The Search for a Financial Advisor
May 6, 2021
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 California, or anywhere in the world, as an individual with significant wealth, having your assets shrewdly managed is perhaps the most important decision you will make for your financial wellbeing. Utilizing the services of professionals such as a CERTIFIED FINANCIAL PLANNER Professional 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.
The Search for a Financial Advisor
With nearly four decades of experience, Sand Hill Global Advisors is proud to be an independent wealth management firm that advises and strengthens the financial legacies of individuals, families and organizations across the nation. With our unique client-centered approach, we are committed to long-term investment growth and simplifying the complexities surrounding financial management.
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But how can you find an experienced 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” addresses 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. At Sand Hill, our professionals have expertise in assisting individuals and families with financial needs surrounding such matters as portfolio positioning, estate planning, and liquidity events. As an independent firm, we are able to offer customized financial solutions for all of our clients’ wealth management needs. Other advisors may have incentives 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 your financial wellbeing.
What Financial Firms Provide
Financial firms must be licensed with the appropriate oversight body for their size and business model. Since financial advisors manage assets and execute strategy on behalf of their clientele, finding one who has significant knowledge and strong financial expertise on top of their licensing requirements 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
Comprehensive financial advisors consult on:
· Tax Optimization and Planning
· Retirement Cash Flow Planning
· Portfolio and Investment Management
· Business Planning and Liquidity Events
· Real Estate Considerations
· Financial Planning
· Legacy Services & Wealth Transfer
· Risk Management
· Charitable Giving
On top of this, they can provide referrals or integrate with a team of professionals you may already have on retainer, such as legal advisors, insurance advisors, tax consultants and more, streamlining the process and simplifying your life, all while working to ensure your wealth is being optimally managed.
Do Wealthy Individuals Use Financial Advisors?
Absolutely! High-net worth investors often utilize the services of financial advisors to implement and maintain strategies to meet their long-term goals, 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 an advisor as one of the secrets to their success. Hallmarks of an experienced advisor include dedication to your financial wellbeing, minimizing stress and providing you and your family with a bright future by helping you to:
Set Wealth Goals
High-net worth individuals are experts in their fields of business, but not necessarily 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 can help implement disciplined decisions and better position their clients for success. For experienced counsel regarding issues surrounding loans, debt management, inheritance, and more, a financial advisor can be a tremendous asset.
To learn more about how Sand Hill 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 markets 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 the importance of staying on track. They can be an invaluable source of advice during times of instability, providing you with counsel and confidence.
Make A Plan
Strategy is all-important in the financial world, and knowing how to adjust for dips in the market to be well positioned for long-term growth is a fundamental way for individuals to improve their wealth outlook. An experienced financial advisor stays in tune with market cycles and performs analysis to optimize current market conditions.
Save Your Money: Tax Minimization
With laws constantly in flux, tax issues are very common in our day and age. An experienced financial advisor has comprehensive knowledge of how taxes affect investors and can help clients understand tax efficient 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, striving to make your financial goals a reality.
To read more about Sand Hill’s team and talented professionals, 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 what kind of firm they work for, the clients they work for, and the services they provide. You may consider finding an advisor whose compensation goes hand in hand with successfully managing your wealth. Their success depends on your financial success, and they are driven to help you achieve your goals.
At Sand Hill, we are an independent, fee-only firm, and we are under no obligation to subsidize our firm’s income by selling products.
Fees: What It Entails
Some advisors charge a flat fee for a one-time financial plan. There are generally five ways that financial advisors charge for their services, including performance, percentage of assets under management, commissions, hourly and fixed fees.
Finding the Right Fit
If you believe you are ready to engage the services of a financial advisor, you might not know where to go to find a one that is a good fit for your needs. 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 top financial firms grow their clientele. Industry ratings are another factor that can assist you in finding advisors to consider. 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 want to select the specialized expertise that you want your financial advisor to have, whether it is in retirement planning, liquidity events, or tax strategy. The key here is to find the advisor that has expertise in the unique circumstances of your personal financial situation. Also determining how much assistance you will need can help clarify which advisor to choose. Some individuals may want guidance regarding their entire financial picture, including asset allocation, investing, charitable giving, business start-ups, 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.
Consider Picking a Fiduciary
A fiduciary is obligated to put their clients’ interests ahead of their own. If you want a financial advisor who will serve your financial interests in a trustworthy manner, you will absolutely want to consider hiring an advisor that meets this standard.
The Advisor Skill Set
It’s no secret that a diverse portfolio can weather market dips over time better than one that isn’t, yet not all financial advisors take a comprehensive approach to wealth management. Consider hiring an advisor that is skilled in the areas of elder planning, estate/legacy, investment, income optimization, and tax planning. If any one of these areas is neglected, it can have a negative impact on the other four. For example, it is important to 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.
Checking the Background of Your Financial Advisor
Having familiarity with how you can check the background of an advisor is helpful when evaluating a financial advisor or advisory firm. You can always check history records with FINRA - Financial Industry Regulatory Authority, the SEC – Securities and Exchange Commission, or the CFP Board, if the advisor is a CERTIFIED FINANCIAL PLANNER professional. It is in your best interest to do your homework!
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 advice of an experienced professional, as opposed to solely trusting your own choices regarding money. When it comes to investment management and helping your wealth grow, having a financial professional to walk alongside you on your financial journey can be a wonderful way of preserving your family’s legacy. Finding someone you trust, can allow you 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 can be a significant way to make sure that you take advantage of opportunities when presented, whether it’s an opportune market condition, a tax minimization strategy, or a piece of real estate.
Other Reasons to Seek an Advisor
The five aptitudes of an advisor mentioned above (elder planning, estate/legacy, investment management, income optimization, 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. Other areas of specialized knowledge include topics such as:
When it comes to financial services that involve the entire family, a financial planner should have a myriad of resources at their disposal. One such strategy that can be implemented is the use of an intra family 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 intra family loans has decreased with the option of gifting money, intra family 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 guidance around a tax-efficient college savings strategy that will help relieve you and your loved ones of the stress of meeting college expenses.
As more focus is being centered on how companies affect the environment, especially by younger generations, investors are increasingly interested in options around impact investing. Sustainable investing, or impact investing, are investments made to create measurable, positive environmental and/or social impact along with seeking 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 Sand Hill 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 Sand Hill, we understand that prioritizing your financial wellbeing is one of the most important decisions you can ever make. We seek to provide each and every one of our clients with a customized 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 are passionate about providing financial planning solutions and independent investment management strategies to support your lifestyle, and we specialize in overcoming complexity. That’s why when you work with Sand Hill, you have a partner that understands the unique challenges you face. From entrepreneurs and executives to individuals and families, we’re here to help you make the most of your wealth today and tomorrow. With us, you’re not just a name and numbers on paper, you’re a person we want to get to know so we can help you reach your goals, streamline your life, and solidify your legacy.
Contact us to learn more about our services, and to see if we can help you reach your financial goals.
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Articles and Commentary Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA. For disclosures, including additional information on credential designations of SHGA representatives please see our Form ADV Part 2A and 2B Disclosure Brochures, which can be obtained by clicking here.
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