurance needs and charitable giving.
Composition Wealth also provides specialized advice for retirement accounts, including IRAs and employer-sponsored plans like 401(k)s.
For businesses, they offer advisory services to help manage company retirement plans.
In certain situations, your advisor may recommend using an unaffiliated, third-party investment manager for a portion of your portfolio, and Composition Wealth will oversee that relationship to ensure it aligns with your overall strategy.
The four-step wealth management process
Working with Composition Wealth follows a four-step process led by your advisor.
It starts with a discovery phase, where your advisor gets to know you, your financial situation, personal goals, and priorities.
From there, they design a personalized wealth strategy to connect your short-term needs with your long-term ambitions.
Next comes implementation, where your advisor builds a portfolio specifically for you, making investment choices based on your goals, not a generic model. The final step is ongoing monitoring.
Your advisor will continuously review your plan and portfolio, making adjustments as your life or the markets change.
What are the pros and cons of Composition Wealth?
Composition Wealth operates as a traditional, advisor-led wealth management firm focused on discretionary portfolio management and integrated financial planning.
Here are some key pros and cons of Composition to get you started.
Pros of Composition Wealth:
- A dedicated advisor: Your portfolio is managed by a human advisor who acts as a fiduciary, meaning they are legally obligated to act in your best interest. This is different from automated robo-advisors.
- Holistic financial planning: Investment management is tied directly to your broader financial plan, helping you coordinate goals like retirement, savings, and more.
- Personalized portfolios: Your investments are chosen based on your individual goals and risk tolerance, not a one-size-fits-all model. The firm uses a mix of ETFs, mutual funds, stocks, and bonds.
- Handles complex accounts: They work with more than just standard investment accounts, including trusts, estates, and various retirement plans.
- Continuous oversight: Your portfolio is monitored constantly, and your advisor will formally review it with you at least once a year.
Cons of Composition Wealth:
- High investment minimum: The firm generally requires at least $500,000 to invest, which may not be accessible to everyone. While this can sometimes be waived, it’s not a guarantee.
- Potentially high fees: The firm charges an annual fee based on the assets it manages for you, up to 1.50%. This is higher than many automated investment platforms.
- Risk of layered costs: In addition to the main advisory fee, you may incur other costs, such as fees charged by the funds themselves or third-party managers.
- Not for DIY investors: If you prefer to manage your own investments and make your own trades, this advisor-led model is likely not the right fit.
Composition Wealth fees: How much does Composition Wealth cost?
Composition Wealth primarily charges fees based on the amount of assets they manage for you, but they also offer fixed-fee options for some services.
- Wealth and portfolio management: The firm’s main service includes an annual advisory fee of up to 1.50% of your managed assets, billed quarterly. In some situations, a fixed dollar fee may be charged instead.
- Financial planning: If you only need financial planning, you can engage the firm for a one-time plan. This typically costs between $2,000 and $50,000, depending on the complexity of your needs. Ongoing planning is also available for a fixed fee.
- Retirement plan advisory: For employer-sponsored retirement plans, the firm charges an annual fee of up to 1.00% of the plan's assets.
- Other potential costs: It’s important to remember that you may also incur other expenses. These can include fees charged by third-party managers (if used), expense ratios on mutual funds and ETFs, and custody fees. When a third-party manager is involved, Composition Wealth states that the total combined fee will not go above 2.00% annually.
What is Composition Wealth’s minimum account size?
To get started with Composition Wealth’s main services, you generally need a minimum of $500,000 in investable assets.
The firm notes that this minimum allows them to provide the dedicated, hands-on service that is central to their approach. While this requirement can be waived on a case-by-case basis, it's not guaranteed.
Who should choose Composition Wealth?
- This firm is designed for people who want a long-term relationship with a financial advisor to manage their money and help them make key financial decisions.
It could be a good fit if you:
- Have significant assets to invest: With a $500,000 minimum, the firm is geared toward high-net-worth investors or those approaching that level.
- Want an expert to handle your investments: If you prefer to delegate investment decisions to a professional rather than manage them yourself, their advisor-led model is a strong match.
- Need a holistic financial plan: The service is ideal for those who want to see how their investments fit into their broader goals for retirement, savings, and estate planning.
- Are focused on retirement: The firm offers specialized advice for both individual retirement accounts and employer-sponsored plans.
It might not be the best choice if you:
- Are just starting to invest: The high minimum will likely be a barrier for investors with smaller portfolios.
- Are focused on keeping costs low: If your primary goal is to minimize fees, the asset-based model may seem expensive compared to low-cost automated platforms.
- Enjoy managing your own money: Self-directed investors who want to actively trade and build their own portfolios will find the discretionary model too restrictive.
- Prefer a digital experience: The firm is built around human relationships, not a slick, app-based interface.
Composition Wealth: Is it secure?
Composition Wealth is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC), which means it is subject to federal oversight and compliance standards.
To protect your money, the firm uses independent third-party custodians to hold all client assets.
This means Composition Wealth manages your money, but a separate institution (like a major bank) actually holds it, which is a standard industry practice for safety.
You also receive account statements directly from the custodian, ensuring transparency.
For data security, the firm reports using physical and electronic safeguards to protect your personal information, in line with federal privacy regulations.
Composition Wealth: Customer service
Customer service at Composition Wealth is built around your relationship with a dedicated advisor.
Instead of calling a general support line, you work directly with your advisor for any questions or needs.
The model emphasizes long-term collaboration and regular reviews, not automated chatbots or digital-only support.
With over 40 office locations, the firm supports in-person interaction, though you can, of course, work with your advisor remotely.
Composition Wealth: Mobile app
Composition Wealth offers a mobile app, the Composition Wealth Portal, for its clients.
The app is designed to give you a clear view of your portfolio, including your total account value, performance history, and asset allocation. However, it's for viewing information only, you can't make trades or manage your investments through the app.
This design reinforces the firm’s model, in which your advisor handles investment management. Access to the app is provided by your advisory team once you become a client.
Is Composition Wealth worth it?
Whether Composition Wealth is worth it depends on what you’re looking for.
If you want a personal, long-term relationship with an advisor who will build a customized financial plan and manage your investments for you, the firm has a lot to offer. Its key strengths are personalized oversight and an approach that integrates your entire financial life.
However, the service comes at a premium.
The $500,000 minimum makes it inaccessible for many, and the fees are higher than what you would pay for a robo-advisor or other automated investing platforms. Ultimately, the value comes down to how much you prioritize dedicated, human financial guidance.
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