Redwood Wealth Management

As an SEC or state-registered registered investment advisor (RIA), Redwood operates under the Investment Advisers Act of 1940, which imposes a fiduciary duty. This means the firm is legally obligated to act in its clients' best interests, disclose conflicts of interest, and cannot place its own revenue or product commissions ahead of client outcomes — a higher standard than the suitability requirement governing broker-dealers.

Independent RIAs with Redwood's profile commonly custody client assets with large third-party custodians: Charles Schwab, Fidelity Institutional, or Pershing. The custodian holds client securities and cash, provides trade execution and settlement, and issues client statements — creating a separation between advisory management and asset custody that serves as a structural client protection.

RIAs in this segment generally construct portfolios using individual stocks and bonds, exchange-traded funds (ETFs), and open-end mutual funds. They may allocate to alternatives such as interval funds, non-traded REITs, or private placement offerings when appropriate for qualified clients, but do not typically sponsor proprietary private equity or hedge fund products.

Fee models among independent RIAs typically include a percentage of assets under management (often 0.50% to 1.25% annually, tiered downward at higher asset levels), flat retainer fees, hourly project fees, or subscription-pricing models. The absence of commission-based product sales allows the advisor to select investments without transaction-based incentive bias.

Unlike wirehouse advisors employed by large broker-dealers such as Merrill Lynch, Morgan Stanley, or UBS, an independent RIA like Redwood owns its own firm, selects its own custodian and technology stack, and operates free of proprietary product mandates. The trade-off for independence includes full responsibility for compliance, technology, and operations — functions a wirehouse provides centrally.