Summary
- Edelman Financial Engines reviews praise its financial planning and advisor access but often criticize its higher fees.
- The firm manages over $300 billion, serves more than one million clients, and operates as a fiduciary.
- Fees range from 1.75% to 0.50%, with a $5,000 minimum for wrap-program clients.
- It suits investors who want a dedicated planner.
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Edelman Financial Engines financial advisors: who are they?
Edelman Financial Engines is a prominent financial advisory firm in the United States.
Assets under management:
$270 billion+
Fee:
0.50%-1.75%
Fee structure:
Fee-only
The firm is known for its personalized approach to retirement planning and wealth management services. Ric and Jean Edelman co-founded it in 1986 when it was called Edelman Financial Services.
In 2005, they sold a majority stake of their firm to a holding company, which later merged with Financial Engines. Today, the firm is known as Edelman Financial Engines.
What does Edelman Financial Engines do?
Edelman Financial Engines comprises a team of seasoned professional advisors who provide tailored advice to help clients reach their financial goals.
Edelman Financial Engines advisors offer comprehensive financial planning, investment management, and retirement income solutions by combining technology with a personal touch to serve clients across various life stages.
What are the pros and cons of Edelman Financial Engines?
When considering the firm, it's important to consider the Edelman Financial Engines' benefits and cons.
Here are a few to consider:
Pros of Edelman Financial Engines:
- Comprehensive retirement planning
- Access to experienced financial advisors
- Personalized investment strategies
- Strong reputation and industry presence
Cons of Edelman Financial Engines:
- Higher fees compared to some of its competitors
- There is a $5,000 household minimum account size, which may deter smaller investors
What fees do Edelman Financial Engines charge?
Edelman Financial Engines charges a tiered wrap fee, which covers financial planning, investment management, and trading costs. There are no commissions, and the percentage you pay decreases as your portfolio grows.
Edelman Financial Engines fee schedule
Assets under management | Annual fee |
|---|---|
First $400,000 | 1.75% |
$400,000 to $750,000 | 1.25% |
$750,000 to $1 million | 1.00% |
$1 million to $3 million | 0.75% |
$3 million to $10 million | 0.60% |
$10 million to $25 million | 0.50% |
Above $25 million | Negotiable |
Example annual fees
- $250,000 portfolio: About $4,375 (1.75%)
- $1 million portfolio: About $10,625 (1.06% blended)
- $3 million portfolio: About $25,625 (0.85% blended)
Other fees to know about
- Minimum investment: $5,000 for most wrap-program clients ($500,000 for institutional clients, with some exceptions).
- Fund expenses: Underlying fund expense ratios are charged separately.
- Workplace retirement plans: Employer-sponsored plans have separate fee arrangements.
- Legacy clients: Clients from acquired firms may pay different negotiated rates.
Clients might have to pay additional costs for services outside the fee model, such as financial planning or personalized investment strategies.
Edelman Financial Engines customer reviews and reputation
What clients like
- Planner access: Easy access to a dedicated financial planner.
- Proactive service: Regular reviews and ongoing communication.
- Comprehensive planning: Retirement, tax, and estate planning in one place.
What clients dislike
- High fees: The 1.75% starting fee is a common complaint.
- Value for smaller portfolios: Some question whether the planning justifies the cost.
- Inconsistent service: Experiences can vary by advisor and location.
Unbiased ranks Edelman Financial Engines among the top 10 financial advisor firms in the US based on our assessment of fees, services, assets under management, and overall suitability for investors.
Is Edelman Financial Engines a fiduciary?
Yes. Edelman Financial Engines is an SEC-registered investment advisor and acts as a fiduciary.
This means it has a legal duty to act in your best interest, disclose material conflicts of interest, and seek best execution when managing your investments.
Edelman Financial Engines security: is it secure?
Edelman Financial Engines takes security seriously. They employ industry-standard encryption to protect client data and ensure all transactions remain secure.
Additionally, they stick to strict privacy policies and regulatory standards to safeguard personal and financial information.
The firm monitors its systems for potential threats and vulnerabilities, ensuring client accounts remain secure.
With these robust security measures in place, clients can feel confident that their financial information is well-protected.
Do Edelman Financial Engines have good customer service?
Edelman Financial Engines provides a dedicated financial planner, supported by a service team.
Customer reviews generally praise advisor access, responsive service, and proactive communication. Common criticisms include inconsistent experiences between offices and concerns that the service may not justify the 1.75% starting fee for smaller portfolios.
Get expert financial advice
Edelman Financial Engines offers personalized financial advice by leveraging technology and experienced advisors to help clients secure their financial futures.
If you’re looking for expert financial advice, Unbiased can match you with an SEC-regulated financial advisor below.