Edelman Financial Services Review: A Guide to Their Fees and Services
Written by
Rudri Patel
Edited by
Melanie Grafil
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ON THIS PAGE
- How Edelman Financial Engines Works
- What Services Does Edelman Offer?
- Edelman Financial Engines Fees
- Edelman Financial Engines Pros and Cons
- Edelman Financial Engines' Investment Philosophy
- Who Should Use Edelman Financial Engines?
- Edelman Financial Engines Review: Client Feedback
- Edelman Financial Engines vs. Competitors
- Understanding Edelman's Financial Tools and Resources
- Final Take
- Research Methodology
Edelman Financial Engines provides accessible financial planning and investment management services.
By offering a range of services including planning for retirement, managing investments or taxes, Edelman Financial Services provides personalized plans to clients.
Established in 2018, EFE was created by merging Ric and Jean Edelman’s company, Edelman Financial Services, and William Sharpe’s company, Financial Engines.
EFE has over $288 billion in assets and over 143 offices nationwide. EFE walks alongside you on your financial journey, from the moment you receive your first paycheck to when you get married and buy your first home. EFE also has services to assist during the more difficult transitions in life, such as illness and divorce, all the way through to retirement.
EFE services extend to individuals or participants of an employer-sponsored plan like a 401(k), 457, 403(b), IRAs and other taxable retirement accounts. EFE is a fee-based firm, meaning they do not earn money by selling financial products, such as mutual funds, insurance or annuities.
How Edelman Financial Engines Works
The process is fairly simple if you’re looking to work with Edelman Financial Engines, the process is simple. Try these steps:
- Visit the Edelman Financial Engines website. Browse the services and see if any apply to your situation. If you’re interested, you can contact an Edelman financial advisor.
- Contact a financial advisor. You can contact an advisor at 833-752-6333 or through the website.
- Meet with the advisor. You can schedule a meeting online or in person. During this meeting, you and your advisor can discuss your financial and retirement goals.
- Develop a financial plan. Next, an Edelman financial advisor will help you with a personalized plan.
- Putting the plan into motion. Your advisor will go over a plan to help you reach your investment and financial goals.
- Monitoring. The advisor will monitor the plan’s success. You can consult with your advisor to make changes to the plan as needed.
Keep in mind advisors do not receive a commission based on the product they sell; they do receive compensation, however, based on client fees.
What Services Does Edelman Offer?
Edelman offers a comprehensive suite of services. Here’s a specific list of what EFE offers:
- Comprehensive financial planning: EFE advisors will help you create short and long-term goals, as well help you create a budget that aligns with your financial goals. This may also include how to manage your debt effectively.
- Investment management: Financial markets can be volatile, and EFE strives to use a holistic approach for investment management. The goal is to use modern investment strategies tailored to your financial strategy, but also placing an emphasis on creating diverse portfolios.
- Retirement planning and wealth preservation: EFE advisors will likely advise clients to manage their 401(k) and IRAs by maximizing their contributions and choosing appropriate investment options. Other discussions may involve planning for sustainable income streams in retirement. Using these various diverse investment strategies may be helpful with preserving your wealth.
- Tax optimization strategies: EFE advisors can help structure portfolios to minimize tax liability. They may also collaborate with CPAs to determine the best approach to taxes with a lens toward credits, deductions and asset allocation.
- Estate planning and legacy solutions: EFE advisors can help with your will and trusts. Also, they can educate you on how best to transfer wealth. That way, you have a plan in place to transfer wealth to your heirs, while also minimizing estate tax liability.
Edelman Financial Engines Fees
If you’re wondering about how much a certain service cost, please contact Edelman directly about specific fees. The website offers general information, but fee structures can change and vary depending on the service you are requesting. Different types of clients and accounts can have various minimums. For those enrolled in the wrap fee program–along with other conditions, there may be a minimum of $5,000; however, but that can be waived, and the fee is subject to discretion.
General Services*
| Fee Type | Description | Typical Range |
|---|---|---|
| Assets Under Management | -Annual fee based on the percentage of assets managed -Covers portfolio management and advisory services |
0.50% to 1.75% |
| Flat fees | Fixed charges for specific planning services or consultations | Varies depending on service scope |
| Hourly rates | Charges for specialized, one-time advice or unique financial needs | Hourly fee varies |
| Retirement plan management | Fees associated with managing workplace retirement plans such as 401(k) accounts | Varies; often employer-specific |
| Tax strategy | Costs for tailored tax optimization and planning strategies | Included in AUM or flat fees |
| Estate planning | Additional charges for creating trusts, wills or complex legacy plans | Flat fee or included in planning |
| Transaction | Minor fees for processing transactions or account changes | Minimal (if any) |
Client Asset Range*
| Asset Range | Fee Percentage |
|---|---|
| $0-400,000 | 1.75% on the first $400,000 |
| $400,001-750,000 | 1.25% on the next $350,000 |
| $750,001-1,000,000 | 1.00% on the next $250,000 |
| $1,000,001-3,000,000 | 0.75% on the next $2,000,000 |
| $3,000,001-10,000,000 | 0.60% on the next $7,000,00 |
| $10,000,001-25,000,000 | 1.75% on the first $400,000 |
| $25,000,000 + | Negotiable |
Edelman Financial Engines Pros and Cons
As with any financial advisory firm, there are key advantages and disadvantages.
Here are some key advantages of working with Edelman:
- Comprehensive suite of services: EFE offers financial planning, investment planning, tax optimization, estate and retirement planning.
- A fee-only firm: Edelman advisors avoid conflicts of interest since they don’t earn commissions.
- Clients work with experienced professionals: EFE works with advisors that are vetted and understand how to offer insightful financial guidance.
- Personalized approach: EFE doesn’t offer a one-size-fits-all approach, but customizes and monitors a customized plan based on your financial goals.
- SEC-regulated: Since the firm is regulated by the Securities and Exchange Commission, EFE is required to adhere to laws and regulations.
Here are some key disadvantages to consider:
- You will likely pay higher fees. Compared to robo-advisors or DIY platforms, Edelman’s fees may be higher, which could impact smaller portfolios.
- Minimum investment requirement may be too high. A minimum asset threshold may exclude some potential clients from accessing their services.
- EFE may not be the best for simple needs. Individuals with straightforward financial goals may find Edelman’s services overly comprehensive and not required for their portfolios.
- If you like control, EFE may not be the best fit. Those who prefer more control over their investments may find the managed approach restrictive.
Edelman Financial Engines’ Investment Philosophy
EFE’s core philosophy is to “give everyone the opportunity to move their financial life forward.” With that mission in mind, EFE is ready to meet individuals wherever they are in their financial journey whether it is in the beginning of their career or during retirement. The services offered are for those looking for long-term guidance on goals and a holistic approach to all facets of their financial life, investment strategies, taxes, retirement and estate planning.
The focus of EFE’s philosophy is client-centric in three ways. Financial strategies are based on each individual’s goals, needs and risk tolerance. Second, EFE advocates a holistic lens to an individual’s financial health. Lastly, there are ongoing checks and monitoring to make certain the designed plan remains aligned with your initial financial goals.
Who Should Use Edelman Financial Engines?
Although Edelman Financial doesn’t necessarily require a minimum amount to retain their services, ideally, you’d want to establish a long-term financial strategy that includes investment strategies, tax, estate and retirement planning, as well as budgeting goals.
EFE may be ideal for those who have a more complicated portfolio and need guidance on what to do next to diversify their investments or to retire, ensuring that there are several streams of income in their golden years.
Edelman Financial Engines Review: Client Feedback
As of September 2024, Edelman Financial Engines serves 1.3 million clients across the country. The firm also manages $288 billion in assets.
Recently, Barrons has rated Edelman as the top Registered Independent Advisor firm. This is the seventh year that it has received this honor. The Better Business Bureau has given Edelman an A+ rating on its site. Since 2010, Edelman has been accredited on the BBB site. However, there are no current customer reviews on the site.
In terms of its mobile app, Google Play ranks it 4.2 out of 5 stars and the Apple Store ranks it 4.6 out of 5 stores. Some Google Play reviews have complained about the app, “calling it too slow to load and external balances are always delayed by one to two days.” While another user has stated they had “zero issues. App is a much quicker way to look at my portfolio than logging into my computer.”
Some of the Apple Store reviews rave about the app. One recent user says, “I do love this app and I love the services from Edelman. They were friendly and informative from the start to really get a grasp on my retirement goals.” One of the things that one user would like is to have the ability “to see how each investment fund has been performing. I can see how much money I have in each investment account, but I cannot see the increase and decrease over time for each fund.”
Customer reviews on Yelp are generally unfavorable. Many had complaints about the constant exodus of advisors as well as the investments being highly inflexible. Others had issues with the fees. There were 67 reviews total on Edelman Financial Services with a 1.7 rating out of five stars.
Edelman Financial Engines vs. Competitors
Here’s a look at how Edelman compares to similar financial advisory firms.
Betterment vs. Edelman Financial Engines
Choosing between Betterment and Edelman Financial Engines depends on your financial goals. Betterment offers advice on retirement planning and savings. Unless you qualify for a premium account, your advisor will be automated. Management fees are generally lower with Betterment, but the service lacks the personalized and comprehensive approach that EFE provides.
Wealthfront vs. Edelman Financial Engines
Wealthfront has some of the same services as EFE but is also different. Wealthfront offers strategies for college planning and home buying, for example, which EFE doesn’t. Wealthfront doesn’t necessarily customize financial plans, thoug its robo-advisors service automates and personalizes a plan for its clients.
Understanding Edelman’s Financial Tools and Resources
Edelman’s online tools include a personalized dashboard. This dashboard shows comprehensive views of their financial tools, including assets, liabilities and net worth. It also tracks progress of savings and retirement goals, as well as debt reduction tracking.
Interactive tools allow individuals to model different financial scenarios to show impact of market changes or retirement plans. AI tools help individuals look at contributions and make changes if necessary.
EFE’s website also offers webinars on various financial topics, and articles are housed on the site to help promote financial literacy. These tools help individuals make informed decisions with convenient and accessible information available to them.
Edelman Financial Services FAQ
- What fees does Edelman Financial Engines charge?
- Edelman charges are based on your assets. However, individual services are available for an hourly fee. It is best to contact Edelman to determine fees. For example, you could be charged up to 1.75%, depending on your assets.
- Are Edelman Financial Engines worth the cost?
- Whether the services are worth the cost depends on each person's circumstances. Edelman offers comprehensive management of various services and gives personalized advice based on your financial goals.
- How do you get started with Edelman?
- The first step is to contact Edelman and connect with a financial planner. The planner may ask a few questions about your financial goals. You can schedule your appointment in person or virtually. The advisor will help you form a plan based on your conversation.
- What types of clients does Edelman serve?
- Edelman has a wide range of clients including individuals and families, small businesses, young professionals, pre-retirees and retirees and high-net worth individuals.
Final Take
Edelman Financial Services stands out for its holistic approach to financial planning and commitment to client success. By offering a range of tailored services, they cater to diverse financial needs while maintaining transparency in their fee structure. Whether you’re planning for retirement, managing investments or taxes, Edelman Financial Services provides the tools and expertise to help achieve your goals.
Research Methodology
Here’s a breakdown of the different factors that comprised GOBankingRates’ scoring.
Fees
The fees for smaller accounts start at 1.75% annually and decrease on a sliding scale as assets increase. The fees are in addition to any underlying fund expenses. The fee component isn’t always transparent via the website. For most current and accurate fee information, contact Edelman directly. For smaller accounts and those who want short-term gains, Edelman’s fees may be too high.
Reputation
Barron’s has rated Edelman and its services has as the best registered independent advisor firm for at least seven years. EFE has been listed as the top managed account provider for workplace retirement plans. Edelman has more than 145 offices nationwide and over 1.3 million clients. EFE has 100 Fortune 500 sponsors and is regulated by the SEC.
Customer Service
Although customers can contact Edelman through various ways including online or in person, the reviews were mixed regarding advisors. Some customers felt that there wasn’t enough communication with their advisor or that they changed too frequently.
Breadth of Services
Edelman offers a comprehensive suite of services including financial and retirement planning, insurance guidance, investment management, tax and estate planning. Clients can either choose a wrap around fee for an investments or pay hourly for specific services.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
