The Complete Guide to What We Do
New York is the financial capital of the US and even the world. There are plenty of high net worth and ultra-high net worth individuals living in the New York area. In fact, New York has more millionaires than any other city in the world. New York is also home to multiple big Wall Street firms offering high net worth wealth management and financial advisory services. With so many wealth management New York firms around, the key question for any affluent person based in New York is which firm to pick? We will discuss some important topics regarding wealth management in this article to help you make the right decision. However, if you have liquid assets of $10 million or more, then we also encourage you to check out this guide on choosing the best financial advisor New York.
Wealth management is a niche area of financial advisory that involves catering to the needs of affluent clients. Some of the issues that such individuals need help with include retirement planning, succession planning, real estate, portfolio management, and tax planning. The last one is especially important for wealthy individuals living in a high-tax state like New York. Not planning taxes properly and paying even a few percentage points higher than what is legally required can result in outflows of a few million dollars.
Pillar Wealth Management has been around for a few decades and has extensive experience in working with clients with $5 million to $500 million in liquid investible assets. Working with such experienced firms can help you save a significant amount of money. It is important for firms to be independent & fiduciary advisors. The firms should also offer New York financial strategies and New York retirement plan consulting that works for people living in The Big Apple.
Table of Contents
Independent & Fiduciary Advisors
A wealth manager makes important decisions about the heard-earned wealth of his/her client. Money matters are personal and therefore you want your wealth manager to act in your best interests. Your family’s financial security depends on the guidance that the wealth manager provides. Pillar Wealth Management, for example, has helped clients with $5 million to $500 million in investible liquid assets save costs and achieve their life goals via smart financial decisions.
As you look for wealth management firms to work with, it is important that those firms are independent & fiduciary advisors. By independent, we mean not biased or influenced by any factor which goes against your best interests. A fiduciary, on the other hand, is someone who holds a legal or ethical relationship of trust with one or more parties. In the financial advisory world, a fiduciary is a wealth advisor who is registered with either the state regulator or the SEC. It is the legal responsibility of the fiduciary to always act in the best interests of the client. If there is ever a conflict-of-interest situation, then the fiduciary has to point that out to the client. Feel free to start a conversation with Pillar Wealth Management to explore how a fiduciary fee-only advisor can help you.
We believe that a wealth management New York firm can be independent in its approach when it works on a fee-only model. A fee-only model ensures that there are no product commissions or kickbacks that can divert the attention of an advisor. It eliminates the possibility of a misalignment between the client’s interest and the advisor’s financial incentive. We have discussed this at length in this book called The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.
Compensation Models Of Wealth Management New York Firms
Since we have discussed the compensation model in the previous section, it may be a good time to familiarize you with the various fee models that financial advisors use. There are 3 common models that you will usually come across. The first is the fee-only model, as discussed above. This model involves only a fee and no commissions, which is great because it does not incentivize a wealth advisor to “push” or “market” any products to the client in the hope of earning a kickback. The advisor only recommends what the client needs.
A fee-based model is a hybrid model with fees as well as commissions. The fee can be based on the number of hours worked multiplied by an hourly rate. Sometimes, a fixed fee amount is pre-determined for a particular task. We call this the milestone-based structure. Then there is the popular percentage of assets under management structure where a fixed percentage (usually 1%) of the assets managed by the advisor is charged as the annual fee.
The third compensation model is commissions-only. This option sounds quite attractive in the beginning. No fees are charged. Only commissions are involved. Someone who does not want to spend money on advice will see this as a virtually “free” option. However, the incentives of the advisor are completely aligned with the commissions that he/she receives. Therefore, there is every chance that investment and financial products which offer the advisor the highest fee will be the ones that the advisor will persuade the client to buy. The alignment of the client’s interests and the financial incentives of the wealth manager is simply not there. You are more than welcome to schedule a free consultation with Pillar Wealth Management to discuss the pros and cons of each compensation model.
High Net Worth Wealth Management
High net worth wealth management requires a specific skillset. High net worth portfolios are different from the average portfolio. The stakes are much higher and the impact of every decision can be millions of dollars. We have explained this concept at length in this guide on choosing the best financial advisors for individuals with $5 million to $500 million in liquid assets.
One of the biggest benefits of working with a top wealth management New York firm is the availability of a wide array of services under one roof.Clients do not have to go and meet different professionals for taxes, for retirement planning, for philanthropy, for real estate, and other needs. The wealth manager will either offer all services in-house or bring in an outside expert when necessary. So, the client only has to deal with one person who knows the client well. A personal connection and an in-depth understanding of the client’s financial situation are possible only when one person dedicatedly handles the portfolio.
Some big Wall Street firms may not be able to offer such personalized services. We believe that this factor separates the average wealth management firm from the best ones.Get in touch with Hutch Ashoo to find out how Pillar Wealth Management offers a white-glove level of services and knows each of their clients by the first name whenever they call.
If personalization is one side of the coin, then the other side is customization. Any good wealth management New York firm will tell you that every client’s financial situation is different. Every client has different life goals and motivations. So, every wealth management plan has to be different. Copy-paste does not work in wealth management. Standardization is not possible in this industry. Every case is unique and must be treated as such.
New York Retirement Plan Consulting
Retirement planning is on the mind of anyone who is a few years into a career. After all, securing your sunset years and achieving life goals like giving away money, living at a beautiful location, and paying for healthcare need careful planning. For a high net worth or ultra-high net worth individual, a New York retirement plan consulting service is quite helpful.
However, in order for a wealth manager to make an appropriate retirement plan, he/she first needs to understand what your life goals are. The wealth manager needs to know what expenses/purchases you plan to make a few years down the line, how much you plan to spend on your lifestyle, and how much you plan to commit towards your legacy goals.
Once this basic personal information is known, the wealth manager will work on estimating the amount needed to invest, the return that the investment needs to earn, and the duration for which the client needs to stay invested. A good wealth manager will also figure out ways to minimize the costs of the investments. If you are interested, then we encourage you to check out this book we wrote on improving portfolio performance for investors with $5 million to $500 million in liquid investible assets. It talks about how costs can be reduced and what costs can do to net portfolio returns.
Lastly, in order to stay on track for achieving your retirement goals, a good wealth manager will regularly review the progress of your financial plan and the investment performance. The world changes every minute and so does your financial situation. Perhaps, your retirement goals may also change. These updates have to be incorporated into the retirement plan regularly and the personalized niche wealth management firms will do just that.
New York Financial Strategies
Wealth management is a lot about understanding a client’s financial situation and then creating a strategy to match that financial situation. As discussed above, the strategy then has to be constantly questioned, stress-tested, and updated to stay on track.
Following the New York financial strategies that wealth management firms create requires a shift from conventional thinking about money and financial planning. We have discussed 5 critical shifts that are necessary for maximizing portfolio performance for families worth $5 million to $500 million in this short guide that you can download. Let’s talk about a couple of these shifts.
Firstly, wealth management is not a race to the top. You do not have to earn the highest rate of return and “beat” every other investor. What matters is whether your portfolio earns enough of a return to allow you to achieve your life goals. These goals are different for different individuals. So, there is no need to compare or compete against others to earn higher investment returns.
Secondly, understand the concept of risk-adjusted returns. Gross investment returns are misleading. They are an absolute number. The higher the number, the smarter it feels. However, what risk did the wealth manager take to earn those excess returns? What if things do not go as planned and you lose massive amounts of money in your quest for high returns? Why not earn decent returns with the minimum level of risk involved? Isn’t that better? You will sleep peacefully at night and still achieve all your goals. Think about it for a moment.
Go ahead and reach out to Hutch Ashoo from Pillar Wealth Management to discuss your views about financial strategies or talk about how you can change strategies to start seeing results.
Searching For TheBest Wealth Manager
We have shared a lot of information about wealth management, the factors that separate the average managers from the top ones, the compensation models, and the ways in which you can think about investment management. Now, it is time to find a top wealth manager. How do you do that?
You can research online. You can try and read articles and blogs of promising wealth managers to understand their philosophy. You can ask your family, friends, and people you know about wealth managers that they can recommend. And, you can also try and speak with a few shortlisted wealth managers to understand their personalities.
Searching for the best wealth manager requires some time and effort. But, it is not that difficult. You simply have to get to know the services that the manager offers and whether you can trust the manager with your money.
Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management. If you would like to speak with them or simply ask any questions about how custom and trusted wealth management advice is offered to highnet worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.
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