The Complete Guide to What We Do
Portfolio management, capital gains taxes, fiduciary, fee-based, fee-only…. there are many terms that get used in the wealth management industry. Are you a high net worth or ultra-high net worth individual trying to make sense of these? Are you looking for a top wealth management Phoenix firm to work with? As someone who has worked hard and been successful in generating substantial wealth, you understand that managing the wealth and defining your legacy is not a straightforward task. If you have $10 million or more in investible assets, then feel free to download this guide on choosing the best financial advisor.
You may have heard of the three generation rule. It basically says that the first generation creates a business from scratch or is the catalyst for wealth generation. The second generation takes that wealth creation to a peak and the third generation witnesses a significant erosion of that wealth. However, as this article points out, there is a way to tackle this philosophy. A professionally managed approach can help protect wealth and even grow it. A high net worth individual simply has to give as much importance to wealth management as he/she gave to the creation of wealth.
In this article, we will talk about some aspects of wealth management that can help you make important decisions. We will desirable attributes of wealth management, phoenix, az firms. Then we will also discuss the wealth management resources Phoenix firms bring to the table that can help you. Finally, we will offer some tips on how to find a top wealth management firm Phoenix has to offer. We will also talk a bit about Pillar Wealth Management, a niche wealth management firm that specializes in working with clients who have $5 million to $500 million in investible liquid assets.
Table of Contents
Wealth Management, Phoenix, AZ
Every high net worth individual wants to work with the best wealth management, Phoenix, AZ firm.After all, a significant amount of money is at stake and one sub-optimal decision can result in a difference of a few million dollars over a number of years. Before you initiate the search process to find the best advisor, it may be helpful to know what to look for in a wealth management firm and a wealth manager. Pillar Wealth Management is a firm with a long track record of working with individuals and families with $5 million to $500 million in investible liquid assets.
Firstly, you want the wealth management firm to have a diverse set of services that it offers. If philanthropy is something you need help with, or if you are wondering how to pass on the business to the next generation, then you want a wealth management firm that has the expertise and experience in those areas. We have discussed in more detail the different areas that top wealth managers serve in this book called The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.
Secondly, you want the wealth manager to be completely aligned to your best interests. This can happen when the advisor is honest and ethical – subjective qualities with no clear way of measuring. However, you can look for a couple of things like fiduciary registration and the fee structure. A fiduciary always acts in the best interest of the client and is legally required to do so. We will talk more about the fee structure in another section below. Get in touch with Hutch Ashoo to ask about what other qualities define a top wealth manager.
Wealth Management Resources Phoenix
You can think about wealth management in two ways. You can either make all the wealth-related decisions yourself or you can hire a professional to help you make those decisions. Of course, if you decide to do things on your own, you will have to spend time and resources learning about important concepts like taxation, portfolio management, risk management, and more. On the other hand, the wealth management resources Phoenix firms bring to their clients can be quite substantial.Pillar Wealth Management, for example, has 60+ years of combined experience in handling portfolios worth $5 million to $500 million and has countless experiences to draw from.
One of the most important resources that a wealth management firm brings to the table is experience. If you work with someone who has handled high net worth portfolios with a similar size to your portfolio, then that wealth advisor has seen a diverse array of cases. The wealth manager will know what to think about and how to navigate the situations that you may be facing. Download this guide on improving portfolio performance for investors with $5 million to $500 million to learn about how investment costs can be a significant factor.
Another important resource that a capable wealth manager brings with them is the array of expertise and services. Whether you need help with tax planning, inheritance, philanthropy, retirement, insurance, or any financial area, a top-rated wealth manager should be able to offer you advice on it. If the advisor does not have the expertise in house, then he/she should be able to bring in an outside expert, who is also a top performer, to guide you. We encourage you to start a conversation with Pillar Wealth Management to know the firm’s areas of expertise.
The different fee structures of wealth management firms
Wealth management is a paid service. The top wealth management firms charge clients a fee in order to manage their wealth. With millions of dollars at stake, paying a relatively small amount is deemed to be worth the benefits that wealth management can bring to a high net worth or ultra-high net worth individual.
Usually, there are three fee structures that are common within the wealth management industry. The first is the simple fee-only model. As the name suggests, the model involves only a fee. The calculation of fee can be based either on an hourly rate, a pre-determined amount for each milestone achieved, or it can be a fixed percentage of the total assets that a client brings in to be managed by the wealth manager. This model works very well because the advisor isn’t distracted or motivated by any commissions or cutbacks offered by certain financial product companies. The chances of a particular product getting “pushed” to the client are low.
That is not the case with a fee-based model. Here, the wealth manager can earn a commission as well as a fee from the client. If the commission amount is significant, then there is a possibility that the wealth advisor may “market” specific products to the client even when the client could do without such products. Check out this guide on choosing the best financial advisor for individuals with $5 million to $500 million in liquid investible assets to learn more about the nuances of different fee structures.
The last model that we would like to mention is the commissions-only structure. It is pretty self-explanatory as commissions alone pay for the compensation of the wealth advisor. This model is somewhat rare but existent. Here, the wealth advisor may be completely driven by product commissions.
Wealth Management Firm Phoenix
Finding the best wealth management firm Phoenix has for your requirements can sound like a daunting task. However, if you break down the process into simple steps, then it becomes a lot easier. In order to find a top wealth manager to work with, you will have to find options, evaluate them using the knowledge from the above sections of this article, and then do a final evaluation to further screen the prospective options into a handful few.
But before you begin this process, there needs to be some self-introspection. You need to know what exactly you want out of your relationship with a wealth manager. In order to get more pointers on this step, we encourage you to read this short primer on 5 critical shifts needed to maximize portfolio growth strategies for families worth $5 million to $500 million.
Once you know what you want, you can start searching for wealth management firms in your area. These could be firms within Phoenix, throughout Arizona, or close to your zip code. Visit the websites of these firms and see the list of services offered. Read any blogs or articles in the media to understand the thinking and philosophy of the wealth manager.
Shortlist the most appropriate options and speak with each manager. A one-on-one conversation allows you to know the person behind all the testimonials and the resumes. Is this person someone you can trust with your hard-earned wealth? We encourage you to schedule a free conversation with Pillar Wealth Management as well, as you never know when you might discover something that could be useful to your wealth management endeavors.
One more tip – talk to your relatives, friends, business colleagues, and people you know. Chances are, they may already be working with a top wealth manager.
Big wealth management firm vs a niche firm
The wealth management industry is a competitive one. There are big-name Wall Street firms and then there are local/regional wealth management firms. The Wall Street firms clearly have scale. They are present in multiple states of the country and they have significant assets under management. Some of the firms also have their own mutual funds and asset management businesses. They can offer some pretty attractive investment options at a low cost.
The downside of working with such a huge firm is that it is answerable to its shareholders. It is positioned to grow in volume and increase its assets under management number. Therefore, the services tend to be standardized and clients may get bucketed into categories like “high-risk” and “low-risk”.
A boutique firm with a limited number of clients tends to be more personal. Someone like a Pillar Wealth Management will know every client by the first name. The wealth plans can also be more customized as a smaller firm has positioned itself for depth rather than volume.
Ultimately, the choice that you make depends on what kind of setup works well for you. If you have a diverse set of needs yet want someone like a family doctor that you can call anytime and get a human being to answer on the other end, then a smaller firm makes sense. If you feel more comfortable working with a brand name firm, then a Wall Street option can work.
Could Pillar Wealth Management be a good fit?
We have talked about finding the right wealth management firm in the sections above. However, wealth management is a personal topic. Every high net worth and ultra-high net worth individual’s financial lives are different. The decisions to be made and the motivations of every individual are unique. Therefore, the choice of the wealth management firm to work with is also different for every affluent person.
Pillar Wealth Management is a boutique wealth management firm with a focus on financial serenity. By that, we mean ensuring that our clients have their finances structured right and they can sleep peacefully at night without worrying about the next market crash wiping out their portfolios. The firm achieves this philosophy of financial serenity by focusing on the client and providing white-glove wealth management services. Pillar Wealth Management took up only 17 new clients last year in order to ensure that it can concentrate on each client portfolio and give it maximum attention.
Pillar Wealth Management also makes a unique commitment to saving the client $100,000 for every $10 million in liquid assets that a client brings in for management. Feel free to call us to discuss how we deliver on this commitment. Pillar Wealth Management is a proactive wealth manager and it regularly stress tests all client portfolios regardless of whether the economy is doing great or going through a downturn.
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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