In order to evaluate whether a financial advisor is best for you and which are the best advisor firm, it is first important to understand yourself. You need to ask yourself what you want in your life.
You need to know where you currently are and where you want to go.It is important to clarify (and preferably write down) your short, medium, and long-term goals. You also need to think about what your beliefs and values are regarding your wealth. Ultimately, you need a clearer idea of why you want to build and protect your wealth from top financial advisors.
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Financial advisors are someone who helps high net worth individuals protect and grow their wealth. The advisors firm help clients achieve their financial goals and secure their future lifestyle.
In order for financial advisors to help you achieve all the things that matter the most to you, the advisors need to figure out what makes you tick and how they can best get you to your destination.
For that to happen, you need to be able to clearly communicate your thoughts about your money and wealth to the financial advisors.
This kind of personal introspection is vital because your finances are a personal matter. Ever ultra-high net worth individual’s financial situation is unique. Each one will want to achieve different things with their money.
No two individuals can have the same profiles. Your friend’s situation will be different from yours and your business partner may have completely different goals and motivations than you would.
Here at PillarWm.com we work with individuals with investible assets in the range of $5 million to $500 million. We know that each person’s goals are unique and that is why we get to know our clients in-depth before offering any financial advice.
In this article, we will understand that the best financial planners have 5 things in common and what are 2020 best investment management firms.
We will explore the topic best financial advisors: how to search the right advisor firm for you, and finally, how PillarWM.com advisors can assist you.
Best Financial Advisors: How to search the Right Advisor for You
Let’s face it, the more money one has, the more responsibility there is to protect and grow that wealth. The more complex are the decisions like taxation, succession, investment, estate planning, financial planning, philanthropy, etc.
The best investment management firms have to think with a broad perspective that covers multiple areas. Every single decision can have far-reaching impacts. And when you are talking millions of dollars, the stakes are that much higher.
Ask us. Here at PillarWM.com, we provide advice for clients with portfolios between $5 million and $500 million regularly.
When you start out fresh from college, you probably have a bank account or two and, maybe, an investment account. But, as you grow into your professional life,you accumulate wealth and end up with much more.
By the time you hit 45 or 50, you probably have an IRA account, Roth IRA, 401k, life insurance, savings accounts, and much more. By that time, you probably have a family, and you have to think about financial planning, child education, succession planning (if you own a business), and retirement planning.
You may also own assets like real estate and stocks. You have multiple sources of income and tax planning becomes very important.
There are many moving parts in your financial life as you progress along in the journey of life. You need a professional, ethical, and experienced hand to guide you through all the important decisions that you currently face or may face in the near future.
That is where a financial advisor firm comes in. If you are interested to know more about the attributes of top financial advisors firm, then download this guide on choosing financial advisors for investors with $5 million to $500 million in liquid assets.
So our clients know that they need to work with the best financial advisors: how to search the right advisor for you? Searching the right advisor involves conducting some preliminary research from the comfort of your home. You can start by searching for reputed financial advisors in your area.
By now, you know what services are important for you because you will have done a personal introspection of your financial life. So, you will want to search for financial advisors that have the skills and experience in your priority areas.
As a high net worth individual, many clients also want to make sure that the financial advisors they are looking at serve clients with a few million dollars in investible assets.
If you between $5 million and $500 million in liquid assets, then you are invited to start a discussion with Hutch Ashoo at Pillar to explore what they can offer you.
One more way to search top-notch financial advisors is to speak with your family, friends, and work colleagues. Chances are that they may also be high net worth and working with a financial advisor who specializes in handling issues that high net worth individuals face. The reviews that they will give you cannot be altered or tampered. It will be genuine and honest opinions.
The Best Financial Planners Have 5 Things in Common
There are many financial advisor firms that cater to a variety of client profiles. Selecting the best firms among them is the challenge. However, we give advice for many clients how do an initial screening. The best financial planners have 5 things in common.
Experience – The top advisors have years of experience with many investors. They have a track record of working with high net worth and ultra-high net worth clients or investors account.
By spending most of their careers working with such accounts, they understand the kind of issues that high net worth individuals face. Clients can get more insights on high net worth financial planning by scheduling their free consultation with us.
Fee-structure – There are many different ways in which financial advisors charge for their services. All of these ways can broadly be grouped under two categories – fee-only and fee-based. A fee-only structure, as the name suggests, involves only a fee.
This fee is usually calculated on a milestone basis, hourly basis, or as a percentage of the total assets under management by the advisor. If any extra services are sought, then the fees for them are separate, but this is the basic structure in the fee-only model.
The fee-based model involves fees and commissions on products “marketed” to the clients by their advisors. So, if a client invests in a certain mutual fund that the financial advisor recommends, then the advisor may get a commission or a kickback from the mutual fund company.
In this model, there is an incentive to push certain products and services as there may be a desire to earn more commission. You can read about the merits and demerits of both these methods in our guide: The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.
Fiduciary – A fiduciary is an investment advisor who is registered with either the SEC or your state’s regulator.
If a financial advisor is a fiduciary, then ethically, that is a very good sign. It is the duty of a fiduciary to always act in the best interest of the client and to inform the client whenever there is a conflict of interest.
Cost management – Some advisory firms focus a bit too much on investment returns at the expense of investment costs. Frequent churning of portfolios can result in high short-term capital gains tax.
Investing in high-expense-ratio funds can also result in costs to the client. The top advisory firms divide their focus equally between earnings high returns while minimizing investment costs.
Continuous monitoring- The big Wall Street firms send out their periodic updates via automated templates. They consider it as their way of measuring the progress of portfolios. However, the top advisory firms put in a lot more effort.
They do not standardize their monitoring process but rather communicate it in a much more personalized manner. They also perform stress tests periodically to evaluate if the portfolio can handle unexpected events. The top firms are much more proactive.
We are in the year 2020. Everything is a lot more personalized today than it ever was. Facebook shows us stories that match our profile, Netflix shows us movie listings that match our viewing history, and grocery stores give us deals that we may be interested in. It is also about data and customization.
Wealth advisory is no different. Your money is a personal matter. Every clients financial situation is unique. Therefore, 2020 top advisor firms are the ones that can offer personalized white-glove services and financial advice services.
The big Wall Street advisory firms lack the kind of customization that is necessary for financial planning and investment services. They are focused more on volume and getting as many accounts on-board as they can.
However, an advisor firm like Pillar took on only 17 clients last year so that it can focus all its energies in going in-depth with those clients. Feel free to start a conversation with us to know how we practice wealth advisory services in a unique way.
Ultimately, the best financial advisor companies are the ones that earn the trust of the client. They are the ones that believe in the motto “money saved is money earned”. If you want to learn more about how the costs can eat into the actual returns of high net worth individuals, then check out this guide on improving portfolio performance for investors with $5 million to $500 million in investible assets.
Lastly, the best firms for high net worth individuals are the ones that have the experience of handling large deals. They have experience in not just retirement planning, investment and portfolio management, but also in taxation, philanthropy, succession planning, and other issues faced by high net worth individuals.
Pillar Financial Advisor Can Assist You
Now that you know the attributes of the best financial advisor firm and how to search for one, you may be interested to know how PillarWM’s financial advisor can assist you.If you happen to have $10 million or more in liquid assets, then feel free to explore this book on the 5 non-negotiables that form the basis of its financial advisory philosophy.
PillarWM is a registered investment advisor firm with many financial services. It uses third party custodians for holding your investments. It means that we do not directly hold your money and the control remains with you.
Being a fiduciary as well, we provide double-layer protection as far as your wealth is concerned. We work with systems and check-in place. If you want to search out how you can get started in establishing a new system to achieve your financial goals, then get in touch for your free consultation with Hutch Ashoo.
PillarWM also has a combined experience of 60+ years in managing high net worth portfolios ranging from $5 million to $500 million. It creates new customized financial plans that help meet each one of its client’s desired lifestyle outcomes.
The firm uses 100 years of market data to simulate “what-if” scenarios and conduct stress tests on client portfolios on a regular basis. Ultimately, we take the emotions out of investing that cause the mood swing between greed and fear during market volatility.
Pillar also gets to know each client personally. When you call us, we will know you by your name. It is the reason why we take up only a few clients because we establish a relationship with them. When our clients call us, there is always a human being to speak with, something that the large “well-known” firms cannot promise.
Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary investment management firm.
If you would like to speak with them or simply ask any questions about how custom and trusted financial advice is offered to high-net worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.
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