Whether you’ve primarily managed your own investments or you’re looking to make a change within your existing team of financial professionals, there are a few important factors that impact which financial advisor is right for you.
Finding the right person to bring into your financial world can have a profound and lasting impact on your ability to preserve, grow, and transfer wealth effectively. You need someone who can address your unique challenges as a high-net-worth investor—yet, as the industry continues to evolve, your options may feel overwhelming.
Below we’re sharing our top five tips for finding the right financial partner for addressing your financial needs and goals.
Tip #1: Review Their Registrations and Designations
When working with an advisor under a broker-dealer, you’ll be able to check their FINRA registrations, licenses (such as Series 7 and Series 66), as well as employment history on BrokerCheck.
When working with an advisor under a Registered Investment Advisor (RIA), you can similarly check their registrations and work history, on the SEC’s IAPD website. For example, Wingate Wealth Advisors is an RIA, and information about our firm and individual advisors can be located on the IAPD site.
On both sites, you’ll notice a box called disclosures. This section provides important details about any legal, regulatory, or disciplinary events involving an advisor or their firm. It’s like a background check, helping you see if there have been past issues, such as lawsuits, regulatory penalties, or customer complaints, that might raise concerns about their trustworthiness or professionalism. If you find there are no disclosures – that’s a good sign!
In addition to being properly registered or obtaining any required licensing, many advisors choose to pursue additional designations and certifications. While ranging in difficulty and prestige, they can also help advisors distinguish themselves as having a particular skillset or deeper understanding of certain areas of financial planning (investment strategy, financial psychology, divorce, business exit strategy, supporting high-net-worth investors, etc.)
Some well-respected and well-rounded industry common accreditations include:
- CERTIFIED FINANCIAL PLANNER® (CFP®): This designation is awarded by the Certified Financial Planner Board of Standards, Inc. to those who meet their rigorous education, experience, and ethical requirements. A CFP® professional is trained to provide holistic financial planning, and they’re held to some of the industry’s strictest ethical standards.
- Chartered Financial Analyst® (CFA®): Focused on investment analysis and portfolio management, the CFA® designation requires candidates to pass three examinations and demonstrate extensive work experience in the investment industry.
- Chartered Financial Consultant® (ChFC®): Those who earn this designation must complete a course and examination focused on comprehensive financial planning knowledge regarding insurance, taxation, retirement, estate planning, small business planning, and behavioral finance.
- Certified Private Wealth Advisor® (CPWA®): Offered specifically for advisors serving affluent investors, this designation focuses on advanced strategies in wealth transfer, tax management, family dynamics, legacy planning, and other more complex financial planning concerns.
Tip #2: Ask How They’re Compensated
Understanding how an advisor earns their fees is crucial in assessing whether they are acting in your best interest. Compensation models vary, and they can impact the types of recommendations you receive.
For example, Registered Investment Advisors (RIAs) are typically “fee-only” fiduciaries, meaning they charge flat fees or a percentage of managed assets and do not earn commissions from product sales. This model helps minimize conflicts of interest and ensures the advisor is prioritizing your needs.
On the other hand, broker-dealers often earn commissions on product sales (e.g., mutual funds, insurance and annuities), which may create potential conflicts of interest. While no upfront fees may be required, there can be hidden costs and limitations that may affect your overall investment returns and accessibility.
Understanding the compensation structure can give you greater confidence on whether an advisor is truly serving your best interests.
What sets Fiduciaries Apart? Putting Your Best Interest First
Fiduciaries, like RIAs, must always act in their clients’ best interests and avoid recommendations that benefit them at the client’s expense.
This is known as the “Fiduciary Standard.”
A few of the most common fee structures include:
Fee-only: Wingate is a fee-only firm, as such, we are solely compensated by our clients—no one else. Generally, a fee-only firm will charge a percentage of the assets under management (AUM). AUM is calculated by totaling the market value of all assets under management and applying a fee percentage (on a flat or tiered schedule). For example, 1% per year, billed quarterly would be what’s referred to as an flat AUM fee schedule. Fee only comes in other varieties as well. It’s not uncommon for firms to charge a flat fee or offer subscription-based pricing (particularly for younger investors or those with too few assets to fit into a traditional AUM model). A flat fee may look like $10,000/year and a subscription may look like $500/month. What’s included for services will vary by advisor.
Commission-based: If an advisory firm doesn’t charge you a flat or AUM percentage, it’s likely they’re working on a commission-based model. In that case, the advisor or agent only gets paid if they sell you certain products or insurance policies (often whole life insurance or annuities). While there may be some products that make sense within your financial life, keep in mind that commission based advisors follow suitability standards vs fiduciary standards. Suitability simply means the product is appropriate (or suitable) vs it being in your best interest.
Fee-based: Some firms provide ongoing investment management, but they may also offer certain products or policies in-house—in which case they may utilize both fee methods. Because of this ability, they may actually be following both fiduciary and suitability standards. When discussing financial products, their fiduciary hat comes off in favor for following suitability standards. Given it’s an invisible transition, it’s important to know if your advisor is a fiduciary all of the time or just some of the time.
Tip #3: Decide What Makes Your Needs Unique
Many financial advisors develop specialties, or niches, over the years—whether it’s based on the net worth of their clients, geographic region, occupation, or something else entirely. As you continue your search for the right advisor to address your needs as an affluent investor, consider what your specific pain points are.
Perhaps you’ve reached your capacity to juggle multiple professionals, and you’re ready for someone to take point. Or, you’re an executive with complicated equity compensation questions, and you’d like to work with somebody familiar with your situation.
When speaking with an advisor for the first time, bring your unique challenges, concerns, and questions to the table. Ask them what experience they have in addressing similar challenges in the past and how they may be able to help you enjoy a brighter financial future (should you decide to move forward together).
Tip #4: Consider Their Communication Style
As someone with especially complex financial concerns, you need a financial professional who brings clarity and calmness to your financial life. Beyond the technical knowledge and expertise an advisor may have, it’s important to find someone you can trust completely and enjoy working with over the long term. Your relationship should be built on clear, consistent communication and a foundation of respect.
In your consultation calls or discussions with various firms, assess their communication style and consider questions like:
- Did they appear to be active listeners?
- Did they address my questions thoughtfully and thoroughly?
- Did they provide simple, easy-to-understand explanations? Or did they use too much confusing jargon?
- Were they genuinely interested in my goals? Did they take my concerns seriously?
Don’t forget to ask how often an advisor communicates with clients and through what channels. Some advisors may send monthly newsletters, establish quarterly or semi-annual client meetings, check in over the phone, etc. If you have a preferred cadence and communication style, be sure to discuss that with your prospective advisor before moving forward, to ensure your expectations can be met.
Tip #5: Leveraging Personal Referrals
Consider reaching out to friends, family, or colleagues for recommendations. Personal referrals often come with the benefit of trust and firsthand accounts of experiences, making them a valuable resource when evaluating a financial advisor. Friends and family can share insights about the advisor’s reliability, transparency, and effectiveness.
You can also ask the firm if they have case studies to share—these are useful for highlighting how the firm has previously worked to address similar client concerns. They may help you gauge whether the firm’s services, expertise, communication style, and approach match your needs (especially if you’re looking to establish a long-term advisor-client relationship).
Are You Ready to Work with a Trusted Advisor?
Choosing the right financial advisor is one of the most important decisions you’ll make for your financial future. To ensure you’re on the right path, you may consider prioritizing advisors who follow the fiduciary standard—someone who is legally and ethically committed to putting your interests first and reflect that commitment in their fee structure. From there, consider their credentials, personal referrals, cost, and area of expertise.
At Wingate Wealth Advisors, we take pride in offering a fiduciary-level commitment to every client, ensuring transparency, personalized advice, and a clear focus on your financial success. Let us help you feel confident, empowered, and supported on your financial journey. If you’re interested in seeing if we’re the right fit for you and your family, we encourage you to reach out to our team today.
