Intelligent financial management for everyone.
Many wealth management firms require clients to reach a minimum balance before accepting them as clients. This makes it difficult for ordinary people to receive intelligent financial advice. RhineVest makes financial management available to everyone.
Wealth management can be expensive and it’s often difficult to understand how much you're paying in fees. RhineVest was created to provide financial advice and investment management with clear, easy-to-understand pricing.
We realize you're busy during the day, which is why we offer appointments when they're most convenient for you. Evenings, weekends; we’ll meet when you're available. For your convenience, we offer virtual meetings with our advisors.
We live in a mobile world. We believe you should have access to your investment accounts through a sophisticated mobile application, not just a web portal.
RhineVest holds itself to a fiduciary standard. The firm and its associates will act in the utmost good faith, performing in a manner believed to be in the best interest of its clients. Adopting a fiduciary standard eliminates hidden conflicts of interest between the advisor and the client.
The service model of the wealth management industry is backwards. Firms often exclude clients who need financial help the most: individuals with assets below a certain threshold. The remaining investment options available to these individuals may be expensive, difficult to understand, or recommended by advisors not acting in the client’s best interest.
RhineVest was created to bring intelligent financial advice to everyone. Recent advancements in software have made it possible to drastically lower required account minimums and pass along cost savings in the form of lower asset-based fees. We started this firm to help you take full advantage of these automated investment platforms with the benefit of a human advisor to lead you through the process. Along the way, we’ve attempted to fix other things we feel are broken in the industry: transparent pricing, flexible meetings, and mobile access to your accounts.
The firm’s founders, Brad Felix, CFA, and Brandon Bennett, CFP®, have professional experience with firms across the financial industry: investment management, fund-of-hedge funds, banks, consumer finance, and insurance companies. First-hand experiences with conflicts of interest, high fees, underperformance of active managers, and the exclusion of low-balance accounts led to the formation of RhineVest.
RhineVest’s core principles are rooted in the belief that individual investors are best served by a low-cost, passive investment strategy. More specifically, our investment philosophy is guided by the belief that low-cost, passive management via a portfolio of exchange-traded funds (ETFs), outperforms active management on an after-tax, net-of-fees basis.
By leveraging our technology partner’s sophisticated platform, we construct portfolios using low-cost, highly liquid, index-tracking ETFs to ensure clients gain the desired asset exposure at the lowest total cost of ownership. The allocation is determined using Modern Portfolio Theory and the Black-Litterman model to provide an optimal portfolio allocation that maximizes expected return for a given level of risk. The equity portion of the portfolio maintains a slight tilt towards value and small-cap stocks in the U.S. and achieves further diversification through the ownership of international and emerging market stocks. The bond allocation balances the returns of each asset class versus the risks associated with interest rate, credit, and geopolitical risk.
As the price of underlying securities moves, we rebalance your portfolio to make sure you remain invested within a tolerance band of your optimal portfolio allocation. For taxable accounts, we also offer daily tax-loss harvesting, which can further shield your portfolio from taxes and increase your effective portfolio return.
Expense ratios, advisory fees, commissions, and trading costs dilute your investment returns over time. Industry advisory fees average nearly 1.0%1 per year. Mutual funds have an average expense ratio of 0.70%2. It’s possible the fees you're paying are higher than the industry average. RhineVest charges an advisory fee of 0.80% for managed assets and invests in low-cost ETFs with an average expense ratio of 0.16%. Additionally, all RhineVest clients benefit from ongoing financial planning and 401(k) investment guidance for a standard $45 monthly fee.
1PriceMetrix. The State of Retail Wealth Management, 5th Annual Report. March 2015.
2Investment Company Institute. 2015 Investment Company Fact Book. 2015.
*The graph provided compares the all-in fees of a managed RhineVest portfolio versus industry average fees for a mutual fund portfolio managed by an advisor.