Strategies For Families Worth $25 Million To $500 Million
The Art of Protecting Ultra-High Net Worth Portfolios and Estates
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
When you decide to get financial advice, there are many aspects you need to consider as a high net worth investor, such as qualifications, experience, reputation, skillset, knowledge, and even payment structure. Fee-only financial advisors are highly suitable for affluent investors, but the process of finding the best fee only financial advisors near me requires some background knowledge. You can read our exclusive guide to learn all you need to know when selecting an ultra-high net worth fee-only financial advisor.
Pillar Wealth Management offers a fee-only fiduciary financial advisory service to families with $5 million to $500 million in investable assets. We understand the unique needs that come with having an ultra-high net worth portfolio. Get in touch with one of our wealth managers today.
Table of Contents
- How Do Financial Advisors Differ in Payment Structures?
- Fee-Only Financial Advisors for High Net Worth Investors
- Why Choose Fee-Only Financial Advisors?
- Finding the Best Fee Only Financial Advisors Near Me
- How Much Does a Fee-Only Financial Advisor Charge?
- Pillar Wealth Management as a Fee-Only Wealth Management Firm
How Do Financial Advisors Differ in Payment Structures?
Before taking part in any business, you make it a priority to understand what the costs will be. The same is the case when you decide to hire a financial advisor. After all, this person will be in charge of your entire financial life. This means they know exactly how much you have in your accounts and will be expecting to be paid a certain amount.
Financial advisory services have different fee structures, which can sometimes veil the true cost you will need to pay. Therefore, it is recommended that you understand the different kinds of payment structures or compensation models that exist before you hire the best fee only financial advisors near me.We talk about these in great detail in our Ultimate Guide.
Fee-Only Financial Advisors
Fee-only financial advisors are the most recommended advisors since they only charge a management fee for their services. The management fee is dependent on how much profit they are able to help you gain. With a greater profit, they earn a higher fee. However, even this model has three distinct types.
Types of Fee Models Followed by Fee-Only Advisors
Advisors who provide short-term services typically adopt the “one-time, flat fee” compensation model. You pay a fixed amount for a particular service or consultation. This is suitable for when you want advice on a specific aspect of your financial life or on a short-term goal. They analyze your situation, discuss strategies and recommendations, and set you on your way. You cannot keep coming back for more recommendations on your next step.
An “hourly fee” compensation model is similar to the one-time, flat fee model in the sense that you pay for a specific service. The difference is that you can consult with the advisors from time to time, but they will charge you for each consultation. This can become inconvenient and ineffective, especially when you have multiple high-value assets to watch over.
If you want active involvement in your wealth or financial management, a “percentage-based fee-only” compensation model is ideal for you. These advisors provide constant advice and management services to wealthy clients; therefore, they are aware of your goals and life circumstances. Regular communication helps them adjust their strategies and plans to fit your needs.
Fee-Based Financial Advisors
In this compensation model, the advisor has the liberty to charge their regular management fee for the service they provide, as well as earn commissions on your assets. Some firms and advisors may not disclose this information during your consultation. Therefore, it can be slightly risky for wealthy investors who can be taken advantage of.
Commission-Based Financial Advisors
As stated, commission-based advisors earn their fee off the commissions they earn through your investment transactions. Each time they sell or buy certain products or securities, they will charge a percentage of the earnings. They are well-versed in the market trends and are aware of the most profitable investments. Unfortunately, this can also be a drawback. Some advisors may push you to invest in securities solely for the purpose of them earning a higher commission.
Hence, we suggest you go for a percentage-based, fee-only financial advisor to keep your wealth secure. Our Ultimate Guide can help investors with $10+ million in liquid assets find the right ultra-high net worth, fee-only financial advisor.
Fee-Only Financial Advisors for High Net Worth Investors
Wealthy families are more at risk of financial ruin and being taken advantage of due to their high-value assets. Sometimes, you might be unaware of potential liabilities, which is why it is wise to seek advice from a trusted advisor. If you want to learn more about how to secure your wealth, read our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates, Strategies for Families worth $25 Million to $500 Million.This doubt may lead you to wonder, “Can you trust fee only financial advisors?”
Most fee-only financial advisors are fiduciaries and abide by a stringent moral and ethical code. They are liable to legal consequences if they are negligent or unprofessional in their service. This makes them the most reliable financial advisors for affluent investors.
Why Choose Fee-Only Financial Advisors?
So, is it a good idea to hire fee only financial advisors? Here are some reasons to convince you.
1. Their Fiduciary Services Mean No Conflict of Interest.
Licensed fee-only financial advisors are legally obligated to put their client’s requirements and interests above their own. The process of getting certified involves an extensive background check and exemplary moral standards.
Since they merely charge a service or management fee, their earnings are not dependent on your portfolio’s performance or investment profile. They advise you on methods that not only protect your wealth but also get you higher returns. You can learn how this is done through the strategies outlined in our Performance Guide.
2. They are Highly Qualified and Knowledgeable
Certified financial advisors have a very detailed and extensive curriculum, which gives them an upper hand in the knowledge of almost all financial matters. Having the appropriate training and experience in the financial industry is also a requirement for their license.
They have the skills to help you sustainably grow your wealth and achieve your goals. From creating retirement plans to reducing taxes, they can assist you with unbiased advice. If you would like unbiased financial advice from one of our certified wealth managers, schedule a meeting with us.
3. They Can Help Reduce Your Expenses
Fee-only financial advisors have the knowledge and training to identify unnecessary expenses or hidden costs and recommend appropriate actions for you to preserve most of your profits. Hidden costs can include anything from commissions and extra active management fees to bond spreads and margin interest costs.
Eliminating costs can help you save more money for investments or your retirement. You may not have the time or expertise to isolate the areas of your financial life that could be draining your money. That is why hiring a professional can be useful for you.
4. They Can Help You with Tax Mitigation
Having a high or ultra-high net worth means that you will be charged the highest taxes in every category. The techniques needed to optimize taxes require insight, experience, and caution. Fee-only financial advisors are aware of how to implement them successfully. For example, investing in tax-efficient securities or optimizing your asset allocation and tax filing. A customized tax reduction plan can help you retain most of your wealth.
5. They Can Help You Achieve Financial Serenity
The best fee-only financial advisors make it their duty to understand their client’s needs and expectations. Establishing your dream lifestyle, legacy goals, future objectives, and priorities can help you optimize your financial plan according to them. With the assurance that your money is safe and will sustain you throughout your life, you can live without stress.
Finding the Best Fee Only Financial Advisors Near Me
Understanding the type of service you require is the preliminary step in looking for “the best fee only financial advisors near me.” Fee-only advisors ensure that there is no conflict of interest; therefore, you can rely on and trust your advisor to make the right decisions for you.
In addition to this, there are certain traits and qualities that can help you determine who are the best fee only financial advisors?
Experience and Great Analytical Skills
The best financial advisors spend years honing their analytical skills. This makes them well-equipped to study your financial profile and portfolio and develop personalized strategies to help you met your goals.
If you have millions of dollars in liquid assets, you should look for an advisor with the relevant experience of working with an affluent clientele. You can verify their qualifications or credibility through client reviews or even taking recommendations from your acquaintances.
Reputation and Credentials
A certified fiduciary financial advisor is more reliable and skilled in handling large sums of wealth, for example, wealth managers. You can speak to one of our managers for advice on various financial matters. Moreover, their track record speaks volumes about the quality of service they provide. A reputable firm will typically have industry-recognized certifications and a strong client base.
The Quality of Service
The best fee-only financial advisors provide a holistic service by analyzing your financial life in great depth. They should discuss your goals, needs, lifestyle, and expenses with full transparency.
As a successful investor, you want to hire someone who is on the same wavelength as you. This means your financial advisor should be proactive in communication and discussing strategies with you. They should be up to date on your financial situation and the market trends so that they can address any challenges and take advantage of opportunities.
How Much Does a Fee-Only Financial Advisor Charge?
With more clarity on this subject, you might have more specific questions about how much you should expect to pay for a fee-only financial advisor. There are two key aspects to consider when determining what is a good rate for a fee only financial advisors.
Typically, financial advisors charge 1% of your portfolio, or more specifically, the amount of Assets Under Management (AUM). However, each firm can differ in their policy, with some having a higher percentage and others having a lower one. The percentage of management fees can change depending on your net worth as well. Therefore, it is important to have a clear conversation with your advisor in your first consultation about payment and hidden costs.
Style of Management or Services
Different management styles can charge a variable amount of fees. For example, an active management style requires the direct involvement of the financial advisor in your transactions. Therefore, their fees are typically higher than an advisor who follows a passive management style. You can understand more about which management style suits your financial profile in our handy guide, which discusses five critical shifts that can help in your portfolio’s growth.
Pillar Wealth Management as a Fee-Only Wealth Management Firm
When searching for the best fee only financial advisors near me, Pillar Wealth Management can offer you one of the best services. We are an independent, white-glove, fee-only wealth management firm that caters to investors with a net worth between $5 million and $500 million. Our fiduciary advisors make your wealth their priority and provide you with exclusive investment and wealth management services. You can start this process by scheduling a free consultation with one of our managers.
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