Financial Planning Companies for Wealthy Investors: A Guide
In our guide for investors with more than $10 million, we recommend the services of a wealth manager to most affluent clients. One of the major services provided by wealth managers is that of financial planning. Financial planning companies provide an essential service to investors who want to make the most of their finances. They help you protect and increase your total wealth in a sustainable way.
STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning
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.
Effective financial planning has the power to turn your life around. By making the right decisions and using the right tools (without any emotions), you should be able to start seeing the difference in how much more secure your investments are and how well they perform. For people with $5 million to $500 million, professional wealth managers from Pillar Wealth Management can provide financial management and financial planning services that help them secure their present and future. You could also live the same stress-free life as countless other affluent investors. All you have to do is schedule a chat with us.
For people who’re looking to learn about the services provided by financial planning companies, this guide has all the information you need.
The 5 Biggest Financial Planning Companies in the U.S.
BlackRock, founded in 1988 and based in New York City, is the world’s largest investment company. BlackRock has offices worldwide with clients in 100 countries, offering a wide variety of funds and asset classes. The company’s unified Aladdin platform offers risk analysis, extensive portfolio management, and trading and operations tools.
The company’s risk management division is BlackRock Solutions, which offers services to institutional investors. Since 2017, the company has expanded its presence in sustainable investing due to having been criticized for worsening climate change. Then, in 2020, the company announced that it would sell $500 million worth of coal-related assets.
The Vanguard Group, based in Malvern, Pennsylvania, had its beginnings with John Bogle in 1951. Bogle established the First Index Investment Trust in 1976, which is now called the Vanguard 500 Index Fund and one of the earliest passive investing index funds.
Vanguard is the world’s largest provider of exchange-traded funds (ETFs), after BlackRock’s iShares, and the largest provider of mutual funds. Vanguard has some of the best low-cost ETFs on the market.
While Vanguard would like its clients to achieve net-zero emissions by 2050, the firm is still the world’s largest investor in the coal industry.
Vanguard launched its digital advisor in 2020. The company has no outside owners and is owned by its fund shareholders.
3. Fidelity Investments
Founded in 1946, Fidelity Investments is based in Boston, MA. Fidelity operates a brokerage firm and provides an extensive range of financial advisory services. In the 1960s, Fidelity was the first major US finance firm to sell mutual funds to the general public. Its largest mutual fund, Fidelity Contrafund, has over $100 billion in assets, making it the largest non-indexed fund in the US.
In 2018, Fidelity introduced a line of zero-expense-ratio mutual funds; this line of funds covers more than two-thirds of US index assets.
4. State Street Global Advisors
State Street Global Advisors, founded in 1978, is the fifth-largest asset manager in the world. It is the investment arm of State Street Corporation, with headquarters in Boston, MA. The firm has over 30 offices globally with 500 investment professionals. In 1993, State Street Global launched the first-ever ETF, which is still in use.
State Street Global clients are employers, consultants, and endowments, seeking to maximize the returns on their investments while minimizing risks.
State Street Global owns and controls 142 ETFs and 26 mutual funds.
5. J.P. Morgan Asset Management
JPMorgan Chase is the largest bank in the US; it is also the world’s largest bank by market capitalization. However, in 2005, due to its role in the Enron scandal, the firm paid over $2 billion in fines and legal settlements.
JPMorgan specializes in wealth management, for which an investor needs $10 million in investable assets to open a private banking account. Like many of the big investment firms, it offers self-directed investing, beneficial for beginners.
What Are Financial Planning Companies?
Financial planning companies for high net worth familieshave one straightforward goal: to help their clients achieve their life goals.
Financial planners are a type of financial advisor that focuses on the strategy side of a complete wealth management process. Financial planners can be found in large banks, financial institutions, or standalone companies.
As a client, you will work with your financial planner to evaluate your current and future financial goals, risk ‘appetite’, and life events you need to plan for. By establishing your goals, financial planning companies are able to create a way forward to guide you on what investments to make, what costs to avoid, and other steps you need to take to secure your future.
However, financial planners typically won’t conduct the execution of any of the plans they create for you. They’re typically only going to create a plan and leave it to you to execute it. You’ll probably have to visit another type of financial advisor or broker to buy or sell your investments.
Some financial advisors provide a combination of financial planning and financial management services. These entities are known as wealth managers and are typically the recommended financial planning companies for high net worth families. They conveniently help affluent investors by providing a complete set of financial services. To get an idea of why we recommend wealth managers to wealthy families, read our ultimate guide here.
Types of Financial Planning Companies
You can find many different financial planning companies in the market. This section will explore some of the most common ones you might find.
Transactional Financial Planning Companies
This is a very common option availed by investors of all kinds. They help their clients expertly move their money between mutual funds and savings accounts. Their advice is focused on helping you invest in various stocks,bonds, money markets, and other such securities. They can also help you invest in specialized investments, such as commodities.
When you opt for services by such companies, there isn’t a lot of interaction between you and the firm. They’ll regularly share progress reports to inform you about your portfolio’s conditions. The problem commonly faced by affluent investors working with transactional financial planning companies is that they often lack a holistic perspective on how their suggestions affect the investor’s life overall.
Certified Financial Planners (CFPs)
Certified financial planners are the optimal option for individuals only looking for short-term financial planning services. These individuals are certified by various governing financial bodies for their expertise, experience and knowledge. They go through a rigorous training process and are required to have a certain level of experience to qualify for their license.
The caveat with certified financial planners is that investors only go to them for short-term financial solutions. A CFP won’t provide a continuous service. Rather, they will provide all their advice to you in a few sessions and leave you to do the execution. Investors looking for continuous wealth management may not find these financial planning companies’ services suitable. Individuals with over $10 million can use this guide to decipher whether CFPs are the right advisors.
This is a low-cost option for investors looking to find the cheapest financial planning or investment tool available. A computer algorithm with AI capabilities is utilized by these programs to control your investment portfolio.
Robo-advisors are often more effective for young investors who don’t have a lot to invest. It can help them manage their finances by helping them pay off credit card bills, manage student debt, and plan for their future.
A computer program won’t be able to provide the kind of personalization required to cater to the needs of high net-worth and ultra-high net-worth investors.
Wealth Management Firms
Wealth managers are the recommended financial planners for high net-worth and ultra-high net-worth investors. They provide a complete package of financial services that include financial planning, financial management, investment management, asset management, and so on.
They specialize in working with affluent families and hence, understand their needs a lot better than other advisors. Plus, you can’t discount the convenience of a holistic service. Wealth managers can be considered a one-stop-shop that fulfills all the financial management needs of an investor. Wealth managers partner with the top professionals in different fields to make sure that ancillary services, like tax management, are all provided with a high degree of expertise.
When you choose a fiduciary wealth management firm like Pillar Wealth Management, you have the luxury to live a stress-free life without having to worry about your finances. Choose a life of financial serenity and schedule your first discussion with Pillar Wealth Management today.
What do Financial Planning Companies Provide to Their Clients?
Now that we understand the differences between financial planners and other types of financial advisors, we need to look at the various financial planning companies’ services to truly understand the value they offer to wealthy investors.
Before we get started, we would recommend ultra-high net worth personnel with over $25 million to read our hardcover book, The Art Of Protecting Ultra-High Net Worth Portfolios And Estates, Strategies For Families worth $25 Million to $500 Million.It provides a lot of valuable insight for ultra-high net worth families regarding the services they should demand from their financial planners or wealth managers.
Other than that, here are some financial planning companies’ services you can expect:
– Risk Management
– Retirement Planning
– Cash Flow Planning
– Wealth Transfer
– Portfolio Management
– Tax Planning
Let’s explore them in more detail.
When you invest your money with the hopes of making a return, you will also have to deal with the risks that come along with it. Risks are not avoidable – that is an undisputed fact. No investment can provide risk-free returns.
However, that does not mean that you can’t reduce risks or minimize them to a point where they don’t pose as big a threat to your wealth. Of course, risk can differ between investments as well. For example, a US treasury bill is known to carry the lowest level of risk, while real estate can be deemed a high-risk investment.
The Financial Industry Regulatory Authority (FINRA) formally recognizes six distinct types of risks. These include:
– Business risk
– Market risk
– Currency risk
– Political risk
– Concentration risk
– Liquidity risk
It’s clear that dealing with all of these threats to your investments is a very difficult job to do on your own. This is where the best financial planning companies become important. They help you create financial plans by analyzing your goals and balancing your risks with your returns.
Contrary to popular belief, risk management isn’t about building diversification and then leaving your portfolio as it is. Effective risk management involves creating an asset allocation strategy and monitoring it constantly. At Pillar Wealth Management, we use the methods mentioned in our portfolio performance guide to consistently make sure that your risks are minimized and that you can experience financial serenity.
Retirement is a crucial stage of our lives that brings about many mixed emotions. On the one hand, you’re finally free to use the wealth you’ve accumulated to fully enjoy life and follow your pursuits. However, there’s also a constant fear that you no longer have the same income sources and will now have to rely on passive income from your investments to continue living your lifestyle. As we said earlier, investing your money means exposing it to the risk of loss.
Retirement planning is all about managing your wealth in a way that allows you to do three things at the same time.
– Protect your wealth.
– Grow your wealth.
– Earn enough income to achieve financial security.
Doing all this can be intimidating, especially if you want to start enjoying your life. Financial planning companies can help you find the right balance of investments and wealth allocation that allows you to achieve all three of the aforementioned goals to enjoy your retirement in peace.
Working with Pillar Wealth Management is all about achieving your life goals. When it comes to retirement planning, our experts have extensive experience in helping wealthy families find their feet after retirement. Join other happy investors by booking a free chat with us today.
Cash Flow Planning
Managing cash is a big responsibility, especially when dealing with high and ultra-high net-worth investors. Knowing the ‘state of play’ of all your finances grants you the power to eliminate any unnecessary costs and make prudent savings.
As part of our comprehensive wealth management package, we offer extensive cash flow planning services that allow you to plan ahead and live a comfortable life. By evaluating your assets, sources of income, liabilities, and expenses, our managers can create cash flow plans that facilitate your lifestyle. Our only goal is to give you financial serenity.
Wealth transfer can often be part of a larger estate planning service provided by financial planning companies. However, wealth transfer doesn’t necessarily have to be a part of inheritance after you pass away. Many affluent individuals choose to transfer some of their wealth to their beneficiaries once they reach a certain age. Though this can seem like a very simple thing, there are a few issues you might face.
For example, there are various inheritance taxes and legal issues that you have to navigate to make sure that your wealth can be transferred smoothly without incurring any extra taxes. Not only will we create a plan for your current wealth transfer, but we will also help you get everything ready for your wealth to be distributed as you like after you pass away. This is a very important service that can make your family’s life much easier.
Portfolio management is the core of your whole financial planning service. The best financial planning companies will use a mixture of experience, expertise, data, and sophisticated tools to carefully manage your investments. The end goal is still the same: to help you achieve your life goals.
Pillar Wealth Management has adopted the 5 critical shifts for better portfolio performance mentioned in our guide in an effort to make sure that we can manage your portfolio optimally. We realize that there is no ‘one size fits all’ solution when it comes to portfolio management. We spend a significant amount of time and effort on making sure that we customize our services to your individual needs and situation.
Many high and ultra-high net-worth investors have spent sleepless nights fretting over the thousands or hundreds of thousands they’ve lost to taxes. When you have over $1 million to invest, you’re automatically taxed in the highest brackets in every instance.
Very often, investors lose even more money when their advisors are unable to create an effective plan to control their taxes. Though you fall in the highest tax bracket, there are lots of taxes you can avoid legally by employing clever money management.
Financial planning companies often have the expertise to help affluent investors use the timing of their incomes, the allocation of their money, and tax loss cultivation techniques to minimize taxes.
Hiring financial planning companiescan be very useful for affluent investors who:
– Have between $5 million to $500 million
– Need help managing and growing their wealth
– Are going through a life-defining event (retirement, estate sale, etc.)
– Are currently unsatisfied with their financial advisor
If any of the above statements apply to you, Pillar Wealth Management could be the right choice to make. We’ve helped countless individuals get back on their feet and enjoy financial serenity. To know more, book your free discussion with us today.
Frequently Asked Questions
A financial planning company creates financial plans for its clients, including strategies for investing, retirement planning, and consulting in various areas such as taxation and estates.
The best financial company for you is one that offers a broad array of investment opportunities and can help you achieve the wealth growth and retirement security you’re looking for.
Financial planning services include retirement planning and consulting; investment and asset selection, management, and monitoring; tax planning; and estate planning,
According to Investment News, the top fiduciary advisors are Wells Fargo, Edward Jones, Raymond James, Fidelity, Ameriprise, UBS, Schwab, Morgan Stanley, Advisor Group, and RBC.
Any SEC-registered advisor is a fiduciary, where the advisor is only required to recommend a suitable investment for the client, whereas some advisors will only recommend what is in the client’s best interest.
The best advisor is a fiduciary and fee-only, where their only compensation is derived from the fees paid by their clients. Some fiduciaries do not provide all financial services.
Many fiduciary advisors provide services beyond brokerage, including comprehensive financial planning and consulting services; selection, management, and monitoring of investments; as well as trading.
A fiduciary financial planner should have a certification that requires them to abide by fiduciary duty; these certifications are listed on the FINRA website.
After years of scandal at Credit Suisse, it collapsed in March 2023 and was subsequently purchased by UBS for about $3.3 billion.
In the US in 2023, the FDIC reports 39 banks on its “Problem Bank” list (compared to 651 in 2012), reflecting the increasing effectiveness of the regulatory framework.
To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.
We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.
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