By Vincent Birardi, CFP®, AIF®, Wealth Advisor
In an increasingly complicated advisor landscape, searching for a High Net Worth (HNW) wealth advisor to entrust with your finances and aspirations for the future can seem overwhelming. As with most important matters in life, why not begin with the people you trust? A great place to start is to ask close friends and family members for their experiences and recommendations; professionals, such as tax and estate planning, can also be a great resource.
If you’re actively considering working with a HNW wealth advisor, here are four key questions to ask – and responses to look for.
Questions to ask a wealth manager
1. What are the HNW wealth advisor’s professional qualifications and years of experience?
In terms of job title and function, look for a Certified Financial Planner™ professional and “wealth advisor.” These are practitioners who are trained to handle a myriad of financial issues HNW individuals and families typically encounter.
Ideally, your wealth advisor will have at least five years of experience. This will likely mean that they’ve worked through different market environments – including both up and down investment cycles. Therefore, they can provide guidance on helping you position your assets and stay the course with your investment strategy regardless of market swings.
2. Are they a Fiduciary?
This is the good F word. A Fiduciary wealth advisor is committed to acting in your financial interests.
As examples, A Fiduciary wealth advisor will:
- provide objective investment guidance and will not earn commissions based on such guidance
- not charge a fee for making introductions to other specialists such as tax and estate planning professionals
3. What comprehensive services does a wealth advisor provide?
A skilled wealth advisor is capable of offering guidance on many aspects of your financial life. This begins with overseeing your investments; specifically, recommending, implementing and monitoring a well-diversified portfolio of investments that evolve over time to coincide with where you currently stand in your life and where you want to go in the future.
You should also inquire about the many other aspects of wealth management. Services may include:
- Tax Planning – tax loss harvesting, identifying and taking advantage of available tax credits and write-offs, and converting Traditional IRAs to ROTHs in an effort to help reduce your tax bill in retirement
- Estate Planning – discuss wills, trusts, medical directives and powers of attorney to help ensure they are legally documented and reviewed periodically
- Insurance Planning – reviewing various forms of insurance periodically to help ensure you are adequately insured. This includes home, auto, life and umbrella insurance
- Education Planning – utilizing 529 plan accounts to save for future education expenses in a tax-efficient manner
4. How does the wealth advisor collaborate with other trusted professionals in your life?
You should consider a wealth advisor who is open to collaborating with your trusted tax, estate, and insurance planning advisors. Alternatively, whomever you decide to hire should be able to introduce you to other legal and financial professionals should you be in need of their services.
The right wealth manager can give you peace of mind
It may take a lot of leg work to find the right fit, but the management of your assets and planning for your future is important and can help you feel more confident about the future. It’s critically important to find someone who truly listens to your needs and goals.
Ready to discuss your financial future? Connect with Halbert Hargrove today to start building a personalized strategy for your goals.
Disclosure:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant. All opinions or views reflect the judgment of the author as of the publication date and are subject to change without notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.
