How to Hire a Financial Advisor for Ultra-High-Net-Worth Individuals

When evaluating potential financial advisors for high-net-worth families, it’s important to go beyond basic questions about background, education, and credentials. Look for an advisor who understands the complexities of your financial situation and has experience working with individuals who have a similar net worth.

Here are several important considerations and questions to ask when selecting a financial advisor for ultra-high-net-worth needs:

1. Experience

Ask about the advisor’s background managing portfolios for clients with a similar net worth. Request examples that demonstrate their ability to handle complex financial profiles and deliver meaningful outcomes.

2. Specialization

Clarify whether the advisor focuses on areas most relevant to your goals—such as estate planning, tax strategies, philanthropic planning, or investment oversight. Specialized knowledge helps in designing more effective, personalized solutions.

3. Network and Resources

An advisor serving high-net-worth individuals should have access to a strong professional network, including tax specialists, estate attorneys, and private banking contacts. Ask how they coordinate with this network to address multifaceted financial concerns. Always remember that all investments carry risk.

4. Fee Structure

Understand how the advisor is compensated—whether through a percentage of assets under management, a flat fee, or a hybrid model. Be sure you’re clear on what services are included and whether any extra costs may arise.

5. Confidentiality

Privacy is often a top priority for ultra-high-net-worth individuals. Ask about the advisor’s approach to handling confidential data and what systems are in place to protect your personal and financial information.

6. Performance Measurement

Discuss how the advisor tracks investment performance and benchmarks success. Review their investment philosophy to ensure it matches your own objectives and assess their long-term performance history.

7. Communication and Availability

Clarify how often the advisor will update you and in what format—whether through in-person meetings, phone calls, or emails. Understanding their responsiveness and availability ensures they’ll be accessible when needed.

8. Regulatory Compliance

Ensure the advisor is properly licensed and registered with the appropriate regulatory bodies.

Ask whether there have been any disciplinary actions or complaints filed against them, as this could indicate issues with transparency or ethics.

9. Securities and Exchange Commission

For ultra-high-net-worth individuals, verifying an advisor’s standing with the U.S. Securities and Exchange Commission (SEC) is essential. Advisors managing large portfolios may be required to register with the SEC and adhere to strict fiduciary standards. You can confirm this through the Investment Adviser Public Disclosure (IAPD) or FINRA BrokerCheck tools.
More importantly, ask whether the advisor operates under a fiduciary duty. A fiduciary is legally obligated to act in your best interest and disclose any conflicts of interest—unlike those who follow the less stringent “suitability” standard. Avoid advisors who earn commissions from recommending specific products or who manage investments they’re also advising you to buy, as this may present a conflict.
Choosing a fee-only financial advisor who aligns with your interests can make all the difference in building and protecting long-term wealth.

Some large financial institutions are known to profit from both ends of a transaction—buying and selling—regardless of the client’s outcome. This model, common among broker-dealers, can present a conflict of interest. For example, broker-dealers often profit from the spread between the purchase and sale prices, especially in transactions involving municipal bonds. That compensation structure may not always align with a client’s best financial interests.
It’s important to note that broker-dealers are compensated through commissions or spreads—they do not provide their services for free.
In contrast, fee-only financial advisors who operate under a fiduciary standard may recommend products such as insurance when it supports your financial plan, but they do not receive commissions for those recommendations. Their compensation structure helps reduce bias and ensures recommendations are based on your needs—not sales incentives. This can result in cost savings when selecting policies, as advisors are more likely to identify lower-cost solutions.
The primary responsibility of a fiduciary advisor is to serve your best interests—not promote specific products or serve the goals of a provider’s sales team.
Still, some advisors who call themselves fiduciaries may earn commissions through certain channels. It’s essential to ask: “Does the advisor receive any compensation outside their fee?” Transparency is key. While some conflicts of interest may exist, being aware of them allows you to make informed decisions.
Understanding the advisor’s fee structure is equally important. Fees can vary widely—from as low as 0.25% for portfolios exceeding $500 million, to as high as 2% plus a percentage of performance when working with certain investment managers. Always evaluate what services are included in those fees and how they align with your goals.

Fees, fees, fees—it’s always about the fees.

One of our new high-net-worth clients brought in their investment statements for review. We noticed several million dollars were allocated to hedge funds, which prompted us to ask a few clarifying questions: When were these investments made? Who was the advisor involved? What were the performance results? And most importantly—was the client satisfied with the outcomes?

The responses revealed a concerning scenario. The advisor overseeing the portfolio was also managing the hedge funds in which the client was invested.

This dual role raised a significant concern. An advisor with fiduciary responsibilities is expected to provide objective, client-first advice. But in this case, the advisor was recommending investments in funds they personally managed—introducing a clear conflict of interest.

Here’s what we uncovered:

• The advisor charged a 1% advisory fee for managing the overall investment portfolio
• On top of that, they earned a 2% management fee as the hedge fund manager
• Additionally, they received 20% of the hedge fund’s profits
  

This layered fee structure meant the advisor was earning multiple forms of compensation from the same investment—without clearly disclosing these conflicts or how they might impact the client’s total returns.

Situations like this highlight why it’s important to evaluate both the fee structure and potential conflicts when selecting a financial advisor—especially when managing a high or ultra-high-net-worth portfolio.

A High-Net-Worth Financial Advisor Provides Added Value

Financial stability offers many advantages—particularly for individuals with significant liquid assets. For those seeking to preserve and grow their wealth, working with a financial advisor experienced in high-net-worth financial planning can support long-term financial health and help align investments with broader goals.

Services Provided

Individuals with $500,000 or more in liquid assets may benefit from a range of financial planning services tailored to their needs. These may include customized investment strategies, retirement financial planning, estate planning, and portfolio diversification aligned with their specific objectives.

A financial advisor may assist in building a diversified portfolio that includes equities, mutual funds, and other securities. For those interested in expanding their holdings, some advisors also provide planning insights around alternative investment vehicles, such as real estate investment trusts (REITs), helping balance potential growth with risk exposure.

In more complex areas—such as tax planning, succession planning, or wealth preservation—financial advisors often coordinate with additional professionals (e.g., estate attorneys or tax specialists) to create a comprehensive financial strategy. Whether you’re preparing for retirement, organizing your estate, or planning to transfer assets, an advisor familiar with high-net-worth retirement strategies can support your efforts with research-based planning and informed options.

Tax Planning

Individuals with significant investable assets often face complex tax obligations. A financial advisor familiar with high-net-worth strategies may assist with planning approaches aimed at reducing overall tax exposure. These can include tactics such as tax loss harvesting, strategic use of real estate investment planning, and charitable giving frameworks.

In some cases, advisors may also help coordinate tax-efficient stock option strategies or collaborate with tax professionals to align investment decisions with broader financial goals.

Estate Planning

Asset protection planning can play a role in safeguarding wealth. Financial advisors may help identify potential risks and collaborate with legal professionals to explore trust structures or insurance policies designed to support long-term financial stability. These conversations may be particularly relevant to individuals with exposure to legal liability or complex ownership structures.

An advisor may work with estate planning professionals to help ensure that individuals are considering both financial and emotional legacy factors. This may include structuring trusts, clarifying asset ownership, or developing strategies that align with long-term intentions.

Protection from Lawsuits

Asset protection planning can play a role in safeguarding wealth. Financial advisors may help identify potential risks and collaborate with legal professionals to explore trust structures or insurance policies designed to support long-term financial stability. These conversations may be particularly relevant to individuals with exposure to legal liability or complex ownership structures.

For Those Who Aren’t Wealthy Yet

High-income individuals who have not yet accumulated significant liquid assets may still benefit from working with a financial advisor. This includes support in creating a financial plan focused on debt management, budgeting, and saving strategies, as well as building an investment portfolio aligned with long-term growth.

Advisors can also assist early-career professionals in developing wealth-building strategies that prepare them for future financial planning milestones.

Advisory Firm

An advisory firm is a professional organization that offers strategic guidance and planning services to individuals and businesses. These firms often specialize in financial, operational, or organizational support, helping clients make informed decisions in complex or high-stakes environments.

In the context of financial planning, a wealth management firm operates as a type of advisory firm. It may work with clients to create customized strategies for managing investment portfolios, preserving assets, or planning for long-term financial goals. These firms typically employ advisors and analysts who bring experience in investment management, estate planning, and other financial services.

Advisory firms can also provide specialized services in areas such as mergers and acquisitions, capital structuring, or risk management. Their role is to evaluate financial data, understand market conditions, and deliver insights that help clients optimize their financial outcomes.

Beyond financial planning, some advisory firms may assist with broader strategic planning, operational efficiency, or regulatory compliance—offering tailored recommendations based on research, analysis, and industry standards.

By working with an advisory firm, clients may benefit from a coordinated approach to complex financial decisions and planning initiatives, particularly in areas that require multi-disciplinary expertise.

Finding a High-Net-Worth Financial Advisor

Finding a financial advisor who specializes in high-net-worth planning can take time—but the right fit is worth the effort. You might begin your search by reaching out to others in your network who have similar financial profiles. A referral from someone who has had a positive experience can offer a helpful starting point.

Online directories and financial platforms also provide search tools specifically designed to help individuals with significant assets connect with advisors who understand the needs of high-net-worth clients. When reviewing potential advisors, look for those with experience managing complex financial portfolios and planning for long-term goals such as estate planning, tax strategies, and asset preservation.

It’s important to ensure the advisor is held to a fiduciary standard—meaning they are obligated to act in your best interest. This is especially relevant for high-net-worth individuals, where financial decisions can have long-term implications.

You may also want to verify professional credentials, such as the Certified Financial Planner (CFP) designation, and ask for written confirmation of their fiduciary obligation.

Certified Financial Planner (CFP)

A Certified Financial Planner (CFP) is a credentialed financial professional who provides personalized planning services to individuals and families, particularly those managing complex or high-net-worth financial situations. CFPs undergo rigorous education, examination, and experience requirements and must uphold a fiduciary standard, meaning they are committed to placing their clients’ interests above their own.

These professionals are equipped to offer planning across key areas such as investment strategy, tax efficiency, estate planning, retirement preparation, and risk management. A CFP takes a comprehensive approach, evaluating each client’s financial position and long-term objectives to deliver tailored, practical strategies.

CFPs must also adhere to a strict code of ethics and ongoing continuing education, reinforcing their commitment to professionalism and competence. For individuals seeking guidance from someone trained to address high-level financial needs, working with a Certified Financial Planner can be a valuable part of a broader wealth management strategy.If you’re ready to take the next step toward finding an advisor who aligns with your goals, explore your options now: