Wealth Enhancement Group (WEG) is a financial services company that provides financial planning, investment management, insurance, retirement planning, and other wealth management services. WEG has over 1,200 employees and offices across the United States. The company has received both positive and negative reviews from clients and industry experts. Here is an in-depth look at Wealth Enhancement Group to help you determine if their services may be a good fit for your financial needs.
Overview of Wealth Enhancement Group
Wealth Enhancement Group was founded in 1997 and is headquartered in Plymouth, Minnesota. WEG offers a wide range of financial services including:
- Financial planning
- Investment management and advisory services
- Insurance services
- Retirement planning
- Estate planning
- Tax planning and preparation
- Business services
- Charitable planning
WEG employs over 1,200 financial professionals across 130 offices in over 30 states. The company has over $25 billion in assets under management and administers over $15 billion in assets. WEG services over 55,000 households across the United States.
The company targets mass affluent and high net worth individuals who need comprehensive financial planning and investment management. WEG takes a goals-based planning approach and provides clients with a team of advisors including a dedicated financial advisor, insurance specialist, tax professional, and other specialists as needed.
WEG’s Financial Advisors
WEG financial advisors must meet certain qualifications to be hired. Most WEG advisors have a minimum of 5 years of experience in financial services and hold either the Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) designation. Some also have additional designations such as Certified Public Accountant (CPA), Chartered Financial Analyst (CFA), or Juris Doctorate (JD).
Advisors receive ongoing training on financial strategies, products, and advanced planning techniques. WEG advisors follow a six-step process when working with clients:
- Establish goals
- Gather facts and data
- Analyze information
- Recommend strategies
- Implement recommendations
- Monitor the plan
This process aims to provide personalized and goals-based financial planning and advice. WEG advisors meet with clients on an ongoing basis to track progress and adapt plans as needed.
WEG’s Services and Client Experience
Here is an overview of WEG’s key services and what clients can expect from the experience:
Financial Planning
WEG offers comprehensive financial planning services covering areas such as:
- Retirement planning
- Education planning
- Insurance needs
- Tax planning
- Estate and legacy planning
- Business planning
The financial planning process starts with an extensive review of the client’s financial situation, goals, risk tolerance, time horizons, and other factors. WEG advisors use financial planning software to analyze data, identify needs and opportunities, and provide a detailed financial plan with specific recommendations to help clients achieve their goals.
Investment Management
WEG offers investment management services through the Wealth Enhancement Advisory Services platform. WEG advisors work with clients to establish an Investment Policy Statement that outlines the client’s goals, risk tolerance, time horizon, income needs, tax considerations, and other factors. Based on this IPS, the advisor constructs a customized portfolio of mutual funds, ETFs, individual stocks and bonds, and other securities.
Portfolios are monitored regularly and holdings adjusted as needed to meet the IPS guidelines. WEG offers a series of model portfolios or can fully customize portfolios based on each client’s needs. The minimum investment required is typically $50,000 but exceptions can be made.
Insurance Services
Insurance specialists at WEG evaluate client needs and offer insurance solutions including:
- Life insurance
- Disability insurance
- Long-term care insurance
- Annuities
- Property and casualty insurance
The insurance planning process includes a risk assessment, analysis of existing policies, recommendations for appropriate coverage, and assistance with policy implementation. WEG offers insurance solutions from dozens of highly-rated insurance companies.
Retirement Plan Services
For retirement planning, WEG provides services including:
- 401(k) plans
- Profit sharing plans
- Defined benefit pension plans
- 403(b) plans
- 457 plans
- Individual retirement accounts (IRAs)
WEG can advise business owners on selecting and setting up the optimal retirement plan for their business. For individuals, WEG can provide IRA rollover advice, help maximize contributions, recommend appropriate investments, determine an appropriate withdrawal strategy, and more.
Client Experience
Clients have a dedicated financial advisor who gets to know their situation in depth. Meetings can take place virtually, over the phone, or in person at one of WEG’s local offices. WEG advisors are responsive and accessible between meetings as needed. The company aims to provide white glove, concierge-style customer service.
Wealth Enhancement Group’s Prices and Fees
WEG offers a transparent pricing structure but fees vary depending on the services used. Typical fees include:
- Financial planning fees ranging from $1,500 – $10,000+ depending on plan complexity
- Investment management fees based on assets under management, typically ranging from 1.0% – 1.5% annually
- Fixed fees for specific services like a 401(k) plan set up
- Commissions on insurance products
Minimum account sizes apply depending on the service. For comprehensive financial planning and investment management services, WEG typically requires households to have at least $500,000 in investable assets.
Exact fees are agreed upon upfront in a client agreement. WEG is legally obligated to act as a fiduciary for their clients’ best interests when providing investment advice.
Pros of Choosing Wealth Enhancement Group
Here are some of the main benefits reported by current and past WEG clients:
- Customized financial plans: WEG works with clients to build personalized financial plans tailored to their unique goals.
- Numerous services under one roof: WEG can address most financial needs including investments, insurance, taxes, retirement planning, estate planning, and more.
- High quality advisors: WEG advisors have extensive experience and qualifications. The company invests heavily in continued education.
- Responsive client service: Many reviews praise the responsiveness and accessibility of WEG advisors.
- Ongoing plan monitoring: WEG advisors actively monitor client plans and make changes when appropriate.
- Fiduciary duty: WEG is legally obligated to make recommendations in clients’ best interests.
In general, clients feel that WEG helps give them clarity, confidence, and control over their financial lives. The comprehensive approach and high-touch service model results in peace of mind for many clients.
Cons of Choosing Wealth Enhancement Group
The main complaints about Wealth Enhancement Group include:
- High minimums: You may need at least $500,000 in investable assets to get full-service planning and investment management.
- Potential conflicts of interest: WEG advisors earn commissions on insurance sales, which some see as a conflict.
- Mixed investment performance: While some clients are very pleased with their returns, others feel performance could be better.
- Lack of online access: WEG does not offer online client portals with 24/7 access to accounts.
- May not be the cheapest: With an average 1% AUM fee, costs may be higher than some robo-advisors.
While WEG requires higher minimums than many competitors, the company believes this allows them to provide clients with a complete suite of planning services and a more personalized experience. However, the minimum investment thresholds may be a barrier for some.
Is Wealth Enhancement Group Worth the Fees?
Whether or not WEG is worth the fees depends largely on your individual needs and priorities. Their services come at a premium cost, but you receive comprehensive and personalized guidance in return.
For those wanting holistic, one-stop financial planning with access to a team of advisors, WEG provides good value. The company does an excellent job serving clients who want professional investment management plus extensive financial planning and insurance.
However, if you just need basic investment management, a robo-advisor could potentially offer similar returns at a lower cost. WEG is best suited for those with complex financial lives who want help optimizing and coordinating their planning across all areas.
Alternatives to Wealth Enhancement Group
Some alternatives to consider if you are looking for financial planning and investment management include:
- National full-service brokerages like Morgan Stanley or Merrill Lynch
- Independent fee-only RIAs
- Robo-advisors like Betterment or Wealthfront
- Targeted financial planners who offer planning services at an hourly rate
The national brokerages can provide similar services but fees may be even higher. Independent RIAs may have lower costs but offer less under one roof. Robo-advisors provide low cost investment management without human financial planning. A targeted financial planner lets you pay for only the specific services you need.
Is Wealth Enhancement Group a Good Fit for You?
Wealth Enhancement Group makes the most sense for you if:
- You have investable assets of $500,000+
- You want comprehensive financial planning along with investment management
- You prefer face-to-face guidance and service
- You want to take a collaborative approach to strategic planning
- You have complex insurance, retirement, tax, or estate planning needs
- You value professional credentials like CFP
You may want to look at other options if:
- You have limited investable assets
- You mainly need basic investment management
- You are comfortable using online tools for planning
- You want to minimize costs and fees
- You prefer an automated digital experience
Take some time to consider what your top priorities are and reflect on how WEG’s services align with your personal needs and preferences.
Conclusion
Wealth Enhancement Group takes a highly personalized, full-service approach to financial and investment management. Their team of experts provides customized guidance across a wide range of planning areas. However, you pay a premium in fees for this type of concierge experience.
WEG is a great solution for those who want an in-depth long-term partnership focused on achieving their ambitious financial goals. Individuals who simply want low-cost investment management may be better served elsewhere.
Carefully consider your needs and willingness to pay for professional guidance as you assess whether Wealth Enhancement Group is the right fit to help you plan for the financial future you envision. Their proven approach works very well for many, but there are also other options to provide financial services at lower costs.