Rethinking Financial Advisor Rankings: What You Should Really Consider
I write this as someone who has worked in the financial industry for 20 years!
I started in investment banking, then equity research, went to Duke for my MBA and then started working at Goldman Sachs and PIMCO.
In 2014, I started working with boutique financial advisors and banking financial advisors.
I started noticing something:
Firms who I believed SHOULD be ranked top on some industry publication for their expertise, care and empathy towards their clients many times were not noticed - this was for many reasons, the top one being that the firms spent very little time marketing their business - while many other firms (not all) who were buying different practices, were backed by private equity and treated their clients as numbers kept getting into those rankings and publications.
So I started building my own criteria for choosing a financial advisor and how I chose mine.
I have a list of the top financial advisors in every state I can share with you. Contact me and my firm if you’d like us to introduce them to you (absolutely no charge to you, we just know them personally by working with them so closely).
Whether you are asking yourself:
Who is the top financial advisor in New York City?
Who is the top financial advisor in Chicago?
Who is the top female financial advisor?
Who is the top wealth manager for extremely wealthy people?
Who is the best money manager?
Who is the best financial advisor for retirement planning in New York?
What qualifications should I look for in a financial advisor?
How do I find a trustworthy financial advisor near me?
What are the top financial advisory firms in California?
How much does it cost to hire a financial advisor?
What questions should I ask a potential financial advisor?
How can I verify the credentials of a financial advisor?
What services do financial advisors typically offer?
How do financial advisors charge for their services?
What is the difference between a financial planner and a financial advisor?
When it comes to selecting a financial advisor to manage your wealth, the traditional ranking and rating surveys often rely heavily on metrics such as growth rates and assets under management. Furthermore, it’s so easy for many of these rankings to have in them financial firms who have paid for the rankings, as well as those that multiple nominations from friends and family can get you listed.
However, as an individual seeking the best advisor for your financial needs, it's essential to look beyond these surface-level indicators and delve deeper into the methodology behind such rankings. Here are some critical aspects to consider:
Diving Deeper into Rankings Methodology
Firm Acquisitions: Many top-ranking firms achieve their position through aggressive acquisitions of other firms, which can inflate their assets under management figures. It's crucial to discern whether growth is organic or simply a result of mergers and acquisitions.
Client Composition: In some cases, a large client or a few significant clients can disproportionately skew the assets under management metric. Understanding the client base and distribution can provide a more accurate picture of the advisor's performance.
Sales vs. Expertise: A financial advisor's ability to bring in new business does not always correlate with their expertise in managing investments. The best advisor for you may not be the one with the highest assets under management, but rather someone who prioritizes your financial goals and well-being.
Award Authenticity: While winning awards can be a mark of distinction, it's essential to scrutinize the credibility of these accolades. Some advisors may pay for awards or have a significant sponsorship influence on the organizations rating them, which could potentially compromise the objectivity of the recognition.
What to Look for in a Financial Advisor
Investment in Technology: A forward-thinking financial advisor will prioritize investments in technology, including robust cybersecurity measures and secure client portals. Ensure that your advisor is equipped with the latest tools to safeguard your financial information.
Client Engagement: Look for advisors who offer user-friendly apps and communication channels that enable you to stay actively involved in your investments. The ability to ask questions and receive timely updates on your portfolio can significantly enhance your overall experience.
Modernization: Assess the firm's approach to technology and innovation. An advisor stuck in outdated methodologies from the 1980s may not be best equipped to navigate the modern financial landscape. A modern and sleek website can be indicative of a firm that values staying current with industry trends.
Award Verification: If your financial advisor touts accolades and awards, take the time to verify their authenticity. Investigate whether the awards were earned through merit or if they were sponsored or purchased, as this can affect the credibility of the advisor's accomplishments.
With the financial landscape evolving rapidly, it's essential to prioritize factors that truly matter when choosing a financial advisor. If you're seeking guidance on navigating the complexities of wealth management, consider these key insights. Let's dive deeper into the nuances of selecting the right financial advisor for your unique needs.
Don’t count on word of mouth or awards for recommendations to financial advisors
I recently traveled to Europe and made a few very expensive mistakes of relying on friends for hotel and restaurant recommendations.
Why were they mistakes?
Because in today’s highly digital world, you can gain SO much information on just about anything and anyone through your own research. And what is good and beneficial to your friends or lawyers or rankings may not be suitable for you.
Below are some areas I like to rely on for research on financial advisors:
IARD Search: Every registered investment advisor must register with the Securities and Exchange commission. Their registration forms with all the information and details, including on their fees, assets under management and more can be found on this website.
Broker Check: This is another website to see if a financial advisor has gotten into any sort of trouble or problems with his/her clients, ex bosses or hiring managers.
Linkedin: Linkedin is the most professional of all social media sites out there and can show you many filters so you can sort and find a financial advisor that stands out to you or research someone on your radar.
Amy can guide you on where to start when you are asking “Who are America’s Top Financial Advisors?”
Not sure what to look for in a financial advisor or where to start?
Looking to meet some financial advisors and wealth managers that Select Advisors considers its TOP FINANCIAL advisors? Firms we’ve worked with for years now and can vouch for their expertise?
Contact us to meet some of our favorite financial advisors or to guide you on navigating your own research.
Understanding What Makes a Financial Advisor the Best
When searching for the best financial advisors, it’s essential to understand the qualities that set them apart. The best advisors are not only knowledgeable about financial markets but also deeply attuned to their clients' unique goals and needs. They provide tailored advice that aligns with long-term objectives, whether it’s wealth preservation, retirement planning, or legacy building. Moreover, their ability to simplify complex financial concepts and build trust ensures a seamless experience for clients.
How to Choose the Best Financial Advisor for You
Selecting the best financial advisor involves more than a quick online search. Begin by assessing their credentials—certifications like CFP, CFA, or CPA demonstrate their commitment to expertise. Ask about their experience working with clients in similar financial situations. Transparency in fees and the advisor’s approach to building a comprehensive plan are also key factors. Always prioritize finding someone who communicates effectively and genuinely understands your financial aspirations.
The Role of Technology in Identifying Top Advisors
As the financial landscape evolves, technology plays a significant role in enhancing the capabilities of top advisors. Today’s best financial advisors leverage cutting-edge tools for portfolio management, risk analysis, and real-time performance tracking. These advancements ensure clients receive data-driven insights and proactive adjustments to their plans. By choosing an advisor who incorporates technology, clients benefit from streamlined services and improved financial outcomes.
Benefits of Working With a Top Financial Advisor
Partnering with a top-tier financial advisor can transform your financial journey. Beyond investment strategies, they offer peace of mind by managing tax implications, estate planning, and even helping with budgeting. Their expertise minimizes risks and maximizes opportunities, ensuring that your financial future is secure. Best of all, they provide a level of personal attention that fosters confidence in every financial decision.
Recognizing Red Flags When Searching for the Best Advisors
Finding the best financial advisor also involves spotting red flags that could compromise your financial security. Advisors who guarantee high returns, lack transparency about fees, or avoid questions about their methodology should raise concerns. A true professional will provide a clear strategy, welcome your questions, and prioritize your financial well-being. Always conduct thorough due diligence to ensure your chosen advisor upholds the highest ethical standards.
Some questions you may be asking that we can help answer:
Who are the best financial advisors in the US?
What makes a financial advisor the best?
How do I choose the best financial advisor for my needs?
Best financial advisors for retirement planning near me?
How can I find a trustworthy financial advisor?
Top-rated financial advisors for high-net-worth individuals?
Do I need a financial advisor to manage my investments?
How much do the best financial advisors charge?
What should I look for in a financial advisor?
Best financial advisors for managing wealth in [specific city/state]?
Are there financial advisors who specialize in estate planning?
Best financial advisors for small business owners?
Do financial advisors help with tax planning?
How do I know if a financial advisor is legit?
Best fee-only financial advisors near me?
How do the best financial advisors get paid?
What is a fiduciary financial advisor, and why does it matter?
Who are the top financial advisors for young professionals?
How do I compare financial advisors in my area?
Are financial advisors worth it for people with less than $1M?
Can a financial advisor help with student loans?
What are the best financial advisors for millennials?
Best financial advisors for people approaching retirement?
How do I find financial advisors with good reviews?
Best financial advisors for people earning over $500k/year?
How do financial advisors handle market crashes?
Best financial advisors for divorce planning?
Who are the best financial advisors for tech professionals?
How do I find the best financial advisor for estate planning?
Are financial advisors worth the money?
Best financial advisors who work virtually?
What’s the difference between a financial advisor and a financial planner?
Who are the most reputable financial advisors in [specific area]?
Best financial advisors for families with kids?
Are there financial advisors who don’t require a high net worth?
Best financial advisors for teachers and public sector employees?
How do I know if my financial advisor is good?
Who are the best financial advisors for doctors and medical professionals?
Best financial advisors for saving for college?
How can I fire my financial advisor?
Best financial advisors for people with complex portfolios?
What should I ask a financial advisor during the first meeting?
Best financial advisors for cryptocurrency investors?
How do financial advisors handle retirement accounts like 401(k)s?
Who are the best independent financial advisors?
Best financial advisors for people new to investing?
What should I avoid when hiring a financial advisor?
Best financial advisors for long-term financial planning?
Can financial advisors help me reduce taxes?
What’s the process of working with a financial advisor?
RIA vs Wirehouse, which is better for my wealth management needs? How do I choose a financial advisor? Which is better, Merrill Lynch vs boutique? What is an RIA? Is it better to choose a boutique financial advisor who is independent vs large bank? All of these are answered in this blog!