High Net Worth Investment Advisors


Assets Under Management Is A Misleading Indicator

Kevin OLeary: What high net worth clients want from an Advisor

Charles Schwabs Investor Services saw net revenues increase 14.6% in 2017 compared to 2016. Wells Fargos net revenues were up just 4.9% in the same period.

Yes, that data is a bit old, but this is the point:

Did Schwab do better than Wells Fargo that year?

Well, yes, but not in the way you might think. According to Investopedia, that revenue growth was due mostly to increases in asset management and administration fees.

In other words, they made more money, but that doesnt mean you did.

Simply looking at revenue growth, income growth, amount of assets under management, and other indicators at various ultra high net worth wealth management firms doesnt tell you what you really need to know.

For a deeper look at the seven warning signs that matter most when choosing an advisor at an ultra high net worth wealth management firm, see The 7 secrets to Nigh Net Worth Investment Management, Estate, Tax and Financial Planning.

We consider this a fairly obvious point:

Bigger doesnt mean best for you.

Revenue growth simply doesnt tell the whole story, because you dont know how much money is being made from fees, taxes, and other costs paid by their investors.

Or, put another way: Revenue growth bears little correlation to portfolio growth for the customers.

Precise And Professional Investment Advice

First American Asset Advisory, LLC, the affiliated Investment Advisor to the long-standing broker/dealer, Morgan Wilshire Securities, Inc., manages strategic investment risks that, over the long term, consistently yield exceptional results.

FAAAs Investment Advisors will continue to offer the same type of precise, accurate and professional financial advice, which is custom-tailored to each investor.

Headquartered in Garden City, New York, FAAA adheres to principles of trust, honesty and integrity in everything the firm does. Our team of hard-working, loyal and respected agents are focused on developing life-long relationships with all of our clients.

  • A Client-First Focus

Hnwi Statistics At A Glance

Theres no doubt that the HNWI trend is in full swing as Americans continue to grow their assets. These statistics bear that sentiment out.

In 2019, the U.S., Japan, Germany, China and France were the top five countries by total HNWIs, according to CapGeminis World Wealth Report. The U.S. claims the most HWNIs, and 62% of the worlds HWNIs live in the U.S., Japan, Germany and China.

According to Spectrem Group, in 2020 11.6 million American households held a net worth between $1 million and $5 million . That figure was up 5.5% over the prior year.

Spectrum also found that the number of U.S. ultra-high-net-worth individualsthey count UHNWIs as owning between $5 million and $25 million grew 21.3% in 2020 to a total of 1.8 million households.

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Personal Capitals Retirement Planner

Personal Capitals Retirement Planner can help you figure out where youre at with your retirement plan, and if youre heading in the right direction, or not. This advanced feature enables you to create and track your spending goals and project portfolio valuations for the future. Once youve inserted all the information, the tool will collate it all and analyze it before telling you how everything is looking pretty neat!

Another cool thing about this is: there arent many of its kind. And, its features far outshine and outnumber the ones that are similar, including the many paid tools available.

This tool is detailed, comprehensive and informative. It includes a variety of variables, and allows you to create alternative scenarios so you can see how different plans would play out.

Another thing, you dont even need to enter any of the information manually all the stats are automatically populated. This simple feature immediately saves time and energy.

Home> investing> 10 Investment Options For High Net

How High

High-net-worth-individuals have access to exclusive investment options that regular investors may not have. The large size of the investible asset HNWIs have opened the doors for them to varied investment vehicles. However, many assume that with access to wealth and a plethora of planners, HNWIs may have smooth navigation with all things finance. In reality, an incredible amount of strategizing, planning, and investment allocation planning goes behind retaining, protecting, and making their wealth. For this reason, it is also highly recommended that HNWIs consult a financial advisorfor further assistance in managing their wealth.

In this article, we will explore the different investment options that high-net-worth individuals may consider including as part of their investment portfolio. Some of them are quite common however, most of them are one-of-a-kind investments that are available exclusively to HNWIs, courtesy of their high entry cost or risk-reward ratio.

But before moving on, let us understand who ahigh-net-worth individual is.

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How Much Do Wealth Managers Cost

After learning about how an ultra-high net worth advisor can help you, you may be wondering about their charges. So how much does an advisor cost?

If you hire an experienced wealth manager to help you with your wealth management needs, you will likely be charged a fixed annual fee based on the value of your assets. This management fee typically ranges from 0.25% to 1%.

How To Attract Uhnw Clients

This means that there is a sizeable niche for advisors who specialize in serving the ultra-wealthy, provided that they are equipped to serve the needs of these clients. This may require a sophisticated team of investment specialists who are more familiar with the unique financial and tax needs of UHNWIs.

Many large investment houses offer elite services to their wealthiest clients. For example, Deutsche Banks wealth management group, Deutsche Asset & Wealth Management, offers structured financing solutions, allowing the wealthiest clients to borrow against their private aircraft. Morgan Stanley has a dedicated Art Resources Team to help their wealthiest clients manage their portfolio of art assets.

UHNWIs may require specialized tax services if their wealth passes through multiple jurisdictions.

But you don’t need a full-sized investment bank in order to serve wealthy clients effectively. In fact, some suggest that many ultra-wealthy clients place a high value on receiving personalized investment services.

Sara Grillo, writing in Advisor Perspectives, recommends a “70 Deep” practice that focuses on quality rather than quantity. Instead of trying to serve as many clients as possible, she says, advisors can make more money in the long run by providing high-quality, boutique service to a select few.

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Financial Planning For High

Of course, not all people with high annual incomes are wealthy-yet. Many young people, particularly attorneys, physicians, and those in the biotech, engineering and finance fields, start their careers earning six-figure salaries.

Some of these future high-net-worthers are either not particularly adept at managing their own finances nor have the time to do so. Theyre often burdened with a boatload of debt, including student loans and have to calibrate between paying down debt and savings for future goals, like buying a home.

A financial advisor can help these young high-earners develop a plan for managing inflows and outflows, putting money aside to save for retirement, a new home, or their childrens higher education, and choosing appropriate life and home insurance options to provide financial security for their loved ones.

Personal Capital Best For Comprehensive Wealth Planning

How Financial Advisors Can Get High Networth Prospects to Love Them

Personal Capital Overview:

Personal Capital is a financial management powerhouse offering two different services:

  • Free software and financial tools for personal finance management including retirement planning, cash flow analysis, and net worth tracking.
  • Personal Capital Advisors a comprehensive wealth manager with dedicated financial advisors, a reasonable advisory fee, tax and estate planning services.

Over the last decade, Personal Capital Advisors has become so popular with wealthy investors that in July 2020, it was bought by the Colorado-based insurance company Empower Retirement.

Pros and Cons for the High Net Worth Investor

Personal Capital Advisors Pros

  • Offers sector weighted allocations, different from other robo-advisors and reputed to guard against excessive portfolio risk and improve returns.
  • Has fees that are competitive with traditional financial advisors.
  • Provides opportunities for tax-loss harvesting.
  • All advisors are Certified Financial Planners.
  • Offers tax, estate planning and advanced financial guidance.
  • Personal Capital Advisors specifically aim to meet the needs of high-net-worth investors.

Personal Capital Cons

Standout features

Free financial management planning and tracking tools. These are phenomenal and available to anyone, whether they are a client, or not. Even if you dont choose to have Personal Capital manage your assets, you should check out their free investment management tools.

Minimums and Fees


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How To Create A Personal Capital Account

You can sign up for Personal Capital through the website. You start by providing your email and phone number, then creating a password. Signing up to Personal Capital is quick and simple. Just visit the website and provide your email while creating a password.

After this, youll be asked some personal information including your name, age and the age you expect to retire at. Personal Capital does focus strongly on retirement planning.

Once youve provided the information necessary, you can begin adding accounts. Personal Capital access over 12,000 financial institutions, or alternatively, just add the name and address of your institution/s.

Firstly, Personal Capital will look at your financial accounts for the past three months and begin to analyse them. This analysis will set the foundation for Free Dashboard, and the recommendations that Personal Capital offers.

To upgrade to the Wealth Management Services youll need to get in touch with a financial advisor to kick start things. Or, if you wait a bit, a financial advisor will get in touch with you.

This process will require more information than the original set-up, such as documentation that confirms your identity. Then, you will be asked to link your accounts to transfer funds into your Pershing account where your investments will be held.

Finally, a portfolio will be created based on all of the information gathered, including from the questionnaire and your call with the financial advisor.

Invest To Protect Against Inflation

Inflation is likely to play a major role in all areas of our finances, and investments are no exception. You should think about how inflation may impact your financial goals and how you can invest to protect against inflation up to and through retirement.

The stocks in your portfolio can serve as a great long-term hedge against inflation. While never guaranteed, the stock market has historically provided a return that exceeds the rate of inflation .

Some fixed-income investments address inflation directly. Those include:

  • Treasury Inflation-protected securities. These bonds pay a fixed interest rate, but the bond’s principal amount is adjusted every six months to reflect changes in the consumer price index. The dollar amount of interest you receive is based on the interest rate and the new principal amount.

  • I Bonds are another treasury bond type with a built-in inflation adjustment. Instead of a principal adjustment, the interest rate on these bonds will increase when inflation rises.

Bonds also offer investors liquidity, which frees them up to make major purchases, cover planned higher tax bills, and improve cash flow.

In addition to bonds, real estate and value stocks have historically proven to be a strong hedge against inflation.

Heres more on how to protect your portfolio against inflation.

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What Is Personal Capital

Although weve given a brief outline of Personal Capital above, lets get a little more specific.

First, a clarification is needed that although Personal Capital has placed top in our robo-advisor award, the company does not identify solely as a robo-advisor, but a digital asset management service. This is because the firm also provides a Private Client service a personal financial advisor to clients that can be contacted as much as you need them.

That being said, Personal Capital was also one of the first to lead the way for automated elements and putting tools directly into the hands of customers. Which is why it falls into the Robo-advisor category too.

Just under two million people use Personal Capital in one of these two ways. The robo-advisor tools, collates data from your available accounts and analyses it before recommending the best options moving forward to increase returns. These tools are useful for traders at all levels, no matter your chosen bank or investments.

The companys Asset Management Service offers an on-call private financial advisor for clients with a high account minimum of $100,000 to start. While this does have the potential to put a lot of investors outside of the companys audience, anyone who can meet this target will reap the benefits.

Most clients do primarily use the free version, although the Wealth Management Service is growing and now has over 18,000 clients, with a combined total of $8 billion in assets under management.

Personal Capital Is Best For

3 Things Ultra High Net Worth Investors And Their Advisors Do

Although this article will be more focused on high-net-worth investors, if you categorize yourself as one of the following types of traders, or with the following needs, then read on. This review is applicable to you, too.

  • High-net-worth investors
  • Quality financial management tools
  • Personal financial advisor

Now listen. The sheer nature of Personal Capital is more unique than other easily categorized advisors. But, thats not all that makes them stand out.

Their services, tools, and features are also unique in their own right and might just be perfect for your individual needs. You might even find some features you never knew you needed until now.

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First American Asset Advisory Llc

First American Asset Advisory, LLC is fully invested in providing exceptional financial advice. We have over 100 years of combined experience working for high-net-worth individuals. While many financial services companies over-promise and under-deliver, First Americans Investment Advisors exceed every expectation.

Youre Our First Priorityevery Time

NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

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Capital Gains Annual Exemption

Capital Gains Tax is the tax due when you dispose of assets that have increased in value. Disposing in this context can mean the selling or gifting of assets. Everyone is entitled to a tax-free CGT exemption of £12,300 in 2022/23, after which any further capital gains are taxed at the following rates:

20% 28%

Your annual CGT exemption is a use it or lose it exemption, meaning that any unused amount cannot be carried forward to be used in a future tax year. This makes it important to ensure that you are using the exemption each year where possible to gradually reduce any capital gains in a tax efficient manner.

Where you are married or in a civil partnership, you have the opportunity to double the CGT exemption available to you. This is because transfers between spouses are exempt from CGT, meaning that you can pass assets between husband and wife or civil partners to use both CGT exemptions. Any transfers must be genuine and unconditional gifts from one party to the other.

If you have previously made a loss when disposing of an asset, this can be used to offset any future capital gains. Losses must be claimed from HMRC within the 4 tax years after the tax year in which the loss occurred but, once claimed, can be carried forward indefinitely to offset future capital gains.

What Is The Average Cost Of A Financial Advisor

WORKING WITH HIGH NET WORTH CLIENTS [Financial Advisors & Insurance Agents]

In 2021, the average fee for a financial advisors services was 1.02% of assets under management annually for an account of $1 million, according to research done by Advisory HQ News Corp. A 2019 RIA in a Box study of more than 1,350 registered investment advisor firms put the total industry average advisory fee at 1.17%, decreasing depending on the size of your account.

However, high-net-worth individuals may pay less, because the fee structure works on a sliding scale. A reasonable fee would be 1% at $1 million down to 0.50% at $10 million and 0.10% thereafter, says Ryan ODonnell, CFP, wealth manager, and founding partner of the ODonnell Group in Chico, Calif.

In other words, clients should expect to pay a maximum of $50,000 on a $10 million account. Online advisors have shown that a reasonable fee for money management only is about 0.25% to 0.30% of assets, so if you dont want advice on anything else, thats a reasonable fee, says ODonnell.

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Who Manages High Net Worth Individuals

Experienced financial planners typically handle wealth management for high-net-worth individuals. Because your financial situation is complex and unique, your investment planner will work closely with you to fully understand where you are now and where you’d like to go. We provide close attention to detail and the white-glove service you deserve.

Financial planning for high-net-worth individuals includes frequent updates about the status of your investments and any opportunities that we see that align with your goals and your risk tolerance. Financial planners at this level are in tune with the stock market, real estate investment opportunities and alternative investments. We’re here to answer all your questions with knowledge and confidence and anticipate your needs.


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