Wealth managers perform the vital service of helping people to grow their financial assets, taking a client-centric approach to financial planning while usually getting paid on a commission. Wealth managers engage in financial planning and implementation, investment management, tax planning, and the establishment of trusts and other devices used for the efficient distribution of wealth upon death of the client. Having a high-quality wealth manager allows you to rest easier knowing that your money is being properly managed while minimizing the risks of loss. We've evaluated numerous wealth managers and found our top three to include Jeff Erdmann of Merrill Lynch - Private Banking & Investment Group in Greenwich, CT, Brian C. Pfeifler with Morgan Stanley Private Wealth Management in New York City, and Christopher Errico of UBS Private Wealth Management, also in New York City. Read on to learn more about how to find a top-rated wealth manager who can help you.
Wealth managers, like other types of investment advisers, are required to file the Form ADV in order to be registered with either the U.S. Securities and Exchange Commission (SEC) or their respective state where they conduct business. The information in the form is maintained in a publicly accessible database known as the Investment Adviser Public Disclosure.
A person working with a wealth manager should expect a full and complete disclosure of all of the manager’s business experience, education, training, investment style, and philosophy. An initial meeting with a wealth manager is the time for fact-finding and disclosure. Before a proper recommendation about the investment of your financial assets can be made, the manager, at a minimum, needs to learn about you, your financial goals and objectives and provide you with an agreement that explains your relationship.
A fee-based wealth manager is when advisors charge their clients fees for the advice given toward their wealth plans. This fee may be a flat rate based on the number of hours it takes to develop the plan. The fee may also be a performance-based fee that is determined by the wealth manager's results from your assets.
Wealth managers are considered investment advisors and fall under the governance of either federal or state law. Wealth managers with assets under management (AUMs) of $30 million or more fall under the rules of the federal Investment Advisors Act of 1940 and must register with the U.S. Securities and Exchange Commission. Those advisors with less than $25 million in AUMs register with their state of domicile (Uniform Securities Act). Those with between $25-$30 million can choose either state or federal registration.
Wealth managers charge a fee for their time and sometimes for the value of the advice given to their customers. This fee is based on the assets they manage on behalf of their clients or can be a fixed amount, which must be disclosed upfront.
Many of the top wealth managers have account minimums that are very high relative to the average investable assets available to most Americans, which is between $399,000 and $420,000 for members of Generation X and millennials, respectively. Account minimums serve as a gateway to the world of personalized wealth management, although there may be arrangements available to investors with less than the minimum amounts.
Not all of the top wealth managers work for Wall Street investment firms. Many of the top wealth managers work as independents and affiliate with some financial services organization for the execution of trades or safekeeping of funds and securities, under a custodial arrangement.