Best Wealth Management Companies

Let’s take a quick quiz:

A higher “assets under management” number signifies a superior level of wealth management services (True or False?)

A fee-only structure and a fee-based structure are similar (True or False?)

Risk tolerance is the most important aspect of wealth management (True or False?)

Hint: You can find these questions and their answers in this article and in the following downloadable guide to choosing the best financial advisor for investors with $10 million or more in investible assets.

If you are among this group, then making informed choices regarding your wealth is of colossal importance. You could be anxious about wealth management because of the high stakes it involves and the decisions that could strongly influence different aspects of your life. Well, thankfully, there are plenty of wealth management companies across the U.S.

But clearly, you want to work only with the best wealth management companies, given the amount of effort it takes to create that wealth—and protect and grow that wealth for a secure financial future—for yourself and your family. That’s what we do here at Pillar Wealth Management, a firm specializing in working with investors who have $5 million to $500 million of investable liquidity.

If you haven’t yet read anything on wealth management, then this piece will answer the question, “What are wealth management companies?” If you have already read about wealth management, then you may have also come across the idea that wealth managers earn a fee. But, if you are asking, “Which wealth management companies are worth it?” or you don’t know whether you should be paying someone to manage your wealth, then this article will clarify that for you as well. The information below will shed some light on when it makes sense to hire a wealth management firm.

If you feel convinced about the positive role that a wealth manager can play in your life, then you probably want to know only one thing—how to hire a wealth management company. We will help you with that as well. Lastly, since we are in the mood to give out knowledge and helpful tips, we might as well also discuss why you should work with the best, Pillar Wealth Management. Oh, and don’t worry about your quiz score. What counts is the decisions that you make after reading this article. Let’s get started!

The 7 Best Wealth Management Firms: What You Need to Know

You should understand that in the pursuit of the best wealth management firm, the best companies are differentiated from the rest in the financial planning and expert investment advice, among other services, that are part of comprehensive wealth management. Here is a list of the top wealth management firms, recognized for their superb services and their commitment to helping their clients achieve their financial goals.

1. Pillar Wealth Management (PWM)

PWM is a private wealth management firm based in Walnut Creek, California. It maintains a fee-only, private wealth division designed for individuals with high net worth. It was founded in 2008 by Hutch Ashoo and Chris Snyder.

Ashoo and Snyder bring 60 combined years of experience in wealth management to PWM. They have been featured in many publications, including an e-book designed to help investors select the right financial advisor, and other resources discussing wealth management strategies and financial wellness.

PWM is a boutique wealth management practice focused on individual investment management; therefore, it requires a minimum-sized account of $5 million and charges a minimum annual fee of $15,000. The firm formulates tailored investment strategies in alignment with the client’s financial objectives, fostering comprehensive knowledge of their financial landscape and objectives. PWM’s business strategy revolves around portfolio customization, as per the needs of individual clients. Such portfolios are custom-designed through charting and cyclical and fundamental analysis of securities. The investment options in the wealth management division of PWM run from mutual funds to commodities; hence, the associated asset management is diversified. Negotiable fees can be assessed keeping in mind the exclusive clientele of the company.

PWM stands as a beacon of institutional-quality, ultra-high-net-worth wealth management, dedicated to serving individual clients with proactive and comprehensive financial planning delivered with flawless execution.

2. Bank of America

Bank of America bought Merrill Lynch toward the end of 2009. The Bank’s GWM GMAM division crossed over $1 trillion. It is estimated that endowments worth $3 trillion were mobilized by Merrill Lynch alone. It has over 200,000 people in its employ.

The wealth management business comprises Merrill Lynch Advisors, a registered broker-dealer, and the Bank of America Private Bank within Merrill, which constructs individualized investment portfolios specific to each client’s financial goals and situation. Additionally, the advisor is able to offer lifestyle planning, tax consulting, investment management, trusts and estates, strategic philanthropy, and banking.

3. Morgan Stanley

Morgan Stanley was established on New York’s Wall Street in 1935. In 1997, after merging with Dean Witter, Smith Barney became the world’s largest securities firm.

Morgan Stanley provides investments with E*TRADE online; help is also available in the form of advisors or personal financial advisors who can help the client develop a suitable financial plan.

A LifeView Personal Wealth Advisor at Morgan Stanley can develop a plan for you to live the life you want. At Morgan Stanley, a LifeView Plan may have a fee of up to $10,000 for clients with plan assets of more than $5 million.

4. UBS

UBS is domiciled in Switzerland and provides jobs to over 23,000 people in 40 countries across the globe. It is in league with the best global players in the areas of Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Banking.

UBS Wealth Way is a global program that provides financial planning for high-net-worth clients and their families. At the very core of the Wealth Way approach is the desire to know what matters most to you and what you want for yourself and your loved ones.

Your UBS Financial Advisor puts guardrails around a financial plan so that it becomes consistent with the three guiding principles: Liquidity, Longevity, and Legacy—all tailor-made for you.

5. Wells Fargo

Wells Fargo Headquarters is based in San Francisco. The bank services 35 countries with more than 70 million clients in the company’s over 8,000 branches, widely held to be one of the Big Four banks in the US.

Wells Fargo Advisors is the third-largest brokerage firm in the U.S., with $1.9 trillion in assets under management in 2021.

Wells Fargo Private Bank offers personalized, custom-tailored solutions for wealth planning through LifeSync.

6. Goldman Sachs

Goldman is a New York City-based company founded in 1869. It provides personal financial services such as investment management services, mutual fund services, and banking solutions for an individual, company, or organization. It currently generates its revenues through about 4,000 outlets, which are run directly by over forty thousand employees worldwide.

Goldman Sachs began selling pension funds in 1988 when Microsoft had its initial public offering IPO, whereby it was able to garner $61 million; now, it has a real estate division. A financial advisor who works for Goldman Sachs Private Wealth Management resembles a combination of investment planner and trust and estate planner, working to create a personal portfolio for their clients. Some of the products offered by the company include lines of credit, philanthropic education, and lending.

7. Vanguard Group

The Vanguard Group operates its head office in Malvern, PA. The company was founded by John Vogle in 1975. The firm has more than $8 trillion in assets under its management.

Vanguard Group is owned by its investors or clients.

Vanguard offers Personal Advisor Wealth Management services to individuals having investable assets worth more than $5 million. The clients get to enjoy the services of their very own dedicated CFP, a team of financial experts, and a relationship manager. The advisory fees charged are 0.30% or even lower, depending on the value of the assets in the portfolio.

What are wealth management companies?

There are several forms of businesses that are engaged in wealth management. Basically, they are businesses associated with a wealth manager, who is an individual who focuses on managing the financial affairs of high net worth or ultra-high-net-worth clients. For instance, Pillar Wealth Management mainly focuses on managing the wealth portfolios of families, companies, and foundations with assets worth between $5 million and $ 500 million. It has advisors with about sixty years of experience in this field.

The high net worth demographic is considered an elite with liquidity worth between $1 and $30 million, while those above $30 million are associated with ultra-high net worth. This wealth is assumed to be liquid investible assets, not including real estate.

The challenges and concerns of individuals with a high or ultra-high net worth are pretty different from those of someone with $100,000 in cash. There is a noticeable shift between moving a $10 million property and a $300,000 house. Capital gains taxes on short-term and long-term investments are significant when applied to a portfolio of a few million. This is why philanthropy needs to be planned, as a philosophy of giving is said to be more challenging than the process of making money. This dilemma is a far cry from deciding who should be eligible to receive $2,000,000. As it has been established, transferring a multi-million business requires a process that needs to be keenly observed and followed. There are promises of a higher foreign-exchange profit, such as Deloitte’s prophetic analysis of how, over the next few decades, between $20 and $58 trillion of wealth in developed economies is expected to shift from baby boomers to the millennial generation.

The list goes on. You probably get the idea that a range of financial topics are at work in high net worth portfolios. They must be considered together before any one decision is made, and that’s where wealth management companies come in. You can learn more about the range of topics that wealth management companies have to deal with in this book, Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.

The best wealth management firms are those that are positioned in such a way that the client is at the hub of all operations. They provide white-glove services, which means having a human being on the phone whenever the client calls, recognizing the client by name, and being ready to listen to whatever issue they want to discuss. Feel free to schedule your free consultation with Pillar Wealth Management to discuss any financial issues or wealth management topics that you need help with.

Wealth management is also a customized and personalized process. It requires understanding each individual’s goals, motivations, lifestyle, and financial situation. One cannot apply a “standard” process to wealth management. Therefore, the best wealth management companies create a customized plan for each client and constantly monitor how that portfolio progresses toward the client’s financial goals. Wealth management isn’t a plan-and-forget service.

What Does a Wealth Advisor Do?

The key role at a wealth management firm is the financial advisor, more commonly known as a wealth advisor or, indeed, a wealth manager. This role acts as an intermediary to advise the client on their financial journey. These professionals offer advice and services designed to optimize individual financial situations and goals, such as managing global assets and personal finance.

A good wealth advisor understands an individual’s financial landscape: assets, liabilities, income, expenses, and future wishes, ensuring that any financial strategy put in place is bespoke according to the client’s needs and objectives.

Depending on the client’s needs, a wealth advisor provides various services.

• Holistic Financial Planning: In a carefully considered and well-developed plan for managing a client’s financial resources, there is no area left uncovered, and every step, starting from budgeting to saving, investment, and even planning for retirement, is well considered.
• Portfolio Management and Investment Advisory: Guidance on the value of investments and how to manage investments, with the objective of earning the most profit in the shortest time possible with a minimum of risk.
• Financial Risk Management and Assessment: Assessing the possible negative consequences of the financial process, together with creating strategies in an endeavor to handle or moderate the given scenario. Managing personal risks is crucial to protect the current and potential financial property that is owned or controlled by an individual.
• Financial Legal Advice: Advice on the legal side of financial matters, such as estate planning and trust accounts.
• Insurance Planning and Advice: Selection and recommendation of proper insurance coverage that will protect assets and income.
• Tax Consultation and Accounting: Assisting clients in planning their taxes and filing their returns and guaranteeing that all legalities and tax advantages are considered.
• Trust, Legacy, and Estate Planning: Engaging clients in making and overseeing their trusts, wills, and estates to protect their wealth.
• Charitable Giving: Consulting with clients on the rationale and practice of charitable giving while minimizing tax liabilities within their financial strategies.
• Retirement Planning: Laying out sound plans that ensure clients meet their stated retirement objectives and maintain their lifestyle throughout their retirement.

Choosing the Right Wealth Management Company: Key Factors to Consider

Before selecting a wealth management firm, you should evaluate various aspects of its operations thoroughly. Consider the following key elements:

Track Record and Historical Performance

Has the firm consistently delivered strong results in wealth and portfolio management over an extended period? Review the firm’s historical performance data, focusing on its ability to achieve client goals and manage investments through different market conditions. Consistent performance over time is a good indicator of the firm’s reliability and competence.

Fee Structure and Transparency

Does the firm align its compensation with your best interests? It’s crucial to scrutinize the fee structure for any potential conflicts of interest. Ensure the firm’s compensation model promotes transparency and aligns with your financial goals, avoiding situations where advisors might prioritize their earnings over your investment success.

Tools and Resources

Can this firm support my wealth management requirements with adequate resources? Resources include financial tools, access to technology, and the ability to do deep research. A well-resourced firm can give more comprehensive advice supported by the use of leading software tools in financial planning, robust market analysis tools, and a team of specialists in a range of financial professions.

Experience and Expertise

Are they capable of managing your financial interest, intellectually ready, and experienced? Evaluate the qualifications of the advisors, their associations, and years of practice. Ensure that the firm you are choosing is prepared to handle complicated financial situations with a complete understanding of the principles of managing wealth.

Commitment to Sustainability

Is the firm constructed to take care of you for as long as you live? In examining the stability of a firm and its long-term viability, it should be a sustainable wealth management firm, with precise succession planning and good reputation building, changing commitment toward the altering financial landscapes, which can serve your needs even through the decades.

Which wealth management companies are worth it?

Wealth management companies charge fees for the services that they offer. These fees are generally either a fixed percentage of the total assets that a client brings in, or they can be milestone-based or based on an hourly rate. Some wealth managers earn commissions as well. The first model of a fixed percentage of the assets under management is called a fee-only model. There are no commissions in this model. The fixed percentage may drop as the size of the assets brought in by the client increases.

The commission-based model is considered a fee-based model. It basically means that there may be fees in the form of hourly rates or milestones, but there may also be commissions. Alternatively, there could be no fee but just commissions. The problem with this model is that the wealth manager is driven by a desire to earn a commission and may, therefore, push certain investment products toward their client. This may not be a good idea if the client doesn’t really need the product. You can read more about the merits and demerits of each model in this guide to choosing the best financial advisor for investors with $5 million to $500 million in investible assets.

Since you have to pay for the services of the best wealth management companies, one logical question that can come to mind is, “Which wealth management companies are worth it?” The cost for any activity can be worth paying when the benefit derived from that activity is far more significant than the cost.

If your portfolio is worth $10 million, then even 5% more in taxes because of too much portfolio churn, or even only 1% more for costs, is quite a bit of money. Five percent of $10 million is $500,000, and one percent of $10 million is $100,000. A wealth manager who costs you 1% of your investible assets ($10 million) but saves you the extra taxes and investment costs is well worth your money. By the way, the wealth manager would have advised you on a few other things, such as estate planning, retirement planning, and real estate.

So, how about another example? Suppose you’ve got an investment of $200,000. At an expense of 1%, you’ll be dinged $2,000 every year in fees. And let’s say that out of that $200,000, you have put $100,000 into mutual funds or passive index funds with expense ratios very close to zero. You probably could have done a better job because there’s not a whole lot to lose anyway, yet you probably have a building worth $10 million to sell and want professional advice on how to do it. In that case, you could be better off working with a financial planner or financial advisor, someone who can help you with the accounting and taxes and getting a retirement plan.

Wealth management makes sense for high-net-worth clients who have diverse needs. It works well with those who need help making decisions that include the sale of a business, the investment of the resulting windfall while minimizing taxes, and planning the purchase of an estate in Florida for retirement. You can reach out to Hutch Ashoo for a free consultation on whether wealth management makes sense for your needs.

How do you hire wealth management companies?

As a high-net-worth or even an ultra-high-net-worth individual, you are probably already looking forward to hiring one of the best wealth management companies available. Chances are, whether you’re new to wealth management or have already met a few wealth managers, the question of how to hire wealth management companies must have dawned on you.

You can begin by consulting your family members. You can ask them if they work with a wealth manager. The people you know are more likely to give you genuine reviews about their experience working with wealth managers. You can also ask your friends and work colleagues about promising wealth managers in your area.

Another simple way to shortlist wealth managers is to search online, and you can search by location. Once you find exciting wealth management companies, read their blogs and websites to understand their services and their philosophy of wealth management. If you find any articles written in the mainstream media by specific wealth managers, then those are also pretty useful. You can also start a conversation with Pillar Wealth Management to explore if their services are a good fit for you.

After shortlisting a few promising names, see if you can manage a meeting with the wealth manager. Thanks to technology, you can now schedule a video call from the comfort of your living room. Ask the wealth manager questions related to their background, how they got into the profession, why they like managing high net worth wealth, and how they work. As pointed out in this book on enhancing portfolio performance for investors with $5 million to $500 million in liquid assets, ask the wealth manager questions related to investment costs.

A one-on-one meeting can allow you to explore whether you can trust the wealth manager and develop a working relationship. After all, trust is paramount if a person is to be entrusted to manage your hard-earned wealth.

Work with the best—Pillar Wealth Management

As you go deep into the subject of wealth management and whether it applies to you, we think that there is no better firm than Pillar Wealth Management. PWM works on the fee-only model; thus, it doesn’t earn commissions. Being registered as fiduciaries ensures that Pillar Wealth Management’s advisors only give you advice that is in your best interests.

One of the qualities of the best wealth management companies is personalization and attention to the client. With only 17 new clients being accepted this year, Pillar Wealth Management focuses more on quality than quantity. The firm isn’t about boasting the highest number of clients and the most assets under management. Many of the big firms have business models that do not allow them to customize and personalize their services. Just give Hutch Ashoo a call and ask him about Pillar Wealth Management’s processes.

Pillar Wealth Management also understands that clients cannot be bucketed into vague categories like high-risk tolerance, medium-risk tolerance, and low-risk tolerance. Every individual is unique, and every wealth management plan is unique.

Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management. If you would like to speak with them or ask any questions about how customized and trusted wealth management advice is offered to high net worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.

Selecting Wealth Management Firms

Suppose you have been investing for years. Now, you would like to protect your investment and have the burden of investment portfolio management be shouldered by some other person. In such a scenario, hiring a wealth management firm could act as a perfect solution.

It’s essential to collaborate with a team that prioritizes your financial future and the health of your investments. Here are our thoughts on how to choose a wealth-management firm:

Don’t Focus Solely on Price

The temptation is to compare companies strictly based on fees. Fees can indeed be readily compared, but the way to make a critical financial decision is based on value—not price. Price is what you pay. Value is what you get.

Find out how your advisor is paid and precisely what services or products they offer for that money. Evaluate whether the value offered is commensurate with the cost. A lower price won’t be helpful if the quality of services is low and the value is negligible.

Start by talking to the firm’s current clients. Find out how they feel about their advisor’s level of contact and attentiveness. Are they satisfied with the communication? Does the advisor listen to their needs and adjust their financial plans as circumstances change?

You can also ask potential advisors about their ideal client. If their ideal client description is not commensurate with your goals and expectations, the relationship may be ill-suited. You want to have the confidence that your advisor cares about your portfolio as much as you do.

In fact, many clients change advisors because their advisor doesn’t initiate meetings or make them feel important. An advisor who is proactive and believes in the relationship ensures a successful working alliance.

Verify Credentials

When choosing a wealth management firm, it’s crucial to ensure that the advisor who will directly manage your account is qualified and suitable for your needs. Avoid scenarios where you initially interview one person only to be handed off to someone else later.

Here are vital aspects to inquire about regarding the advisor’s background and qualifications:

• Work History: Understand where this advisor has worked and the positions they held.
• CFP status: Check for a Certified Financial Planner™ designation, which ensures that the practitioner has fulfilled strict educational requirements, reached and passed a comprehensive test, and abides by specified standards of practice, which include working with clients to execute financial plans effectively.
• Any other Designations or Qualifications: The advisor may have some other relevant designations, like CFA (Chartered Financial Accountant), CPA (Certified Public Accountant), or CLU (Chartered Life Underwriter), that add credibility in their specialty.
• Advising Process: Find out about their general advising process. How do they approach financial planning and investment management? Can they provide customized advice catered to your financial situation and goals? Understanding their methodology could confirm if their approach is what you want.

As a client, you want to know that the consultant selected can meet your needs. Here are some additional steps to take:

• Explanations of Credentials: You may want to ask the advisor to describe each credential and certification that they hold, along with what it means and the significance of the initials after their name. That way, you’ll understand what qualifiers the advisor has.
• Investigate Professional Background: Conduct research into the professional background of the advisor. Make some discreet inquiries to determine whether the advisor is under any form of disciplinary action or complaints from regulatory bodies like the SEC.
• Customer Testimonials and References: If possible, contact some of the advisor’s current or former clients. Look for feedback regarding experiences and satisfaction with the services the advisor has provided. This will undoubtedly yield valuable insight into the advisor’s trustworthiness and skill.
• Due diligence: scrutinize every piece of advice and cross-check details for red flags that would indicate a point of concern.

This time well spent will give you the confidence to engage a well-qualified advisor who will be dedicated to helping you work toward your financial goals. You can confirm that your advisor is properly credentialed and has an exemplary record, which will free you from worries and be the basis for a good relationship in your finances.

Investigate Payment Structure

Choosing the right financial advisor becomes crucial because of the factor that drives most of the advice you receive and what you pay for it—the way advisors are compensated. Here are some of the leading compensation options to consider:

• Commissions: Your advisor may offer investment products, such as mutual funds, annuities, or insurance, that pay them commissions. There is a concern here because of the conflict of interest for the advisor. An advisor being compensated through commissions will feel far more motivated to sell products that pay higher commissions than those that are in your best interest.
• Percentage of AUM: A majority of advisors charge you a percentage of the value of the assets they manage on your behalf. The rule of thumb for this percentage is between 0.5% and 2% annually. This allows the advisor to be paid based on how well your asset portfolio performs. Just make sure the percentage is reasonable and competitive.
• Fixed Fee, Monthly or Annual Retainer Fees: This is a flat rate charged by some advisors, either monthly or annually, for what they do. This payment model benefits you in that you have access to a range of services, from financial planning to investment to ongoing advice. It is predictable in cost and a good choice if you prefer a constant fee, regardless of portfolio performance.
• Hourly Rates: Some consultants work on an hourly basis. This payment method is beneficial if you are only interested in specific advice on specific issues that are not within the scope of portfolio management. You pay only for what you want.
• Per-plan fees: Some advisors may provide financial planning at a one-time price. This can involve developing a detailed financial plan that includes budgeting, retirement planning, tax strategies, and estate planning. This setup works best for those wanting to see a detailed financial plan but not necessarily to have one that is administered on an ongoing basis.

Advisors who earn commissions from products they recommend may place a higher value on their financial gain than what’s best for you, recommending products that yield them higher commissions rather than those that best serve your financial needs. Ideally, it would be best if you were looking for an advisor genuinely committed to the growth and health of your portfolio.

High fees or hidden charges can chip away at the value of your investments over the long term. Make sure you are informed of all the possible upfront fees, like extra charges for particular services or transactions that may be carried out, so you are not caught with hidden costs later on.

Choosing a financial advisor is not just about finding a professional with the right qualifications and experience but also understanding how they are compensated and making sure their pay structure is aligned with your financial interests. Proper investigation and open discussion about the advisor’s fee structure will help you make a decision that will serve your financial goals and ensure you reap the potential benefits of the advisor-client relationship.

Alternatives to a Wealth Management Company

Wealth management firms focus on high-net-worth clients and can be very costly, with a high minimum AUM often in the $1–5 million range, which puts them out of reach for those with a moderate or low net worth.

Fortunately, there are ways to get financial advice and support in creating a legacy and achieving long-term financial goals without a millionaire’s portfolio.

Here are a few:

Financial Advisors

Many financial advisors and Certified Financial Planners (CFPs) work with clients at various net worth levels, helping to create personalized investment, retirement, and wealth-building plans. These professionals can offer invaluable guidance on how to grow and protect your wealth, no matter your starting point. When searching for an advisor, consider those who charge a flat hourly fee. This fee structure provides transparency, ensuring you know exactly how much each consultation will cost. This approach makes financial planning more accessible and predictable, allowing you to budget for professional advice without worrying about hidden costs or commission-based conflicts of interest. Additionally, a good financial advisor will offer a comprehensive review of your financial situation, helping you set realistic goals and create a plan to achieve them.

Estate Planning Lawyers

Estate planning is essential regardless of net worth and ensures your assets are disposed of in a manner you would like after your demise. Having an estate plan helps avoid a costly probate process and reduces estate taxes. Estate planning professionals are outstanding at drawing up wills and creating trusts, among other estate planning documentation and procedures. It is pretty affordable to have many of these documents reviewed and drafted by a local estate planning attorney. Many attorneys work on an hourly rate or project fee, making it affordable for most people to protect their legacy and bestow the benefits upon future generations. For other critical decisions, an estate planning attorney can assist you with powers of attorney and healthcare directives.

Robo-Advisors

These automated services are suitable for those investors who are new to long-term investment. A robo-advisor is an online platform that assists you in creating and actively reviewing your portfolio to meet your investment needs and risk appetite. They use machine algorithms to construct profitable and economical solutions. Most substantial financial institutions and investment platforms have robo-advisors, some requiring a minimum investment of just $5, perfect for a beginner with little money. What is managed for you is an automatically rebalanced portfolio, with tax harvesting to a point, offering personalized advice, and most essentially, over time, with robo accounts, you manage to capture returns.

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