Investment Advisor Near Me: How to Find One?

Investment advisors play a critical role in financial planning and wealth management. If you are an ultra-high net worth investor, then you should be asking, “Is there a qualified investment advisor near me?” The right investment advisor can help you control the risk associated with investments, grow your returns, and manage your costs. To understand this better, we suggest you read our guide on how to find an ultra-high net worth financial advisor for individuals having over $10 million in investable assets.

At Pillar Wealth Management, we work with individuals having $5 to $500 million in liquid assets. We hold over 60 years of combined experience in offering fiduciary wealth management solutions and understand only too well the problems that confront high net worth investors looking for a suitable financial advisor. From cookie-cutter solutions and extensive hidden costs to high-risk portfolios, we know how hard it can be to find an investment advisor that complements your investment vision and helps you achieve your goals. If you are looking for effective investment and wealth management solutions, then schedule a free consultation with us.

In this blog, we will discuss the essential qualities of a qualified investment advisor and answer the following questions:

How do I find an investment advisor?
How much should an investment advisor charge?
Is it worth it to have a financial advisor?

Let’s begin.

Table of Contents
What Does an Investment Advisor Do? How Much Should an Investment Advisor Charge? 6 Essentials for Finding an Investment Advisor Near Me Wrapping It Up

What Does an Investment Advisor Do?

To find the right investment advisor, you must first understand what an investment advisor does. An investment advisor is a type of financial advisor who offers investment recommendations to clients. They also carry out analysis on investment securities in exchange for a fee. They have a fiduciary duty to their client and must always put their client’s interests first. There should be no conflict of interest here that can prove detrimental to the client. A registered investment advisor is also known as an RIA.

To learn more about what investment advisors do and how to find the right person for the job, click here to read our short guide on finding a financial advisor for high net worth investors.

How Much Should an Investment Advisor Charge?

As far as how much should an investment advisor charge is concerned, this mainly depends on your net worth and the value of assets under management. For investment accounts that have $1 million in liquid assets, the average fee is 1% annually. This fee structure can be modified for high net worth and ultra-high net worth investors with $5 million to $500 million in assets. For instance, if you have $10+ million in assets, you may be charged lower annual fees around 0.50%-0.8% of the value of your investable assets.

The cost of an investment advisor also depends on the investment techniques they are using. Active managers who make real-time changes to your portfolio and try to beat the market will charge higher fees. However, if you are opting for passive management, then you can expect to incur fewer costs.

To learn more about the difference between active and passive management, click here to read our guide on the 5 critical shifts that help maximize portfolio performance.

6 Essentials for Finding an Investment Advisor Near Me

Are you wondering how do I find an investment advisor? If you are, to help you out, we have prepared a list of essential qualities that a qualified investment advisor must have. Let’s take a look at what these are:

1. They Must Have the Required Experience

A critical aspect of working with an investment advisor is finding someone who has worked with clients having similar net worth as you. For instance, if you have $25 million in liquid assets, then you need someone who has managed an investment account of that size. If you end up working with someone who has only ever offered investment advice to people with $1 million in liquid assets, then you are headed for trouble.

Chances are, your investment advisor will get overwhelmed and will not be able to use the right strategies for managing your assets. What you need is an ultra-high net worth financial advisor with the necessary experience required to handle such a large account.

At Pillar Wealth Management, we offer custom investment and wealth management solutions for high net worth and ultra-high net worth investors. We work exclusively with people who have over $5 million in liquid assets. If you have assets worth $5 million and above, then we can help you out. Click here to arrange a free consultation with us.

2. They Must Understand Your Goals

It is part of an investment advisor’s job to create investment strategies and offer investment advice that helps you reach your goals. Remember, using your assets to achieve your goals is vital to retiring in comfort and living the life you desire. If you end up working with someone who fails to make your goals a priority, you risk your financial security and put your future at stake. If your investment advisor fails to focus on your goals, then eventually, you’ll find yourself wondering, “is it worth it to have a financial advisor?”

So, the next time you go looking for an investment advisor near me, make sure they are dedicated to helping you meet your investment objectives.

3. They Should Be Able to Diversify Your Assets Appropriately

Your investment advisor is responsible for determining how to invest your assets to ensure diversification. There are two primary factors that matter here. Firstly, your investment advisor must make sure that your portfolio is divided across stocks, bonds, and cash. These asset types work very differently from each other and move in different directions. As a result, you get to control your risk. For instance, if your portfolio comprises of 80% stocks, then it is assuming a high amount of risk. This is because the stock market is highly volatile. Things that work today may not work tomorrow. Your stocks can fall in value, and when they do, your entire portfolio will suffer.

On the other hand, if your portfolio comprises of 40% stocks and 20% bonds, then any shifts in the stock market will have a less pronounced effect on your portfolio.

So, make sure you work with someone that understands the importance of a diversified portfolio and is able to control your risk through healthy asset allocation.

Asset allocation also depends on your time horizon. For example, when you are young, you can afford to take on more risk. In such cases, your investment advisor may suggest you invest more in equities to earn higher returns. As you grow older and your risk appetite reduces, your investment advisor should invest less in equities and allocate a healthy portion of your investment portfolio to low-risk assets, such as bonds and cash.

To learn more about asset allocation and risk management strategies for ultra-high net worth investors, order a free hardcover of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.

4. They Must Know How to Minimize Your Taxes

If you are a high net worth or ultra-high net worth investor wondering, “how do I find an investment advisor near me” then here’s another tip for you:Look for an investment advisor that keeps a close eye on your taxes. If you are not careful, high taxes can eat up your earnings. A smart investment advisor won’t let this happen.

To begin with, they will make sure you don’t generate too many short-term capital gains. Short-term capital gains result when you buy or sell securities within a year. These gains are taxed at the ordinary income tax rate, which is 37% for high net worth individuals such as yourself.

Instead, your investment advisor will suggest holding on to securities for longer than a year and selling them to generate long-term capital gains instead. These are taxed at 20%, which is significantly lower.

Besides this, your investment advisor can also suggest investing in tax-free bonds. For instance, you don’t have to pay federal taxes on municipal bonds. These bonds may also be exempted from local and state-level taxes, depending on your place of residence. Many municipal bonds also generate higher interest payments than other corporate and government bonds.

If you are investing in commercial property, you can also take advantage of the 1031 exchange. This loophole in the tax code allows real estate investors to defer taxes on capital gains by swapping a commercial property with another one. You can sell a commercial property and reinvest the gains generated on the sale into another property that is equal or greater in value.

If you are struggling to find an ultra-high net worth financial advisor that prioritizes tax minimization, we suggest you read our guide on how to find an investment advisor for individuals having over $10 million in liquid assets.

5. They Understand the Difference Between Fees and Costs

In an earlier section, we discussed the answer to the question, “how much should an investment advisor charge?” However, in most cases, your investment costs are not limited to the fee you pay your advisor. There are several hidden costs here that you need to account for to gain a better understanding of how much investment and wealth management can cost you. When meeting with a potential investment advisor, make sure you ask them about these hidden costs.

A qualified investment advisor will understand the difference between fees and costs and will be able to guide you on the same. Typically, some of the hidden costs that are a part of investment management include:

Taxes from capital gains
Cost of active vs. passive management
Bond sale spread
Commissions paid to money managers
Tax loss cultivation
Internal expenses

If a potential investment advisor can’t give you a straight answer on these costs, it is best you look elsewhere. In many cases, this is usually because they are not aware of how these costs work and will be able unable to guide you.

If you are interested in learning more about these hidden costs of investment and wealth management, click here to chat with one of our ultra-high net worth financial advisors.

6. They Know Howto Balance Your Risks and Improve Performance

Risks are an inevitable part of investment management. A qualified investment advisor will know how to control these risks without compromising on your returns. They undertake a vigorous approach to risk management that involves:

Careful analysis of potential securities to invest in (for example, buying stocks from blue-chip companies and purchasing bonds with an AAA rating)
Utilizing historical data to understand how your assets will perform in adverse economic conditions
Monitoring your total portfolio risk on a continuous basis

As far as your portfolio performance is concerned, many investment advisors will suggest that low-risk securities also offer low returns. However, this isn’t true. At Pillar Wealth Management, we believe that a strong performance doesn’t have to come with high risk levels. If you invest in the right assets, you can secure high returns while still staying within your risk threshold. We utilize a variety of techniques to make this happen.

To begin with, we create an Efficient Frontier for measuring the efficiency of your risks and returns. The Efficient Frontier allows us to makes sure you are earning the highest possible return on your assets without increasing your exposure to risk.

We also carry out portfolio stress tests to ensure your portfolio remains stable under adverse market conditions. These portfolio stress tests utilize data that goes as far back as 1925.

To learn more about our portfolio planning techniques, click here to read our guide on improving portfolio performance for high net worth investors.

Wrapping It Up

So, is it worth it to have a financial advisor? As long as you are working with the right person, the answer is yes. If you are looking for an “investment advisor near me,” then get in touch with Pillar Wealth Management. We are a team of ultra-high net worth financial advisors that offer custom investment and wealth management services to individuals with $5 million and $500 million in liquid assets. With our help, you can pursue your goals, minimize your taxes and other costs, and create a high-performing portfolio. Click here for a free consultation session!

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.