Wealth Advisors for High Net Worth Individuals

A wealth advisor focused on affluent individuals brings to the table a level of financial planning and investment management that is precisely focused on the complex needs of those individuals. They offer strategic advice covering the entire spectrum of wealth management, from accumulation to preservation, and from preservation to strategic distribution of assets, working with precision and foresight to achieve the financial objectives of their clients.

Table of Contents

• How to Find a High Net Worth Wealth Advisor
  • Look for advisors with extensive experience in long-term financial planning
  • Steer clear of advisors primarily focused on selling products
  • Arrange several interviews to thoroughly assess potential advisors
  • Opt for advisors offering a wide range of services, not just asset management
  • Choose a firm that is well-equipped with the necessary resources to manage your wealth effectively
• What do wealth advisors do?
• Wealth advisory services
• How do I find a wealth advisor?
  • Pillar Wealth Management
    • The concepts of personalization
    • Investment Management
    • Financial Planning
    • Risk Management
    • Estate Planning and Trust Services
    • Tax Planning
  • Zoe Financial
  • Harness Wealth
  • Facet Wealth
• What to look for when interviewing wealth advisors?
• The difference between a financial advisor and a wealth advisor
• Is a wealth advisor worth it?

Wealth management for high net worth individuals covers multiple critical areas, including intricate tax planning strategies, comprehensive estate planning, and structuring philanthropic efforts. It focuses on effectively meeting the unique challenges of managing substantial wealth. These professional advisors help to enhance and protect their clients’ financial legacies. They can guide the client through the complexities of cross-border investments, manage the impact of market volatility on a large portfolio, and advise on the legal subtleties of transferring wealth across generations.

The wealth advisor’s approach goes far beyond mere financial management, requiring deep knowledge of the client’s life goals, aspirations, and values.

This approach facilitates a viewpoint from which the wealth advisor can align financial strategies with the client’s personal milestones, such as planning for their children’s educational needs, giving to meaningful causes and charities, and enabling conflict-free succession planning for family enterprises. Thus, wealth advisors to high net worth individuals play the role of the chief architect of the financial affairs of their clients by applying a blend of expert knowledge, strategic foresight, and personal attention to manage and grow the wealth of their clients in a way that resonates with their personal and ethical values. This holistic, client-centered approach assists in dealing with the complexities of wealth and supports the personal vision and long-term aspirations of the served clientele.

How to Find a High Net Worth Wealth Advisor

A colorful observation by F. Scott Fitzgerald in his short story “The Rich Boy” insightfully says, “Let me tell you about the very rich. They are different from you and me.” And that difference definitely plays a role in an analysis of the specialized services geared toward the elite investor in search of financial advisory services.

Mass affluent individuals might need a more nuanced approach than the one offered by common financial advisory services, such approaches being required by those with $100,000 to $1 million in assets. In contrast, high-net-worth individuals will have over $1 million in assets, although no clear threshold has been agreed upon by most professionals.

The high-net-worth individual has an important decision to make in the selection of a financial advisor, driven by a very complicated financial landscape. At the very least, these clients need a financial advisor—who might be one in a team of advisors—able to competently handle large and diversified portfolios and difficult tax matters in a way not available in most typical financial planning practices. Below are some of the strategic tips for helping you choose an advisor that rhymes with your sophisticated needs:

• Look for advisors with extensive experience in long-term financial planning.
• Steer clear of advisors primarily focused on selling products.
• Arrange several interviews to thoroughly assess potential advisors.
• Opt for advisors offering a wide range of services, not just asset management.

Go for a firm that has the resources it needs to manage your wealth effectively.

Follow these guidelines to navigate the complexity of finding a financial advisor who meets—or exceeds—the sophisticated demands typical of high-net-worth portfolios.

Look for advisors with extensive experience in long-term financial planning

“Sustainability is a very large concern of theirs, especially long-term sustainability of their assets,” says Adam Carlin, a private wealth advisor at Morgan Stanley Private Wealth Management in Coral Gables, Florida. He notes that clients frequently measure this in terms of how many future generations or charitable endeavors might benefit from the assets they have amassed. “The challenge for these clients is to find an advisory team that can craft a comprehensive financial strategy tailored to the unique needs and circumstances of each family,” he explains.

This need for a customized approach often narrows the field of suitable advisors, as high-net-worth clients require services that go beyond standard financial planning. They seek advisors who are not just proficient in financial management but are adept at crafting strategies that resonate on a personal level.

Travis Maus, CEO of S.E.E.D. Planning Group in Knoxville, Tennessee, emphasizes the competitive nature of financial advisory for affluent clients. “High-net-worth clients are highly sought after; it often feels like everyone is vying for a piece of their wealth,” he says. This dynamic makes it crucial for clients to carefully select advisors who genuinely prioritize their financial health over mere profit from sales or transactions.

Steer clear of advisors primarily focused on selling products

Maus emphasizes the importance of finding a financial advisor whose compensation structure is transparent and straightforward, advocating for arrangements where clients pay directly for planning advice without any hidden obligations. He cautions, however, that such consultants, whose revenues are for the most part derived from sales of products or management of investments, have their primary allegiance seem to follow their sales goals, not the financial well-being of the customer.

The term “salesperson,” then, can apply to the advisor who earns commissions from selling financial products, such as mutual funds and annuities. This contrasts sharply with fee-only advisors, who do not take commissions but are paid by clients for their advice directly, thus reducing conflicts of interest in relation to the commission-based income.

Jen Reid, a certified financial planner and founder of Boston-based Base Financial Planning, knows that finding a really qualified financial professional can be difficult, as most are motivated by fat commissions on the sale of specific products. She points out that fee-only advisors prefer working with high-net-worth clients since their compensation usually constitutes some percentage of the assets under management. Hence, their pay increases with the growth the client’s wealth. For instance, a financial advisor with a fee of 1% would charge $10,000 as an annual fee for managing $! million.

This fee arrangement is quite different from that of an advisor who transacts and receives commissions from every product sold. As Reid has said, high-net-worth clients are advised to look for an advisor who charges a fee based on the complexity of the services rendered, rather than having a fee based on the percentage of the assets. She suggests using resources from firms such as XY Planning Network and Facet Wealth to find such advisors, as they only vet those professionals who adhere to a client-centric, fee-structured advising model.

Arrange several interviews to thoroughly assess potential advisors

Reid emphasizes the importance of conducting thorough interviews with multiple firms and advisors to find the best fit. “The interview process is highly informative,” she notes. “This is a great chance for you to judge how well you will get along with the advisor personally, and if, indeed, he or she does have the experience and expertise to handle your special set of financial needs.”

This can be a very important avenue for high-net-worth investors, as they would know where to find advisors who understand not only their financial goals but also share an interpersonal friendship to pave the way for better communication and confidence.

Matt Pruitt, founder of Exhale Wealth Management in Minneapolis, points out that high-net-worth individuals often differentiate themselves by their approach to wealth accumulation. “Many high-net-worth individuals have achieved their financial status by embracing risk—starting businesses or opting for equity compensation over traditional salaries,” he explains.

Given this unique path to wealth, Pruitt advises, “It’s essential to partner with an advisor who specializes in dealing with clients who have similar backgrounds and financial histories. This specialization is more beneficial than working with someone who generally caters to the high-net-worth market.” He further suggests that every aspect of an advisor’s practice—from their website and marketing materials to their onboarding process—should resonate with and be specifically tailored to the client’s needs, especially at higher wealth levels. This tailored approach ensures that the services provided are not only precise but also deeply aligned with the client’s unique circumstances and aspirations.

Opt for advisors offering a wide range of services, not just asset management

The spectrum of services and strategic approaches necessary for high-net-worth clients extends well beyond the boundaries of traditional asset management. Managing substantial wealth involves understanding and optimizing cash flow and spending to achieve objectives such as capital preservation, philanthropic efforts, and comprehensive estate planning. 

According to financial advisor Reid, “High-net-worth individuals should have access to a top-notch tax planning team and skilled estate planners and attorneys.” She highlights the increased complexity of financial arrangements for wealthy clients, necessitating a variety of legal documents, including prenuptial and postnuptial agreements, wills, trusts, designations of beneficiaries, powers of attorney, and healthcare proxies.

Karen Harding, a partner at NEPC’s private wealth practice group in Portland, Oregon, expands on the additional services that should be considered by high-net-worth clients, which encompass financial and estate planning, advanced tax strategies, detailed financial reporting, philanthropic advisory services, and even specialized management for properties, household affairs, and aviation. 

Furthermore, these services can extend to providing financial education and support for family members. Most firms, according to Harding, do not necessarily offer all these services, but in most cases, they have partnerships with outside providers so that the different needs of a complex client are adequately taken care of. It encompasses a full array of support services in various individual situations and goals of high-net-worth clients.

Choose a firm that is well-equipped with the necessary resources to manage your wealth effectively

Harding emphasizes the importance for high-net-worth clients to carefully evaluate whether a potential advisory firm possesses not only the adequate resources but also a team that has the necessary technical skills and professional qualifications to manage their complex financial needs effectively.

“It’s crucial to choose an advisor with extensive experience in handling similar financial situations and who is both trustworthy and approachable,” Harding advises. “The significance of a positive and productive working relationship cannot be overstated—it’s fundamental to successful financial management.”

Carlin also highlights the preliminary steps in selecting a financial advisor, stressing the need for clients to explicitly outline their financial goals and the specific services they expect.

“Without a clear set of objectives, it becomes difficult to gauge the effectiveness of the advisory relationship down the line,” he notes. “Defining what you hope to achieve, upfront, will provide a clear benchmark for assessing the performance and success of your financial strategies.”

What do wealth advisors do?

Wealth advisors are financial professionals who help the elite sector of society. They provide a wide range of financial planning services, besides investment management, for matters regarding estate planning, tax strategies, and even legal advice. Their customer base often includes those with complex financial portfolios and the need for a broad scope of financial services, from trust management to philanthropic planning. Dealing with such complicated services, most wealth advisors insist on a very solid minimum investment by the client; in most cases, the amount is counted in millions of dollars, surely highlighting the exclusiveness and high level of services provided.

But the term “wealth advisor” does not refer to professionals regulated by a specific body. Just as for other financial consultants or advisors, there isn’t a specific degree of education and certification that warrants the title “wealth advisor.” However, wealth advisors normally have a number of licenses and professional designations that allow them to operate in complicated financial situations. Such credentials include Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA), whereby the advisor demonstrates competence and a high level of dedication to their career.

In choosing a wealth advisor, the would-be client needs to look far beyond the title—to the qualifications, experience, and services they offer. Many wealth advisors increase their level of credibility and professional stature through advanced degrees in finance or a related field, coupled with a number of industry-specific certifications. This mixture of academic education and professional license certainly positions them to address the very high-value assets and sophisticated service requirements of their high-net-worth clients.

Wealth advisory services

A wealth advisor could be considered a complete professional in finance, helping clients with more than what an average financial manager can provide. Wealth advisors are prepared to address virtually any aspect of the financial life of the client, often offering services that may not seem to be financial in nature.

Wealth advisors offer various financial services, from the design of individualized investment strategies meeting the goals and risk tolerance of their clients. Estate planning is also offered to safeguard the client’s assets and ensure their efficient transfer to the heirs and beneficiaries through mechanisms such as wills and trusts, including managing taxes.

Other major service areas include philanthropic planning, whereby advisors help their clients channel their wealth toward charitable causes in the most tax-efficient way. For business owners, succession planning is crucial; it ensures a smooth transition and continued operations. Wealth advisors also devise advanced tax strategies aimed at reducing liabilities and increasing earnings.

Furthermore, socially responsible investment has come onto the scene and become popular with clients who want to make sure, based on their values, that their money is used responsibly. In addition, some wealth advisors work to make sure their clients can get the best medical attention. Some wealth advisors can help devise gift and distribution plans and manage issues like stock options and Restricted Stock Units (RSUs), which becomes necessary for people at executive levels.

How do I find a wealth advisor?

Pillar Wealth Management

Pillar Wealth Management is a financial services firm oriented toward high-net-worth individuals. It offers individual wealth management, financial planning, and investment management services. The following describes the likely characteristics of a firm of this caliber:

The concepts of personalization

Companies like Pillar Wealth Management offer precisely tailored wealth management solutions to their high-net-worth customers. This is an all-inclusive service based on an extensive assessment of the financial position of the client, looking deeply at their current wealth status and aspirations. The strategies formulated are highly personalized and in sync with the client’s long-term financial objectives.

These strategies cover multiple areas of financial planning, including estate planning to ensure an orderly succession of assets, tax planning strategies to minimize tax liabilities, and wealth preservation methods to protect the client’s wealth over time. Pillar Wealth Management’s holistic approach helps not only in retaining the customer’s assets but also secures their financial legacy.

Investment Management

Investment services prioritize the cautious monitoring and strategic administration of a client’s investment portfolio to produce an optimum balance between potential risks and returns and the client’s financial objectives and risk tolerance. “It’s a process that tries to invest in everything, including: among others, stocks, bonds, mutual funds; and even alternative strategies to investments.”

Each investment vehicle provides a different cocktail of risk and return; thus, it will be selected based on its ability to meet the client’s investment goals, timelines, and comfort level regarding potential fluctuations in value. Investment services aim to grow the portfolio while managing financial risks through investment decisions that will satisfy the individual’s need to fulfill their long-term financial aspirations.

Financial Planning

Most importantly, wealth management includes a full suite of planning activities, from retirement to education funding, and it covers more sophisticated needs like planning for liquidity events or devising legacy plans. Its main purpose is to elaborate and customize a comprehensive and exhaustive financial roadmap.

This roadmap is meant to guide the client toward their financial goals and desired financial future over the long term. It enables the client to feel confident about their financial strategies, preparing for current needs and future aspirations.

Risk Management

Wealth management often involves advising clients on how to ensure their hard-earned money is safe and protected against a wide variety of contingencies—through insurance and other risk management techniques, which is an important part of financial planning. Effective asset protection strategies ensure both the individual and their family have strong financial resources to face any potential risks such as litigations, economic recessions, and personal emergencies.

By combining insurance with other wealth protection approaches, Pillar Wealth Management is able to reduce a client’s susceptibility to financial losses, thus leading to long-term financial security and peace of mind.

Estate Planning and Trust Services

Estate planning is important to HNWIs in search of mechanisms that ensure the security and proper distribution of their wealth. Through comprehensive estate planning, they decide how and to whom their assets will be allocated after death. This is important not only in delimiting the assets’ distribution based on personal wishes but also plays a major part in mitigating potential conflict among the beneficiaries. For you as a HNWI, this secures the peace of mind and financial security of your loved ones as you ensure your legacy is passed on the way you want it to be, through clear directives via wills and various other legal instruments.

Another important aspect of estate planning is the establishment of trusts, primarily used by high-net-worth individuals—trusts provide a great way to manage their assets. They offer much better control over when and how wealth is handed over to the beneficiaries, which is particularly helpful to the heirs in that it helps mitigate estate taxes by offering the assets protection from creditors and lawsuits. 

Furthermore, trusts can be structured to support a philanthropic cause or the special needs of a beneficiary, thus ensuring that the trustor’s wealth is used for purposes beyond passing it on to the family. Adding the creation of a trust to estate planning provides a more customized way to handle and manage assets according to the trustor’s financial and personal goals for the future.

Tax Planning

Strategic advice on minimizing tax liabilities by legal means is an important service for both individuals and businesses aiming to optimize their financial planning. Our services include detailed and comprehensive advice with respect to existing tax laws and regulations, as well as the likelihood of legislative changes in the future. An effective tax strategy would involve the use of deductions, credits, and allowances.

It may include structuring or restructuring income and assets in a more tax-efficient manner and considering the timing of income and purchases to defer tax liabilities. In a more sophisticated manner, tax advisors may advise on setting up trusts and charitable contributions or investing in tax-sheltered accounts. In short, each tax scheme is tailor-made for the customer’s financial status and future aspirations and will comply with the law.

For each client, this approach is designed to meet their needs and ensure all aspects of their financial situation are integrated into a plan reviewed and modified on a regular basis.

Zoe Financial

Operated much like a normal advisory firm, Zoe Financial takes on the role of primary “matchmaker,” connecting clients to the top financial advisors. The company prides itself on its ability to connect its clientele with the best of the best, who are professionals in the top 5% of their industry. Some of the prestigious designations that these financial advisors have to their credit are Certified Public Accountant (CPA), Certified Financial Planner (CFP), or Chartered Financial Analyst (CFA).

The fee structure of advisors associated with Zoe Financial varies. They usually work for a fee equal to a percentage of the value of the assets under management, varying from 0.50% to 1.50%. Some advisors follow a flat fee structure, providing an option for clients that prefer cost predictability. Importantly, Zoe itself does not levy any direct charges on clients for facilitating these connections, which underscores its client-centered approach.

Beyond standard financial advisory and investment management services, Zoe’s network includes professionals who offer comprehensive tax planning. This aspect of Zoe’s service is particularly valuable for clients looking to optimize their tax situation. Moreover, some advisors in the Zoe network also offer tax preparation services. This marriage of financial management with tax expertise offers a comprehensive perspective on personal financial planning, ensuring the client receives detailed and integrated advice aligned with their unique situation and goals.

Harness Wealth

Much like Zoe Financial, Harness Wealth makes available to its clients the trusted community of fiduciary, fee-based financial advisors. The firm connects clients to its pool of fiduciary financial advisors. This network consists of a range of professionals, including Certified Public Accountants (CPAs), Certified Financial Planners (CFPs), Chartered Financial Analysts (CFAs), and tax attorneys. Most importantly, Harness Wealth never charges clients for connecting them to this network.

The advisory firms in the Harness Wealth network usually charge some percentage of the value of the assets under management (AUM), usually around 1% but they may charge a flat fee for some specialized services, like estate planning. These flat fees range from around $1,000 to $5000, depending on the complexity and scope of the service.

Where Harness Wealth really differentiates itself, however, is in the caliber of the advisors it offers—not just experts in the field but those who specialize in a wide variety of investment strategies. The advisors offer a wide range of products, from traditional, time-tested index-based investments with their low costs and wide market exposure to niche opportunities that enable clients to invest directly in private companies. 

Harness Wealth has not neglected clients in search of shariah-compliant investment options with which they can make investments while they adhering to their faith’s rules. With such a diversity of options, clients can align their investment strategies with their financial aims and ethical values. Thus, Harness Wealth is a flexible choice for literally any kind of financial need.

Facet Wealth

Facet Wealth has a membership-based pricing model that makes comprehensive financial planning more accessible and predictable in cost. The company charges an annual fee ranging from $2,000 to $6,000, structured to cover all-inclusive financial services instead of per transaction or consultation. This pricing strategy undoubtedly offers clients a more suitable way to manage their financial planning budgets.

Included in this annual fee is unlimited access to a dedicated Certified Financial Planner (CFP), ensuring clients receive consistent, personalized financial advice throughout the year. This professional is equipped to handle a wide array of financial needs that may arise. Specifically, clients receive guidance on investment management, involving strategies to build and manage an investment portfolio that aligns with their financial goals and risk tolerance. Retirement strategy is another critical area, where clients are assisted in planning for a financially secure retirement, including setting up retirement accounts, estimating future expenses, and strategizing the best time to collect social security benefits.

For clients with children or dependents, Facet Wealth’s services also cover educational savings plans, such as 529 plans or other investment vehicles that facilitate saving for college. Another area of assistance might include debt reduction, where clients can get help in developing strategies for reducing debt, be it from credit cards to mortgages. They also includes insurance planning to assure the client and their assets are well protected. Estate planning ensures the client is in full control of their assets and their transfer according to the client’s wishes, while dealing with the legal and tax consequences.

The company further sweetens the deal by offering free tax-loss harvesting to all customers’ taxable accounts. Tax-loss harvesting involves selling securities at a loss and replacing them with similar ones to offset taxes on both gains and income. This service includes optimizing tax liabilities so the client gets greater investment returns and thus possibly achieves higher overall growth in the investments over time.

All wealth advisors are dedicated CFPs and have a four-star rating or higher for their tax strategy capabilities, ensuring a high level of service. They also offer estate and legacy planning to comprehensively address future financial security.

When selecting a wealth advisor, it’s crucial to consider specific services that align with your financial goals. Ensure that any potential advisors not only offer but also specialize in areas most pertinent to your needs, such as tax planning, estate planning, or specialized investment strategies. This approach will help you secure an advisor who can effectively cater to your unique financial landscape.

What to look for when interviewing wealth advisors?

In case you have a lot of money and are thinking about hiring a wealth advisor, there is an important aspect to consider. Charles Zhang, CFP, is the president and CEO of Zhang Financial in Portage, Michigan. “Ideally,” Zhang says, “a live, human advisor with proper professional qualifications should at least have one of these state-of-the-art designations: Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), or Chartered Financial Consultant (ChFC).”

Zhang goes further to illustrate the benefits of dealing with a diversified team of advisors, each with their own specialty. For instance, it would make sense to have one advisor specifically for estate planning, and another for tax strategies, covering all aspects of your financial health from multiple expert viewpoints.

He says, “It’s important that the team has diverse expertise.” This approach doesn’t only broaden and deepen the advice on offer but facilitates an approach to financial planning that is more holistic and tailored. That ensures the applied wealth management strategy is sound, robust, and tailor-made for your specific long-term financial objectives while leveraging the different skills and knowledge that each member brings on board.

The difference between a financial advisor and a wealth advisor

As the name implies, a wealth advisor specializes in managing the complicated financial needs of high- or ultra-high-net-worth individuals, which is somewhat different from the services provided by other financial advisors.

“Wealth advisor” and “financial advisor” are the most common terms applied to finance professionals; the consumer needs to be aware that these individuals do not carry by default a title that comes from some form of accreditation. It is, therefore, very important, especially when seeking financial advice on investments, that the advisor is credible and registered. You can see if the advisor is registered as an investment advisor, from the Securities and Exchange Commission (SEC) or through tools like FINRA’s BrokerCheck.

When looking for a personal financial advisor, the investor should confirm that such a person has relevant professional credentials. There are four key credentials to look for; the advisor’s credentials need to be in line with what you’re looking to achieve from a financial perspective. For example, if your biggest need in financial planning is a tax issue, then a Certified Public Accountant (CPA) might much better befit your case than a Certified Financial Planner (CFP). Of course, validating those qualifications would involve visiting the website of the certifying body. For example, you would visit the CFP Board’s website in the case of CFP certification.

This due diligence ensures that the advisor has not only formal knowledge and an ethical grounding to help you but also the expertise that aligns with the financial services in question.

Is a wealth advisor worth it?

If you are a high-net-worth individual; in such a case, you almost certainly need a wealth advisor, who concentrates on complex financial portfolio management for affluent clients. The fees for a Private Wealth Advisor generally reflect the larger asset values required for basic investment management or other more straightforward types of financial advice. The cost and the scope of service will vary widely from firm to firm among wealth advisors.

There are alternatives for those who need help with financial planning but do not want to go through the process required to access private wealth management. Online financial platforms cover most financial advisory services, which can bring substantial cost savings compared to traditional in-person financial advisory services. 

That’s where these digital financial services come in, from automated investment management (called “robo-advisors”) to online financial planning tools and virtual consultations with CFPs. The platforms are ideal for individuals who may need assistance across the different aspects of their financial life, such as budgeting, retirement planning, and investment advice, among others, without necessarily subscribing to the management services on offer under private wealth management.

Frequently Asked Questions