It’s fair to say that most people would like to have their own fortune, which may require the assistance of a wealth adviser.
If you are in a position where you require help managing your wealth and assets, you are at a level that others only dream of!
But having more money and a huge net worth can bring with it even more responsibilities that you may not be aware of. Even if your knowledge of finances and investments is quite good, you may want to consider hiring an expert to maintain your fortune.
A wealth advisor is a trusted financial partner. They want to make sure that your needs are met, and you’re set up for success now and in the future.
What do wealth advisers do? What should you be looking for when you are in need of one?
Table of Contents
What is a Wealth Advisor?
What is a Wealth Advisor?
What to look for in a wealth advisor
Where can I find a wealth advisor?
Wealth Advisor Vs. Financial Advisor
Is A Wealth Advisor Worth It?
What is a Wealth Advisor?
Wealth Advisors provide financial advice to clients who have already achieved financial success. They provide high-net worth individuals with financial advice, including estate planning and risk management, as well as strategic advice.
Wealth advisors focus on protecting and nurturing what their clients already have, rather than managing the daily finances like financial advisors.
Protecting your wealth will be crucial to your ability to maintain your lifestyle, and to protect your family’s future. Wealth management is the key to financial independence.
A financial advisor can also be called a “wealth adviser”. This title doesn’t require any specific education or certifications, but a good wealth advisor will have various certifications.
Would you trust someone to manage your money without the proper experience? I hope not!
What is the average income of Wealth Advisors?
Wealth advisors can earn lucrative salaries and enjoy generous commission structures. Junior wealth managers can earn between $90k to $150k. More experienced wealth managers may make up to 300k. It is possible to earn seven figures in this role. Your wealth advisor will take between 0.75% to 2% of the annual fee charged as commission.
What is a Wealth Advisor?
Wealth advisors or wealth managers are financial advisors who use a range of services, including financial and investment advice as well as legal and estate planning, accounting and retirement planning to manage the wealth of affluent clients for a set fee.
Wealth advisors don’t have specific jobs for each client, but they provide individualized advice and strategies based on their situation.
Your wealth advisor can take a variety of actions.
Private Banking Investments
Tax planning
Estate planning
Accounting
Retirement planning
Investment Advice
Trusts can be created by helping to create them
Philanthropy
A wealth manager or advisor is often present at prenuptial and divorce agreements, and other legal proceedings. This is particularly true when there are a lot of assets involved and if mediation is taking place.
What to look for in a wealth advisor
To work with a financial advisor, you will need to have a net worth or investment of at least a million dollars.
If you are at the point of needing help, and you want someone to manage your finances for you, then you will need to conduct some research.
You want to choose someone who you can trust to manage your money and wealth, regardless of whether it is a generational fortune or assets that you have built.
Compare wealth advisors or wealth management companies based on a few key features.
- Make sure that they know your goals
Do you want to grow your wealth? Are you interested in a plan that includes your family or a tax-advantage strategy? Are you looking for someone who has experience in giving and charity? Make sure that the advisor you select is aligned with your values and focused on your personal and specific goals. - Fee structure
The structure of a wealth advisor’s business will determine the charges and fees they charge. Some charge for the assets they manage (aka a percentage), while others charge an annual flat fee.
You can also pay a fee per project or plan if you work with specialized products. They may even take a percentage of your sales or purchases.
Before you sign, be sure to know the exact cost.
- Accreditation and Certification
Verify that the wealth manager you choose is accredited and certified. You won’t be interested in non-qualified candidates, but you should ask for proof before you enter into a relationship.
Be careful when choosing a wealth adviser. Anyone can claim to be one without formal training or certification.
- Make sure the service is personal
Your lifestyle, your money and your needs will be completely different from those of the other clients. Select a wealth manager that understands this and can offer a tailored service to suit your situation. You may not be able to use the strategies that work for others.
A team of advisors may be the best option for you, as each one has a unique skill. You can, for example, work with a firm that has three wealth advisors with different expertise.
- Trustworthy people are hard to find
You won’t trust your wealth advisor to protect your finances if you can’t get along. Take the time to chat with your wealth advisor and engage in multiple conversations.
It can be worth it to build a relationship with a trusted advisor. The fees can often outweigh them.
Where can I find a wealth advisor?
You’ll find a lot of financial service companies online that provide wealth management and wealth advisory services. Some companies are only interested in wealthy clients.
Two modern services have become very popular with both the average investor and the high-net worth individual.
Ellevest is an automated advisor that was designed for women. It is geared towards helping women achieve success with their finances and investments. Ellevest is available to anyone, but it also offers private wealth-management for those who have assets of $1 million or more. Ellevest provides a team to help you achieve your goals.
Personal Capital is a financial giant that has grown in recent years. It offers a wide range of financial tools for free, including monitoring your net worth and investing. Personal Capital also offers a wealth-management option, which includes access to personal financial advisors as well as other investment specialists. There are three levels of service: $100k-$200k; $200k-$1 million; and private services for those who have more than $1 million in assets.
When comparing wealth advisors, you should consider what’s important to you.
What services do you need? What are your specialties? What is their experience and fees?
Talk to anyone you’re considering and go through everything.
Wealth Advisor Vs. Financial Advisor
Financial advisors work on the daily finances of an individual to help them build wealth and achieve financial success. A wealth advisor, on the other hand is a financial advisor who works with assets that have already been accumulated to protect your financial position.
Wealth managers have more power and can make financial decisions for you. Financial advisors, on the other hand, work more collaboratively and give you ideas to implement.
Wealth advisors are a good choice for those who want complete money management. They can manage any amount of money, from $500k to $1 million.
If you are looking for a specific service, such as investing in your future, tracking your goals, or budgeting, a financial adviser may be the best choice for you.
Tip: While a wealth advisor is not required to be accredited, you do want someone with a lot of experience and who has been through the right channels. Check out the Financial Industry Regulatory Authority BrokerCheck tool to confirm that an advisor is registered at the SEC.
Is A Wealth Advisor Worth It?
A wealth advisor is not worth the money unless you have accumulated a large amount of assets or a high net-worth. If your assets have increased significantly, and you lack key knowledge in different financial areas, someone with experience may be a great choice to work with.
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Wealth advisors, who are paid by you, can be very cost-effective over the long term, as they will save you money and help you grow and maintain your wealth.
