How to Hire A Financial Advisor in 3 Steps – PillarWM

At Pillar Wealth Management, we have two highly experienced financial advisors who work with clients that have $5 million to $500 million worth of liquid assets. To find out how our team can manage your finances, click here and register for a free meeting with us.

How to Choose a Financial Advisor 

A financial advisor 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 have an intuition that finding a financial advisor who can give you the help you need to meet your investment goals is not an easy task.

Here are seven tips for finding the advisor who is right for you.

1. Evaluate your financial needs

Start your search for the best advisor for you 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. In contrast, 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 express your needs and ask the right questions.

2. Understand the different types of financial advisors

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. Go to the FINRA website for 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.

3. Learn about financial services

Financial advisors offer a variety of services, and one of their areas of expertise is investment management. If they are brokers, they can buy and sell securities on your behalf. You’ll want to ask a potential advisor about their approach to investing, such as passive or active.

Your financial advisor will advise you on creating a financial plan, which integrates 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. Know the cost of a financial 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 up from 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 in the client’s best interests.

Advisors who do not earn commissions or receive any other incentives for selling certain products or services are known as “fee-only” advisors, and 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. Do some research

You’ve heard about some of the big investment companies and brokerages, and you’ve 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.

During these conversations, you have an opportunity to determine which advisor 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. 

6. Don’t settle for less than the best

Finding an advisor takes time and energy and some preparation, but it’s worth spending the time interviewing potential advisors until you know you’ve found one who meets your requirements. You’re looking for someone who respects your wishes, listens, and takes the time to answer your questions. It’s your money, after all!

7. The right advisor makes you smarter

A good financial advisor wants you to know how to control your finances. Through a trusting, open relationship with your advisor, you’ll have plenty of opportunities to learn how to invest your money and manage your assets. You can become a smarter investor through your relationship with a good advisor.

Financial Advisor Services

A financial advisor is an expert who provides a number of financial services and products to their clients. These experts work by thoroughly evaluating their clients’ present financial circumstances, such as their assets, debts, and expenses. Financial advisors then use this evaluation to identify how they can improve their client’s financial circumstances. Now let’s have a look at financial advisor services, which typically include:

1. Cash Flow Planning
2. Estate Management
3. Retirement Planning
4. Investment Management
5. Insurance Planning

At Pillar Wealth Management, our financial advisors provide fiduciary financial advisory services to wealthy and ultra-rich clients. To get more details regarding the services we here, start a free meeting with our financial advisors.

1. Cash Flow Planning

Systematic management of your assets and wealth allows you to make sure that you successfully attain your financial objectives and achieve financial serenity. Moreover, cash flow planning is also important because it helps to establish and sustain an emergency fund so that you don’t get into trouble if any unpredicted expenses emerge.

At Pillar Wealth Management, our financial advisors are experts when it comes to creating cash flow management plans. We will study where your cash is coming from and how you’re spending it, along with your assets and liabilities, to identify potential areas for cash flow improvement. This way, you can make smart choices about your assets and wealth, predict any probable cash-related issue, and take action to remedy them. With our team, you can be assured that you can live a stress-free financial life.

2. Estate Management

Estate management, also known as estate planning, is the procedure of selecting the people who will inherit your wealth and take over your duties after your death. The coreobjective of estate management is to ascertain how your beneficiaries can receive their inheritance while paying minimum taxes.

However, several high net worth and ultra-high net worth individuals fail to grasp estate management’s true importance. They try and take up this task independently, which costs their heirs millions of dollars in taxes and a lot of stress. You can also read The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million to $500 Million. This is our free hardcover book where we discuss estate management in-depth and the problems that can arise in this process.

At Pillar Wealth Management, estate management is a vital service that our financial advisors provide.  We will devise a holistic estate management plan that encompasses several financial instruments such as wills, succession plans, trust, and life insurance policies so that your heirs can get their inheritance tax-efficiently.

3. Retirement Income Planning

Do you aspire to spend a pleasant, comfortable, and restful retirement? If yes, then let us tell you that you can achieve it, but you have to start preparing early for it. Even though many high net worth and ultra-high net worth individuals know the importance of retirement planning, they don’t know how to do it on their own.

Retirement income planning is, hands down, the most essential tasks you can take up for yourself – particularly if you’re over 50. In fact, retirement income planning is crucial irrespective of how much wealth you possess because it will determine the quality of your future.

We at Pillar Wealth Management have plenty of experience in developing retirement strategies for affluent families who have at least $5 million worth of liquid assets. We highly advise you to peruse our guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies, to know how you can spend an incredible post-retirement life.

4. Investment Management

Investment management is a process where a financial advisor will manage your investments along with other financial products such as collectibles, real estates, etc. Many people believe that investment management just involves buying and selling investments. But in reality, investment management is way beyond that! For example, investment management includes formulating a holistic plan or strategy to purchase and dispose off investments, banking, tax management, budgeting, etc.

At Pillar Wealth Management, our financial advisors are well-versed in the workings of various financial markets and can guide you on when you should invest in them. Plus, we will even meticulously study your investment portfolio and develop plans to help you get the highest returns. You should also read our guide, Improving Portfolio Performance, and learn how you can get the investment performance you need to live the life of your dreams.

5. Insurance Planning

Lack of insurance planning imposes a high risk on other elements of your financial strategy, such as estate management, retirement income planning, and investment management. A proper insurance plan will allow you to determine, plan for, and also eliminate the risks prevalent in your financial life. So, where investment planning aims to increase your wealth and assets, insurance planning works to safeguard it.

At Pillar Wealth Management, we are very knowledgeable of the complexities of the different insurance firms and how they apply to your current and later financial situation. We will help you buy a plan that is most appropriate for your requirements. With our services, you stay at peace that you’re aren’t spending your wealth on non-viable insurance plans. Plus, we will even analyze your existing plans and identify any potential loopholes that can cost you money and stress.

What to Look for In A Financial Advisor?

1. Experience and Track Record
2. Fiduciary Services
3. Active and Passive Investment Approach

There are numerous financial advisors available today who promise to manage your finances and get you the highest returns. However, many of these financial advisors don’t have the relevant experience for this job or aren’t adequately qualified. So, who is a good financial advisor? Well, in this section, we’ll discuss what to look for in a financial advisor.

1. Experience and Track Record

Financial advisor services for individuals with $5 million to $500 million is not the same as financial advisory services for individuals with assets up to $100,000. Hence, the first thing you need to look for in selecting a financial advisor for yourself is to ensure that they know how to handle the finances of high net worth and ultra-high net worth individuals.

The track record of a financial advisor is also highly important. If you think of it, there’s no point hiring a financial advisor that continuously lets down its clients. Who knows, they might end up failing you as well!

Our financial advisors at Pillar Wealth Management have been offering their valuable services to affluent clients for more than three decades. We have helped our clients get through the 2008 Financial Crisis and are now helping them beat the COVID-19 pandemic. Thus, we know precisely how to handle and even increase such a large amount of wealth.

2. Fiduciary Services

Another important thing you need to look for in a financial advisor is if they provide fiduciary services. Provision of fiduciary services means that the financial advisor will ensure that all steps and decisions are taken to benefit you and help you accomplish your financial goals. In fact, fiduciary financial advisors have a legal duty to get rid of any potential conflict of interest.

At Pillar Wealth Management, we take pride in providing fiduciary services to our valued clientele. With our financial advisors by your side, you can be confident that your assets are secure. To learn more about how our fiduciary financial advisory services, book a free consultation with us!

3. Active and Passive Investment Approach

An active investment approach is when financial advisors make frequent buying and selling transactions, invest in trending products, and hot buys. The active investment approach is excellent for generating short-term results. However, the drawback is that you have to pay a high management fee along with plenty of taxes.

Contrarily, a passive investment approach is a technique to grow wealth in the long-run. It encompasses tracking the indexes of financial markets and using data to make investment decisions. Additionally, passive investment management is accompanied by a lower fee.

Our financial advisors at Pillar Wealth Management know how to balance out active investment approaches with passive ones. This will allow you to attain your financial targets while paying a minimal management fee.

Is It Worth It to Hire A Financial Advisor?

1. Expertise and Access to Data
2. Tailored Financial Plans

Another frequently asked question regarding financial advisors is that is it worth to hire a financial advisor? After all, you can access loads of information online to make sound investment decisions and create your own financial plan. While we don’t object to this school of thought, we believe that hiring a financial advisor is worth it, especially if you’re a millionaire. Here are some reasons why you should hire a financial advisor to handle your finances.

1. Expertise and Access to Data

Financial advisors have extensive expertise when it comes to handling the finances of people. They know the ins and outs of the numerous investment and financial products and keep track of the dynamic market conditions to promptly take advantage of any profitable trend.

Plus, if you’re a high net worth or an ultra-high net worth individual, you may not have the time to dig into historical financial data, which is vital for making financial plans. If you’re lucky, you might get 10 to 20 years’ worth of data, but that’s really not enough! However, financial advisors who have been in the industry for a long time have heaps of data that they use to develop the best strategies for their clientele. At Pillar Wealth Management, we have access to economic data that dates back almost a century, which we use to offer objective and impartial recommendations to our clients.

2. Tailored Financial Plans

If you look up the internet to get financial advice, you will only come across generic advice that may or may not apply to your needs. Even if you have the same amount of wealth as another person, your financial needs will be significantly different, requiring a completely different approach.

On the other hand, financial advisors won’t just give you run of the mill financial advice. Instead, they will hold meetings with you to learn about your goals and then create a plan around that. At Pillar Wealth Management, we are proud to give unique and tailored financial advice to our clients. In fact, this year we took merely 17 new clients so we could offer tailored financial plans to each one.

How to Hire A Financial Advisor?

• Step #1 – Ask for Recommendations
• Step #2 – Check their Background
• Step #3 – Ask Questions

If by now, you have made up your mind to hire a financial advisor, the big question on your mind would be how do I choose a financial advisor? Here are some things you can do to ensure that you pick the best financial advisor. We have also written a complete guide for high net worth and ultra-high net worth individuals on how to pick the best financial advisor.

Step #1 – Ask for Recommendations

The first thing you need to do is ask the wealthy people in your circle if they’ve used a financial advisor and whether they’re satisfied with their services. 

Step #2 – Check their Background

Before hiring a financial advisor, you need to carry out a full background check. You can do this by going through databases such as the CFP website. Alternatively, you can search your shortlisted advisors on professional websites such as LinkedIn and go through their experience and qualifications.

Step #3 – Ask Questions

After you’ve done your research, schedule a meeting with a few financial advisors, and pick the one who gives you the best answers to the following questions.

• How many years of experience do you possess?
• What kind of financial services are you providing?
• Is your business model based on commissions or fees?

In our ultimate guide here, we have mentioned numerous other questions that you can put forth to a financial advisor.

Parting Words

Hiring our financial advisors is a sure way to grow your wealth and leave behind a long-lasting legacy. With our customized fiduciary services and vast experience, you can attain your financial objectives. Schedule a free meeting with our team and learn how you can take advantage of our financial advisory services!

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