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W O R T H . C O M

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A T T H E P E O P L E , T R E N D S A N D I D E A S

S H A P I N G O U R F U T U R E

A N O P T I MI S T I C A N D U N E X P E C T E D L O O K

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TEAMJohn Waldron, CFP®, Founder, Chief Executive Officer

Matthew Helfrich, CFP®, President

Benjamin M. Greenfeld, CFP®, Chief Investment Officer

Jim Mendelson, Managing Director

Michael Krol, CFP®, CPA, Chief Financial Officer, Chief Service Officer

Chris Roe, CPA/PFS, Managing Director

FINANCIAL SERVICES EXPERIENCE112+ years (combined)

ASSETS UNDER MANAGEMENT$1.2 billion (as of 12/31/2015)

MINIMUM FEE FOR INITIAL MEETINGNone required

MINIMUM NET WORTH REQUIREMENT$5 million

LARGEST CLIENT NET WORTHConfidential

COMPENSATION METHODAsset-based (investment services), hourly and fixed fees

PRIMARY CUSTODIANS FOR INVESTOR ASSETSFidelity Family Office Services and Pershing

PROFESSIONAL SERVICES PROVIDEDPlanning and investment advisory services

EMAILjwaldron@waldronpw.com mhelfrich@waldronpw.com bgreenfeld@waldronpw.com mkrol@waldronpw.com croe@waldronpw.com

WEBSITEwww.waldronprivatewealth.com

WALDRON PRIVATE WEALTH 1150 Old Pond Road, Pittsburgh, PA 15017 412.221.1005

L E A D I N G W E A L T H A D V I S O R | P I T T S B U R G H , P A

I L L U S T R A T I O N B Y K E V I N S P R O U L S

What should I consider when hiring a wealth management firm?B Y M I C H A E L K R O L , C F P ® , C PA

Clockwise, from top right: Matthew Helfrich, John Waldron, Benjamin Greenfeld, Chris Roe, Michael Krol, Jim Mendelson

Waldron_WOR43.indd 142 7/12/16 2:00 PM

ne of the most important challengesa family will face regarding its wealthis determining how to evaluate awealth management firm.

While it may seem that all wealthmanagement firms are basically thesame, going “under the hood” oftenreveals a very different reality. Thequestions below will help you frameyour own evaluation of a prospective(or current) wealth management firmand move beyond basic inquiries like,“What were your investment returnslast year?” in favor of more customizedconsiderations, which, in the end, willbe more impactful.

WHAT ARE YOUR INVESTMENT RETURNS? This is a question you should not expect togain much from asking. Questions about past investment performance are among the most common inquiries a prospec-tive wealth management firm receives.

It is not unusual for a wealth manager to be prepared with hypothetical portfo-lio returns that have been “back-tested” to look good. Evaluating a wealth man-ager based upon past performance or a

hypothetical portfolio can be misleading and will not necessarily be predictive of your fu-ture experience.

Instead of asking about past performance, consider asking a wealth manager how he or she would structure a portfolio to meet your particular needs. Also, ask about how youshould approach balancing risk and return to serve both your short- and long-term goals.

WHAT SERVICES DO I NEED? Investment management is a very “tangible”service that most individuals know theyneed. However, there are many other ser-vices a wealth manager can offer that may be very relevant to your financial situation. Some standard options include cash-flowmanagement, retirement planning andeducation-funding analysis.

As wealth increases, other services may become important, such as investmentstrategies for trusts, philanthropic planning and financial education for your children.You should ask about the firm’s specificexperience dealing with the complexitiesyou are facing now, and those you antici-pate in the future. Also ask if you will havea team and the number of other clients the team will serve. These questions will helpuncover team members’ relevant levels of expertise and the attention you can expectto receive as a client.

WHAT WILL I PAY?While some might say “You get what you payfor,” we recommend that you understand

both what you are paying and what youwill get. We find that fees are one of themost commonly misunderstood areas ofthe wealth management experience.

That is completely understandable,considering how confusing the multitudeof fee structures across the industry can be. You can clarify this area dramatically byasking for a simple one-page summary of

the fees you will pay. This should includefees listed on your statement, fees whichwill not be listed, and any underlying productfees, commissions, markups and perfor-mance-based fees.

Once you have better clarity about the fees,we recommend that you assess them againin light of the services you’ll be provided.

In the evolving landscape of wealth man-agement firms, it has become more difficult to determine which solution might be right for you. An effective evaluation will movebeyond questions of past performance, andfocus instead on the quality of service youcan expect, to support your unique finan-cial situation. To view our comprehensivechecklist for evaluating a wealth manage-ment firm, please see the related blog post on our website. l

Past performance may not be indicative of futureresults. Different types of investments involve varyingdegrees of risk. Therefore, it should not be assumedthat future performance of any specific investment orinvestment strategy (including the investments and/orinvestment strategies recommended and/or undertakenby Waldron), or any non-investment related services,will be profitable, equal any historical performancelevel(s), be suitable for your portfolio or individualsituation, or prove successful. Waldron is neither a lawfirm nor accounting firm, and no portion of its servicesshould be construed as legal or accounting advice. Acopy of Waldron’s current written disclosure statementdiscussing advisory services and fees is available atwww.waldronpw.com. The scope of the services to beprovided depends upon the terms of the engagement.

W A L D R O N P R I V A T E W E A L T H

WALDRON PRIVATE WEALTH IS A BOUTIQUE PRIVATE WEALTH MANAGEMENT

FIRM THAT ADVISES A SELECT GROUP OF HIGH NET WORTH INDIVIDUALS,

FAMILIES AND FAMILY OFFICES. By limiting the number of clients it serves,

Waldron can offer greater focus on how to best simplify the complexities of significant

wealth, so all clients can achieve what’s important in their lives. Waldron’s advisory

team is prepared to serve the firm’s clients across a wide range of key financial

disciplines. The advisory team includes: three CPAs, ten CFPs, two CFAs, an attorney,

a certified divorce financial analyst and a certificate holder from the Institute for

Preparing Heirs. l

A B O U T U S

While it may seem that all wealth managementfirms are basically the same, going ‘under the hood’often reveals a very different reality.

O

143WO R T H .CO M AU G U S T- S E P T E M B E R 2 0 1 6

Waldron_WOR43.indd 143 7/12/16 2:00 PM

ne of the most important challenges a family will face regarding its wealth is determining how to evaluate a wealth management firm.

While it may seem that all wealth management firms are basically the same, going “under the hood” often reveals a very different reality. The questions below will help you frame your own evaluation of a prospective (or current) wealth management firm and move beyond basic inquiries like, “What were your investment returns last year?” in favor of more customized considerations, which, in the end, will be more impactful.

WHAT ARE YOUR INVESTMENT RETURNS? This is a question you should not expect to gain much from asking. Questions about past investment performance are among the most common inquiries a prospec-tive wealth management firm receives.

It is not unusual for a wealth manager to be prepared with hypothetical portfo-lio returns that have been “back-tested” to look good. Evaluating a wealth man-ager based upon past performance or a

hypothetical portfolio can be misleading and will not necessarily be predictive of your fu-ture experience.

Instead of asking about past performance, consider asking a wealth manager how he or she would structure a portfolio to meet your particular needs. Also, ask about how you should approach balancing risk and return to serve both your short- and long-term goals.

WHAT SERVICES DO I NEED? Investment management is a very “tangible” service that most individuals know they need. However, there are many other ser-vices a wealth manager can offer that may be very relevant to your financial situation. Some standard options include cash-flow management, retirement planning and education-funding analysis.

As wealth increases, other services may become important, such as investment strategies for trusts, philanthropic planning and financial education for your children. You should ask about the firm’s specific experience dealing with the complexities you are facing now, and those you antici-pate in the future. Also ask if you will have a team and the number of other clients the team will serve. These questions will help uncover team members’ relevant levels of expertise and the attention you can expect to receive as a client.

WHAT WILL I PAY? While some might say “You get what you pay for,” we recommend that you understand

both what you are paying and what you will get. We find that fees are one of the most commonly misunderstood areas of the wealth management experience.

That is completely understandable, considering how confusing the multitude of fee structures across the industry can be. You can clarify this area dramatically by asking for a simple one-page summary of

the fees you will pay. This should include fees listed on your statement, fees which will not be listed, and any underlying product fees, commissions, markups and perfor-mance-based fees.

Once you have better clarity about the fees, we recommend that you assess them again in light of the services you’ll be provided.

In the evolving landscape of wealth man-agement firms, it has become more difficult to determine which solution might be right for you. An effective evaluation will move beyond questions of past performance, and focus instead on the quality of service you can expect, to support your unique finan-cial situation. l

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Waldron), or any non-investment related services, will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Waldron is neither a law firm nor accounting firm, and no portion of its services should be construed as legal or accounting advice. A copy of Waldron’s current written disclosure statement discussing advisory services and fees is available at www.waldronpw.com. The scope of the services to be provided depends upon the terms of the engagement.

W A L D R O N P R I V A T E W E A L T H

WALDRON PRIVATE WEALTH IS A BOUTIQUE PRIVATE WEALTH MANAGEMENT

FIRM THAT ADVISES A SELECT GROUP OF HIGH NET WORTH INDIVIDUALS,

FAMILIES AND FAMILY OFFICES. By limiting the number of clients it serves,

Waldron can offer greater focus on how to best simplify the complexities of significant

wealth, so all clients can achieve what’s important in their lives. Waldron’s advisory

team is prepared to serve the firm’s clients across a wide range of key financial

disciplines. The advisory team includes: three CPAs, ten CFPs, two CFAs, an attorney,

a certified divorce financial analyst and a certificate holder from the Institute for

Preparing Heirs. l

A B O U T U S

While it may seem that all wealth management firms are basically the same, going ‘under the hood’ often reveals a very different reality.

O

143WO R T H .CO M AU G U S T- S E P T E M B E R 2 0 1 6

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Waldron Private Wealth is featured in Worth® 2016 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a publication of the Worth Group LLC, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of the Worth Group LLC.

John Waldron, CFP® Founder and Chief Executive Officer

Matthew Helfrich, CFP® President

Benjamin M. Greenfeld, CFP® Chief Investment Officer

Jim Mendelson Managing Director

Michael Krol, CFP®, CPA Chief Financial Officer, Chief Service Officer

Chris Roe, CPA/PFS Managing Director

Waldron Private Wealth1150 Old Pond RoadPittsburgh, PA 15017

Tel. 412.221.1005

jwaldron@waldronpw.com mhelfrich@waldronpw.com bgreenfeld@waldronpw.com

jmendelson@waldronpw.com mkrol@waldronpw.com croe@waldronpw.com

www.waldronprivatewealth.com

R E P R I N T E D F R O M

®

T H E E V O L U T I O N O F F I N A N C I A L I N T E L L I G E N C E