A wealth advisor is an individual who works on behalf of wealthy clients. These professionals provide financial advice and other services to a range of clients, from ultra-high-net-worth individuals to high-net-worth individuals. Depending on the client’s needs, a wealth advisor can also help with tax matters. Here are some reasons to hire an advisor:
Your unique circumstances and goals will determine the type of advisor you need. A high-net-worth individual may want an investment manager, tailored advice, and financial guidance. A middle-income individual may need a wealth manager who can help them navigate across their entire financial plan and preserve their wealth. The minimum account balance needed to work with a wealth advisor varies between firms. Typically, the minimum account balance is around $250,000, but you can find one who accepts smaller amounts to avoid fees.
A wealth advisor will help their clients meet their goals by planning for the future and avoiding pitfalls. This professional can coordinate with your accountant and attorney to help minimize taxes and maximize investments. They can also help with estate planning. Often, this involves more than simply drafting a will. In fact, a wealth manager can help you create a trust to benefit your dependents. Working with a wealth advisor can prevent unpleasant surprises for your family after your passing.
In addition to a high-level of expertise, a wealth advisor should have a strong social skills and be a natural people person. They should also love the market and stay abreast of changes in the laws that affect the financial world. An individual with high-level education will have a greater chance of finding success as a wealth advisor. There are several other factors that make an advisor stand out in this field. This includes the ability to communicate effectively with clients and a passion for pursuing the highest level of financial expertise.
There are a few differences between a wealth advisor and a financial planner. While financial advisors are more focused on investing and tax planning, wealth managers focus more on managing high-net-worth clients’ assets. A wealth manager also works closely with a team of professionals and has the benefit of a holistic view of an individual’s assets. A wealth manager also has a better understanding of estate planning, which is important if you’re a high-net-worth individual.
Investment adviser fees will vary widely. Some fee-based advisors receive commissions when they sell products, while others charge their clients by the percentage of their assets. The SEC’s Investment Advisor Public Disclosure website offers resources to help you understand the fees and charges of wealth management advisors. When selecting a wealth manager, consider the fees they charge and the minimum account size. Some wealth management firms will have lower minimums than others, so consider these factors when selecting a financial advisor.
Investment platforms are different from financial advisors. Many people don’t realize that a financial advisor may be affiliated with more than one firm. If you’re looking for a fee-only investment advisor, look for an organization that values your clients’ best interests. The SEC has strict rules about investment firms, so be sure to research the fees you’re considering. Using a fee-only investment model makes it easier to monitor your investments.