Wealth management is an important part of your future success. If you have invested money, it’s important to have a qualified portfolio manager. So, how do you know what firm is right for you? Choosing a wealth management firm can be overwhelming. That’s why we’re diving into the top tips to help make the decision easier.
How to Choose the Right Wealth Management Firm
The first thing you need to consider when hiring a wealth management firm relates to client relationships. Make sure you find a firm who cares about its clients and is passionate about helping you protect your investments. Your team is part of your life and they truly should care about helping you build your future.
Once you feel you’ve found a team will be a good fit, follow these tips before you commit.
1. Don’t let price dictate your decision.
Price is one of the easiest ways to differentiate firms when it comes to wealth management. It’s easy to pick the cheapest option. But, don’t let price dictate your decision. Rather than focusing on price, you should focus on value. What will you get from each firm? You can only truly compare firms if you know what you will get for the price you pay.
Some firms may be cheaper than others, but will they deliver the same as the more expensive firms? Discuss what types of clients the firm has worked with in the past. Will they be able to help you meet your goals? You need your team to care about your business and have the experience needed to meet your requirements.
2. Verify the credentials of potential wealth management firms.
When it comes to choosing a wealth management firm, you should sit down with the advisor who will be working on your account. Be sure to make it clear that you want to work with the advisor who you met with originally. Be sure to discuss your advisor’s credentials.
What is their professional title? Are they a certified financial planner? Do they have additional experience or certifications? Do their experience and qualifications give them the skills needed to handle your specific portfolio? Do you need estate planning, investment advisors, or financial planning? Is that their area of expertise?
It is the job of the wealth management firm to win you over, not the opposite. Jot down all the certifications and credentials your advisor shared with you. Then verify their credentials through a free tool like the one offered by Finra Broker Check. You should research your firm just as you would a potential employee. Discuss any work history they have relevant to your business or personal financial goals. Be sure everything lines up before you make a decision.
3. Discuss how your advisor will get paid.
Financial planners get paid in different ways. It’s important to realize that some CFPs get paid on commission. This means they make money off the products or services you purchase from them. Others simply charge a set rate based on your portfolio size and requirements. Be sure whoever you hire is as invested in your investment management as you are.
It is best to not hire someone who works on commission. They might not have the best intentions when it comes to your portfolio. Because they need to make money, they might sell you financial products you don’t need. Find a wealth management firm that works on set prices rather than commission based earnings.
Picking the right wealth management team for your portfolio is important. The fate of your future can lie in their hands. It’s important to think this decision through thoroughly and be sure you pick the team that fits best with your needs long term. Don’t jump into making a decision until you’ve followed these tips and feel fully comfortable with your decision. Ask for referrals, do your research, and be sure you are sure about your advisor before you commit. Your finances and your future depend on it!
For more information on how a financial advisor can bring value to your life, check out this article! We have locations in both Los Angeles, CA and Tampa, FL to assist you with all your wealth management needs.