Darrow offers one service: ongoing asset management and financial planning (commonly called wealth management). As part of our wealth management program, we review our client’s full picture on an ongoing basis: tax positioning, financial planning opportunities, investment allocation, retirement projections, situational analysis such as a major purchase, and so forth. The nature of the advice and support we provide evolves over the course of a long-term partnership with our clients, because their financial situation, life stage, and goals will inevitably change.
As a registered investment advisor, Darrow Wealth Management has a full-time fiduciary obligation to our clients. This is the highest act of loyalty, trust and care as established by law.
Darrow has a $2M investment minimum relationship size. While proceeds from an upcoming liquidity event could satisfy our minimum, the pre-tax valuations should generally be at least $5M (assuming no other significant investable assets or upcoming major purchases).
Our minimums reflect our focus on high-net-worth and ultra-high-net-worth clients — we are boutique in our structure, not in the scale or complexity of our client relationships. As such, our average client relationship is considerably larger than the $2M minimum account size, with newer clients skewing larger still.
We specialize in supporting founders, entrepreneurs, and tech employees before a multimillion dollar sudden wealth event, typically from stock in an IPO or acquisition, business sale, founder liquidity event, or managing an inheritance. Our clients are high-net-worth and ultra-high-net-worth individuals with significant complexity and the need for ongoing investment management and financial planning support.
We work exclusively with clients who are committed to an ongoing advisory relationship, so we aren't a fit for those seeking support for just a few years post-liquidity.
No, we only work with clients on an AUM basis. Our services are designed to support individuals and families who don't have the time and/or experience to manage their investment portfolio, and are therefore seeking to partner with a fiduciary for ongoing assistance with financial planning and asset management.
As fee-only advisors, we are compensated only by our clients. Like most fee-only advisors, our fees are based on a percentage of assets under management (AUM).
We don’t sell products, receive commissions, or earn revenues from third parties. At Darrow, if we refer you to another professional, we aren’t collecting a referral fee.
As a registered investment advisor and fiduciary, we’re always working in your best interest.
Fee-based advisors, typically charge an AUM-based fee, and receive revenue or commissions from product-based recommendations, such as life insurance, annuities, or even the selection of investments in your portfolio.
Our wealth management program encompasses investment management and ongoing advisory support. The annual fee depends on the portfolio size.
For portfolios between $2M and $3M, our management fees begin at 1%. We offer a cliff-based pricing structure, meaning your overall fee percentage decreases as your total assets grow.
Our pricing is straightforward: one transparent fee for your entire portfolio. For managed assets between $2M and $3M, the rate is 1%. As your wealth grows, this single percentage decreases across your total balance, ensuring you benefit from lower costs on every dollar we manage.
The development of a comprehensive financial plan is an optional service for a separate fee. As there’s a lot of planning and analysis we can do without a full model, we’ll work to understand your needs and goals before making a recommendation.
Darrow is 100% independent with no affiliation to an independent broker-dealer such as LPL Financial, Raymond James, or others. As an independent wealth management firm, we don’t have allegiances to a particular fund family, platform, or product. Independence and compensation method help an advisor remain objective when making recommendations.
Advisors associated with broker-dealers (even independent BDs) are often dual registered, a hybrid model allows them to offer fee-based as well as commission-based services, such as insurance sales.
Complete independence also matters when a client is in need of other services, such as life insurance or banking. As an independent wealth manager, we will make referrals to other professionals when clients need of insurance or other products, based on what we believe will be in the client’s best interest.
Because we are nationally recognized wealth advisors for sudden wealth and liquidity events, Darrow supports clients across the country as a SEC-registered investment advisor.
Technology makes it easy to meet face-to-face, even if we are in different locations. When looking for a fiduciary financial advisor, or specialist in stock options in an IPO or founder liquidity event, consider prioritizing the right complete fit over an office location near you. After all, if you move or your advisor does, you probably won’t want to start over with a new firm.
As a Darrow client, you will have a primary advisor who will be your central point of contact. However, we do work as a team in many situations as we believe our clients benefit from the insights and perspectives of more than one seasoned financial advisor.
Our foundational approach centers on proprietary model portfolios, aligned with each client’s risk profile. Our ongoing investment management process also seeks to optimize after-tax returns using strategies such as:
Tax-Loss Harvesting: Systematically capturing losses to offset gains
Tax-Aware Rebalancing: Adjusting allocations while minimizing tax liabilities
Strategic Asset Location: Optimizing the placement of assets across taxable and tax-advantaged accounts
Many factors go into the construction of our model portfolios. We use a global approach in selecting opportunities and employ both passive and active investments. In building diversified portfolios, we aim to reduce fund expenses and turnover and avoid market-timing strategies.
Because many of our high-net-worth and ultra-high-net-worth clients have specific investment needs, we also offer an array of customized asset management solutions, engaging external partners as needed. Some of these capabilities include:
Direct Indexing: For enhanced tax efficiency.
Separately Managed Accounts (SMAs): Customized equity and fixed-income sleeves designed for granular control and integration of sector/industry screens.
Options Trading: Strategic options trading for income generation, diversification, or downside protection.
Concentrated Position Management: Exchange Funds and Section 351 ETF exchanges to manage transitions.
Giving: Donor-Advised Funds (DAFs) to facilitate charitable giving goals.
Typically not. We employ a mix of passive investments such as ETFs and actively managed mutual funds to build a broadly diversified portfolio designed to withstand market volatility. We do employ strategies involving Treasury bonds, though.
Yes, we incorporate ETFs and mutual funds into our core investment strategy.
There are certain situations where the use of options (such as a covered call) is advantageous, particularly when unwinding a concentrated stock position after an IPO. We discuss options strategies with clients on a case-by-case basis. Darrow manages options strategies in-house and does not charge an additional fee for these services.
Darrow uses Charles Schwab & Co. Inc. as our clients’ primary independent third-party custodian. We take care of all the paperwork and can typically move assets in-kind to avoid any initial sales or tax implications. Once assets are at Schwab, we will begin to reposition portfolios. Current 401(k) and employer retirement plans cannot be moved, but the management of those accounts can be discussed on a case-by-case basis.
The account transition and onboarding process will be discussed in detail on an individualized basis prior to becoming a client.