The Search for a Top Financial Advisor
We all want our financial journey to be clear, straightforward, and dependable. We want our growth to follow a steady upward trajectory with no surprises, anchored in wisdom and unshakeable strategy. But as we all know too well, especially in light of our pandemic world, life is rarely uncomplicated. The majority of us are not savvy in such complex topics as taxes, portfolio diversification, managing cash flow, assessing risk, investing strategies, charitable giving, retirement and estate planning. And even if we are experienced on one of those fronts, we cannot know the entirety of the details involved. Whether you live in Seattle, or anywhere in the world, as an individual with significant means, having your assets shrewdly managed is perhaps the most important decision you will make for your financial wellbeing. Utilizing the services of a certified financial planner (CFP) or financial advisor to build a strong foundation for your long-term wealth is not just an astute decision, it’s a decision your future self will thank you for.
Since 1992, Pacific Portfolio is proud to be an independent wealth management firm that advises and solidifies the financial legacies of individuals, families and businesses across the nation. With our unique insight into high net worth families and institutions, we are committed to long-term investment growth and simplifying the complexities surrounding financial management.
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But how can you find a top advisor, discern their investment strategies, or decide if they are a good fit for your needs? Our article “When the Time is Right: Hiring a Financial Advisor” answers these questions and more.
It is important to note that not all financial advisors are equal. Many have specialties or certifications that may or may not be fitting for your financial concerns. For example, at Pacific Portfolio, we maintain a high level of expertise in assisting individuals and families with financial needs surrounding such matters as portfolio positioning, estate planning, and retirement. As an independent firm, we are able to offer tailor-made financial solutions for all of our clients’ wealth management needs. Other advisors may need to sell their firm’s products. The takeaway is that you will need to find a financial professional that suits YOU – an individual who is prioritizing their financial wellbeing.
What Financial Firms Provide
For financial firms to be able to legally provide counsel, they must carry a license and maintain a code of ethics. This license ensures that they are qualified and capable of conducting business with high-wealth investors and businesses. Since advisors must manage assets and execute strategy on behalf of their clientele, finding one who has significant knowledge and strong financial expertise on top of their license is important. Competent advisors are often skilled in managing multiple financial matters, such as estate, tax, liquidation events, retirement, wealth, assets, and portfolio management.
Financial Advisor Services
Expert financial advisors are often the authorities managing:
· Tax Minimization and Planning
· Risk Tolerance
· Retirement Strategy
· Portfolio and Investment Management
· Business Planning and Liquidation Events
· Real Estate
· Financial Planning
· Legacy Services
· Charitable Giving
On top of this, they can provide referrals or a seamless integration with a team of professionals you may already have on retainer, like wealth advisors, insurance advisors, tax managers and more, streamlining the process and simplifying your life, all while ensuring your wealth is being optimally managed.
Do Wealthy Individuals Use Financial Advisors?
Absolutely! High-net investors utilize the services of top financial advisors to implement and maintain strategies for long-term growth in the smallest time span, so they can focus on other matters, like growing their businesses or taking care of their families. Ultra-wealthy individuals often cite the benefits of hiring a credentialed advisor with an excellent track record as one of the secrets to their success. A qualified advisor is dedicated to your financial wellbeing, minimizing stress and providing you and your family with a bright future by helping you to:
High-net worth individuals are experts in their fields of business, but not usually around managing money. A seasoned voice of knowledge regarding wealth can mean the difference between meeting long and short-term goals, or feeling lost in a sea of financial complexity. Financial advisors maintain a high level of aptitude in managing money so they can make discriminating decisions and better position their clients for success. For qualified counsel regarding issues surrounding loans, dept, inheritance, credit card management, business advice and more, a financial advisor can be a tremendous asset.
To learn more about how Pacific Portfolio creates customized financial strategies for our clients, click here.
Remain Objective
Many investors make the mistake of letting their gut instincts drive their decision-making. The financial market can be volatile, and as such, it’s a place where emotions can run rampant. A sharp-witted financial advisor has weathered the financial storms of the past and knows how to stay on track. Unmoved by fears and trends, they can be an invaluable source of advice during times of instability, providing you with confidence.
Make A Plan
Strategy is all-important in the financial world, and knowing how to adjust for dips in the market to be better positioned for long-term growth is the best way for individuals to improve their wealth outlook. Financial advisors provide data and perform market analysis to ensure that outlook stays healthy.
Save Your Money: Tax Minimization
With laws constantly in flux, tax issues are very common in our day and age. A qualified financial advisor has comprehensive knowledge of how taxes affect investors and can provide clients with strategies, including deductions, investment options, charitable giving, and more, to minimize the impact of taxes on their long-term wealth goals.
Make Room for Change
Life is many things, but it is certainly not static. Marriage, divorce, retirement, selling a business - these are all moments that carry financial impact. Throughout all of life’s milestones, a financial advisor can help you face sudden changes of plans with objectivity and thoughtfulness. They can help you make sensible financial decisions independent of emotions and alter your strategy when needed to be better prepared for the future, no matter what the current economic environment is.
Getting the Most Out of Your Money
Most individuals do not have the time or energy to maximize financial opportunities. The markets demand action on behalf of investors, to stay on top of their financial game. A financial advisor can take on the burden of handling your wealth options, ensuring that your financial goals are always the highest priority. Backed by a firm with additional expert resources and support, they can see to your financial wellbeing in the most advantageous way possible.
To read more about Pacific Portfolio’s team and our areas of expertise, click here.
Invest in Your Future: What Does it Cost to Hire a Financial Advisor
How much an advisor costs consists of several factors, including if they work for an independent firm or not. As a rule, financial advisors tend to service high-net worth investors and families. A good advisor will charge reasonable fees in compensation for successfully managing your wealth. Their success depends on your financial success, and they are driven to help you achieve your goals.
Advisory fees are generally around 1% of the assets that are managed. Exceptionally high-wealth individuals will often need to pay less, at around 0.3%.
At Pacific Portfolio, because we are an independent firm, we are fee-only, which means we are under no obligation to subsidize our firm’s income by selling products. This helps to ensure standards of integrity and optimal strategy for your portfolio. We do not charge on your cash flow after paying the fee.
Fees: What It Entails
Many advisors charge a flat rate fee for a one-time financial plan. There are generally five ways that financial advisors charge for their services, including performance, percentage of assets, commissions, hourly and fixed fees.
Finding the Right Fit
If you believe you are ready to obtain the services of a financial advisor, you might not know where to go to find a top-rated one. One of the best ways to start the search is with the advice of a trusted friend. There are very few things as reliable as personal experience. Word of mouth is how many qualified financial firms grow their clientele. Performance ratings are another factor that can assist you in finding the right fit. Apart from reviews and internet searches for advisors near you, it also helps to narrow down your search by using these five components:
Advisor Type
What many investors may not know is that there are different types of financial advisors. You will need to select the specialized expertise that you want your financial advisor to have, whether it is in retirement planning, liquidation events, or tax strategy. The key here is to find the advisor that has knowledge of your personal circumstances. Also determining how much assistance you will need can help clarify which advisor to choose. Some individuals may want clarification regarding their entire financial picture, including assets, investing, charitable giving, business, and more. Also consider how much communication you will need to feel comfortable. Many will want an advisor that is regularly available for consultation, and someone who will listen carefully to their concerns.
Pick a Fiduciary
A fiduciary is obligated to put their clients’ interests ahead of their own, bound both legally and ethically to a moral code of conduct. If you want a financial advisor who will serve your financial interests in a trustworthy manner, you will absolutely want to hire an advisor that meets this caliber.
The Advisor Skill Set
It’s no secret that a diverse portfolio can weather market dips better than one that isn’t, yet not all financial advisors take a comprehensive approach to wealth management! Make sure you hire an advisor that is skilled in the areas of healthcare, estate/legacy, investment, income, and tax planning. If any one of these areas is neglected, it can have a negative impact on the other four. For example, an advisor should factor in rising healthcare prices when looking at your retirement strategy. This is due diligence on behalf of the financial advisor, and common sense for your life.
Professional Credentials
Ensuring you have a qualified financial advisor or advisory firm means having familiarity with several acronyms. You’ll want to hire the services of advisors who have one of the following affiliations: CFP – Certified Financial Planner, CFA – Certified Financial Analyst, and CPA – Certified Public Accountant. You can also seek the services of financial planners who are PFS – Personal Finance Specialists. Once you have checked into their credentials, you will also want to ensure that they are a member of the NAPFA - National Association of Personal Financial Advisors. You can always check history records with FINRA - Financial Industry Regulatory Authority, SEC – Security and Exchange Commission, or the CFP Board. Do your homework! Only a legitimate advisor is legally allowed to provide services, but it is in your best interests to seek proof.
A Partner on Your Financial Journey
It is a great idea to secure the services of a financial advisor when you decide that it is in your best interests to seek the unbiased advice of an expert, as opposed to solely trusting your own choices regarding money. When it comes to investment management and helping your wealth to grow, having a financial expert to walk alongside you on your financial journey is a wonderful way of preserving your family’s legacy. Once you have found someone you trust, you will be able to build a foundation that will last a lifetime.
Maximizing Growth
Financially preparing for the future is one of the best opportunities you have for ensuring that you and your family will be protected in the years to come. But recognizing those opportunities and maximizing on their growth is not always readily apparent. Hiring a financial advisor is a significant way to make sure that you never miss an opportunity again, whether it’s a stock, a tax minimization strategy, or a piece of real estate.
Other Reasons to Seek an Advisor
The five core aptitudes of an advisor (healthcare, estate/legacy, investment, income, and tax planning) does not mean you are limited to seeking a financial expert who is only skilled in these areas! Our globally changing markets demand that financial advisors continue to learn, to gain an edge on market trends and investment opportunities, to make sure they are providing the most strategically sound counsel to their clients. They should have knowledge surrounding topics such as:
When it comes to financial services that involve the entire family, a financial planner should have a myriad of resources at his disposal. One of these is the intrafamily loan. Most commonly made from a matriarch or patriarch to one or all of their children, it works well for some families that want to provide liquidity for the next generation. Although demand for intrafamily loans has decreased with the option of gifting money, intrafamily loans are not uncommon. A financial advisor can help you to determine if this is in the best interests of your family’s financial wellbeing.
Rates of college tuition continue to go up every year with no signs of slowing. Student debt is also on the rise, doubling over the last decade. The last thing a parent wants for their child is post-graduation debt. A financial advisor can provide a tax-minimized college savings strategy that will relieve you and your loved ones of the stress of college expenses.
Sometimes life confronts us with investment opportunities that are outside of the norm. Advice regarding cryptocurrencies, once an off-the-grid investment tactic, is now a common request for most financial advisors. NFTs, or non-fungible tokens, which are part of the Ethereum blockchain, are also gaining ground in the markets. If this is something that you are particularly interested in, you’ll want to find an advisor who has significant experience and knowledge in this sphere.
As more focus is being centered on how companies affect the environment, especially by younger generations, a qualified financial advisor should have extensive knowledge regarding impact investing. Sustainable investing, or impact investing, are investments made to create measurable, positive environmental impact along with a financial return. A growing demand for this type of investing is changing how many sectors run their businesses. Financial advisors should pay close attention to this growing trend, as it is changing and continues to change how the markets are functioning.
What Sets Pacific Portfolio Apart
Every person in search of a financial advisor should ask what sets a firm apart. Delegating the management of your wealth to an advisor is a big decision, and should not be made lightly.
At Pacific Portfolio, we understand that prioritizing your financial wellbeing is one of the most important decisions you can ever make. We are committed to providing each and every one of our clients with a tailor-made long-term wealth strategy that will take them into a bright financial future. As an independent firm and a partner in your financial journey, we are wholly committed to your success.
We know that the true importance of wealth is ensuring you can spend time with those who matter most and doing more of what makes you feel fulfilled. As a firm with nearly 30 years of experience providing multi-disciplined financial guidance to individuals, families, and institutions, we have access to a wide array of solutions with proprietary processes to create a plan and strategy focused on the best possible results—which means more time spent on what you value.
Contact Pacific Portfolio to learn more about our services, and to see if we can help you reach your financial goals.
