Best Financial Advisors: Do You Really Need Them?
You might think you can manage your wealth and assets all on your own. But when it comes to matters of liquid assets worth $5 million to $500 million, you really don’t want to take any risk, and it’s best that you leave it to the professionals. This is where the best financial advisors come in. Financial advisors have loads of experience in dealing with high net worth and ultra-high net worth individuals and know all the ins and outs of financial services. But Is it a good idea to hire a financial advisor? Honestly speaking, yes. Here’s a comprehensive guide on choosing the best financial advisors for investors worth $10 million in liquid assets or more.
At Pillar Wealth Management, we have some of the best financial advisors on board to help high net worth and ultra-high net worth individuals grow and protect their assets and also investment management services. Located in San Francisco, Pilar WM managers spend a lot of time with all our clients to fully understand their financial services, aspirations, and values in life to create tailored financial plans that help them achieve financial success and serenity. We offer a broad range of services such as investment management, risk management, retirement planning, estate planning, tax planning, and a lot more. Click here to book a consultation session with us to learn more about our services or start your wealth management today.
In this blog, we’ll be discussing why you really financial advisors, some signs that mean you need to change your financial advisor, and can you trust financial advisors or not. Let’s get started.
What Do the Best Financial Advisors Really Do?
Just going by the name, you might think that financial advisors, well, advise you on your finances. In reality, though, the top financial advisors do more than just that. They help the investor to achieve your financial goals in life by turning vague goals into more actionable targets. They help you manage your various assets like cash money, real estate, and so on. They guide you across various aspects of your financial life, such as how much you save, how much and where you should invest, which assets you should go for, how to start saving for retirement, etc.
In short, they help you grow your wealth in a sustainable manner to achieve your short-term and long-term goals while protecting your assets as well. You can find out more about protecting your wealth by ordering a free hardcover copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million.
Why You Really Need a Financial Advisor
The financial advisor offers you several services such as financial planning, estate planning, investing, retirement planning, managing your bank accounts, and many more. When the work is done, the investor will receive the profits from their investment. For individuals with $5 million to $500 million in liquid assets, a financial advisor can be the difference between financial success and failure. Here are some other reasons why you really need a financial advisor.
Get Access for Personal Advisor Services
Wealth management does not look the same for everyone. For instance, for high net worth individuals, their financial decisions offer much greater rewards but carry that many risks as well. That’s why they need the best financial advisor to help them make the right decisions based on their experience and expertise.
These financial advisors know how to work with a large and diverse set of assets and incorporate different strategies to help high net worth individuals get the most returns, quantitative and qualitative, from their portfolios. That’s just one aspect of it. You can learn more about the shifts you must make to maximize your portfolio growth strategy from this handy guide.
Setting Financial Goals and Creating a Financial Plan
If your current financial plan consists of saving $100 million and setting it all aside for your retirement, we have some bad news for you. That’s not how retirement planning or wealth management works. You might have some vague financial goals like wanting to travel or living a certain lifestyle.
Working with a financial advisor can help you turn those goals into reality. They will work with you to understand where you want to go and then point you in the right direction. They will devise the right financial plan that helps you get there as soon as possible.
Gearing for Retirement
A retirement plan is not a one-day plan that you can whip up immediately at the age of 60 or 65. If you really want to retire comfortably, you need to plan for it way ahead of time, and financial advisors can play a big role in that. They can tell you exactly which decisions to make that will eventually help you reach your retirement goals. Even if you’re starting your retirement planning a little late, you still need a financial advisor.
In fact, we’d say you need a financial advisor even more in that case. According to which stage you’re at, retirement and investment strategies are vastly different. For instance, when you’re nearing retirement, investing in equity might not be the best option, and only a financial advisor can tell you what is.
Minimizing Tax and Other Expenses
Growing your wealth is pointless if you’re going to lose half of it in taxes and expenses. And that is precisely what happens when you try to manage your wealth on your own or with an inexperienced private bank or broker. The top financial advisors know that every financial decision has some tax implications, and therefore, they take the appropriate steps beforehand to minimize your tax-loss harvesting and other expenses.
At Pillar WM, our team of experienced wealth managers and financial advisors offer various services, including tax planning and optimization. Click here to begin a conversation with our advisors about your tax liabilities.
Assisting with Estate Planning
Estate planning is no simple task. You not only have to grow and preserve your wealth but also ensure that it is distributed properly to the right beneficiaries in the smoothest way possible. A financial advisor can assist affluent individuals with estate and legacy planning so that they don’t have to worry about their loved ones’ financial security when they’re gone. If you have any philanthropic plans, a financial advisor can help put those plans into action.
Ensuring Financial Serenity
If you want true financial serenity that truly allows you to be fully confident in your financial position and doesn’t let you even think about your wealth, a financial advisor is a way to go. It could be that you don’t have time to manage your wealth on your own, or you might not have the expertise for it. A financial advisor has both.
Moreover, as a fiduciary advisor, he is totally committed to helping you achieve your goals so you can attain financial security. Besides, a fiduciary advisor must be registered on the Securities and Exchange Commission (SEC). You can read about other ways to achieve financial success and security through our comprehensive guide on improving portfolio performance by clicking here. If you’re wondering, ”who is the most successful financial advisor?” it’s one who helps you achieve financial serenity.
Signs that You Need to Change Your Financial Advisor
Now that you know about the top financial advisors, let’s take a look at the other side of the coin as well. Here are a few signs that your financial advisor is ripping you off, and you need to find a new one. For more detailed information, read our ultimate guide on choosing the best financial advisor.
One of the most apparent signs is that your advisor is leading you towards bad investments. He might tempt you with investments offering high returns at low risks. But at the end of the day, you won’t be seeing much of a difference in your ending balance. Sometimes, this ends up being a Ponzi scheme, which is often considered fraud.
Other than that, the advisor might keep pushing you to buy the same products. This usually happens when they are benefitting from the sales of those products directly, as is the case with brokers usually.
Not Achieving Your Financial Goals
The wrong financial advisor will also not help you achieve your financial goals and other targets in life. In fact, they won’t even know your goals since they won’t bother to understand what you really want. Therefore, any advice they give or decisions they make may only be fulfilling short-term performance targets and won’t help you get any closer to your long-term financial targets.
If you start noticing a lot of transactions on your account without any significant increase in your wealth, it’s a sign that your financial advisor is not acting in your best interests. Also known as churning, this usually happens when your advisor is working on a commission-based model where he earns a commission every time you buy or sell a security.
You can avoid this by going for an advisor that charges a flat fee instead. More importantly, you should switch to a fiduciary advisor, such as the ones at Pillar WM, that truly works in your best interests only. Click here to start chatting with one of our managers to learn how we manage our clients’ assets.
All Talk, No Results
Another obvious sign is that your advisor will keep making promises and claiming results without ever achieving them. They might keep pushing you towards certain investments without actually providing any solid reasoning or research behind it. They will keep on boasting that they can beat the market, which is a very dangerous sign on its own.
Not Accounting for Major Life Changes
A good financial advisor not only has to develop the right financial plan for you but also keep adjusting it, especially when you have major changes in your life taking place. If your advisor keeps giving you the same advice, regardless of anything else happening in your life, such as a divorce or someone passing away, then you need to find a different financial advisor right away.
No Monthly or Quarterly Reports
Even if you have left all your wealth management to the financial advisor, you should still be getting regular reports on the state and performance of your assets. If your advisor is only contacting you once a year, and that too, without any information over your assets, it is a big warning sign.
Do you have $10 million or more liquid assets? It is time that you need a financial advisor or financial planning services either you are in Chicago, Beverly Hills, Washington D.C, Michigan, New York, or anywhere.
Can You Trust Financial Advisors?
Understandably, you might be questioning now whether you can really trust financial advisors or not. While there are definitely some not-so-great ones out there, there are some really good financial advisors too, such as at Pillar WM.
The trick is to see if they are truly fiduciary advisors, as only fiduciary advisors will give you the best advice and direction. Even if it means suffering some loss themselves, fiduciary advisors will only suggest decisions that help you meet your own personal goals. You can check at Investopedia, there are numerous financial advisors. Such as Merrill Lynch and Wells Fargo Advisors. However, do you think those advisors can help you to achieve your goals? Pillar WM can do better. With a highly experienced investment advisor, Pillar WM can fulfill your financial needs help.
How to Find a High Net Worth Financial Advisor that is Right for You?
As important as the best financial advisor are, it’s not easy finding one for high net worth and ultra-high net worth individuals. If you concern about your financial’s future, you need to have a consultation with a financial planner that is more affordable than a wealth adviser. It is the time where you need medium-cost financial planners. Only the right financial advisor will help you achieve your financial goals, assist with retirement, estate planning, taxes, etc., and strive towards financial success and serenity. Here are a few factors on which you can evaluate whether a financial advisor is the right one for you.
• Experience and Expertise
• Constant Monitoring
Before deciding on the right financial planner for you, there are several types of financial planners you need to know. Those are a certified financial planner (CFP), broker-dealers, financial coach and consultant, investment and wealth advisor, and Robo advisors. A Robo advisor is slightly different from the other financial planner. While the others are human financial advisors, Robo is a digital platform where you can also get the personal capital for your financial planner.
Pillar WM is a 100% fee-only wealth management firm. We offer a wide range of services, from investment management, credit cards management, risk management, and retirement planning to estate planning, tax planning, accounting, and more. Our team of wealth managers and financial advisors has experience of more than 30 years, which equips them with the skills and knowledge to best serve our affluent clients. Visit our website and accept the cookies permission or Click here to book a consultation session with one of them today.
Pillar Wealth Management, all rights reserved, advertiser disclosure.
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