Ultra High Net Worth Financial Advisor: Which One is #1?

When interviewing a potential ultra high net worth financial advisor to work on your family’s behalf, you should ask a number of pertinent questions beyond just getting basic contact and bio information, education, and credentials.

Those of you with over $10 million of investable liquid assets can qualify for a free copy of our book, which takes a deep dive into wealth management and achieving financial serenity, just click here. You want to hire an ultra high net worth financial advisor who is familiar and capable of dealing with someone of your net worth.

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.

One of the first questions you’ll want to answer is: “Does the ultra high net worth financial advisor present any conflicts of interest?” Conflicts of interest can arise in many different forms. For example, does the advisor receive any commissions on products recommended or sold? How about referral fees? Is the advisor the manager of the investment(s) they are recommending? These are all red flags that suggest a conflict of interest—and in a perfect world, you want to avoid that entirely.

You want an ultra high net worth financial advisor who is a fiduciary. A fiduciary is required to disclose conflicts and to serve you objectively at all times. Many who call themselves financial advisors must only meet the standard of “suitability”—and advising based on whether an investment is suitable is not the same as acting in your best interest.

Some of the major financial houses are notorious for selling both ends of a transaction and pocketing money from each side. It’s hard to see how that is working in the best interest of the client. And yet, that is what broker-dealers do. They sell, and they buy, and they make a profit, whether it’s on the commission or on the spread between the purchase and sales prices. For the client, it amounts to a conflict of interest. Major broker-dealers make money on the spread between the purchase and sale prices. This happens a lot with municipal bond purchases. Broker-dealers don’t work for free!

A noncommissioned, fiduciary, ultra high net worth financial advisor might recommend you buy insurance, but they would not receive any commissions or indirect compensation. They are not advising you to buy so that they can make money but rather because it’s the right thing to do and is what is best for you.

Since the commissions don’t influence them, your ultra high net worth financial advisor may be able to find low-cost policies saving you fees upon purchase and/or redemption. The ultra high net worth financial advisor’s only goal should always be your best interests—not to support the sales and marketing team or the fat pockets of the insurance company.

An ultra high net worth financial advisor serving in a fiduciary capacity might still be working on commission. Always look a little deeper, and don’t be afraid to ask the question: “Is the ultra high net worth financial advisor receiving any compensation other than his or her fee for services?” You must be vigilant for conflicts of interest at all times. You may not be able to eliminate all of them, but smart investors will always be aware of them.

You also, of course, need to understand the ultra high net worth financial advisor’s fee and fee structure. The fees can range from as low as .25 percent if you have half a billion or more invested—or, if you are investing with a money manager, the fee could be as high as 2 percent plus 20 percent of profit. It depends on what the adviser is doing for you.

Client Perspective on Hiring Financial Advisors: It’s always about the Fees.

When one of our new ultra-high net worth clients brought in his investment statements for review, we noticed several million dollars were invested in hedge funds—so we began to ask questions: When did he invest in these funds? Who was the manager? Who was the ultra high net worth financial advisor? What was their performance, and was he happy with the funds?

The answers were shocking. It turned out his investment adviser managed the hedge funds. So that investment advisor—who has a fiduciary responsibility to provide independent advice in the best interest of the client—was recommending that his client invests in the same funds he managed.

Not only was the ultra high net worth financial advisor earning a 1 percent advisory fee, but he was also pocketing 2 percent as a hedge-fund fee, plus 20 percent of the profits. We made sure the client understood this was a major conflict of interest, and we explained the amount of fees the ultra high net worth financial advisor was generating on the accounts.

Wealth Management Firms in the United States: How to Pick the Best One

When high net worth investors decide to get the assistance of wealth managers, one of the frequently asked questions is how to pick the best one from several wealth management firms that you know.

On the other hand, there have been many cases of UHNW clients who end up partnering with irresponsible financial advisors.

Have you ever wanted to know who the best ultra high net worth financial advisor near you is? To get a credible answer, all you need to do is ask your wealthy friends who have experience with wealth management. A personal review from a user can be very useful. Besides asking your wealthy friends, finding an ultra high net worth financial advisor near you by searching online is simple to do.

For instance, if you live in the United States, there are hundreds or even thousands of advisory companies with excellent wealth managers to help you with wealth management. Check their performance on their website and gain as much information as possible from each advisory firm. To help you find the best ultra high net worth financial advisor, try these five tips which are used by super wealthy individuals and high net worth families:

1. Decide on the Advisor Type

Before deciding on the best ultra high net worth financial advisor for you, the most important thing is to identify your needs. Then, you might choose the type of wealth managers or advisors based on their fee structure. You will want to ask your wealth manager to help you with several issues. Some UHNW or HNW clients will need assistance with hourly consultations, managing their assets and investments, and so on. Because UHNW clients or HNW investors are primarily investing in the market, choosing an ultra high net worth financial advisor with expert knowledge about portfolio and wealth management is crucial.

2. Choose the Fiduciaries

Some High Net Worth (HNW) or Ultra-High Net Worth (UHNW) clients prefer to consult with a fiduciary. A fiduciary offers you services that are based on your investment interest.

3. Align with the 5 Core Aspects

Financial management for high net worth individuals involves 5 core aspects of building a profitable portfolio — tax planning, income planning, investment planning, real-estate or legacy planning, and healthcare planning.

Many UHNW or HNW clients will focus on the 5 core aspects of building the most profitable portfolio. Those aspects are tax planning, income planning, investment planning, real-estate or legacy planning, and healthcare planning. As UHNW and HNW investors have huge assets, planning how to manage them is the most crucial task for wealth managers. The asset planning also needs to be adjusted depending on healthcare costs, which can increase, taxes, and so on.

4. Consider Their Credibility

Clients with UHNW or HNW will not risk their assets by working with just any available ultra high net worth financial advisor. One thing that you need to consider before choosing a financial adviser based on the UHNW and HNW experience is credibility. Choose an ultra high net worth financial advisor among Certified Financial Planners (CFP), Certified Public Accountants (CPA), and Certified Financial Analysts (CFA). In addition, UHNW and HNW clients or investors also consider whether the ultra high net worth financial advisor is a certified Personal Finance Specialist (PFS), a member of the National Association of Personal Financial Advisors (NAPFA), among others.

5. Consider the Service Cost

Even if clients own UHNW or HNW assets, it does not mean that they should pay any price for service charges. The price that clients pay should be based on the services they need. A good financial advisor should always explain the cost of the services they provide to UHNW and HNW clients. They may also negotiate payments at annual or hourly rates.

Hiring a Wealth Manager: Do You Need One?

As UHNW and HNW individuals, investing in your assets is one of the best ways to grow your wealth. However, sometimes, you may feel insecure about making the best decision. That is why you would benefit from hiring an ultra high net worth financial advisor to help you. Pillar Wealth Management provides financial advisory services to ultra-high net worth clients. If you are still confused about whether you need the help of a financial advisor or not, consider the following important elements of wealth management:

1. Maximize the Opportunity from Investments

To grow your wealth, investing in the stock market, real-estate, or others can be your options. However, investing such a huge amount of money absolutely needs an analysis. Financial advisors can help you with this. They can give you the analysis to get high returns with low-risks.

2. Want to Achieve Specific Targets

If you have long-term plans for your assets, getting professional help from an ultra high net worth financial advisor is the best choice. Besides advising you on the best decision you can make, a financial advisor can give you insights into the market. As one of the best advisory firms, Pillar Wealth Management can help you achieve your goals.

3. Keeping Up the Process

Have you ever faced repetitive failure in investing your assets? If the answer is yes, you need the help of an ultra high net worth financial advisor. With their experience, an ultra high net worth financial advisor can help you make the best decision based on their professional expertise.

4. Balancing the Portfolio

If you are hesitant to make you own moves in the market or cannot define your own risk-management strategies, you truly need the help of advisors to rebalance your portfolio. This also includes the art of If you are hesitant to make you own moves in the market or cannot define your own risk-management strategies, you truly need the help of an ultra high net worth financial advisor to rebalance your portfolio. This also includes the art of protecting ultra-high net worth portfolios and estates. If you find you have a problem with your portfolio or finding an unbiased fiduciary, call Pillar Wealth Management to find the solution immediately.

5. Adjusting To Market Changes

Some investors may not be able to predict market changes. As the financial industry is volatile, hiring an ultra high net worth financial advisor can be very beneficial. Financial advisers have so much experience in the market. They have faced ups and downs. Investors will more likely accept their advisor’s suggestion rather than their own decision.

6. Need a Retirement Plan

One thing that some people are not concerned about is retirement planning. However, retirement planning should be performed as early as possible. A retirement plan is very important because it may be your only option at the end of your work life. You need an advisor’s assistance to get the right plan and grow your assets even when you are no longer a working person.

7. Concerns about Insurance Policies

Choosing an insurance provider can be tricky, and it must be done carefully. Some investors are concerned about choosing the right insurance provider as a policy can be confusing. Especially if you are a UHNW or HNW person, the policy can be very complex. Your decision can even make a huge difference for the provider. So, you need a financial advisor’s help to determine which provider can give you the most benefits and advantages.

If you have found your problem among the above seven factors, then you need assistance, especially from a financial advisor. As you have a high net worth or an ultra-high net worth, it is important for you to choose the best financial company to manage your assets. Pillar Wealth Management has it all, including being a fiduciary financial advisor. Call us if you need help with your financial issues and talk with our professional, highly experienced advisers.

Where Do the Affluent Go for Advice?

The ultra rich, super rich, and very rich often take advantage of having a wealth manager. A wealth manager (or UHNW financial advisor) is a financial planner who focuses on helping the wealthy maintain and grow their wealth. Often, these clients have complex financial needs and own a broad range of assets, so they often need expert advice on managing their wealth.

What do UHNW advisors do? 

UHNW financial advisors provide financial services to individuals with at least $30 million in investable assets, which are cash or cash equivalents and assets that can quickly be sold (converted to cash).

Wealth advisors have the same credentials as any other financial advisor. You should expect them to have a college degree and the proper certification and training in financial services.

High net worth advisory services

Financial advisors for high-net-worth individuals provide a variety of services. They work with their clients to create an investment portfolio, balancing risk and security. The advisor aims to understand the client’s goals and financial needs so that these goals and needs can be satisfied through asset balancing and diversification.

Financial advisors for the wealthy are involved in insurance, retirement, and estate plans, recruiting other professionals as required to ensure these plans align with the client’s needs, such as trust or tax specialists.

These wealth managers are trained to provide advice on philanthropic planning and tax management.

How do I find a financial advisor?

There is a plethora of websites that can help you find a financial advisor, sites such as Zoe Financial and Harness Wealth, which match clients with a certified advisor. Zoe Financial advisors pay a referral fee to Zoe.

The National Association of Personal Financial Advisors (NAPFA) has a search tool that provides a listing of advisors near you or licensed in your state, who are also fee-only fiduciary planners.

If you are attracted to working with the major investment firms, such as Schwab or Fidelity, their websites also help you find a local office or planner near you.

There are plenty of options, so you should look for advisors that can provide the services you’re looking for. Do background checks, and when you find a few advisors that appeal to you, get in touch and ask lots of questions.

What to look for when interviewing financial advisors

Talk to any potential advisors about their background, their certifications, and their experience with clients like you. Determine what services they offer. Ask about their approach to investing. You’ll also want to know how readily available they are for a phone conversation if you have an issue or question. Plus, you’ll want your investments to be reviewed and monitored regularly.

Your first conversation with a potential advisor should give you a good idea of how well you would work together. If you don’t connect, move on to someone else—the right advisor for you is not far away!

What is the difference between a financial advisor and a wealth advisor?

A wealth advisor is a financial advisor who works with high-net-worth individuals. Any good financial planner will have a certification such as Certified Financial Planner (CFP). An advisor who is also a broker will be registered with the SEC, whose website can inform you about their record. The regulator FINRA also has a BrokerCheck tool to verify an advisor’s credentials.

Is a financial advisor worth it?

It is worthwhile having a financial advisor when managing your assets on your own becomes daunting. Also, you may need financial services for which you have no expertise, such as setting up a trust. Using an advisor will save you time and effort in managing your finances.

A Last Few Words

People with an ultra-high net worth or high net worth may find it difficult to manage their assets. They can use their assets for investing, buying real-estate, or others ventures to grow their wealth. However, growing assets is not as easy as it seems. That is why you need a financial advisor. A financial advisor can help you to make decisions about your wealth, including investment, retirement plan, managing income, and many more. All Rights Reserved, Pillarwm.com.

For the last 30 years, Pillar WM has managed financial portfolios from $5 to $500 Million in the United States. We are committed to making sure of the financial stability of our clients by formulating a customized financial plan that can match their needs.

On the other hand, some wealthy clients prefer to work with big-number firms. However, when you are working with a certain financial firm, you need to understand whether you are working with the correct financial advisor or not.

This is significant because, as a high net worth individual, you will lose more if you make a mistake in choosing a wealth management firm. Besides, as an ultra-high net worth investor, you can avoid getting the generalized investment help that a big UHNW (ultra-high net worth) wealth management firm provides.

Related Post

1. High Net Worth Retirement Strategies – We understand the concerns of high net worth individuals or families facing retirement…
2. Ultra High Net Worth Strategies – They say the only certainties in life are death and taxes. Two problems with that are of particular concern…
3. Dual State Residency – Wealthy investors can have multiple properties in numerous states, and depending on where you spend most of your time…
4. Private Banking Vs Wealth Management – How is wealth management different from private banking? Do you have to choose between these…