Saturday, 23 January 2021
Updated on Tuesday, August 18, 2020
Brighton Jones LLC is an independent, full-service wealth management firm that works primarily with individual investors and high net worth individuals. It’s a registered investment advisor (RIA) that has a team of 140 employees across its Seattle headquarters and offices in Portland; San Francisco; Denver; Scottsdale, Ariz.; and Washington, D.C. Together, the team oversees nearly $6.8 billion in assets under management (AUM).
All information included in this profile is accurate as of August 18, 2020. For more information, please consult Brighton Jones’ website.
| Assets under management: $6,799,683,585 | |
| Minimum investment: N/A | |
| Fee structure: A percentage of AUM; hourly charges; fixed fees | |
| Headquarters: | 2030 1st Ave. 3rd Floor Seattle, WA 98121 www.brightonjones.com (206) 258-5000 |
Charles Brighton and Jon Jones founded Brighton Jones in Seattle in 1999. The two then-partners at Deloitte decided they wanted to create a business aimed at providing more-holistic financial advice to clients at a lower cost. Brighton and Jones remain co-owners of the firm. Jones serves as CEO, while Brighton is the managing director of its family office services.
The fee-only firm was ranked in May 2020 as the largest wealth management firm in Washington state as of 2019, and it has offices in an additional four states plus the District of Columbia. It has 140 employees, about half of whom serve as investment advisors. The staff has a range of expertise and includes certified financial planners (CFP), accountants, lawyers and certified commercial investment members (CCIM), who are experts in commercial real estate.
Brighton Jones serves mostly individual investors. Its client base includes more than twice as many high net worth individuals as other clients. (For reference, the Securities and Exchange Commission [SEC] defines high net worth individuals as those who have at least $750,000 in AUM or a net worth of at least $1.5 million.) In addition, the firm works with pension and profit-sharing plans, as well as pooled investment vehicles and charitable organizations.
The firm has clients from Seattle-based companies, as well as those who work in health care, law, media, finance and technology. Brighton Jones doesn’t list a minimum account balance. However, it charges a minimum quarterly fee of $2,500, so those who have fewer assets might find it cost-prohibitive to engage with the firm.
Brighton Jones aims to serve as a “Personal CFO,” providing holistic advice to individuals and families as a chief financial officer would for a company. Clients can receive wealth management services on a discretionary basis, in which the advisor makes the daily trading decisions in the account without requiring the client to sign off, or a nondiscretionary basis. Financial planning is offered alongside the firm’s investment advisory services or as a stand-alone service.
The firm also advises clients on managing their real-estate portfolio and helps executives to evaluate and make the most of their compensation packages.
Here is a full list of services offered by Brighton Jones:
Brighton Jones’ customized portfolios vary based on each client’s financial situation, but the firm’s overall philosophy is based on an investment approach that includes diversification among and within asset classes. Asset classes might include fixed-income securities, individual equities, funds and real estate investment trusts (REITs), and the firm might invest in them through a combination of short- and long-term purchases, margin transactions or options.
To evaluate potential investments, Brighton Jones uses the following methods of analysis:
For wealth management services, Brighton Jones charges clients based on a percentage of AUM. The rate typically ranges from 0.35% to 1.25% of total AUM, depending on factors such as the level of AUM, the complexity and level of services provided, anticipated future earnings and assets and the account representative assigned to the account. The firm requires a minimum quarterly fee of $2,500, although it might waive or reduce that minimum at its discretion.
The asset-based rate listed above includes financial planning and consulting services if requested by the client, although the firm might charge extra if the client requires extraordinary service. Clients who want stand-alone financial planning or consulting work will pay negotiated fees, which typically range from $2,000 to $15,000 on a fixed-fee basis or $150-$300 per hour.
In addition to fees charged by the firm, clients might owe separate brokerage costs to Fidelity or TD Ameritrade, which typically serve as broker-dealers for Brighton Jones clients.
Brighton Jones has had no disclosures over the past 10 years. All registered investment advisors must disclose in their Form ADV documents filed with the SEC any civil, criminal or regulatory actions against its firm, employees or affiliates that clients would consider material when evaluating the firm or its management team.
Potential clients can contact Brighton Jones directly by contacting a local office, filling out this online form or calling the firm’s main line at (206) 258-5000.
After an initial interview in which the firm learns about a client’s financial situation, the firm will create and manage a portfolio based on that information. The firm will get in touch with clients at least quarterly to discuss the account and whether changes are necessary. Clients also can expect to receive quarterly reports.
Brighton Jones might be a good choice if you’re comfortable with a minimum annual fee of at least $10,000 and want access to other financial services beyond portfolio management, such as assistance with understanding and making the most of your compensation package.
Investors who hope to spend less on wealth management or who want in-person service but don’t live near one of Brighton Jones’ offices, might be served better by a different wealth management firm. Whenever you look for a financial-services provider, interview a few candidates to make sure you choose one that’s the right fit for your financial situation.
Source: https://www.magnifymoney.com/blog/investing/brighton-jones-review-ria/
