Investment Service Companies: Which to Hire?

A lot of high-net-worth individuals with $5 million to $500 million in liquid assets tend to make the mistake of just storing all their wealth in one account. While this can certainly keep it safe, it also ends up being a big, missed opportunity. Instead, what such wealthy individuals need to do is consider investing that wealth in the right assets to help them grow their wealth and ensure a secure retirement. Now, this is where the problem arises. How do you invest all that wealth in a safe yet profitable manner? The answer lies in investment service companies. They have the necessary expertise and experience to help you meet all your investment goals. You can even request a copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, to learn how such investment service companies play a big role in your wealth management and financial success.

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.

Affluent individuals looking to invest their $5 million to $500 million can also consider Pillar Wealth Management. We are a private firm and deal exclusively with high and ultra-high-net-worth individuals or families. We have a broad range of services from investment and portfolio management to estate planning to tax planning and more. Our expert financial advisors and wealth managers have been working with wealthy individuals and solving their financial problems for more than thirty years. So, whether you are struggling with investing your wealth or protecting your assets, arrange a free consultation with Pillar Wealth Management today.

In this blog, we’ll be discussing how you can hire investment service companies, when do you need them, and how much you should expect to pay them. Let’s get started.

What Do Investment Service Companies Do?

If you have ever tried investing your money yourself, you would know that it is not an easy job. You don’t know which assets to choose and whether they will be profitable in the future. You don’t know how to diversify your portfolio to spread the risk.

You might be confused about how to analyze the potential performance of an asset. You may not realize how international markets and forces are affecting your portfolio. All this requires the experience and knowledge that investment service companies have.

They are aware of all these problems and other hurdles that you may not even know of and are constantly trying to develop new solutions for them. They help you develop a suitable portfolio that takes into account your desired returns as well as your risk tolerance.

More importantly, they make sure you can accomplish all your other goals in life with enough funds. They help you capitalize on new opportunities and leverage market trends so that you can maximize your portfolio growth and performance.

If you are looking to invest your $5+ million worth of assets, we recommend getting a hardcover copy of our book, The Art of Protecting Ultra-High-Net-Worth Portfolios and Estates – Strategies for Families Worth $25 million to $500 million, to learn more about investment management for the high-net-worth.

Investment Service Companies

How Do I Hire an Investment Service Company?

The idea is not to hire just any investment service company but to hire the right one. There are innumerable investment service companies out there. All you need to do is search them online, and you will probably get a dozen options in your area.

However, these may not be the right company for you, and therefore, there’s no guarantee they will help you succeed at your financial goals. That’s why you need to hire an investment service company that best aligns with your interests. Here’s how you should go about it.

Run a Background Check

The first thing wealthy individuals need to do when hiring an investment service company is to run a background check. This is important for several reasons. Firstly, you can check whether the company has the right credentials and certifications, which prove that they have gone through the necessary training.

Secondly, you can also confirm whether the company is licensed to offer the services they are offering. Sometimes, certain financial advisors are only allowed to manage your investments and nothing more. Then, if they have the license, they can advise you as well.

Thirdly, you can also check their standard of care. You will want them to be fiduciary financial advisors as that is the closest way to ensure that you can trust your advisor. Fiduciaries follow a strict standard of care, and they must always act in the best interests of the client.

Besides that, a background check will also reveal if the company has had any cases against it. If they don’t check out during this background check, you might want to reconsider hiring them.

Consider Their Experience

It is extremely important to consider the experience of the investment service companies too. While training and certification are all good, there’s some knowledge and expertise that only comes with years of experience.

Moreover, as a high-net-worth individual with $5+ million in liquid assets, you can’t entrust your portfolio to inexperienced financial advisors. Therefore, the investment company should have at least a few decades of experience in offering investment and portfolio management services.

Furthermore, they should also have plenty of experience in dealing with your caliber of clients specifically. At Pilar Wealth Management, our financial advisors and wealth managers altogether hold more than sixty years of experience in the industry. Start a free discussion with us today to learn more about us.

Check Customization

You also need to make sure the company offers customized solutions. A lot of major financial institutions make big claims and make a lot of promises. At the end of the day, unfortunately, most of these institutions are offering the same cookie-cutter experience that benefits no one but themselves.

Therefore, you need a company that truly listens to your concerns and offers customized financial solutions accordingly. This is the only way to make sure you achieve your personal goals and all short and long-term targets efficiently. Read our excellent guide on portfolio performance to learn why customization is so critical for your portfolio and financial success.

Ask the Right Questions

Once you’ve found a few investment companies you are interested in, set up a meeting. This can be an in-person meeting or a virtual one.

Then, you should ask them some important questions like what their management style is, whether they are fiduciaries, will you have a dedicated advisor, and how they plan to help you meet your goals. If they answer all the questions properly and you are satisfied, you can ask them to draw up a contract to hire them.

When Do You Need Investment Service Companies?

There isn’t any fixed amount that you need to have before hiring an investment service company. However, if you already have $5 million to $500 million in liquid assets and still haven’t partnered with any investment company, you need to do so right away.

Investment services are crucial for high-net-worth individuals, and the more they delay it, the harder it becomes to grow your money through investments. Think about it. When you are in your 20s or even 30s, you still have time to experiment and take big risks with your investments.

However, as you grow older and you enter your 40s and 50s, not only do you not have that much time left to invest your money, you also can’t afford that much risk. Therefore, you are forced to choose relatively safer investments that come with smaller payouts.

As a result, by the time you reach your retirement, you have much less saved or a much smaller income stream established as compared to what you could have had you started investing in your 20s. So, the bottom line is that you need investment services right now, and you should start looking for one right away.

Besides that, some investment service companies do tend to deal with clients with a specific net worth. For instance, they only serve high or ultra-high-net-worth individuals. So, you will have to wait till you accumulate at least $1 million or $30 million in liquid assets.

We suggest requesting a copy of our book, 7 Secrets to High-Net-Worth Investment Management, Estate, Tax, and Financial Planning, to learn more about what high-net-worth investment management entails.

What Should I Expect to Pay an Investment Service Company?

One important consideration when choosing to work with investment service companies is their cost. Even though investment companies can help you grow your assets exponentially over the course of your life, that doesn’t mean you end up paying them exorbitant fees.

Different investment service companies can work on different payment models. For instance, if you go to a broker, they might work on a commission basis. This means that they will inform you about various assets and products, and other investment options available.

When you do buy or sell any asset, they might earn a commission over it. This can sometimes create a conflict of interest as your broker might push you towards certain products that earn them higher commissions but aren’t necessarily that great for you.

Besides that, some investment advisors tend to work on a fee-only basis. For instance, the wealth managers at Pillar Wealth Management charge a fixed percentage as the fee. This percentage is usually around 1% but can change depending on other factors.

For instance, if your net worth increases, this rate can go down. Moreover, the investment company’s fees can depend on their money management style as well. Active money managers tend to charge more as they are involved in multiple transactions during the year.

Passive managers tend to have a more long-term approach, so their costs are lower. You can learn more about how this impacts your overall net worth from our brilliant guide on portfolio growth strategies.

Furthermore, you have to remember that the investment service company’s fee will not be the only cost you will have to bear. There will be taxes, internal expenses, margin interest, and many other costs that you will have to bear every year. Reach out to our expert wealth managers and financial advisors to learn about all the costs you need to be wary of.

Wrapping Up

High-net-worth individuals with $5 million to $500 million in liquid assets already have a lot on their plate. They may be managing several businesses or working towards their other goals and dreams in life. As a result, they are not left with much time to manage their investments efficiently.

That’s why they need investment service companies. These companies play a crucial role in their financial success and security. And now that you know how to hire them, all that’s left to do is choose the one that best suits your needs.

Pillar Wealth Management is one of the top wealth management companies out there. Our financial advisors have been in the industry for more than sixty years altogether, catering to high-net-worth clients and helping them achieve financial success. We work closely with our affluent clients to understand their specific financial needs and unique personal circumstances and then develop customized solutions accordingly. Start a no-obligation consultation with Pillar Wealth Management today.

Authors

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.

You see, our goal is to only accept 17 new clients this year. Clients who have from $5 million to $500 million in liquid investable assets to entrust us with on a 100% fee basis. No commissions and no products for sale.

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