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Insider Tips on How to Choose the Best Wealth Management Firm

Eric Brown - Mar 11, 2021
Fortunately, while there are some uncertified advisors out there, there are also a lot of professional wealth management firms that can help you with effective wealth building and financial planning.

It’s vital that you do your due research when looking for a reliable wealth management firm. Getting someone to manage your investments and wealth is no joke, and you don't want to hand that job to an uncertified stranger who's a self-proclaimed financial advisor.

Fortunately, while there are some uncertified advisors out there, there are also a lot of professional wealth management firms that can help you with effective wealth building and financial planning. If you want to know how to spot one of these, keep reading as I share the top insider tips on how to choose the best wealth management firm.

Find Out What Their Ideal Client Profile Is

One of the first places to start when looking for the best wealth management firm for your needs is to ask what their ideal client profile is. Wealth management firms often only cater to specific types of clients. This could mean that most of their clients have a certain amount of total assets or that they specialize in an area of investment strategies.

To ensure that the firm you choose is a good fit for your needs and goals, ask whether you fit their ideal client profile. If the answer is yes — then they might be a good fit for you too.

Get a List of Their Services

The next thing to do when looking for a top wealth management firm is to find out exactly what services they offer. While some firms might just offer financial advice, others might sell financial products and be able to assist you with things like a legal will or estate planning and insurance plans.

In most cases, it's best to find a wealth management firm that offers an array of services. Even if you don't need all of them right now, there might come a day when you need your financial advisor to help with new areas. If they can't assist, then you'll have to go through the hassle of finding someone new to advise you on those areas.

Find Out About Pricing

Another important consideration when it comes to finding the best wealth management firm for your needs is pricing. In general, it's best to focus on value over price. What this means is that instead of looking only at what you'll likely be paying, you should also consider what you are getting.

A financial advisor's job is to help you grow and protect your wealth. If they can excel at this and fast track your wealth-building strategies, then they will be worth a higher fee than someone who doesn't protect your assets and only achieves sub-par growth over your portfolios.

At the same time, you also need to consider experience and qualifications. The last thing you want is to have a financial advisor who is inexperienced and only thinks of their take-home percentage.

There are two common pricing structures when it comes to wealth management. One is percentage‑based. Here, advisors earns a percentage of your portfolio growth. The other structure is fee-based. Here, advisors earns a monthly fee for their services.

Both of these structures have their pros and cons. With percentage-based commissions, advisors are more motivated to grow your assets. On the other hand, this can trigger some advisors to "sell" to you. In contrast, fee structures do not incentivize advisors.

At the end of the day, the best deal (regardless of the fee structure) will be the most experienced advisor who has the most financial insight and a track record of success.

Ask Questions About Your Advisor's Qualifications

When interviewing a wealth management firm, it's essential that you inquire about the qualifications of the advisor who will be working with you. Don't be shy to ask for proof of certification.

Besides asking for qualifications, inquire whether the wealth management firm or the advisor has won any awards or special recognition.

Clarify How Often You Can Expect to Hear From Them

Different people have different needs and expectations about how often they wish to hear from their wealth manager. Some people might want to have weekly updates and communications, while others might be happy to only check in on things bi-annually.

Make sure that your communication needs align with what your wealth manager will provide. If you are looking for monthly advice and updates, and they only contact you every quarter — this is a fast-track route to dissatisfaction.

Scope Out Their Previous Performance

Another important thing to do when looking for a top wealth management firm is to research their past performance. There are a few ways you can do this.

The best place to start is usually by doing a Google search and seeing if they have any online reviews. You can also look them up on places like the Better Business Bureau and see if there are any reviews or information.

By searching online, you should also be able to see if the firm in question has won any awards or is part of any special industry-related associations.

Are You Looking for a Reputable Wealth Management Firm?

Although there are a number of unqualified financial advisors out there, there are also many reputable firms. If you employ the above tips, you're bound to find a wealth management firm that's committed to helping you build and secure wealth.

Why not start with Graham Wealth Partners? Instead of Googling "wealth management firm near me", take a look at our services page. We offer a range of financial services, including estate planning, insurance, tax planning, and more. All of our wealth managers are certified and experienced. We are committed to our clients' financial success.

Do you have questions for us? Contact us today, and a member of our team will be happy to help.