Find a Financial Advisor:
The Complete Guide to What We Do
Are you wondering whether you need a financial advisor? As your net worth grows, hiring a financial advisor can play a critical role in managing your wealth. For investors having $5 million to $500 million in investable assets, it is essential tohire a financial advisor specializing in wealth management. If you are looking to understand things like what does a financial advisor do and how to find a financial advisor, we suggest you begin with reading our exclusive guide for investors having over $10 million in liquid assets. This can help you understand the essential aspects of wealth management and how you can benefit from having a financial advisor on your team.
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.
At Pillar Wealth Management, we offer fiduciary advisory services for individuals with a net worth of over $5 million to $500 million. Our team possesses a combined experience of 60 years. It utilizes various tools and techniques to offer custom wealth management that controls your risk and gets you one step closer to leading the life you desire. Click here to talk to one of our wealth managers today!
If you’d rather learn more about financial advisors and wealth management before you talk to our team, this blog will provide you with the answers you need. Read on as we discuss common questions such as “Do I need a financial advisor?” “How much money do you need to hire a financial advisor?” and “Is it worth having a financial advisor?”
What Is a Financial Advisor?
A financial advisor is a qualified professional that provides you with advice on how to manage your money. There are a variety of individuals that can fall in this category. This includes investment advisors, wealth managers, certified financial planners, and certified public accountants.
Most financial advisors do not need to be formally certified to offer advice on money management. They usually have some sort of training related to the type of financial advice they offer. For instance, if your financial advisor specializes in investment management, they should be trained in stock trading and retirement income planning. Similarly, a tax consultant must be trained in tax preparation in order to provide the right advice.
Financial advisors are not necessarily equipped to handle all types of things related to money management. Instead, they can specialize in one or more areas. Depending on your needs, you can hire a financial advisor who is qualified to provide advice in the domain you need help in.
What Does A Financial Advisor Do?
Understanding what does a financial advisor do is very important. If you are hiring a financial advisor for wealth management, then here are some of the things they can help you with:
- Conducting an assessment of your current financial situation and understand your financial goals
- Preparing a plan that allows you to strategically achieve all financial goals and improve your financial situation by addressing areas of concerns
- Providing financial advice on potential issues such as generating too many losses, market volatility, and failing to reach financial goals
- Investing your money in a variety of assets and ensuring a healthy asset allocation
- Helping you choose the best financial vehicles for retirement planning such as insurance policies
To learn more about what a financial advisor can do for you, click here to read our exclusive guide on how to find a financial advisor.
How Much Money Should You Have For Hiring a Financial Advisor?
Hiring a financial advisor comes at a cost. If you are wondering, “Do I need a financial advisor?” the first thing you need to do is review your net worth. Knowing how much money you need to hire a financial advisor can help you carry out a cost-benefit analysis and determine whether having a financial advisor to manage your assets will pay off.
As discussed earlier, financial advisors perform a variety of functions. If you need financial advice on managing your taxes, then you don’t necessarily need to factor in your net worth. However, if you need a financial advisor specializing in wealth management, then a cost-benefit analysis is essential.
Typically, most wealth management firms work with individuals with a minimum net worth of $1 million and $5 million and above. If you fall in this category, then we strongly suggest getting a financial advisor for financial planning.
In the case of Pillar Wealth Management, we work exclusively with people having a net worth of $5 million and $500 million. Our financial advisory services are designed to help high net worth and ultra-high net worth individuals realize their wealth and retirement planning goals.We specialize in the following areas:
- Investment management
- Risk analysis and management
- Retirement income planning
- Tax minimization
- Estate planning
- Insurance planning
- Asset allocation analysis
- Portfolio planning
To learn about our services, click here to arrange a free consultation session.
How Can You Find a Financial Advisor That Is Right For You?
Understanding what does a financial advisor do is important. However, finding a financial advisor that is able to manage your wealth in a responsible manner can be harder than you realize. To make it easier, here are some of the key aspects to keep in mind when searching for a financial advisor for wealth management.
1. How Will They Help You Pursue Your Goals?
One of the most critical aspects of working with a financial advisor is understanding how they will help you reach your goals. To begin with, do they ask you at the onset what you are looking to achieve with your investment portfolio? Do they know how much wealth you need to retire?Understanding your investment objectives is the key to holistic wealth management. Without it, you may as well be walking in a blind alley with no rhyme or reason for where you want to go. It is also critical to your financial security.
Besides this, you also need to check what type of system a financial advisor has in place for tracking goals? Do they regularly revisit your goals to make sure your investment portfolio is doing what it’s supposed to do?
At Pillar Wealth Management, we take on a vigorous approach to goal tracking. Our team will regularly review your portfolio’s performance and compare it to your goals. Depending on what we observe, we will also tweak your portfolio to improve its effectiveness.
To learn more about portfolio rebalancing and how it impacts your financial health, click here to read our guide on improving portfolio performance.
2. How Can They Help You Control Your Portfolio Risk?
All investments come with a certain amount of risk. How you control that risk and manage to increase your returns is a deciding factor in achieving your financial goals. If you are currently trying to find a financial advisor, we strongly recommend you ask them about their risk management policies.
There are essentially two types of risks – diversifiable and non-diversifiable risks. Non-diversifiable risks are also known as systematic risk. This type of risk affects the entire market and can be difficult to avoid completely. The most you can do is try to reduce the impact of such risks on your investment portfolio.In the case of diversifiable risks, you can avoid this through smart investment strategies. It usually affects only one type of stock or asset, so if you do your due diligence, it can be avoided.
Pillar Wealth Management utilizes a number of strategies that help us control your investment risk. For starters, we make use of an Efficient Frontier that allows us to balance your risks and returns in a manner so that at any given point, your portfolio can deliver optimal returns without taking on an excessive amount of risk.
We also carry out portfolio stress tests. These are critical for managing systematic risk resulting from a recession, natural disasters, and other incidents that create significant downturns in the economy. Our portfolio stress tests make use of data that goes back to 1925. It allows us to view how your current portfolio will perform during unforeseen situations such as a health crisis or war.
If you are an ultra-high net worth investor looking to understand how these risk management strategies work, we recommend ordering a 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.
3. How Do They Allocate Assets?
Asset allocation is another vital aspect of wealth management. It relates to how your wealth is distributed across various assets to generate a desired rate of return. A healthy portfolio will be distributed across assets such as stocks, bonds, and cash. Ensuring a strong asset allocation is also directly related to controlling the systematic risks we talked about. Confused? Let us explain.
Typically, any events that pose systematic risk affect every market in a different manner. For instance, if a particular incident causes the stock market to crash, it may not have the same effect on the bond market. The performance of these assets is not directly related to each other, and they usually move in different directions.
Therefore, ensuring a health asset allocation can help you control your losses. Even if your stocks decline in value, your bonds and cash-based assets will retain their value.
Given the importance of asset allocation in lowering your risk, you must work with a financial advisor that understands the role asset allocation plays in portfolio planning. If you are an investor with a net worth of $10 million and above, then click here to read our guide on finding a financial advisor that can help you prioritize this aspect of investment management.
In many cases,your financial advisor may encourage you to invest more in high-performing stocks to earn high returns and forgo investing in bonds. This can sound very appealing initially, but it can quickly backfire. Given the overall volatility of the stock market, it is important to buffer your portfolio with a healthy amount of bonds and cash-based assets to protect yourself.
This type of shift can help you get closer to achieving financial serenity and make investment management a lot less stressful. To learn more about other essential shifts in perception that can help high net worth and ultra-high net worth investors, click here to read our guide.
4. Do They Offer Fiduciary Services?
Whichever financial advisor you choose, make sure they offer fiduciary services. This means that the financial advisor must keep your interests first. For instance, if you are seeking financial advice from a Wall Street firm or a big bank, then there may be a conflict of interest. The financial advisors working in these companies have their own goals and targets to meet.
As per Forbes, big banks require their employees to meet their daily quota of hits by encouraging clients to sign up for mortgages, take out personal loans, or invest in certain assets for retirement planning. Employees that fail to meet these targets can get fired. As a result, the quality and diversity of investment products offered tend to be average. Most of these investment products are not guaranteed by FDIC, as well, and you can expect to assume a certain amount of liability if you seek all your financial advice from a bank.
As mentioned earlier, Pillar Wealth Management commits to offering fiduciary advisory services that put your goals and objectives at the forefront. We work with limited clients to ensure that every client gets our undivided attention and can achieve their financial goals.
If you want to learn about how our services differ from other wealth management firms, click here to arrange a free chat with us.
Is It Worth Having a Financial Advisor?
Finding a good financial advisor is difficult but not impossible. Given the benefits that are attached to working with a qualified financial advisor, we would say it’s worth the effort. As long as you are working with the right person, you won’t find yourself wondering, “Is it worth having a financial advisor?”
If you are trying to find a financial advisor or need more information on what does a financial advisor do, get in touch with us. We can help you figure out if a financial advisor can be a suitable addition to your team and the long-term benefits of the same. You can click here to arrange a free consultation session with us, and one of our wealth managers will be in touch with you!