The Complete Guide to What We Do
Firstly, let’s get one thing straight— it’s almost impossible for you to efficiently and effectively manage your wealth on your own if you are an ultra-high net worth individual with over $10 million in liquid assets. You’ll need a trusted wealth manager to help you meet your financial goals and protect your wealth. Unfortunately, there are many wealth management advisors in the market who put your money at undue risk and don’t give you the care you deserve. If you’re worried about finding the right wealth manager to manage your ultra-high net worth assets, you need to check out this free and reliable guide for high net worth investors with more than $10 million in liquid assets.
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
If you’re a high net worth or ultra-high net worth individual, there’s a very high chance that you’ve had some sort of experience in dealing with wealth management advisors – or at least with people who claim to be as such. Yes, we’re talking about the major “financial institutions” (big banks, well-known Wall Street brokers, etc.), who’ve “McDonald-ized” their wealth management process for the high net worth individuals. Unlike mega banks and brokers, Pillar Wealth Management offers wide-ranging wealth advisory services that are personalized to your specific situation and needs. Our wealth managers use their combined 60+ years of experience in wealth management to make sure you can have financial serenity. If you are an individual with a net worth between $5 million to $500 million in liquid assets, we can help you protect and grow your wealth at the same time. Head over to our website and schedule a free chat with us.
What Does a Wealth Management Advisor Do?
Knowing what we know, answering this question is both simple and complicated at the same time. While we know exactly what a wealth management advisor should do, we often don’t see many of them follow through with those best practices. There’s often a big difference between what some of the big and famous wealth managers should do and what they actually do – we’ll tell you exactly what you need to know to spot this.
But firstly, let’s just answer the question, “what does a wealth management advisor do?” simply by using the example of successful wealth managers.
At Pillar Wealth Management, we consider wealth management to be a personalized collection of financial advisory services exclusively designed to help protect and grow the wealth of high net worth and ultra-high net worth individuals with $5 million to $500 million in liquid investment assets. We go in-depth into exploring your life goals and help you meet them financially without worrying about ever losing your money.
Though we offer a massive range of services, let’s take a look at some of the most important things you need to know about what we do at Pillar Wealth Management and why the difference in what we do is important.
How Wealth Managers Are Different From Other Services
There are a lot of investment management services available in the market. As a smart investor, you need to understand the difference between the jobs of wealth management advisors and other services.
Robo-advisors, for example, manage your investments via computer algorithms with minimal or no human interactions. These investment services only have a generic formula that they apply to every investor that comes their way. Doesn’t sound like a very reliable idea, does it? As high net worth or ultra-high net worth investor, you should get the attention your wealth deserves. No robot could ever understand you and your life goals like a human wealth manager.
Other than that, you can go to financial advisors. These individuals help you make plans regarding your investments, retirement, current finances, and taxes. Though financial advisors should be able to do all that, most financial advisors at large banks or Wall Street organizations end up giving you just an investment plan without execution – and even then, it’s just a copy-paste of what they give others! You then have to take the plan elsewhere to buy securities. If you’re tired of meeting with financial advisors that can’t help you with your specific needs, check out our Ultimate Guide to Choosing The Best Financial Advisor.
Finally, you also have investment brokers. These individuals or groups purchase bonds, stocks, and other securities on behalf of their clients from exchanges. They charge a commission for every transaction incurred. However, they do not offer anything more than that.
So, what does a wealth management advisor do? Wealth managers are Registered Investment Advisors (RIAs) who provide a complete range of financial advisory AND investment services. At Pillar Wealth Management, we help you grow, maintain, or manage your wealth according to your goals. If you want complete management of your portfolio, a wealth manager will do that too.
This where you see a significant difference between RIA wealth managers and other types of investment services. Big Wall Street investment brokers and major banks merely purchase securities on your behalf or provide you with one of their “tried and tested” investment plans.
Why do they do this? It’s because they do not have a fiduciary duty to act in your best interests. RIA wealth managers, on the other hand, do have a fiduciary duty to only make decisions that are best for you. This is because they have to register with the Securities and Exchange Commission (SEC) and agree to the Advisors Act of 1940 in order to become an RIA.
The Advisors Act of 1940 compels them to always act in your best interest when advising you to make investments or when managing your portfolio on your behalf. They must also make full disclosure regarding any material conflicts of interest.
If you want to know what it’s like to work with real RIA wealth advisors who care about protecting and growing your wealth, head over to our website and schedule a free chat with us.
Services Offered by Wealth Management Advisors
Wealth management advisors focus on helping you achieve financial security and financial serenity to allow you to live your life as you deserve. As a high net worth or ultra-high net worth individual, you’ve worked hard all your life to be able to enjoy yourself now. Wealth managers help you achieve your life goals while making sure you don’t have to worry about losing your liquid assets. If you’re an ultra-high net worth individual with $25 million to $500 million in liquid assets, our hardcover book on “The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million” can help you understand how to best protect your wealth.
At Pillar Wealth Management, our wealth advisors use their combined 60+ years of experience to help you with:
- Investment management
- Retirement planning
- Asset allocation analysis
- Tax planning
- Estate planning
- Insurance planning
- Cash Flow Planning
- Risk Management
This is not at all a full list of what we offer. The main point is that our wealth management services revolve around catering to your personal life goals rather than earning commissions off investments.
How Do Wealth Management Advisors Get Paid?
Investors deserve to know about how wealth advisors are paid and the fees and costs red flags you should watch out for.
At reliable wealth management firms, like Pillar Wealth Management, we make all the costs and fees you will incur clear to you from the very first meeting. You will have no doubts about where your money is going, and there will be no hidden costs.
There is usually a difference between the costs of active wealth managers and passive wealth managers. Active wealth management is usually costlier since they’re actively buying and selling investments. They may have more transaction costs and service fees.
Passive wealth managers will typically charge a percentage of your total assets being managed every year. The market average for this fee is 1%. However, an ultra-high net worth individual with over $10 million in liquid investments can negotiate lower fees. If you want to learn more about this, check out our guide here.
Now, let’s also take a look at the major red flags you need to identify when dealing with wealth management fees and costs. Some companies are not aware about the costs and fees they charge. These little costs can pile up to hundreds of thousands of dollars for high net worth investors!
Red Flag: The Advisor Says Costs and Fees are the Same Things
Recognize how we’ve consistently been referring to costs and fees as different charges. Almost every advisor will charge a fee for their services, as we mentioned earlier. However, a wealth manager that has your best interests at heart is also responsible for informing you of the costs you incur and how to manage them.
Some of the most common costs associated with wealth management include taxes, commissions paid to money managers, bond sale spreads, internal expenses, etc. Most of these costs can be reduced through smart wealth management.
At Pillar Wealth Management, we try to save avoidable costs. By saving on these costs, we’re able to maximize your portfolio growth strategies and your investment performance. To learn more about how we optimize your portfolio, check out our easy-to-follow guide for families worth $5 million to $500 million.
Your wealth manager needs to inform you about all hidden and avoidable costs like taxes from capital gains, active vs. passive costs, bond sale spread, commissions, and so on. If they don’t, make a run for it!
What Do You Look for in a Wealth Manager?
The answer to this question is an important one. As a high net worth or ultra-high net worth individual, you need to make sure you choose the right wealth advisor as the wrong one could result in huge losses. A wealth manager should:
- Have a proven record of successfully dealing with individuals of your financial calibre
You’ve worked all your life to be a winner and get to where you are. You’ve made money, and success for you isn’t about beating an index and earning 10% per annum. Your success now revolves around achieving your life goals.
You don’t need someone who’s going to just make one aggressive investment after another. You need someone who will help you achieve your goals.
- Focus on consistent asset allocation
Improving and maximizing portfolio performance is all about having the right asset allocation with consistency. If you want to learn more about enhancing portfolio performance, check out our guide here.
- Focus on reducing your costs
This is extremely important. Your wealth advisor should focus on reducing your expenses wherever possible. It can make a world of difference.
- Invest in your goals
Your wealth management advisor should only work towards reaching your goals, without any of their own emotions or conflicts of interest.
Now that you know a whole lot about wealth management advisors, you might be asking yourself: “are wealth advisors worth it?”. After all, you could get a lot of the services offered by wealth advisors from big banks and financial institutions.
The choice is yours in the end. However, remember that a lot of the bigger banks and Wall Street tycoons won’t give you the special attention and care you deserve.
At Pillar Wealth Management, you’ll find wealth advisors who study everything about your life and give you recommendations based on them. We aren’t just focused on aggressively making investments; we also want to help clients with $5 million to $500 million in liquid assets live their best lives with financial serenity.
Visit the Pillar Wealth Management website to book a free consultation today,and we will create customized strategies to help you protect and grow your wealth so that you can live life as you want.
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