Firm Info
Firm Size
Services Offered
- Portfolio Management for Individuals & Small Businesses
- Portfolio Management for Businesses or Institutional Clients
- Pension Consulting Services
- Selection of Others Advisors
Types of Clients
- Individuals (Not High Net Worth)
-
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
- Pension & Profit Sharing Plans
- Charitable Organizations
- Corporations or Other Businesses Not Listed Above
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Fixed Fees (Other than subscription)
Northwest Wealth Management, LLC Overview
Northwest Wealth Management, LLC is a fee-based registered investment advisory firm headquartered in Spencer, IA. The firm has been in business since 2011 and offers a variety of services including portfolio management for both individuals and small businesses, as well as businesses or institutional clients. In addition to portfolio management, they also offer pension consulting services. One of the unique aspects of this firm is that they are also an insurance broker/agent, allowing them to provide investment advice while also being able to offer insurance products to their clients. This dual role allows clients to have a more comprehensive understanding of their financial wellness and can help them plan for any unexpected events. Northwest Wealth Management, LLC also provides selection of other advisors. This means that if the firm is not able to fully address a client's needs, they have the capability to connect them with other professionals in the industry who can supplement their services. Overall, this firm provides clients with a range of financial services and works to create customized solutions that align with their specific goals and needs.
NORTHWEST WEALTH MANAGEMENT, LLC caters to a diverse group of clients, including individuals, high net worth individuals, pension or profit sharing plans, charitable organizations, and other types of corporations not explicitly listed. Regardless of whether a client primarily seeks investment advice, retirement planning, or wealth management, NORTHWEST WEALTH MANAGEMENT, LLC prides itself on providing tailored solutions to each unique individual or organization. In terms of fee structures, NORTHWEST WEALTH MANAGEMENT, LLC offers both percentage of assets under management (AUM) fees and fixed fees depending on the service provided. AUM fees are based on a percentage of the total amount a client has invested with the firm, while fixed fees are predetermined charges for specific services. These fee structures allow clients to select a fee option that best suits their individual needs and preferences. For instance, a client with a significant amount of assets under management may opt for a percentage of AUM fee, while a client looking for a specific service may find a fixed fee more cost-effective. Overall, the fee structures provided by NORTHWEST WEALTH MANAGEMENT, LLC are designed to provide clients with maximum flexibility, transparency, and value.
Typical Clients, Fee Structures & Investment Minimum
According to the Part 2 Brochure of Northwest Wealth Management, LLC, there is no mention of an investment minimum. Therefore, it can be assumed that the firm does not have an investment minimum requirement.
How This Office Can Help Ames, IA Residents
Northwest Wealth Management serves clients in Ames, IA by providing comprehensive financial planning services. They help clients identify their financial goals and develop personalized strategies to achieve them. This may include saving for retirement, college education funding for children, estate planning, tax planning, or managing investment portfolios. Living in Ames, IA, clients may face unique financial situations such as the need to save for college expenses associated with Iowa State University, which is located in the city. Additionally, residents may face potential risks associated with severe weather events that could threaten property or home. Northwest Wealth Management can help individuals prepare for these specific types of events, by offering comprehensive financial planning services. The team at Northwest Wealth Management builds lasting relationships with their clients, providing ongoing guidance and support to help them achieve their financial goals.
Services Offered by Northwest Wealth Management, LLC
Core Advisor Services
Financial Planning
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Other Services
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Fee Structures
Financial advisory fees usually are based on the services provided. Fee types charged by Northwest Wealth Management, LLC most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Available
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Unavailable
Hourly
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Commissions
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Performance-based Fees
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
A hedge fund earns a 15% return with a 20% performance fee in above the performance of the S&P 500, which grew 7% that same year.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Other
Firms occasionally offer unconventional fee structures when charging clients. For more detailed information about a firm’s specific fee structures, please refer to their Form ADV and Part 2 Brochure.
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
This Office Location
Other Office Locations
Firm Headquarters
This firm has no other locations.
State Registrations
Northwest Wealth Management, LLC is registered to service clients in the following states:
- Arizona
- California
- Colorado
- Florida
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Minnesota
- Missouri
- Nebraska
- Oregon
- South Dakota
- Texas
- Wisconsin
Disciplinary History
Northwest Wealth Management, LLC does not have any disclosures. Please visit it's Form ADV for more details.