Intro: Detailed Review of Vector Wealth Management
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In the sections below, we provide a detailed review of Vector Wealth Management, including an overview of the company’s founding, a review of the company’s professional team, and an analysis of the firm’s services, clientele type, fiduciary responsibility, fee structure, and proprietary characteristics.
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Company Overview | Vector Wealth Management
Based in Minneapolis, Vector Wealth Management is an independent investment advisory firm with approximately one billion dollars in managed assets.
In 2017, Vector Wealth Management merged with SNS Financial Group, allowing the combined firms to provide a deeper range of wealth management services for its clients which include those retired, approaching retirement, corporate executives with complex stock plans, professionals with high earning potential, and perhaps most uniquely-individuals with investment real estate.
Clients of Vector Wealth Management can benefit from the following defining characteristics:
- Fiduciary approach – acting only and solely in the clients’ interest
- Proprietary wealth planning software application, SOJOURN®
- Strategic, customized, tax efficient financial planning
- Collaborative team approach with strong client relationships as a centerpiece
- Disciplined investment process focusing on providing long-term liquidity, stability, and growth while managing volatility
- Nearly three decades of guiding clients through life events with understanding knowledge and importantly the collective wisdom gained from its clients
Ultimately, the firm seeks, through its proprietary application SOJOURN®, to help clients have an understanding and confidence around their financial lives that they have not experienced before.
In the sections below, we have outlined a few notable features to summarize the services, approach, expertise, and unique value offered by Vector Wealth Management.
About the Founder, Thomas G. Fee
After working for the very firm that managed his finances for over a decade, Thomas G. Fee founded Vector Wealth Management in 1993. His goal was to create a firm with a more client-centric focus, including robust service offerings and processes.
Tom has authored two financial applications: SOJOURN®, the firm’s proprietary financial software, and another application that is used by financial firms across the country.
As a member of the firm’s Investment Committee, Tom is part of the team in charge of security selection and portfolio allocation.
Throughout his career, Tom has routinely earned professional recognition, including:
- Serving on national advisory committees
- Speaking at national conferences
- Authoring two financial applications
- Wealth advisor spokesman for Today’s Business Radio podcast
- Bachelor’s degree in Finance from the University of Colorado
Image source: Vector Wealth Management
Qualified, Diverse Team of Experts
Members of the team at Vector Wealth Management hold a vast array of professional designations, qualifying them to address a wide range of wealth planning issues and life event financial decisions.
These designations include:
- CFP®—Certified Financial Planner
- CFA – Chartered Financial Analyst
- CPA—Certified Public Accountant
- Masters in Financial Planning
- ChFC®—Chartered Financial Consultant
- AIF®—Accredited Investment Fiduciary
- AAMS®—Accredited Asset Management Specialist
- CRPC – Chartered Retirement Planning Counselor
- Registered Paraplanner™
The Vector team members are diverse in their areas of expertise, and also have a common value shared by all – the desire and passion to serve. Vector has established written core values that are not something they aspire to, but rather, are a reflection of how they approach their work each day in serving the clients. Vector’s core values are:
- Commitment to clients and each other
- Never compromise ethics and integrity
- Prepare relentlessly
- Continue to raise the bar
- Humbly confident
Vector keeps an empty chair in the corner of their conference room to represent the clients’ presence in every internal meeting – a reminder of who they serve.
Advisors are separated into specific groups by financial designations and expertise, supporting a team-based approach to wealth management.
See the sections below for a quick overview of the internal groups within the Vector Wealth Management team.
Image source: Vector Wealth Management
Vector Wealth Management’s Advisory Team
The role of an Advisor at Vector Wealth Management is to be the relationship manager to the client and the team leader between the Advisor, the Portfolio Management Group, and the Advanced Planning/Client Services Group. The Advisory Team is comprised of eight team members:
- Thomas G. Fee—Principal, Managing Partner
- Sharon L. Calhoun—Principal, Director of Advanced Planning, CFP®, MSFS, AIF®, ChFC®
- Todd C. Stueve—Principal, Senior Wealth Advisor
- Tyler J. Schelhaas—Principal, Director of New Client Relations, CFP®
- Joseph C. Grochowski—Senior Wealth Advisor, CFP®, ChFC®, AAMS®
- Robert P. Lawson—Senior Wealth Advisor, CPA, CFP®, MBA
- John E. Tenley—Senior Wealth Advisor, AAMS®, CRPC®
- Kyle C. Matkaitis—Senior Wealth Advisor, CFP®
Vector Wealth Management’s Portfolio Management Group
Responsible for the managing the client investment portfolios including staging of assets customized to each client’s income requirements, tax situation, and long-term wealth objectives. Specializing in strategic asset allocation strategies, concentrated position strategies, and low cost tax-efficient portfolio construction. The portfolio management group consists of:
- Jason D. Ranallo—Director of Portfolio Management, CFA®
- Daniel J. Powers—Principal, Portfolio Manager
- Jacob A. Ranallo—Portfolio Manager, MBA
- William H. Fondell—Portfolio Manager
- Michael B. Mayer—Portfolio Manager
Vector Wealth Management’s Advanced Planning/Client Services Group
The Advanced Planning experts, in conjunction with the advisor, are responsible for creating personalized SOJOURN® wealth plans for each client, researching analyzing and implementing financial strategies, and providing first-class client service. Team members within this group include:
- Krista L. Reeves—Financial Planning Specialist, CFP®
- Eric M. Arndt—Financial Planning Specialist, Registered Paraplanner™
- David R. Moser—Financial Planning Specialist, CFP®
- Christopher M. Wagner—Financial Planning Specialist, CFP®
- Suzanne M. Klapperich—Financial Planning Specialist, Registered Paraplanner™
- Melissa A. Hoffman—Client Services Specialist, Registered Paraplanner™
- Katherine W. Poley—Client Services Specialist
- Jacob G. Fee—Financial Planning Specialist, Registered Paraplanner™
- Derek J. Blankenship—Financial Planning Specialist, CFP®, MBA
Vector Wealth Management’s Team-Based Approach to Services
Vector Wealth Management adopts a team-based approach to financial services, recognizing that the best way to solve unique, complex financial challenges is to utilize multiple perspectives, resources, and areas of expertise.
Each client receives services from an advisor, a portfolio manager, and an advanced planning specialist, enabling clients to benefit from a range of skills and perspectives.
Each client relationship begins by the Vector team listening and developing a SOJOURN® wealth plan, a proprietary application and process which serves as the client’s financial foundation for refined decision making. The Vector approach solves problems and simplifies the lives of their clients by providing financial guidance through life events resulting in clarity and peace of mind.
Depending on their financial designations and personal expertise, each team member is assigned a specific group or committee to provide the best possible value for clients, detailed below.
In the group-led dynamic, advisors are team leaders, facilitating communication between the client, their portfolio manager, and their advanced planning specialist.
Ultimately, an advisor’s role is to effectively communicate each client’s goals, values, and desires to other team members, ensuring that each financial plan is properly aligned.
All advisors are fiduciaries, acting only and solely in the interest of their clients through personal consultation, strategic financial planning, and customized investment management driven by the results of their SOJOURN® wealth plan.
Portfolio Management Group
The Portfolio Management Group team members provide advanced investment management services building customized portfolios for each client. Vector utilizes a proprietary asset allocation structure creating long-term liquidity, stability, and growth, while managing volatility. Strategic portfolio construction uses a combination of low cost passive management indexing with active management where advantageous. Vector’s investment acumen includes:
- Asset Allocation Strategies driven by and integrated with the SOJOURN® wealth plan
- Investment Real Estate integrated into market based investment strategies
- Concentrated Position Risk Management (Corporate Stock Incentive Plans)
- Options Overlay Strategies / Risk Mitigation Strategies
- Strategic Gain/Loss Harvesting
- Tax Efficient Portfolio Construction
- Proactive Strategic and Tactical Portfolio Rebalancing
- Asset location to optimize family wealth across generations
- Legacy Asset Strategies
- Portfolio Expense Audit
- Investment Overlap Analysis
- Held-Away Asset Review/Integration
- Corporate Retirement/Benefit Plan allocation integration
The Investment Committee at Vector is consistent with the team-approach culture. The Investment Committee is represented by members of the Advisory Team and members of the Portfolio Management Group.
Investment services from this committee rely heavily on economic analyses and research, monitoring, and reporting. Vector uses and combination of internal research and third-party research to develop long-term strategic outlook and shorter term tactical policy.
Image source: Vector Wealth Management
Advanced Planning/Client Services
Vector Wealth Management provides clients with access to in-depth, Advanced Planning services. These begin by developing a customized SOJOURN® plan, defining individual circumstances and personal goals to create an understanding and confidence in the plan possibilities.
After creating a customized SOJOURN® wealth plan, clients can take advantage of the expertise of Vector’s Certified Financial Planners providing guidance through life events. The Advanced Planning experts provide a wide variety of financial, tax, and risk management guidance including:
- Retirement Contribution and Income Distribution Strategies
- Transitioning from the Accumulation Phase to Distribution/Retirement Phase
- Tax Planning and Tax Efficient Distribution and Asset Location Strategies
- Estate Planning Analysis and Strategy
- Charitable Giving During Lifetime and Testamentary Gifting
- Wealth Transfer Planning
- Optimizing Social Security Benefits
- Pension Analysis and Distribution Strategies
- Executive Compensation Planning
- Strategic Use of Leverage and Debt
- Education Analysis and Funding
- Risk and Insurance Analysis
The Client Service team at Vector Wealth Management also assists clients day to day, serving as the liaison between the client and the custodian. To enhance the client experience, Vector has one phone number for clients so they always get a live person who can help the client in a variety of ways including:
- Opening new accounts
- Initiating transfers
- Managing cash flow
- Execute additions to accounts and distributions
- Ongoing account maintenance
Range of Clients Served By Vector Wealth Management
As defined by the firm, clients that can benefit the most from Vector Wealth Management’s services include:
- Individuals and couples approaching retirement
- Real estate investors
- Corporate Executives with complex stock and benefit plans
- Professionals and Physicians
- Entrepreneurs/Business owners
- Education professionals
Vector Wealth Management is passionate in helping clients succeed amidst complex financial situations, providing a framework to make confident, smart decisions and ultimately planning for tomorrow while getting today right!
Typically, clients of Vector Wealth Management have $750,000-$5,000,000 in investable assets, however they are also serving clients with in excess of $10 million.
Fiduciary Responsibility & Vector Wealth Management’s Fee Structure
As a Registered Investment Advisor (RIA), Vector Wealth Management has adopted the fiduciary standard, acting only and solely in our clients’ interest. Of all RIAs in the United States approximately only 1.5% are true fiduciaries.
Firms that take on a fiduciary responsibility have a fundamental obligation to provide thorough financial advice while acting in their clients’ best interests.
For Vector Wealth Management, fiduciary responsibility means acting solely in each client’s best interest through customized investment management, strategic financial planning, and personal consultation.
As an RIA, the firm does not accept compensation based on the sale of investment products. Not only does this significantly decrease conflicts of interest, but it also encourages and promotes trust within the client-advisor relationship.
In keeping with their commitment to supporting trust between clients and advisors, Vector Wealth Management maintains a transparent fee structure, shown in the table below.
Vector Wealth Management’s Total Assets Under Management
Vector Wealth Management’s Annual Fee
|$1 million-$3 million||
|$3 million-$5 million||
|Over $5 million||
Unlike most firms in the industry that charge fees on a tiered schedule where the first assets are always charged at the higher rate for that tier, Vector’s fee schedule charges ALL assets under management at the lower tier rate. Vector’s approach results in lower fees to the client compared to a weighted average fee for each tier. Vector strives for transparency in every part of serving the client.
SOJOURN® is a proprietary software application developed by Thomas Fee, founder of Vector Wealth Management.
The SOJOURN® software aims to provide clients with a deeper understanding and greater confidence around their financial lives, effectively fulfilling the greater goal of the firm itself – to serve clients with expert guidance to achieve their goals.
The process includes three proprietary characteristics:
- Assets are segmented into four portfolios based on specific timeframes (Years 1-3, 4-9, 10-15, and 16+)
- Adjustments to each portfolio are made over time to achieve individual growth and stability goals
- Retirement income is staged to reap the most benefit from fluctuating market cycles
Ultimately, the SOJOURN® software creates custom-built investment policies for clients based on what they are asking assets to do. Called liability-driven investing, these policies are designed to consider fluctuating income needs over time while supporting high probability returns.
With a segmented portfolio structure, the SOJOURN® process effectively funds income as much as 1-4 years in advance, providing disciplined withdrawal strategies, financial stability, and peace of mind in retirement.
Image source: Vector Wealth Management
Vector Wealth Management provides a variety of additional resources for potential clients and current clients to access.
These resources are provided to promote transparency, improve financial awareness, and empower clients to make confident, well-informed financial decisions. Some examples of resources available include:
- Video Library—Short videos explaining the firm’s methodologies and best practices on financial topics
- Vector News/Articles—Firm-specific news and industry recognition
- Forms—Includes authorization form for clients to access their accounts and financial profile to prepare for planning sessions
- Other Links—Provides quick access to online financial publications and resources like financial calculators
- Events—Registration for local events and complimentary consultations
Contact Information | Vector Wealth Management
43 Main Street SE, Suite 236
Minneapolis, MN 55414-1048
Phone: (612) 378-7560
Toll-Free: (877) 383-2867
Fax: (612) 379-4895
Email: [email protected]
For those using GPS or navigation system, the firm recommends using the parking address listed below.
Riverplace Parking Ramp
30 2nd Street SE
Minneapolis, MN 55414
Potential clients can also fill out a brief form with their contact information to have an advisor reach out to them with specific financial advice.
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