Investment Firms Near Me: What Do They Do – PillarWM

Many high net worth and ultra-high net individuals prefer investing their wealth in a wide array of assets. This is an excellent way for them to not only protect their wealth but also increase it. So, if you’re part of the millionaire club and possess assets worth anywhere between $5 million and $500 million, you should be thinking, “Are there any investment firms near me”? At Pillar Wealth Management, we offer holistic investment solutions to affluent clients such as yourself. Plus, we highly recommend you read our unique guide for investors with $10 million and more and learn more about choosing the best investment firms.

The 10 Largest Investment Management Companies Worldwide

#	Company	AUM
1.	BlackRock	$9.464 trillion
2.	The Vanguard Group	$8.4 trillion
3.	UBS Group	$4.432 trillion
4.	Fidelity	$4.23 trillion
5.	State Street Global Advisors	$3.86 trillion
6.	Morgan Stanley	$3.274 trillion
7.	JPMorgan Chase	$2.996 trillion
8.	Allianz	$2.953 trillion
9.	Capital Group	$2.6 trillion
10.	Goldman Sachs	$2.372 trillion

What Does an Investment Firm Do?

One of the most commonly asked questions by high net worth and ultra-high net worth individuals who are new to the investment world is “What does an investment firm do?” In simple words, investment firms invest their clients’ money as a means to increase returns. They help them select the appropriate assortment of investments ranging from low-return and low-risk bonds to high-return and high-risk stocks. They can also include index funds such as the S&P 500 or provide advice about the risk of options trading. At Pillar Wealth Management, we offer investment management services to clients who have anywhere between $5 million and $500 million worth of liquid investable assets.

The ultimate objective of any investment firm, including Pillar Wealth Management, is to get the returns their client requires at a level of risk they’re comfortable with. Investment firms fulfill their objective by developing a comprehensive investment portfolio for their clients and create new investment possibilities that would otherwise be unavailable. Sign up here for a free consultation with us to learn more about how we can create an optimum investment portfolio for you.

The Primary Tasks of Investment Management Firms

1. Identifying Their Clients’ Financial Targets and Risk Tolerance
2. Keep Track of Possible Investment Opportunities
3. Formulate Comprehensive Investment Plans
4. Invest in Financial Instruments

In choosing the right investment management firm, you should know about the main duties of such a firm. Here is a list of some of the key tasks that an investment firm performs.

1. Identifying Their Clients’ Financial Targets and Risk Tolerance

Investment firms require necessary information such as the amount the client wants to invest, their financial goals, risk tolerance, and the time frame within which they want to access their money.

2. Keep Track of Possible Investment Opportunities

There are several investment opportunities available to high net worth and ultra-high net worth individuals ranging from real estate and mutual funds to tax-free municipal bonds and shares in new companies with uncertain futures. Thus, an investment firm needs to thoroughly know about the various investment opportunities available and calculate the returns and risks associated with each of them.

3. Formulate Comprehensive Investment Plans

Every client needs to have an investment portfolio that is aligned with their financial targets. A diverse portfolio with investments made across various assets lowers risks. It’s just the same as not putting all your eggs in one basket. To get a detailed insight into investment management and risk diversification techniques, make sure to read our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $500 Million.

4. Invest in Financial Instruments

After a comprehensive investment plan has been developed and is agreed upon by the client, an investment firm will then invest their client’s money in a range of financial instruments. There are several financial instruments and strategies that investment firms use, providing investors exposure to different risk levels. If you’re interested in learning more about how you can improve your portfolio’s performance, don’t forget to read our ultimate guide – Improving Portfolio Performance.

These are the primary functions performed by an investment firm. There are plenty of ways to go about it. For instance, some investment firms that manage investment funds for several investors may choose to invest in private equity. On the other hand, if your financial goal is to cut back on taxes, your investment firm may advise you to invest in tax-free municipal bonds.

What Are Good Investments for High Net Worth Investors?

1. Real Estate
2. Tax-Free Municipal Bonds
3. Unregistered Securities
4. Direct Investments
5. Cash
6. Hedge Funds
7. Collectibles
8. Growth Stocks

Now that you know what an investment firm does, you must be wondering, “What are good investments for high net worth investors?”

Here is a list of some of the most popular investments for high net worth investors such as yourself to answer your question.

1. Real Estate

It is a well-known fact that high net worth investors consider real estate as an excellent investment option. Real estate is classified into two categories – residential real estate and commercial real estate.

Many high net worth investors prefer buying several residential properties that they either use as a holiday home or a place to rent to generate income. Commercial real estate properties are also low-risk and high-income generating assets. Some commercial real estate options that high net worth individuals prefer to invest in include shopping centers, warehouses, and office spaces.

2. Tax-Free Municipal Bonds

Another popular investment choice for high net worth investors is tax-free municipal bonds. A municipal bond is a fixed-income investment issued by states, cities, government agencies, or other legal entities such as a port authority or a housing authority. Several new projects, such as bridges, hospitals, stadiums, and roads, are typically financed through municipal bonds’ issuance.

The best thing about municipal bonds is that they can offer higher after-tax returns than similar taxable government or corporate bonds. Generally, the interest offered on municipal bonds is exempted from federal taxes and sometimes local and state taxes as well.

3. Unregistered Securities

Unregistered securities are also a common opportunity for high net worth individuals. These are shares of stock that don’t trade on financial markets and haven’t gone through the regular IPO structure.

For unregistered securities, one or more private offerings usually precedes an initial public offering where high net worth investors can purchase a company’s shares. Book a free consultation with us to know more about unregistered securities and whether they’re the right choice for you.

For instance, Uber is a private company whose shareholders are mainly wealthy individuals like yourself. Unlike publicly traded companies, privately traded companies don’t have to prepare annual and quarterly reports. Several smaller start-ups are operating similarly.

4. Direct Investments

High net worth individuals are increasingly looking towards direct investments to secure and grow their wealth.

Direct investments typically appeal to affluent individuals because they eradicate the management fees charged by investment firms. Moreover, direct investments are more closely aligned with the mindset, values, and goals of high net worth investors.

5. Cash

Some high net worth individuals prefer to keep their wealth in cash. This isn’t because these individuals want to diversify their investments or because they are opposed to the idea of being fully invested.

Instead, the primary reason behind investing in cash is that it allows high net individuals to quickly take advantage of a sudden market drop or other profitable opportunities. Thus, if these affluent individuals don’t have any cash on the sidelines, they won’t be able to leverage such situations.

6. Hedge Funds

Hedge funds are also a popular choice amongst high net worth individuals. They work quite similarly to mutual funds, where investors pool their money together under a professional investment advisor’s guidance. Hedge funds cover a variety of asset categories and investment techniques.

Overall, hedge funds are an excellent choice for investors who have a low-risk tolerance and wish to secure their portfolios from market risks.

7. Collectibles

Collectibles are items that have a much higher value than their actual selling price. They are classified as alternate investments, which means that they don’t fall into any other asset category, such as cash, bonds, stocks, or real estate.

Investing your wealth in collectibles is not only a rewarding experience but can also increase your gains. Some common collectibles that high net worth investors tend to invest in include stamps, wine, classic cars, and fine art.

8. Growth Stocks

Purchasing and keeping growth stocks is a passive investment option that is favored by high net worth individuals.

Growth stocks might or might not offer dividends. However, they are still an attractive investment opportunity because they provide returns through share price appreciation. Moreover, there are several advantages to investing in growth stocks. For instance, if you invest in growth stocks, you won’t have to pay taxes while holding the stock. Plus, if you keep the stock for more than a year, your gains will be taxed according to long-term capital gains. (Long-term capital gains are taxed at a lower rate than short-term capital gains)

Ultra-High Net Worth Investment Firms Near Me

If you’re an investor who has $25 million or more in liquid investable assets, you should hire an investment firm. An ultra-high net worth investment firm can help you manage, sustain, and even increase your wealth by formulating optimum investment strategies.

Moreover, you may have certain financial goals such as saving a specific amount for retirement, buying a luxury yacht, or starting a business or a charitable foundation. To achieve these goals successfully, you need the services of an experienced investment firm that can help you make the right investment choices. Read our helpful free guide and learn about the five critical shifts every ultra-high investor needs to make to maximize their investment performance and get the financial serenity they have always wished for.

Which Is the Best Investment Company to Use?

1. Experience in Dealing with Affluent Clients
2. Tax Minimization Plan
3. Active or Passive Management

If you’re a wealthy individual and are wondering, “Which is the best investment company to use?” there’s some good news for you!

Many investment firms offer investment-related services to their clients. However, finding the one that is the best fit for your needs is a challenging task.

Big investment companies like Fidelity Investments, Vanguard, and Charles Schwab cannot guarantee that you will get the best possible personalized investment plan. They will give less priority to each client as they accept too many clients in a year. Pillar Wealth Management accepts only a small number of clients so that it can focus on each one to give them highly personalized advisory services.

So, to help you out, here’s a list of factors that you should scrutinize before opting for an investment firm. Additionally, you can also read our free guide to learn how to choose the best investment firm to protect and increase your wealth.

1. Experience in Dealing with Affluent Clients

Offering investment advice to individuals who have liquid investable assets worth $5 million up to $500 million is totally different from offering investment advice to individuals who have $100,000 or less. Thus, when you choose an investment firm to manage your investments, make sure that it has sufficient experience working with high net worth and ultra-high net worth investors.

When choosing an investment company, customer reviews can be beneficial. Reviews from former clients will give you insights into how the company works, the results, charges, and so on. Besides, the financial advisor should have a good qualification like Certified Financial Planner (CFP).

At Pillar Wealth Management, our investment advisor team has more than six decades of experience assisting high net worth and ultra-high net worth investors. Thus, we are well-equipped to handle the investments of investors at that level.

2. Tax Minimization Plan

Another critical tip to screen investment firms is to ask them how they aim to keep your taxes low. Since high net worth and ultra-high net worth individuals are subject to higher taxes than regular wage earners, tax planning is essential for investors who want to maximize their assets’ value cost-effectively.

Our team at Pillar Wealth Management is highly skilled in this area. To learn about how we help our clients minimize their taxes, click here to schedule a free consultation with us.

3. Active or Passive Management

Many investment firms are highly focused on active investment management. While this is a great way to increase your wealth in the short term, it can take away a significant portion of your wealth in management fees and taxes.

Passive investment management is a more calculated procedure that helps clients achieve better financial results in the long run. Thus, before selecting an investment firm, make sure you ask them if they utilize a balanced approach between active and passive management. Please read our guide for investors with $10 million or more to learn other essential questions to ask an investment firm before using their services.

At Pillar Wealth Management, we offer an optimum combination of active and passive investment strategies so that you get the best of both worlds.

How to choose the best investment firms near me               

Best Wealth Management and Investment Firms  

Among the best wealth management and investment firms are:

Vanguard Personal Advisor Services (VPAS): VPAS requires a minimum account balance of $50,000. A personal advisor will work with you to develop a financial plan that is based on your financial situation and goals. You may pay a fee as low as 0.3% of the value of your assets under management.

Fidelity Investments: With $50,000 to invest, a client at Fidelity has access to a financial advisor who will create a strategy for meeting the client’s financial goals for investing, retirement, charitable giving, and estate planning.

Charles Schwab Asset Management: For a minimum of $25,000, an investor at Charles Schwab is entitled to personal consultations with an advisor. Advisors are available in more than 300 local offices across the US.

Why Choose a Wealth Management Firm?

Investors today have a lot of options for getting help with asset management, investing, retirement planning, and other financial goals.

These options include Robo advisors and online brokers, not to mention the local branch of your favorite bank.

However, some high-net-worth individuals or even those with not as much to invest may prefer to have a dedicated personal advisor, someone with whom they can build a relationship over time.  They want to have open conversations about their financial goals with someone they can trust.

Your Investment Goals

Your advisor should make investment recommendations based on your goals, so before choosing an advisor, you need to have clearly defined goals.

Your advisor can show you what’s required to meet your goals, including meeting future financial responsibilities and increasing your wealth.

Do You Need an Investment Firm?

You may feel that creating a strategy to meet your goals is not within the scope of your knowledge and experience, in which case it’s a good idea to find an investment firm to work with. You may need help with saving for retirement or managing debt. Your investments are getting complicated, so some help with asset management and allocation would be beneficial. You may be dealing with an inheritance or a divorce, or you may be interested in diversifying your charitable giving but don’t know how to go about doing that.

What to Look for

As you look into selecting an investment or wealth management firm, be sure to look at various ratings and reviews from customers and industry professionals, journals, and articles. 

The best firms have reasonable fees, in addition to being transparent about commissions and other costs.

A good advisor or firm will have satisfied customers because the customer’s interests rank high on their list of priorities. The best advisors are available when they are needed, and other support options should be available.

If the advisor isn’t able to meet a customer’s needs, then they should be able to find a professional who can, such as a tax or insurance expert.

A good advisor can tell you success stories about their investment recommendations.

A good advisor provides a variety of services beyond investment advice. They can help with retirement planning, estate planning, and purchasing insurance.

Disadvantages of Using an Investment or Wealth Management Firm

By using an investment firm, you’ll pay higher fees than for a discount broker or robo advisor. You’re also giving over control of your assets to someone you can hopefully trust to make the best choices for you in exchange for higher fees. They should be dedicated to meeting your goals for growing your wealth.

Most importantly, be sure you understand everything there is to know about the fees you will pay, regardless of your earnings from investments.

A Few Last Words

Given the large number of financial planners, financial advisors, brokers or discount brokers, investment advisors, wealth managers, and agents out there, it can be extremely challenging to decide who to choose for investment management. However, you need to know that only an experienced investment firm can help you manage, grow, and secure your wealth for a better future.

Pillar Wealth Management (rights reserved) is one of the most experienced wealth management firms that offer investment services as well. Our team has a combined experience of more than six decades – we have helped clients get through the 2008 Financial crisis and are now working to help them surpass the current pandemic. Please register your account and visit our website. To learn more about how we can assist you, register for a free consultation with one of our experienced advisors today.

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