Retirement is a period of our life that we both look forward to and dread at the same time. While we anticipate spending our time sunbathing by the beachside and not worrying about work, we also have a nagging fear about losing the savings we have. That fear is even more pronounced if you’re someone with over $10 million in savings. For a more in-depth look at the types of risks investors with $10 million+ have to face, check out ourguide. To avoid these risks and manage their wealth, many people look for the best investment firms for retirement.
Retirement planning, in combination with good execution, can provide affluent investors with a way to have a comfortable retirement. The goal of any retirement plan is to make sure that the individual does not lose their wealth and is able to earn enough to live the life they want. At Pillar Wealth Management, we do that and more. Personnel with $5 million to $500 million have found lasting financial serenity by collaborating their retirement with our wealth managers. You could do the same. Book your first free meeting now.
That said, this guide is a comprehensive overview of the best investment firms for retirement. We’ll discuss questions such as:
– What do investment firms do?
– Does retirement need a special investment firm?
– What are the types of firms for retirement?
– Is it worth it to hire retirement investment firms?
– What questions should I ask investment firms for retirement?
Strategies For Families Worth $25 Million To $500 Million
The Art of Protecting Ultra-High Net Worth Portfolios and Estates
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.
Table of Contents
What Do Investment Firms Do?
Investment firms provide a very important financial service. Their main role is to help investors plan and manage their investments to attain their financial goals.
Investment firms employ professional financial advisors who specialize in this field. The caveat here is that an advisor doesn’t necessarily have to be licensed or registered in order to provide investment management services.
This leads to a situation where there is a mix of advisors in the market. On the one hand, you’ve Registered Investment Advisors (RIAs) who’ve undergone rigorous training and, on the other hand, you’ve inexperienced investment advisors just starting to learn their trade.
You’ll often find this mix if you visit investment divisions of large banks. Since these institutions usually hire a large number of advisors, they hire a very large mix. Beginner advisors often gain their first experiences at these institutions.
You can also find investment advisors at independent firms. These places tend to be more predictable in terms of the quality you can expect to get. Top professionals will usually be found at fiduciary firms. For a comprehensive comparison of fiduciary and non-fiduciary advisors, read our ultimate financial advisor guide.
That said, we’ll need to first look at the various types of investments firms to find the best investment firms for retirement.
Does Retirement Need a Special Investment Firm?
If you’re nearing the end of your career, you might be asking yourself, “Is my current advisor okay or does retirement need a special investment firm?”
The answer to this question depends on the capabilities of your current advisor. While many of us go for the typical aggressive portfolios to gain the best returns, retirement often calls for a more conservative or balanced approach.
Active management is often discouraged for retirees because of the extra risks, costs, and taxes involved. The issue is that most advisors are active money managers who aim to achieve the highest return possible at every moment. They try to time the market.
So, the answer is yes, you do need a special investment firm for retirement. You need someone who will look at your unique situation and optimize your portfolio performance in a way that supports your goals and balances your risks. For more information on how successful advisors do that, read about the 5 critical shifts in thinking you need to make today.
Types of Investment Firms for Retirement
As you’re about to find out now, there are a few different types of investment firms for retirement. Each of them provides a similar service but also its own individual differences.
By understanding the nuances of each type of advisor, we’ll be able to discover the best investment firms for retirement. Let’s get started.
These individuals specialize in creating detailed investment plans for their clients based on their preferences. You don’t need to be registered or licensed to operate as an investment advisor, meaning that there is a wide diversity of quality.
Another point to note is that many investment advisors provide a very basic service. They’ll ask you what returns you want and what your risk tolerance is before beginning. Based on those few numbers, they’ll create an investment plan geared towards achieving them and hand it over to you.
That’s usually where their job ends. You’ll probably have to visit someone else to be able to execute the trades or security purchases recommended by the investment advisor. Due to the simplicity of the service and the unpredictability of quality, we don’t feel these are the best investment firms for retirement – especially for high and ultra-high net-worth personnel.
Brokers typically serve the other side of the investment funnel – the transactions. If investment advisors are the people that give you an investment plan, then investment brokers are the ones that execute it.
Investment brokers are typically hired in conjunction with investment advisors. Anyone that uses an investment advisor will also likely need an investment broker to complete the process. However, while investment brokers usually won’t provide investment advice, there are some instances where they may suggest some securities or help you formulate your plan.
There is also one other major difference between investment advisors and brokers. While advisors typically charge a service fee, brokers have a different compensation method. They typically make their money from commissions on the transactions.
The problem with commissions is that they encourage your broker to suggest more transactions than you might need, hence creating a conflict of interest. People with more that $10 million should read our guide to find out why commissions can be so damaging.
Robo-advisors are a cheap, easy, and convenient option for a lot of investors. Their main benefits are accessibility and ease of use.
Advanced algorithms and AI technology are deployed in an attempt to manage the investment portfolios of investors. The technology analyzes past and real-time data to decide which securities to invest in. There is almost no human-human interaction in this scenario.
Though they can be useful for some investors, robo-advisors do not seem to be the best investment firms for retirement either. This is because they don’t account for your personal goals and won’t have a customized investment strategy for you. A robot won’t be able to understand your situation like an experienced professional would.
Wealth Management Firms
In our hardcover book, The Art Of Protecting Ultra-High Net Worth Portfolios And Estates, Strategies For Families worth $25 Million to $500 Million,we’ve held wealth managers in high regard – especially when it comes to serving the needs of ultra-wealthy individuals.
Wealth managers are usually fiduciary advisors. They have extensive expertise and experience in their area of operation, often spending decades serving an exclusive set of clients. Wealth management is usually a culmination of various financial services. While they will assist you with top-class investment management, they will also help you reduce your taxes, plan your wealth transfer, manage your assets, and so on.
This is what makes wealth managers so useful for affluent investors near retirement. As you near this important stage of your life, the most important thing you need is peace. A kind of peace where you don’t have to worry about losing your money or having enough income to enjoy your life. This is what firms like Pillar Wealth Management aim for. Our services are only focused around helping you achieve financial serenity. If you want to enjoy a stress-free retirement, schedule a discussion with us today.
Is It Worth It to Hire Retirement Investment Firms?
Should you put effort into searching for the best investment firms for retirement?
This is a very valid question. After all, everything is about value. If you aren’t getting value for the time you put into searching for the best investment firms for retirement or for the fees you pay them, then there is no point to the whole process.
That said, research has consistently found that affluent families often benefit from the services of the best investment firms for retirement. Here are some of the things you can expect:
Preserving Your Wealth
Companies with extensive experience will firstly help you create a retirement plan. This plan will comprehensively state the tactics your advisor will use to protect your wealth against losses.
Preserving your wealth is essential in all stages of your life. However, it becomes even more important once you’ve retired. Your wealth becomes your only source of income and faces a greater risk of loss.
Your advisor needs to help you make smart investments that provide you with a sense of financial security. Our portfolio performance guide has a lot of insights on how advisors can make sure that they prevent you from losing your wealth.
Keeping You Safe Against Medical Emergencies
Getting help from a retirement investment firm isn’t just about looking after your financial wellbeing. It also involves making sure that you’re prepared for any medical emergencies that may arise.
Medical issues can pop up at any point in our lives. Though it’s worth noting that the probability goes up once you reach retirement age. As a high and ultra-high net-worth investor, it’s unlikely that a medical emergency will leave you completely bankrupt. However, there’s still a chance that it could significantly reduce your wealth.
To help you prepare for any medical mishaps, wealth managers can help you get the right insurance covers. With the right research and expertise, your advisor can make sure that you’re fully covered and paying the least premiums possible.
Looking Out for Your Beneficiaries
An effective retirement plan will also include considerations for any wealth transfer or estate planning you need to do. The future is unpredictable and it’s always better to be prepared for all scenarios.
The best investment firms for retirement have experts that can help you plan wealth transfer in a way that:
– Minimizes inheritance taxes.
– Makes the process easy for your heirs and eliminates any legal issues.
By putting an estate plan in place, you can make sure that your heirs don’t have to face any troubles during a difficult time.
What Questions Should I Ask Investment Firms for Retirement?
Now that you’ve understood the value offered by wealth managers and retirement investment firms, the next step is to figure out how to hire the best investment firms for retirement.
The best way to do that is to know the questions you need to ask them on your first meeting. Here are some examples:
How much experience do you have?
Experience is extremely important in this industry. It means that your advisor has already made rookie mistakes and learned from them. They know what tactics work and which ones don’t. Their experience will help you stay on track to meet your goals and not panic when things go south.
What sort of clientele do you work with?
It’s very important that your investment firm regularly provides services to people of your caliber. This way, you can be sure that they know how to customize their offerings to your specific needs.
How will you protect and grow my wealth?
The best investment firms use advanced components and tools to constantly monitor your portfolio performance. They’re able to perfectly balance your risks and returns in a way that achieves your goals while protecting your wealth.
How will you reduce my costs and taxes?
Extra costs and taxes can be very dangerous for high and ultra-high net-worth people. They can reduce your wealth without you even knowing! It’s vital that an advisor has the capabilities to minimize your taxes and costs.
Verdict on the Best Investment Firms for Retirement
In conclusion, the decision to find the best investment firms for retirement is one you won’t regret. It seems to be almost essential for most affluent individuals who want to live the final years of their life in peace.
Pillar Wealth Management has helped numerous people with $5 million to $500 million to enjoy a comfortable retirement. Whether you want to make sure your kids are taken care of or you want to enjoy your retirement travelling around the country, our wealth managers are here to support your goals. Say goodbye to stress and schedule a free discussion with us now.
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