How to Find a Financial Advisor
Usually, high net worth and ultra-high net worth individuals don’t have the time or expertise to manage their massive amount of wealth or assets on their own.
That’s why they can greatly benefit from hiring a financial advisor. However, that’s easier said than done. Getting any financial advisor is simple, but if you want the right financial advisor, who will truly help you achieve your financial goals, it can be a bit challenging. So, what you should really be asking right now is how you can find the right advisor for you. That’s what we’re here to answer today. For more information, you can also read our handy guide on choosing a financial advisor for investors worth $10 million or more.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
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.
Pillar Wealth Management is a 100% fee-only, white-glove wealth management firm. We offer various services to our affluent clients to help steer them towards financial success and security. Our team of wealth managers has a combined experience of more than 60 years, so you can trust us to know exactly what we’re doing. Our deep knowledge of the industry and market trends allows us to make tailored financial plans that best serve our clients’ needs.
In this blog, we’ll be discussing how you can find the right financial advisor, how much money you need to see one, and whether it’s really worth hiring a financial advisor. Let’s dive in.
Table of Contents
How to Find a Financial Advisor?
Before you actually start looking for a financial advisor, we’d suggest thinking about why you really need a financial advisor. What kind of assets you hold, what services you will require, and how much wealth you have will help you get a better idea of what you really need and therefore, find the right financial advisor. Here are some factors you should consider. You need to know that some of them have different specialties and there are many different types of financial advisor, such as robo advisors, certified financial planners, and so on. If you want a robo advisor then you will use a robot as your advisor, not a human.
Track Record and Experience
One of the first things you should consider is a financial advisor’s track record and experience. These will say a lot about their abilities and how well they can handle individuals with $5 million to $500 million in liquid assets. The financial industry is a tough place, and only those advisors who have extensive experience and a good track record will be able to capitalize on market trends effectively to help their clients grow and protect their wealth.
Therefore, you will need to see how long they have been working as financial advisors, their track record, what their previous clients say about them, and what kind of results they’ve had so far. Looking at these factors is a good starting point to find the right financial planner. Or you may ask someone working with a financial advisor, such as a friend, colleagues, or others about the services.
Fiduciary Vs. Suitability Standard
There’s only one true answer to the question, “what’s the best financial advisor for me?” The best financial advisor for you is the one that holds to a fiduciary standard. Amongst other differences, there is one major distinction that you will find between financial advisors. Some follow the fiduciary standard and some follow the suitability standard.
Now, essentially, since you are hiring and paying them for their services, financial advisors are responsible for guiding you towards good financial decisions. However, depending on the type of advisor, their definition of good can be different. Financial advisors who hold themselves to the suitability standard are obligated to recommend investment management services and investment advice that are suitable for you. This doesn’t mean they are bad, but they’re not necessarily the best either. Such financial advisors look out for their own interests as well and opt for investments or products that benefit them as much as you.
On the other hand, financial advisors who hold themselves to the fiduciary standard are wholly committed to serving your best interests, even if they are incurring losses over it. That’s what makes them the best financial advisor for you. They don’t have any conflicts of interest and, therefore, have no problem guiding you towards investments and products that best align with your goals and needs. To know more, click here to start chatting with the fiduciary advisors at Pillar Wealth Management.
Understanding of Costs
Another way to find the right financial advisor for yourself is to check their understanding of costs. Excessive costs are one of the best ways to slowly and gradually lose large amounts of wealth. If you thought that taxes and your advisor’s fee are the only things you needed to worry about, you’d be gravely mistaken. In reality, there are so many hidden costs and charges that are involved in wealth management.
There are taxes on capital gains, transaction charges, account minimums, bond sale spreads, internal expenses, margin interest costs, and a lot more. If your advisor doesn’t inform you of these costs, or worse, doesn’t know about them, they won’t do a very efficient job of managing your wealth and minimizing your expenses. This is just one of the aspects. If you want to find out about the other shifts you must make, click here to read our guide on maximizing portfolio growth strategies.
Constant Monitoring and Adjustments
The right financial advisor will also be quite proactive. They won’t just come up with a fixed financial plan and stick with it for the rest of your life. This is actually what you can expect at a lot of private banks, where they have fixed investment packages that are proven to have good results with low risks for the bank. However, times are always changing, and a good financial advisor knows to adjust your financial plan accordingly.
Whether it’s a marriage or divorce or a recession or market volatility, the right financial advisor will guide you in making the right financial decisions to preserve your wealth and leverage the market situation. Learn more about preserving and 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.
Commission VS. Fee-Based Payment Model
You should also consider the payment model your advisor is using. Some financial advisors work on a commission-based payment model where they earn a commission every time they buy or sell a security on your behalf. There isn’t necessarily anything wrong with this model, except that sometimes, certain financial advisors can exploit clients by making excessive transactions to increase their commissions. That’s why it’s a safer choice to stick with financial advisors who charge a flat fee for their services.
Pillar Wealth Management is a 100% fee-only wealth management firm. Moreover, our wealth managers have experience of more than 30 years of minimizing tax and other expenses. This allows us to maintain low costs and charges for our high net worth and ultra-high net worth clients. If you’re concerned with your own costs, click here to get in touch with one of our advisors today.
Holistic Approach to Wealth Management
When you’re wondering about how to find a financial advisor that is right for you, look for one that has a holistic approach to wealth management. If your current planner is entirely focused on producing impressive results from your portfolio, you should consider switching to a new planner.
The best financial advisors know that comprehensive wealth management is more than just about portfolio performance. It’s about an individual’s own goals and aspirations in life. Their portfolio is just a means to an end. Comprehensive wealth management also takes into account their retirement goals, legacy planning, philanthropic plans, and more. Find out more truths about portfolio performance by clicking here to read our comprehensive guide on improving portfolio performance.
You should also analyze your own needs and then compare them with the services offered by the financial advisor. For instance, if you’re single without any family or a lot of assets or real estate, and you simply need help with retirement planning, you can go for a financial advisor that specializes in retirement planning.
However, if you have a family who will be your beneficiaries, have a large and diverse set of assets, and lots of financial goals and targets, you will need a financial advisor that offers or is well versed in various financial services. At Pillar Wealth Management, we offer a range of financial services such as investment management, estate planning, retirement planning, risk management, and a lot more. Learn more about our services by checking out this handy guide for investors worth $10 million or more.
Check the credentials of the financial advisor if you are wondering, “How do I find a financial advisor for high net worth investing?” Sometimes, advisors can purchase various certifications or designations that may seem like they know a lot, but in reality, they don’t mean much. Therefore, carefully go over their credentials and backgrounds to determine whether they are the right financial advisor for you or not.
Frequency of Updates
To find an advisor that is right for you, you should consider how well they communicate with their clients. You don’t want a financial advisor that only contacts you once a year and perhaps, too, just to get you to buy some new security. Ideally, your financial advisor should provide you with monthly or quarterly reports over their activities, various transactions, portfolio performance results, as well as future plans and predictions. Such an advisor will always be fully transparent with you and always keep you in the loop. Click here to start a conversation with one of our experienced and transparent advisors.
Personalized Financial Plan
The right financial advisor will also make sure to properly understand all your financial needs and goals so that they can develop personalized financial plans. This is one of the key features of a good financial advisor. They don’t just ask what your risk tolerance is or how much assets you want to accumulate. Rather, they ask you about what you really want in life, what your short and long-term goals are, what kind of lifestyle you aspire for, etc. You can find out more about the right financial advisors from our ultimate guide on choosing the best financial advisor.
How Much Money Do You Need to See a Financial Advisor?
Many people ask themselves, “how much money do I need to see a financial advisor?”Well, there really isn’t any set benchmark for how much money you need to have before seeing a financial advisor. The services offered by a financial advisor or investment advisor can be beneficial for anyone at any stage of their life. Financial advisors can be stockbrokers, accountants, insurance agents, or others. A financial advisor can help young students deal with their educational debt or others to set up saving plans. However, for high net worth and ultra-high net worth individuals, a financial advisor is absolutely necessary. With their help, such individuals can prevent large losses of wealth to taxes and preserve their assets to fulfill their financial goals.
Is It Really Worth Meeting With a Financial Advisor?
For individuals with $5 million to $500 million in liquid assets, making any financial decisions can be quite hard. This includes hiring a financial advisor. Every time they think of doing so, they might find themselves asking, should I meet with a financial advisor? Is it really worth it? We’re here to tell you that it is. A financial advisor can be of great benefit to high net worth individuals. They are experienced and well versed in matters of wealth management.
Pillar Wealth Management has an excellent team of investment advisors and financial advisors that are always striving to help high net worth clients achieve financial success and security. We offer various services, such as investment management, credit card management, risk management, tax planning, retirement planning, estate planning, accounting, and much more.
Our financial planners have experience of more than 30 years, which equips us with all the knowledge and skills necessary to help our clients. If that sounds like something you’re interested in, contact us and access our website, or click here to book a consultation session today.