Commonwealth Financial Network Review

Pros and Cons of Commonwealth Financial Network

Types of Clients

Through its network of independent advisors, Commonwealth serves a variety of clients from different asset levels, including:

• Individuals
• High-net-worth individuals
• Corporations or other businesses
• Pension and profit-sharing plans
• State or municipal government entities
• Charitable organizations

For Commonwealth’s managed accounts, clients must meet minimum investment requirements. Below is a breakdown of each account type and the accompanying requirement:

Account Type	Minimum Investment
PPS Custom Program	$25,000
PPS Select Programs	$1,000 for passive; $10,000 for active
PPS Select DFA Program	$50,000
PPS Select Equity SMA and Personalized Indexing Programs	$100,000
PPS Select Fixed Income SMA Program	$500,000
PPS Direct Programs	$25,000 to $250,000
TPAM Program	$25,000 to $50,000

The firm or any third-party custodians may waive these thresholds at their discretion, per Commonwealth’s Form ADV Part 2A. It also mentions that, in some cases, you may be able to combine account balances at the household level to meet the requirements above.

Financial Advisor Services

Commonwealth offers a comprehensive range of investment management and consulting services tailored to meet the diverse needs of its clients. The firm offers structured programs with varying levels of customization and support, depending on your needs.

Here is a more specific outline of how each service works:

Investment Management

Commonwealth’s Preferred Portfolio Services^® (PPS) program gives clients several ways to invest, depending on how involved they want to be in the process:

• PPS Custom is a highly personalized option where you and your advisor build a portfolio from the ground up, using a mix of individual securities, mutual funds, and exchange-traded funds (ETFs). Your chosen investment manager oversees the account with full discretion.
• PPS Select offers several model portfolio strategies to choose from, which are managed on a discretionary basis.
• PPS Direct lets you choose specific strategies directly from third-party managers, including both mutual fund and ETF portfolios.

Consulting and Financial Planning

Beyond investment management, Commonwealth provides a broad range of advisory services for individuals, families, and businesses:

• Wealth Management Consulting provides holistic financial planning on topics like budgeting, retirement income, risk management, and estate planning.
• Retirement Plan Consulting supports employers in designing and managing workplace retirement plans.
• Plan Participant Consulting offers one-on-one guidance for employees to help them understand and make the most of their retirement plan options.
• Health Savings Account (HSA) Consulting includes assistance for employers with HSA program design, employee education, and vendor selection.

Fee Structure

Commonwealth charges advisory fees for its PPS investment programs, along with certain transaction and custodial costs depending on the account type. Fees vary by program, account size, and negotiated terms with your advisor. Here’s an overview:

Service	Fee Percentage
PPS Custom (Transactions)	Annual management fee up to 2.25%, plus possible transaction charges
PPS Custom (Platform)	Annual management fee up to 2.25%, plus a platform fee up to 0.05% and transaction costs
PPS Select	Annual advisor fee up to 2.00%, plus a program fee up to 0.60%
PPS Direct	Annual advisor fee up to 2.25%, plus a program fee up to 1.07%
Wealth Management Consulting	Negotiated flat, hourly (not to exceed $500), or asset-based fee
Plan Participant Consulting	Annual flat percentage fee up to 1.00%
Retirement Plan Consulting	Asset-based fee (up to 0.12%), flat fee, or hourly rate (not to exceed $500)
HSA Consulting	Negotiated flat, hourly (not to exceed $500), or asset-based fee

Investment Philosophy

According to Commonwealth’s Form ADV Part 2A, there isn’t a singular strategy dictating how the firm’s advisors invest or manage portfolios. Rather, you can expect a professional to tailor an investment strategy specifically to your needs using a variety of methods of analysis and research. What comprises your portfolio is largely based on your goals, risk tolerance, and time horizon (e.g., short-term vs. intermediate vs. long-term objectives).

Commonwealth does, however, list a five-step investment philosophy process that guides its service of clients and their portfolios:

1. Screening: Here, the firm evaluates each client to understand their investment objectives and preferences.
2. Evaluation: Based on the screening, an investment is considered via a scoring system that weighs returns and quantifiable risk.
3. Analysis: This step involves gaining an understanding of how an investment performs and works, including quantitative and qualitative analysis methods.
4. Portfolio construction: Next, the firm evaluates the viability of an investment in a specific portfolio, including whether it complements or clashes with other assets.
5. Ongoing monitoring: Finally, professionals monitor a client’s portfolio to identify opportunities or evaluate performance.

Because of its status as an RIA firm, Commonwealth must provide investment advice while adhering to a fiduciary duty. This means that, whenever a professional gives advice or manages your investments, their actions must always be in your best interest.

Disclosures

Commonwealth Financial Network is registered with the U.S. Securities and Exchange Commission (SEC) as an RIA firm. This requires it to report any conflicts of interest or disciplinary history as disclosures on its annual Form ADV filing.

Currently, Commonwealth has 10 disclosures on file. These are events either reflecting on the firm or its advisors. While not a dealbreaker, it’s crucial to be aware of these before working with the firm. You can research any firm or individual advisor by using the SEC’s Investment Adviser Public Disclosure (IAPD) database.

Customer Service and Becoming a Client

As a current or prospective client, you can contact Commonwealth in a few different ways:

• Call (781) 736-0700.
• Contact your independent advisor directly.
• Visit the firm’s contact form on its website.

What LPL’s Ownership Means for Commonwealth

In 2025, LPL Financial acquired Commonwealth Financial Network for approximately $2.7 billion. Despite the acquisition, the firm will keep its brand and attempt to retain its vast network of advisors.

As a current or potential client, this change in ownership isn’t necessarily a reason to stray away from the firm, but rather should be something to be aware of. Some advisors may leave for different firms that better fit their values, which may impact you.

Methodology

This review is based on publicly available information directly from Commonwealth Financial Network’s website and the SEC. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Is Commonwealth Financial Network a fiduciary?

Commonwealth must adhere to a fiduciary duty when it provides investment advice or manages accounts because of its registration with the SEC. This standard also applies to each of the firm’s investment advisor representatives (IARs).

Is Commonwealth Financial Network good?

Commonwealth is a well-established RIA firm that works through a large network of independent financial advisors to serve various types of clients, including HNW individuals and corporations. It offers multiple discretionary investment management programs that fit the needs of different clients. The firm must also put clients’ best interests first, and its negotiable fee structures can align with account size and service needs.

With all of that in mind, the company requires a substantial minimum investment for many of its programs. It also carries relatively high fees that can exceed 2% for smaller accounts. Commonwealth can be a strong option if you’re able to meet the service requirements and arrive at a fee schedule you can manage; however, it may not be the right fit if you’re a beginner or simply need a financial planning solution.

Does Commonwealth Financial Network offer financial planning?

Commonwealth offers financial planning through its Wealth Management Consulting program. This is a flat-fee service that provides you with advice on a variety of important topics, like:

• Cash flow and budget planning
• Retirement planning
• Estate and legacy planning
• Risk management