Financial Advisers – How Can They Help You? PillarWM
There are plenty of advantages of hiring a financial adviser, especially if you own $5 million or more in liquid investable assets. For instance, financial advisers have the expertise and detailed knowledge in managing the assets and portfolios of wealthy individuals and families. They have comprehensive information of all the different financial products available and keep an eye on the market trends to quickly leverage any lucrative opportunity. Read our useful guide to learn how you can choose the best financial adviser for yourself.
At Pillar Wealth Management, our financial advisers’ team specializes in working with individuals who have assets valued between $5 million and $500 million. To know more about how we can manage your finances, sign up for a meeting with our advisers.
Why Do You Need Financial Advisers?
A financial adviser offers financial guidance or advice to clients in return for a fee. Financial advisers can provide several services, such as estate planning, tax planning, and investment management. Today, many financial advisers act as a one-stop-shop by offering a range of services from insurance products to portfolio management. Now that you have a basic understanding of who a financial planner is, let’s take a look at why doyou need financial advisers.
Even though a financial adviser’s services aren’t necessary, they’re highly recommended for high net worth and ultra-high net worth individuals. The reasons behind this recommendation primarily revolve around expertise and convenience.
Managing assets worth millions requires a combination of time, effort, expertise, and commitment. Chances are, you won’t be able to provide at least one of these factors without neglecting other essential things in your life.
Plus, when you grow older, your priorities in life are going to change. You probably won’t have the time or energy to manage your finances as before. If you previously spent hours every day handling your portfolio, you might now wish to spend more of your time with loved ones.
A financial adviser for affluent individuals can take the burden off your shoulder. Instead of stressing about which investments you should purchase, you can now start focusing on things that matter more such as your lifestyle, passions, family, and legacy. In our new book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $25 Million, you’ll get plenty of examples of how affluent families are living a life of financial serenity, thanks to their financial adviser.
Financial Advisers Services for High Net Worth
The best financial adviser will start by discussing your financial goals and create a plan to help you achieve them. Financial advisers will even help you invest your liquid assets, either by suggesting specific investments or by providing comprehensive investment management services. Here are a few other financial advisers services for high net worth individuals and families.
– Estate Planning
– Retirement Planning
– Insurance Planning
At Pillar Wealth Management, we offer comprehensive financial advisory, wealth, and investment management services to our high net worth clients. Sign up for a free meeting with one of our financial advisers and get more information about the services we offer!
Investment management is the process of managing investments and other financial products in a client’s portfolio. It involves devising a holistic investment plan, overseeing the asset allocation, monitoring investments’ performance, and making modifications when required. Investment management may even encompass tax planning, banking, and budgeting.
At Pillar Wealth Management, our financial advisers have in-depth knowledge of the different financial markets and how they operate. This allows us to invest our client’s assets in places that offer the highest returns. You can even read our guide, Improving Portfolio Performance, to get more details on how to get the maximum investment performance.
Estate planning is the process of picking out people who will inherit or take over your wealth after your death or incapacitation. The primary purpose of estate planning is to ensure that your heirs inherit your wealth in a manner that minimizes taxes.
Estate planning is an essential part of your financial strategy because it’s the only way you can leave a better legacy to your family. Our financial advisers are highly skilled at creating detailed estate plans that incorporate several financial planning instruments such as developing a succession plan, setting up a trust, and getting the most appropriate insurance plan. If you avail our financial advisory services, you can be sure that your beneficiaries won’t have to pay any additional taxes.
A peaceful, relaxing, and worry-free retirement is possible for everyone, but to get to that that, you need to start planning from now! The period of retirement is very uncertain, even for affluent individuals. And even though a majority of people do know they need to plan for retirement, they’re not sure how to go about it.
Retirement planning is one of the most essential things you can do for yourself – especially if you’re over 50 – because the quality of your future is going to depend on it. Our financial advisers are well-versed in carrying out retirement planning for wealthy individuals who have a minimum of $5 million. We have also written an extensive guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies, on how you can spend a comfortable and stress-free retirement.
Detailed insurance planning will allow you to determine the risks involved in your financial life and create plans to mitigate them. So, while investment planning aims to increase your wealth, insurance planning works to preserve and secure it.
At Pillar Wealth Management, our financial advisers know the complexities of the insurance industry and how they apply to your current and prospective financial situation. With our comprehensive insurance analysis, you can be assured that you won’t fall victim to any inadequate insurance plans. Plus, we can also review your current insurance plans and check for any loopholes that can cause you large amounts of stress and money.
How Can Financial Advisers Help You?
In our guide for investors with $10 million or more, we discuss several ways in which a high net worth or an ultra-high net worth investor can increase their wealth. However, one of the best ways to do so is to hire a private financial adviser.
But the question remains, how can financial advisers help you? Well then, let’s have a look at some of the ways in which a financial adviser can help you.
Financial Advisers Ask the Right Question
While this might seem like a simple statement, its implications cannot be overemphasized. Having the experience and knowledge to ask the right questions and get the correct answers isn’t something you can learn overnight.
For instance, most inexperienced financial advisers will ask questions that are more or less, “what returns do you wish to get?” or “how much risk can you afford to take?” This approach is quite problematic primarily because your return expectations don’t determine your goals. Instead, it’s the other way around!
Your optimal investment return should only be calculated after considering your financial goals. Moreover, your risk tolerance is a continuously changing figure that varies with your financial circumstances.
Regardless of net worth, every person wants to ensure that their wealth remains secure. Qualified financial advisers for high net worth individuals are fully aware of this fact. They know that the right questions and answers revolve around the achievements, lifestyle, legacy you want to attain.
Financial Advisers Will Understand Your Goals
A financial adviser with the relevant experience will know that you cannot rush through this process. Understanding your financial goals requires time and a comparative assessment of your priorities. Some of the things your financial adviser may include:
– You and your family’s health
– Retirement goals
– Current and expected financial circumstances
– Your passions
– The lifestyle you want to live.
– Sources of current and future income
After your financial goals have been decided, and all other factors have been taken into account, your financial adviser can determine the portfolio performance you want to achieve.
Financial Advisers Will Help You Attain Financial Serenity
Every person on the globe aspires to attain financial serenity and become financially successful. However, achieving financial serenity is much more complicated for high net worth and ultra-high net worth individuals. It can, no doubt, be tough entrusting another person with all your wealth and assets. However, this is precisely how a financial adviser can help you.
A competent, qualified, and experienced financial adviser will help you reach financial serenity, so you don’t have to worry over your finances and live the life of your dreams! Speak to our financial advisers to know how we can help you reach financial serenity.
Several financial institutions such as private banks and investment houses usually offer standardized, cookie-cutter solutions to every client who comes their way. But if you want portfolios and solutions that are purely designed with your goals and interests in mind, you need to hire a financial adviser. This is because a financial adviser will fully understand your goals and create financial solutions tailored to fit your unique financial situation.
At Pillar Wealth Management, our financial advisers are committed to helping our clients find financial success and security. Thus, we take pride in offering customized investment and financial plans to help wealthy clients move closer to their desired lifestyle. Read, The Ultimate Guide for Choosing the Best Financial Advisor, and learn how you can choose the best financial adviser to help you attain financial serenity.
How To Choose a Financial Adviser/Advisor
A financial advisor (or adviser) is someone who offers financial planning services such as investment management, retirement planning, tax management, and estate planning.
You know you may need help planning for retirement as well as investing to grow your wealth. You want to have a healthy bank account to be comfortably retired. But you also have a feeling that finding a financial advisor who can help you meet your investment goals is not an easy task.
A financial advisor is someone who will become intimately familiar with your financial affairs, in particular, how you earn money and how you spend it. Over time, you will establish a working relationship with your advisor, and you will want that relationship to be built on open communication and mutual trust. Here’s the process.
1. Decide What Aspects of Your Finances You Need Help With
Start your search for an advisor by reviewing your financial situation, talking to those nearest and dearest to you, and identifying what your financial planning needs are.
For example, you may have debts and would like help with debt management; you may find it hard to stick to a savings plan and budget. Perhaps you’ve inherited some money that you’d like to invest, but you don’t have the expertise required to make smart investments. Or you may have investments that don’t seem to be earning what you’d like.
You may want someone to work with on an estate plan or charitable giving.
By careful thinking beforehand, when you’re ready to talk to an advisor, you’ll be ready to clearly express your needs and ask the right questions.
2. Learn About the Different Types of Financial Adviser/Advisor
While all financial advisors are educated and trained to provide financial services, they do not all have the same certifications. Many are certified financial planners or chartered financial analysts, and some may also be certified public accountants. The FINRA website has a complete list of certifications.
So, there are plenty of options, and by doing some research, you’ll understand the differences between these certifications. You’ll want to sit down with a potential advisor to discuss their training and work experience.
Now that you’ve decided you want an expert to advise you, you need to decide how much you’re willing to pay for those financial advisory services.
Different advisors have different fee structures. They may charge a percentage of the value of the assets that they manage for you. They may charge you an annual retainer, or they could charge you a flat fee for certain services, like preparing an estate plan. Hidden costs would include fees charged when an investment is sold.
3. Choose Which Financial Advisory Services You Want
Financial advisors offer quite a variety of services; one of their areas of expertise is investment management. If they are brokers, they can buy and sell securities on your behalf. You should ask any potential advisor about their approach to investing, such as passive or active asset management.
Your financial advisor will work with you to create a financial plan, which will include a strategy for achieving your financial goals.
Your advisor can help you build a retirement plan to ensure you have the income stream you need when you retire.
You can expect a financial advisor to help you with tax planning, estate planning, and philanthropy.
4. Decide How Much You Can Pay Your Financial Adviser/Advisor
As you consider your financial situation, you should also think about how much it will cost you to have a financial advisor, which will reduce the earnings from your investments.
Financial advisors charge various fees for their services. You may pay a commission upfront when you invest in a fund, or the advisor may earn a commission on products they sell. If you’re concerned about conflicts of interest, look for someone who is a fiduciary, which means they will act only in your best interest and do not accept commissions or receive any other incentives for selling certain products or services. Their income is based only on the fees paid by their clients.
Some advisors use a combination of fee structures; they may charge an hourly fee or a flat fee for some of their services. It’s critical that you know how your advisor is compensated.
5. Research Financial Advisors
You’ve undoubtedly heard of the big investment companies and brokerages, like JPMorgan and Vanguard, and you may have read some positive reviews of smaller firms. You may have gotten recommendations from friends or family members.
Create a shortlist of potential advisors, and then reach out to them for an initial conversation.
When you meet with an advisor, you have an opportunity to determine if they would be a good fit for you. By asking the right questions, you’ll be able to make the right choice.
Ask each advisor about their background, training, experience, and certifications. Ask them what they like about their work. Talk about the services you need, and let them explain how they can help you and which investments they would recommend and why. By the end of these discussions, you will be prepared to choose an advisor with whom you can have a rewarding relationship.
What You Need to Prepare Before Meeting Financial Advisers?
After you’ve made your mind to hire a financial adviser and researched the best one for your needs, you should schedule an introductory meeting with them. In this meeting, you’ll get a chance to gauge the personality of your chosen financial adviser and see if you want to move forward with them. However, you cannot go into this meeting without proper preparation. So, in this section, we’ll talk about what you need to prepare before meeting financial advisors.
List Your Assets and Liabilities
The first thing you need to do is make a complete list of all the assets you own, including estates, investment, collectibles, and even cash. Also, don’t forget to list down your liabilities, such as mortgages, debts, and loans. A clear picture of your assets and liabilities will allow your financial adviser to develop a suitable plan for your needs.
Chart Out Your Income Sourcesand Expenses
To have a meaningful discussion with your financial adviser, you should have a comprehensive idea of all your income sources and expenses. Ideally, it would be best to write them down, so you don’t miss out on anything.
Write Down Your Financial Goals
The next thing you need to prepare is your financial goals. This can include anything you want to do, such as traveling the words, purchasing a luxurious penthouse, or spending a relaxing vacation on a remote and exclusive island. A financial adviser can help you translate your dreams into reality, given that you’re clear about them.
Before you meet with your financial adviser, make sure you have a set of well-defined and specific goals. Consider all the goal-related questions that your financial adviser can ask you and think of how you’ll respond to them.
Prepare A List of Questions to Ask Your Financial Adviser
Last but not least, note down any queries that you may have and make sure you address them with your financial adviser. Your questions don’t necessarily have to be about your finances. In fact, you can even inquire about the services they will provide, their experience, etc. Some questions that you can ask your financial adviser include:
– What kind of clients have you worked with in the past?
– What are your qualifications?
– Do you have a fee-only payment structure, or do you charge commissions as well?
– What approach do you use?
– How often will we meet, and how can I get in touch with you?
Last Few Words
Our financial advisers’ services at Pillar Wealth Management are significantly different from those offered by the large Wall Street institutions who are more focused on satisfying their shareholders rather than aiming to build their clients’ legacy.
We offer customized fiduciary services to help you attain your financial goals in the best possible way. To know more about how you can benefit from our services, visit our website and schedule a free consultation with us!
Frequently Asked Questions
Financial advisers provide financial advisory services such as retirement planning, estate planning, tax management, investment planning and monitoring, and debt and expense management.
It’s worthwhile to hire a financial advisor if you need expert, professional guidance to increase your wealth and protect it for your retirement and for your heirs.
NerdWallet ranked the following as the top five financial advisors in January 2023: Facet Wealth, Vanguard Personal Advisor Services, Zoe Financial, Harness Wealth, and Personal Capital.
A financial advisor has the training and experience required to provide financial advice on a variety of subjects, particularly investing and retirement planning.
A financial planner provides advice on the totality of the client’s financial life, whereas a financial advisor focuses on investments, although the terms are used interchangeably.
A financial advisor is paid either by commissions, fees based on the value of the assets under management, flat fees, or hourly fees for their services.
As soon as you start accumulating wealth, such as saving a portion of each paycheck, you can consider investing; you should start retirement planning as soon as possible.
Even if you don’t have much money, you can get financial advice, for example, from your bank or credit union or your tax preparer.
Individuals with a high net worth may have complex needs for asset management, investing, and tax minimization, so they will hire an advisor to achieve their financial goals.
According to a survey by Fidelity Investments in 2007, 70% of millionaire households used some sort of financial adviser. This statistic was confirmed in 2018 by Chris Hogan.
To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.
We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.
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