Money management is an immense responsibility which only increases as your wealth grows. Carelessness or negligence can result in significant losses. Contrastingly, dedication and accountability can help you improve your financial status further. High net worth and ultra-high net worth families need the most help preserving their wealth. Therefore, they often choose to hire a professional expert to handle their monetary aspects. However, this does not mean that the expert they hired is the right one for them. If you find yourself wondering, “Can I change financial advisors?” we can guide you through the process. Our Ultimate Guide is designed to help investors with more than ten million dollars in liquid assets in finding the best financial advisor.
Transparency and communication are the building blocks of a trusting relationship with your financial advisor. Our wealth management team is ready to provide you with unbiased, transparent, fully-custom financial advice to help you reach your financial goals. Pillar Wealth Management is a well-established private firm with many decades of combined experience. Our clientele has a high and ultra-high net worth of $5 million to $500 million in investable assets. If you’re looking to switch your financial advisor, consider giving one of our wealth managers a call.
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.
Table of Contents
What Does a Financial Advisor Do?
As the term suggests, anyone who gives financial advice can be called a financial advisor. They do not necessarily need to have a license or certification to give financial advice. That is why caution is necessary when hiring one. You also need to understand what services do financial advisor offer, so that you can approach an advisor with the relevant area of specialization.
Trained or certified financial professionals help people with managing their personal finances by assessing their need and creating a long-term plan for your future. They give you clarity on your financial standing by preparing periodic reports for you to review, and proposing the best strategies to enhance your wealth and reduce losses.
So, if you’re still asking yourself, “Is it worth to hire a financial advisor?” you may want to learn about the services they can provide for you.
Managing Your Expenses
An advisor can monitor your budgeting habits and income expenses and guide you towards making the right choices. We all get a little carried away with spending too much on unnecessary things, and a financial advisor can help remind you of your long-term goals.
They can designate portions of your wealth to specific areas, such as leisure expenses, savings, insurances, debt consolidation, tax planning, and more. This can give you clarity on where your wealth is going and how much you need to invest or save.
Wealthy people tend to have debt piled up at one point or another, whether it’s a mortgage or a student loan or a business loan. Mismanaging your pay-offs can affect your financial life as you may find yourself having to pay a large sum from your income to consolidate multiple debts.
A financial advisor can create a personal plan for you to tackle your debt without straining your monthly income. Additionally, they can use strategies to reduce the interest rates or instalment rates so that you can pay off your debt with ease and comfort.
Financial advisors know the policies of various insurance plans, from medical and life insurance to plans that protect you from liabilities and lawsuits. Without an insurance plan, you risk losing a large chunk of your money to unforeseen expenses.
In a way, insurances act as investments for your future. They allow your life savings to stay intact so that you can spend your wealth on goals or hobbies that you’ve always dreamed of.
Making the Right Investment Choices
Investment advisors or investment managers are financial advisors who can give you professional advice on which securities or asset classes to invest in. They help manage your investment portfolio and align it with your future goals and objectives.
Furthermore, they are knowledgeable about the various strategies that are useful in maximizing your growth and minimizing your risk. To learn more about these, you can read our guide.
Estate and Retirement Planning
The high-value assets you have built over many years require the appropriate protection, especially when your wealth is being transferred to your inheritors. A financial advisor can guide you toward a suitable pan that makes sure your wishes are carried out, and your estate remains secure even after you’re gone.
Everyone has a unique vision for their retirement. Some may want to travel the world while others may wish to settle down in a large estate in the countryside. Managing your finances to ensure you have ample wealth to sustain you through retirement can be tricky. A professional expert can help you plan out your future needs and expenses and help you save or invest your wealth accordingly.
Financial Advice for Ultra-High Net Worth Families
Now the question is, what services do financial advisor offer for affluent investors?
Ultra-high net worth families need the most help preserving their wealth because their multiple high-value assets expose them to many risks they may be unaware of. Financial advisors are experts in generating strategies to protect your wealth from the consequences of market volatility, inflation, hefty taxes, and other liabilities.
For this purpose, we believe that finding a reliable and trustworthy advisor is essential for ultra-high net worth families. You can read our exclusive guide to get started on the process of finding the best ultra-high net worth financial advisor.
Qualified financial advisors are skilled in using advanced strategies to cope with the dynamic changes continually occurring in the corporate and financial world. Re-strategizing your portfolio is necessary to maintain your investment returns and safeguard your assets. Our Performance Guide details how financial advisors improve your investment profile through various tools and methods.
Even having tens of millions of dollars in liquid assets doesn’t make you immune to financial ruin. Wealth managers, in particular, have extensive experience managing vast fortunes to help their clients meet their financial goals. To contact one of our expert wealth managers, schedule a free consultation.
When Can I Change Financial Advisors?
Switching financial advisors can be troublesome and frightening, but is often unavoidable if you’re dissatisfied with the service you are receiving. Wealthy investors are more likely to change their financial advisor because they have higher stakes, and they need 100% reliability and trust in their advisor.
There are many reasons people may want to look elsewhere for financial consultation, weak portfolio performance being one of them. If your portfolio is continuously underperforming and your advisor refuses to listen to your pleas or recommendations, it can be quite frustrating. A good plan requires regular updates and revisions. If your advisor is not adapting to changes in your life circumstances, it is cause for alarm. At Pillar Wealth Management, we update your financial plan every quarter. If you’d like to avail our financial advisory services, book a meeting.
A critical red flag that you have the wrong financial advisor is if they only contact you for trades. This could mean their interest lies in the commissions they make off your investments, and this could lead to reckless or unprofessional behavior. If you have lost trust in your advisor’s ability to care for your financial needs, or you simply think that you both don’t see eye to eye, it may be time to look for a new one.
The Process of Changing Financial Advisors
Switching your loyalties to another financial expert can be emotionally exhausting and stressful. In addition to this, there are certain legal aspects you need to consider during the process. So, when you’re thinking, “How can I change financial advisors?” be sure to be mindful of the following.
– Carefully read your old advisor’s contract to identify any termination fee or ramification costs.
– Make sure to get copies of all your financial statements, tax records and relevant documents for your financial history. To avoid capital gains taxes from selling investments during the transfer process, make sure to get the cost basis for them.
– Tax consequences such as withdrawal penalties may apply in some instances, so be sure to double-check the fine print.
– You may need to sell off any propriety investments offered by your previous financial advisor’s company. This is not necessarily a bad thing since you will gain more opportunities for consolidation and opening scattered accounts.
– Be cordial when ending things with your financial advisor. Keep a line of communication open so that you can reach out to them during the transition to a new advisor.
Hiring a Better Financial Advisor
Chances are, your experience with the wrong advisor has taught you all the things to avoid with your next advisor. You will be more skilled to recognize the red flags of an unprofessional or inexperienced advisor.
It is worth asking, “What do you need before meet a financial advisor?” Asking a series of questions can help you gauge their breadth of knowledge and expertise. You can find these questions in our guide to finding the best financial advisor.
An advisor with a history of excellent service and a satisfied clientele may be your best choice. Fiduciary advisors add a sense of security in your financial dealings due to their legally-required, highly ethical standard of care, and loyalty. Take your time to consult with potential financial advisors and understand their approach and strategies. They should respect your goals and values and cooperate with you to plan out a financial roadmap to help you reach them.
If you’re looking for financial advice for a single aspect of your money management, you may want a more specialized approach. Luckily, financial advisors have different categories based on their specific training and qualifications in particular fields. So, you must identify which financial advisor you need.
Which Financial Advisor Do You Need?
Whether you want to create a robust investment portfolio or plan out your wealth transfer, there is a financial advisor suited for the job.
Investment brokers and advisors specialize in providing advice on which securities you should purchase or sell, while expertly allocating your assets using beneficial strategies. Similarly, asset managers are well versed in which assets can offer you the most returns with minimal risks.
Certified Financial Planners (CFP) are not involved in investment management but do provide you with a financial plan to help you with retirement or estate planning. Financial consultants, on the other hand, help you resolve a specific monetary issue and do not overlook the rest of your finances.
Wealth managers are the most preferred financial advisors for wealthy investors since they are explicitly trained to handle multiple high-value assets. They provide a holistic analysis of your finances, determining your life goals to assist you in various aspects, such as retirement and legacy planning.
Trusting a single wealth manager gives you a sense of security, knowing that your fortune is being exposed to different people. They understand your desire to protect your assets and do everything in their power to enhance and secure your wealth. Our hardcover book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million, discusses more on how wealthy families can safeguard their assets.
While the list of services offered by different financial advisors is endless, you should have a clearer idea by now about the kind of financial advice you need.
Points to Take Home
If you’ve made up your mind about switching to a new financial advisory firm, your next question should be, “How soon can I change financial advisors?” We suggest, the sooner, the better! With the right financial advisor in your corner, you can begin working on your action plan to improve your financial growth.
Pillar Wealth Management offers wealth management services and financial advice to high net worth and ultra-high net worth families with liquid assets valued from $5 million to $500 million. Our wealth managers can optimize your performance to help you achieve financial serenity. Sign up for a free consultation today!
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