Best Fee-Only Financial Advisors Near Me
There’s no question that high net worth individuals and families are in critical need of financial advisors for various financial planning, financial advisory, investment management, and other wealth management services. However, choosing just any financial advisor is not enough. You need the best advisor for yourself. The problem is there are several ways to classify different financial advisors, and it can be hard to figure out the right one. High net worth individuals might find themselves wondering, should I go for the best fee-only financial advisors near me or choose the commission-based discount broker instead? This is an important question, and you can find the detailed answer in our extensive guide on choosing the right financial advisors for high net worth investors worth $10 million or more.
You can also save your time and ask our highly skilled financial advisors over at Pillar Wealth Management. With more than six decades of total experience, we are an independent wealth management firm offering exclusive wealth management services to affluent clients with $5 million to $500 million in liquid assets. We offer 100% fee-based and fiduciary financial services and are always striving to help our clients attain financial prosperity and serenity. Set up a free conversation with Pillar Wealth Management today to discuss all your wealth management-related questions.
For a brief idea about the type of financial advisors you need to choose, you can also give this blog a read. We’ll be discussing the different types of financial advisors, whether fee-only financial advisors are worth it, and how much you have to pay the best fee-only financial advisors near me.
Types of Best Fee-Only Financial Advisors Near Me
When it comes to financial advisors, there are several types of them out there. For instance, there are those who follow a fiduciary standard of care while some follow the suitability standard. Similarly, there are numerous different financial advisors based on the services they offer.
There are investment managers, brokers, financial planners, wealth managers, and many more. However, there’s another category of types of financial advisors as well, and this depends on how they are compensated. The three main kinds are fee-only financial advisors, commission-only advisors, and fee-based advisors.
Many high net worth investors tend to ignore the distinction between these advisors and assume that they will all be the same. However, these advisors don’t just differ in how they charge their fees but also in how they offer their services, which can have a direct impact on your financial health and well-being. Therefore, it’s important to choose the right kind of financial advisor.
Fee-Only Financial Advisors
Simply judging from the name, fee-only financial advisors seem quite straightforward. They provide you with various financial services according to your wealth management goals and charge a fee based on that. The more they help you grow your assets and wealth, the more they can earn through their fees.
So, it’s a win-win situation, and you should start looking for the best fee-only financial advisors near me, right? Well, that’s not entirely right. While fee-only financial advisors are the best out of the bunch for high net worth individuals, there are other factors to be considered as well. For instance, what kind of fee does the financial advisor charge? They could be one of the three mentioned below.
This is quite a straightforward way of charging fees. The advisors charge you for their services according to the number of hours taken and based on an hourly rate. This type of fee is good when you are consulting a financial advisor for only a short period and don’t plan to work with them after.
However, sometimes, this type of fee can turn out to be costly as well. Your financial problem may take longer than you expected, or you might have to get your advisor up to date every time, wasting more hours. Therefore, you will have to consider your needs carefully and then choose such an advisor.
One-Time Flat Fees
As far as fee-only financial advisors go, those that charge a one-time flat fee are the least favorable for high and ultra-high-net-worth individuals. A one-time flat fee means that you only pay them once and consequently can only avail their services for one session.
In that one session, you can consult them regarding all your wealth management problems or financial concerns. You can discuss your goals and targets and work out a plan on how to achieve them. However, that’s it. Your relationship or consultation with that advisor ends there. After that, following or executing their suggested course of action will be all on you.
As you can expect, this sort of service is okay for when you have a very specific financial problem, and you are well-experienced and skilled at handling your own financial matters. However, this is not the case with most high net worth individuals.
Such affluent individuals and families usually don’t have the time or skills to efficiently manage their assets. Moreover, they have complex financial needs and problems that need to be addressed and monitored constantly. Therefore, a one-time flat fee is usually not a suitable form of fees for wealthy people.
For high net worth individuals, a financial advisor who charges a percentage-based fee is the best advisor for them. Unlike hourly fees and one-time flat fees, percentage-based fees mean that the advisor will be working with you on a long-term basis, and they might charge a percentage of the total assets under management every period.
Such advisors will be heavily involved and invested in your financial well-being. Consequently, they will constantly be monitoring your progress and will advise you when you need to change your strategy according to changing market conditions.
Since they will be working with you for a long time, they will be well-aware of your financial situation and goals, and so, they will always advise you accordingly. Read our critical guide on choosing the best advisors to learn how to find the best fee-only financial advisor for yourself.
Fee-Based Financial Advisors
A fee-based financial advisor is a combination of a fee-only and commission-only financial advisor. Depending on the type of advisory services you require, they will charge you a basic fee for providing those services, much like a fee-only advisor. However, sometimes, for certain additional services, they can charge you a commission as well.
The problem is that they might not always disclose which those services are or how they plan to charge you for them. So, the best bet for wealthy clients is to stick with the best fee-only financial advisor near me. You can learn how to find one by reading our expert guide for investors worth $10 million or more.
Commission-Only Financial Advisors
After fee-only financial advisors, commission-only financial advisors are the most common. As their name suggests, they only work on commission. As your advisor, they might suggest you certain products and securities, and whenever they manage to sell or buy those products, they earn a commission from the sale.
This type of fee can create a conflict of interest as they might prioritize their own interests above your own to get higher commissions for themselves.
Are Our Fee-Only Financial Advisors Worth It?
So, are the best fee-only financial advisors near me worth it? After all, as mentioned above, you will probably be working with them for the rest of your life, so you want to be 100% sure that you’ve got the right advisor for your needs and that they are entirely worth it.
For that reason, fee-only financial advisors, such as those at Pillar Wealth Management, are worth it for high net worth individuals with $5 million to $500 million in liquid assets. Here are a few reasons why. You can also start chatting with the advisors at Pillar Wealth Management to learn what makes financial advisors worth it.
While this does not always hold true for financial advisors, most fee-only financial advisors are registered investment advisors (RIAs). This means they are held to a stricter standard of care. They have to provide fiduciary services, which entails providing the best services to their clients, disclosing all relevant information, and helping them meet all their goals.
No Conflict of Interest
Conflicts of interest are an important problem when it comes to financial advisors. When you have $5 million to $500 million in liquid assets, you want to be able to trust your financial advisor completely and rest assured that your wealth will be managed according to your best interests.
Conflicts of interest such as those with commission-based advisors can come in the way of that.Learn why this is important from our comprehensive guide on portfolio performance.
Since fee-only financial advisors ‘ earnings are directly tied to your own earnings, they provide much more skilled and expert services. They have much more experience, which allows them to develop the right asset allocation, portfolio diversification, retirement, estate, tax optimization strategies. Ultimately, their expertise can help you achieve your financial goals more efficiently and quickly.
Holistic Wealth Management
Fee-only financial advisors can also provide more holistic wealth management. They don’t just focus on growing your assets through aggressive investment strategies. Instead, they also focus on protecting and preserving your wealth through insurance planning and tax management. Learn other ways to protect your wealth from our hardcover book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million.
What Percentage Do Most Fee-Only Financial Advisors Charge?
The most important thing you may be wondering is, how much do such advisors really charge? However, this is not the right question. A fee-only financial advisor will usually charge you a percentage of the total assets under management. This is typically around 1 to 2%.
But, if you’re thinking this is the only cost you will have to bear, you’re not quite right. This won’t answer your question of how much should I expect to pay a fee-only financial advisor? Your advisor’s fee is only one of the many expenses you will have to bear. There will be transaction charges, internal expenses, interest costs, and even tax expenses, depending on the style of money management you follow.
For instance, if your advisor focuses more on active money management, you might have additional expenses. Check out our guide on portfolio growth strategies to find out why a balance between active and passive management is so crucial.
It’s not enough for you to search for financial advisors near me. Instead, you should be searching for the best fee-only financial advisors near me. This way, affluent individuals can make sure that they get the right financial advisor and ensure that they meet all their financial goals and attain financial serenity.
Furthermore, Pillar Wealth Management can help you with that. We have some of the best fee-only and 100% fiduciary financial advisors to help you with all your financial needs. Our advisors and wealth managers hold more than sixty years of combined experience in offering a variety of wealth management services to clients with $5 million to $500 million in liquid assets. Our services include investment and portfolio management, retirement planning, risk management, estate planning, accounting, tax planning, and much more. Schedule a chat with Pillar Wealth Management today to get in touch with a fee-only fiduciary financial advisor.
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