Should I Use A Financial Advisor or Do It Myself?–PillarWM
High-earners and wealthy investors take every precaution when it comes to their wealth, whether it entails deciding which private bank to trust with their account or whom to take financial or investment advice from. Chances are, you earned your success, and that makes you feel capable of handling something as personal as your finances. This may lead you to be on the fence when thinking,“Should I use a financial advisor or do it myself?” This is precisely why we published a comprehensive book, specifically written for those looking to invest between $5 million and $500 million,which you can request for free, if you qualify, here.
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.
We believe that a professional can offer you insights that you, as an investor, do not possess. The only question left is, who do you hire to be in charge of your finances? If you have more than 10 million dollars in liquid assets, an average advisor won’t do. You’ll need the best financial advisor to help you achieve the results you want. Our Ultimate Guide can help you find that advisor.
It goes without saying that high net worth and ultra-high net worth individuals need more expertise and experience than your average investor. Fortunately, there are private wealth management firms that cater specifically to wealthy families and rich investors. Pillar Wealth Management takes on clients who have a liquid net worth between 5 million to 500 million dollars. Our wealth management advisory services are designed to help you create a personalized financial plan while overlooking other aspects such as your legacy planning, retirement planning, risk management, investment management, and more. If you would like our assistance with any of these services, you can book a meeting with our team.
If you’re leaning towards working with a financial advisor, you might have questions such as, “How do you get a financial advisor?” “Which financial advisor do I need?” or “How do I choose an independent financial advisor?” We will answer your concerns and more in the following sections.
Table of Contents
Understanding the Different Types of Financial Advisor
When you wonder, “Should I use a financial advisor or do it myself?” it is better to do a little research into the services a financial advisor can offer you. You’ll come to realize that there is more than one type of financial advisor out there, each with different areas of specialization.
So, before you ask, “How do you get a financial advisor?” you need to identify which one you need. Here are a few advisors that affluent individuals are most concerned with.
Suppose you’re managing most of your finances on your own, but you have a particular finance problem that you need help with. You might want professional advice on that specific problem, but you might not want to hire a financial advisor. In such a case, you can choose to work with a financial consultant.
Chartered financial consultants orChFC’sare certified fiduciary professionals who provide unbiased advice and custom solutions to their clients. Their vast knowledge base allows them to have a grasp on complex financial matters. Depending on your needs, they can help you on a particular financial aspect for a short period or work with you on more long-term matters.
Investment Advisors or Managers
An investment portfolio is an essential part of any wealthy investor’s finances. It summarizes your financial history, short-term and long-term goals, and your appetite for risk. Investment advisors analyze these factors to present you with the best course of action to enhance your portfolio’s performance.
Registered Investment Advisors (RIA) are certified, trained, and ethically bound professionals who help you manage your assets and consult with you on your investment options. They have the knowledge and access to tools that help you optimize your portfolio. Our advisors use multiple strategies and shifts to boost your capital growth. You can read more about them in our guide, 5 Critical Shifts for Maximizing Portfolio Growth Strategies – For Families Worth $5 Million To $500 Million.
If you think your financial advisor should have a more holistic approach in helping you map out your financial future, you can consider hiring a financial planner. Certified Financial Planners (CFP) is your safest option since they are fiduciaries and have gained their certification after completing rigorous training and meeting the requirements of the CFP board.
They can specialize in a number of services, such as financial planning, investment advisory, tax management, debt consolidation, estate planning,risk management, and retirement planning. From your first consultation, they will help you identify and analyze your financial objectives and create a plan that helps you achieve them. Moreover, their high ethical standard ensures that they prioritize your best interests.
Brokers are similar to investment advisors in the sense that they give you investment advice on which securities to buy or sell. They take an active role in carrying out these transactions on your behalf. They can conduct extensive research on the market and recommend you to invest in mutual funds, variable annuities, or more, depending on their license.
One of the two key differences is that investment advisors don’t always carry out trading transactions on your behalf, i.e., they mainly give you advice. Brokers almost always take part in these transactions directly. Secondly, brokers are not fiduciaries. They follow a suitability standard of care, which means they can advise investing in assets that earn them a higher commission. This can create a conflict of interest.
Wealth managers give financial advice exclusively to wealthy clients. Their services cover an array of financial aspects, from financial planning, estate planning, tax management, and estate planning, to retirement planning and investment management. Most high net worth and ultra-high net worth investors prefer working with wealth managers as they are reliable, fiduciary experts who know how to manage large fortunes.
So, if your main concern regarding your financial advisor is whether or not they can handle your complex financial profile, you will not face that issue with a wealth manager. If you’d like to arrange a meeting with our wealth managers, feel free to schedule it through our website.
Selecting your financial advisor is a decision that will have a lasting impact on your financial life. So, it is better to do as much research into your advisor as possible. If you would like some guidelines, you can refer to our guide, The Ultimate Guide to Choosing the Best Financial Advisor for Families worth $5 Million to $500 Million. It might help you answer the question,“Should I use a financial advisor or do it myself?”
What Can Financial Advisors Offer Me?
If you wonder, “Should I use a financial advisor or do it myself?” first, you should learn more about how exactly a financial advisor can help you with your wealth management.
As a high net worth or ultra-high net worth individual, you likely have a high standard of living. It is important to remember that no matter how much wealth you have, it can run out. To maintain your luxurious lifestyle and sustain your assets through future generations, you need a well-thought-out plan. Professional advisors are well-equipped to foresee financial hurdles or liabilities can wealthy investors can face.
Financial advisors such as private wealth managers can help you manage your assets and invest capital to generate returns while taking a calculated risk. Personalized investment strategies help in the wealth enhancement of high-value assets. If you would like to read more about strategies that enhance your wealth, you can read our guide, Improving Portfolio Performance: The Shifts Multi-Millionaires Must Make to Achieve Financial Security and Serenity.
A good financial advisor can construct a financial forecast that aligns with your objectives and values. They can diversify your asset allocation to reduce cost and risk and monitor and report the progress of your investments. In addition to this, they can help you develop effective legacy plans, wealth transfer plans, or retirement plans.
Should I Use A Financial Advisor or Do It Myself?
If you’re still asking yourself, “Is it worth hiring a financial advisor?” you should consider just how complex your financial situation is. The more wealth you have, the higher taxes you incur. It also requires you to have a more comprehensive investment portfolio and risk management strategies to protect you from threats.We talk about some of these threats in our book,The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 Million To $500 Million.
As a high-earner, you don’t have a lot of time on your hands, or you might lack the knowledge and expertise that is crucial for handling your wealth. In either case, a financial advisor can make your life easier. The fee they charge will only be a fraction of the profits you generate if you work with the right advisor.
Working with an advisor gives you the reassurance that an expert is monitoring your investments and assets, optimizing them for the best possible outcome. You can rest easy knowing that your financial advisor will protect you from making the wrong financial decisions. Most importantly, this opens up time for you to pursue other income-generating ventures or simply enjoy your extravagant lifestyle.
Our wealth managers are fiduciaries with over six decades of experience in handling the large fortunes of wealthy investors. We develop tailor-made financial plans for our clients, providing them with expert, unbiased advice on how to grow their wealth. You can schedule a meeting with us to get started.
How To Choose Your Financial Advisor
Once you’ve decided that you want to hire a financial advisor, your next concern might be, “How do I choose an independent financial advisor?
Your requirements will determine which advisor you hire. If you want to address a particular aspect of your finances, you can search for an advisor who specializes in that field. If you want an overall analysis of your wealth management and investment management, you can reach out to a wealth manager.
We understand that trusting your fortune in the hands of a stranger might not sit well with you. However, there are reliable financial advisors who can ensure your financial security, i.e., fiduciary financial advisors. They are legally bound to act in your best interests and are liable to legal ramifications if found to be negligent in their service.
Your priorities while choosing an advisor should be that they are certified, reliable, experienced, and knowledgeable. Since many firms are beginning to conduct their services online, you can look for the best of the best without location restricting you. With a liquid net worth above 10 million dollars, you shouldn’t settle for just any advisor. Our Ultimate Guide can help you identify the average financial advisor from the best.
Why Wealth Managers Are Your Best Option
Hopefully, you have some clarity on,“Should I use a financial advisor or do it myself?” In the end, it comes down to the fact that managing a wealth worth millions is a time-consuming, hands-on job. Now, if you’re wondering, “Is it worth hiring a financial advisor or a wealth manager?” we suggest that you analyze your unique needs. At Pillar Wealth Management, our wealth managers are experts in helping investors with 5 million to 500 million dollars in investable assets manage their finances. You can schedule a consultation with us to learn how we can help you with your wealth enhancement and financial security.
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