America's Top Financial Advisors: What to look for when selecting a Financial Advisor

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

1. 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.

2. 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.

3. 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.

4. 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

1. 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.

2. 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.

3. 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.

4. 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.

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.