Rating: 
Goldman Sachs Wealth Management Review Highlights
• Goldman Sachs offers both investment-advisory and brokerage accounts.
• A Private Wealth Management program is available at Goldman Sachs for the ultra wealthy.
• Financial planning is one of Goldman Sachs’ areas of expertise.
Overview of Goldman Sachs
A wide range of financial services can be had at Goldman Sachs, although steep minimums and high fees in some cases will leave some people out in the cold.
Investing
Goldman Sachs offers both managed and brokerage accounts to clients around the world. In the United States, the company’s advisory accounts are available in discretionary and non-discretionary modes. The company’s robo program, Marcus Invest, has been shut down.
With the collapse of the automated service, investing accounts at Goldman Sachs are now full-service. This means every account needs to be opened through a financial advisor, and this expert will provide a lot of guidance and hand holding. The downside is that the company doesn't have a lot of branch locations.
The top tier in Goldman’s investing service is its Private Wealth Management division. It is designed for both retail investors and institutions. The highest level of service from Goldman will be found here.
For actual investments, Goldman Sachs offers the standard range of securities (assets like stocks, bonds, and funds). And its Private Wealth Management division offers alternative investments (things like private real estate and hedge funds). Not all investments are available in all programs.
To help its clients save as much money as possible on taxes, Goldman Sachs does offer a great number of tax shelters, including custodial accounts, education accounts, retirement accounts, and more.
Financial Planning
Because Goldman Sachs is a full-service investment firm, it does have a noticeable emphasis on financial planning. The highest level of this program will be found in the company’s Wealth Management division, although financial planning is available to regular customers without enormous wealth. Examples of service that can be obtained include:
- Estate planning
- Trust creation
- Wealth preservation and transfer
- Charitable giving
- Tax-efficient investing
- Risk management
- Hedging
- Legacy planning
- Family office solutions
- Foundation and endowment services
- Retirement planning
- And a lot more
Banking
Through its subsidiary Goldman Sachs Bank USA, Goldman offers credit cards and savings accounts. The latter are marketed under the name Marcus and come with some decent perks, like a 4.40% APY. Same-day ACH transfers are available, which is a feature that’s hard to find. The major downside is that debit cards and checking accounts are missing in action, although there are some CD accounts that pay 5.00% interest right now. FDIC insurance is standard fare on deposits.
The credit cards Goldman offers are in partnership with General Motors. They do come with some nice benefits like 0.00% APR for a limited time, although rewards points can only be used at GM dealerships.
Fees and Minimums
To start a relationship with Goldman Sachs, there is generally an investment minimum of $100,000. Some programs have much higher minimums than this number. For example, the Wealth Management service requires a staggering $10 million to get into. Brokerage accounts themselves have no minimums, although the overall investment minimum still applies.
The cost of advisory accounts varies from 2.6% to 0.4%, depending on account value and investment program selected. Some investment programs have minimum annual fees. For instance, the Comprehensive Advisory Services Program has a minimum annual fee of $50,000.
Brokerage accounts are priced on a per-trade basis, and commissions can be steep because Goldman is a full-service firm. There is no commission-free trading here.
Find a Financial Advisor
If you are looking for a professional financial advisor in your area, you can
find top Financial Advisors on the Wiser Advisor website.
Visit Wiser Advisor
Margin
Goldman Sachs provides margin trading in some of its investment accounts, and short positions are permitted in some accounts. The exact rates for margin services will be disclosed by the investment advisor representative. There is also a securities-based lending program that can be used to withdraw cash from an account using the securities as collateral. There are no loan fees for this revolving line of credit, and the principal can be repaid at any time. Margin interest is due monthly.
Software
Goldman Sachs and Marcus both have mobile apps and websites for investing and banking. The apps function on Android and Apple devices and provide user-friendly tools to manage accounts. The Goldman website is available in lots of languages, including English, Chinese, and Italian. It does have a great deal of educational material on it, including macroeconomic news. A discrete site for the company’s asset-management division includes lots of details on mutual funds from Goldman and even more information on market action.
Miscellaneous Services
Fully-Paid Securities Lending Program: Goldman Sachs operates something called Goldman Sachs Agency Lending that allows institutional clients to earn money by loaning out their stock shares. Not all accounts are eligible for the service, however.
Individual Retirement Accounts: IRAs are available at both Goldman Sachs and Marcus.
Initial Public Offerings: Goldman Sachs has a very famous investment banking operation, so of course IPOs are available.
Recommendations
Retirement Saving & Long-Term Investing: A one-on-one working relationship with a Goldman Sachs advisor is a good way to plan for the future.
Frequent Stock Trading: Due to stock commissions and lack of advanced trading tools, Goldman Sachs is not a good firm to actively trade stocks. Interactive Brokers would be a better choice.
Small Accounts: Fidelity would be a better idea.
Beginners: Investors with no clue what to do will be in good hands with Goldman Sachs.
Mutual Funds: A wide range of mutual funds can be had at Goldman Sachs, including funds from Goldman Sachs itself and other fund families. Investors should pay close attention to fund expenses and do some comparison shopping.
Goldman Sachs Wealth Management Review Verdict
Goldman Sachs has a very thorough investment program that ultra-high-net-worth folks can really benefit from. Everyone else can probably find better deals elsewhere.
Updated on 1/1/2025.
Continue Reading