Every Wealth Management Firm you come across will be different from the next. What is important is choosing the one that suits you the best. Wealth management advisors work with you to identify your financial goals and create an actionable plan to achieve them. If you want to build your wealth with the help of an advisor, we have identified five key points to keep in mind when looking for the right wealth management firm.
Five Things to Consider for Selecting the Right Wealth Management Firm
1. Know Their Pricing
While it is undeniable that a right wealth management firm will help you grow your wealth, they do not come for free. They are paid through fees for their services or through products that they sell.
Read More: What are Fee-Only Financial Planners?
When evaluating a firm’s pricing, consider how it will impact your earnings. If your return on investments is incredibly high, then a higher service fee would be justifiable. However, you do not want to pay a service fee that requires you to give up most of your earnings.
Talking to the advisor about their pricing system and how much wealth they expect to generate for you will give you a clear picture to determine if the firm is right for you.
2. Know Their Availability
Before meeting with a firm, it is important to know your availability based on your personal schedule and how often you want to meet with your advisor. Then, once you sit down to talk, you can ask what is typical of their clients and compare their answer to your expectations. Oftentimes, they will be willing to work with your needs and availability, but it is important to be on the same page.
3. Know Their Track Record
It is typical of a wealth management firm to market how many millions of dollars they are managing in the market— but what does this matter if you do not understand the growth they are generating for their clients? Once you have narrowed down the list of firms you wish to inquire, take a look at their reviews on the internet and try to find any background information you can.
If you have concerns, but are unsure of the validity, bring it up to the advisor that you meet with and you can make a decision from there.
4. Know Their Ideal Client
Depending on the size of the firm, they may have different ideal clients. Some wealth management firms want to work only with clients who have over $100,000 in assets, and some will work with you if you only have $10,000. If it is a large enough firm, they may not even meet with you unless you are a millionaire or billionaire. The point is— know your worth and what kind of client you will be. Then, search for a firm that matches your description. You can always meet with an advisor to discuss their ideal candidate if you are unsure.
5. Know What They Are Selling
Those in search of wealth managers are usually pretty clear about what they need help with from the firm. It is important to make preliminary decisions about your goals, so that you can find a firm that specializes in those areas. You do not want an advisor who is constantly trying to sell you on miscellaneous services, but rather someone that will focus on your specific goals.
Working with a Wealth Management Firm comes down to trust. You want to trust that they have your best interest at heart and will never leave you in the dark about your finances. Choosing a trusted fiduciary is the best way to guarantee financial security for yourself right now and in the future.