If you’ve been investing for a long time and want to turn the responsibility of running 𒐪your portfolio over to someone else, choosing a wealth management firm is one way to do 🐷it.

Before you hire a firm, however, make sure you’ve chosen someone who really cares about your future and wants to protect your investments. Read our tips below to see what you need to look for in a we𝕴alth management firm. 

What a Wealth Management Firm Does

Wealth management firms are financial advisors and managers who work with high-net-worth clients. They use a combination of financial planning and investment strategies to help clients grow their wealth, manage financial liability, meet long-term financial goals such as retirement, and build an estate plan for passing wealth onto clients' designated heirs.

Wealth management firms generally employ C💫ertified Financial Planners to to advise clients, manage their investments, and create a long-term wealth managemen𝔉t plan.

How To Choose a Wealth Management Firm

Don’t Focus on Price

When you’re choosing a wealth management fiꦯrm, it’s easy to judge the differences between companies solely by price. This can feel like a simple and straightforward way to make an important financial decision. But Tyler Landes, a Certified Financial Planner and founder of , says that instead of getting too fixated on price, you should focus on value. Price is what you pay, value is what you get. 

“At the end of the day, I tell people to understand how an advisor gets paid, and what service or product they’re going to deliver in exchange,” Landes said. “Then decide if you think the value is in line with the cost. Cheaper isn’t better if the value isn't there.” 

Start by seeking out other clients to find out how their a🐻dvisor treats them. Are they satisfied wi🐷th the level of contact? Do they feel like their advisor listens to them? Has their plan changed over time to take into account changes in their financial needs and situaitons?

You can also ask a potential advisor who their ideal client is. Landes said that if the description doesn’t match your goals and ideas, the relation🐼ship won’t likely work. You want to feel like your advisor will care about your portfolio as much as you do. 

“I've gained clients because their former advisor didn't reach out to set regular meetings, and the client felt like small potatoes,” said Landes.

Verify Credentials

When choosing a firm, sit down with the advisor who will be workiꩵng on your account. You don’t w🐻ant to have an interview with one person, only to learn down the line that you’ve been handed over to someone else. 

Ask about your potential advisor's experience and credentials, including:

• Where they worked before
• Whether they are a Certified Financial Planner
• What other qualifications they have
• What their advising process is generally like

Keep in mind that you’re the client, so it’s up to the advisor to convince you that they're the right fit for your needs. Ask what every credential and certification means, and see whether you can find any work history or talk to current and past clients. Do your due diligence before making a decision.

Investigate Payment Structure

D𝓡epending on the firm you choose, your f🎀inancial advisor can make money in different ways. These fee structures can include:

• Commissions based on the products you buy from them
• Fees as a percentage of assets under management
• Retainer (monthly or annual flat fee)
• Hourly fee
• Per-plan fee

Be wary of hiring anyone who earns a commission on what they sell to you﷽; they likely will be more interested in earning extra money through product sales than in making sure what they’re selling is the b🤪est fit for your needs. You want someone who’s as invested in your portfolio’s growth as you are. However, even with a firm that charges fees rather than using commissions, you should also be very clear on the fee structure. High fees or additional charges can eat into your returns over time.

Alternatives to a Wealth Management Firm

Wealth management firms are expensive and focus on high-net-worth clients; they may require clients to have a minimum of $1 to $5 million in assets under management. They aren't accessible for low- to mid-net-worth individuals.

However, there are other ways to get financial advice that can help you grow your wealth and plan for long-term financial goals, even if you aren't already a millionaire.

• Financial advisor: Many financial advisors and Certified Financial Planners work with clients at all levels of net worth to create investment, retirement, and wealth-building plans. Look for an advisor who charges a flat hourly fee so you know exactly how much you will pay for each consultation.
• Estate planning attorney: Everyone can and should have an estate plan, no matter how much money you have. This will ensure that the people you choose will inherit your assets after your death. Look for a local estate planning attorney who can meet with you for an hourly rate or a per-project rate to create a will and estate plan.
• Robo-advisors: If you are just starting out investing, robo-advisors can build and automate an investment plan based on your personal goals and risk tolerance. Many bands or investment platforms provide access to robo-advisors; they may have minimum investment requirements as low as $5 for those just starting out.

The Bottom Line

Choosing a wealth management firm may be one of the most important decisions you’ll ever make. Whoever you choose to access your accounts may change the fate of your retirement. That’s not to scare you away from making any kind of decision, but it is important to know that advisors are all different. Don’t ma🏅ke your decision on impulse; ask around for referrals from people you trust, and do your own deep-dive research.