We are a fee-only advisor. This means the only compensation we ever receive is fees paid directly to us by our clients. We don’t receive commissions from selling financial products or services, nor any other payments for referrals or distribution through other financial advisors. Our fees are typically based on a percentage of Assets Under Management (AUM), though we also have situations where clients are paying us a fixed retainer based on the scope and complexity of the work.
Frequently Asked Questions
What type of clients does Fairway Wealth Management (FWM) work with?
Our clients have a wide range of backgrounds and sources of wealth. We don’t focus on any limited demographic or type of occupation. What our clients do have in common is they prefer to seek assistance with their financial well-being and see value in having a trusted advisor that understands their entire financial picture. While most could do some of what we do for them on their own, they have concluded that they don’t have the time, experience, or desire to do as well with their wealth enterprise as a professional.
Do you have minimum asset requirements?
Yes, our expertise and services are targeted at families with liquid portfolio assets starting at $2 million. This generally includes brokerage accounts, IRAs, and can include employer sponsored retirement plans, such as 401(k), 403(b) or Profit Sharing plans. We may make exceptions to the $2 million requirement, most often to help us serve the needs of family members (often children and grandchildren) of our existing clients.
You aren’t a bank or brokerage firm, so where will my assets be held?
We believe in segregating the duties of your investment team: Advice, Custody, Products. As your advisor, we are then free to identify the custodian and product array in ways that work to your advantage and are free from conflict. Our primary custodian is Charles Schwab because Schwab’s Advisor Services division has been the leader in supporting independent firms like Fairway and our clients for over 35 years.
Can you advise on assets that are not held at Schwab?
Yes, we generally have insight into our clients’ entire balance sheets, no matter the asset type or where an account is located. While we do recommend Schwab, we work with other major brokerage firms, banks, and trust companies on a case-by-case basis as appropriate for or as requested by our clients. And our portfolio management system allows us to have data feeds of account positions, history and performance, no matter the account custodian.
Are you a fiduciary, and what does that mean?
Yes, we proudly serve as fiduciaries. As a registered investment adviser, we have a legal and ethical obligation to act in our clients’ best interests at all times, not only at the moment a recommendation is made. This ongoing fiduciary duty is arguably a higher standard of care than the obligations that apply to brokers under Regulation Best Interest. Acting as a fiduciary requires us to place our clients’ interests ahead of our own, fully disclose any conflicts of interest, and recommend only those strategies and solutions that are appropriate for each client’s unique financial circumstances. We believe this continuous fiduciary relationship is essential to our role as a personal CFO, giving clients confidence that our advice is objective, transparent, and free from self-serving motivations. [Advisors that hold the CERTIFIED FINANCIAL PLANNER(R) certification are also subject to the CFP(R) Board’s Code of Ethics and Standards of Conduct.]
How is FWM compensated?
Does FWM receive any form of compensation other than from clients?
No, the only way we ever get paid are fees paid directly to us by our clients. We’ve drawn a hard line in the sand on being a fee-only firm, as we believe to function most effectively in our role, our compensation should not be impacted by decisions made or products utilized by our clients.
Fairway isn’t a brand name, why would I choose FWM over the large, institutional firms?
It is certainly important to find a trustworthy, skilled, and credentialed advisor who has access to cutting-edge tools, technical resources, and the help of a supportive team. In practice, many of these most experienced, talented, and client-centric advisors choose not to work at a big brand-name firm…on purpose. Advisors know that as firms become more institutional and less boutique, their working culture shifts toward corporate sales and efficiency goals which are often at odds with the advisor’s freedom and ability to focus on complete client satisfaction. Institutional firms can also impose constraints on advisors’ options in how best to serve their clients, sometimes incentivizing them to promote specific products or limiting solutions to their in-house brand. Fairway exists in the sweet spot of the wealth management world…a boutique that is large enough to attract and retain the best advisors and the most demanding clients.
Can you provide a little detail on FWM’s investment philosophy?
There are two types of investment advisors in the market. The ones that get the most attention are those touting how they will beat the market in any number of ways…how they can predict the future and control the uncontrollable. What’s left unsaid is that they usually don’t. The other type, like Fairway, recognizes that investors can achieve their goals without trying to beat anything; instead by focusing on things that are under their control like strategy, discipline, costs, taxes, and investor behavior. See more on investment philosophy here.
Why does FWM place such an emphasis on tax planning and tax efficiency?
Unlike many in the investment advisory world where taxes don’t matter (pension funds, endowments, retirement plans, etc.), virtually all of Fairway’s clients are families subject to income and potentially estate taxes. And virtually every facet of a client’s financial life is impacted by taxes. Fairway’s founders started their careers as tax advisors and focusing on tax-efficiency and after-tax returns has been at the core of our value-proposition since our founding. It is an area that many advisors have no expertise and in many cases advisors work in environments where they aren’t even allowed to get involved with taxes. However, when intertwined with the rest of the planning process, a focus on tax planning and tax efficiency has proven to be a source of significant reliable value for families.
Does my location matter? Will you meet me in my city of residence?
We are fortunate to work with families all across the country, with clients currently residing in approximately 30 states. Technology allows us to serve clients effectively no matter their location. However, we enjoy the opportunity to spend time with our clients in person, generally offering to meet out-of-town clients at least annually.
How often should I expect to meet and interact with FWM?
We prioritize your experience as a client, so you’ll hear from us a lot! We provide reporting to our clients each quarter, with quarterly meetings centered around investment reporting, cash flow planning and tax planning. In addition, we facilitate planning meetings on specific topics throughout the year, provide periodic email communications and often simply reach out to say hello and check in with what’s happing in your life. We also encourage you to reach out to us anytime, about anything you might want to discuss, knowing you’re not going to get a separate bill every time we interact.
What sort of reporting will I receive?
Each quarter, every client receives tailor-made reports detailing their entire net worth, providing market commentary, reviewing portfolio strategy, summarizing portfolio performance, and including timely messaging about their financial picture. Our online portal also allows for ongoing, real-time insights into valuations and performance, among other tools.
Who will make up my service team?
Clients typically interact with 3-5 members of the Fairway team. Every client has a primary advisor, or wealth manager, that will be your primary point of contact and advice-giver. Additionally, most relationships include an associate wealth manager that helps support the wealth manager with planning and reporting; and a client service associate (CSA) that helps support the client with many of your day-to-day needs, such as account set-up, money movements, website access, etc. Other members of our team, including our Director of Investment Research, our Director of Client Service, or a Fairway team member with particular technical expertise, will be brought into the relationship as needed.
