How to Find a Financial Advisor for the Ultra High Net Worth

When managing substantial wealth, there are unique challenges and complexities that require specialized attention and expertise. As an ultra-high-net-worth individual, you face distinct financial needs, opportunities and goals. This careful balance demands tailored strategies from expert financial professionals to ensure optimal growth and protection while aligning with your long-term goals.

A financial advisor can help you make a financial plan that fits your specific needs to manage your wealth effectively.

What Is a Financial Advisor?

A financial advisor is a professional who assists individuals or businesses in managing their finances, investments and overall wealth. They provide expert guidance on various financial aspects, including retirement planning, investment strategies, tax optimization, estate planning and more.

For ultra-high-net-worth individuals, the role of a financial advisor becomes even more critical due to the complexity and magnitude of their financial portfolios. It takes an experienced professional to navigate wealth growth, charity giving, tax planning, real estate investments and everything else that is unique to the wealth you’ve accumulated.

What to Look for in a Financial Advisor If You Have a Large Net Worth

When you have a substantial net worth, the stakes are high and you need a financial advisor who can meet your unique needs and expectations. Here are four key factors to consider when searching for the right advisor:

Experience: One of the first things to assess is the advisor’s experience. Look for a professional who has a track record of working with high-net-worth and ultra-high-net-worth clients. These advisors are more likely to understand the intricacies of managing significant wealth, including handling complex investments, tax planning and estate strategies.

Specialization: Consider the advisor’s specialization. Some advisors focus on specific areas such as retirement planning, estate planning or investment management. Depending on your needs, you may want an advisor who specializes in the areas most relevant to you. For instance, if you have a large family and complex estate planning requirements, an advisor with expertise in estate planning can be invaluable.

Certifications or credentials: Ensure that the advisor holds relevant certifications or credentials. Look for designations such as Certified Financial Planner™ (CFP®), Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA). These certifications demonstrate a commitment to professionalism and expertise in the field. Other certifications could be important depending on your unique needs. The key is to find professionals that understand your situation.

Fee structure: Understanding the fee structure is crucial when selecting a financial advisor. Different advisors charge fees in various ways, such as hourly rates, asset-based fees or commission-based fees. For ultra-high-net-worth individuals, asset-based fees are common and can be a more transparent option. However, it’s essential to discuss and clarify all fees upfront to avoid any surprises.

How Much an Ultra-High-Net-Worth Financial Advisor Costs

Ultra-high-net-worth advisors often charge 0.25% to 1% of assets yearly, sometimes with flat or retainer fees.

The cost of hiring a financial advisor can vary significantly depending on several factors, including the advisor’s experience, specialization and the complexity of your financial situation. For ultra-high-net-worth individuals, it’s not uncommon to pay higher fees due to the additional services and expertise required. As a general guideline, financial advisors may charge:

Hourly rates: Some advisors charge by the hour, typically ranging around $300 per hour. However, this fee structure may not be the most cost-effective for ultra-high-net-worth individuals with ongoing financial management needs.
Asset-based fees: Many financial advisors charge a percentage of your total assets under management (AUM). This fee structure can range from 0.5% to 1% of AUM annually. For someone with a $10 million portfolio, this could mean annual fees ranging from $50,000 to $200,000.
Fixed or retainer fees: Some advisors may charge a fixed fee or retainer for their services. The cost varies widely but averaged $4,500 annually in 2024 for the typical financial advisor. However, larger estates can expect to pay more.

Financial Advisors vs. Family Office

For ultra-high-net-worth individuals, another option to consider is a family office. A family office is a private wealth management firm established to manage the financial affairs of a single wealthy family or a group of families. Here’s how they compare to traditional financial advisors:

Financial Advisor:

Typically works with multiple clients.
Offers a wide range of financial services.
May have lower minimum asset requirements.
Generally, costs are lower compared to a family office.

Family Office:

Dedicated to one family or a select group of families.
Provides comprehensive services, including investment management, tax planning, estate planning and lifestyle management.
Often requires a much higher minimum asset threshold (usually in the tens of millions).
Can be more expensive due to the personalized services offered.

Financial Advisors vs. Wealth Management Firms

Wealth management firms are financial institutions that offer a range of financial services, including investment management, estate planning and financial planning. They often cater to high-net-worth and ultra-high-net-worth individuals. Here’s how they compare to traditional financial advisors:

Financial Advisor:

Typically an individual or a small team of professionals.
May offer more personalized service.
May have a narrower focus, depending on their specialization.
Fee structures can vary widely.

Wealth Management Firm:

Larger organizations with a team of experts.
Offers a comprehensive suite of financial services.
Can provide access to a wide range of financial products and solutions.
Often charges asset-based fees, which can be competitive for larger portfolios.

Specialized Services for Ultra-High-Net-Worth Clients

Ultra-high-net-worth individuals often require services that extend well beyond standard investment and retirement planning.

One area is advanced estate planning. These financial advisors work with dynasty trusts, charitable trusts and grantor retained annuity trusts. This helps clients preserve wealth across generations while reducing estate taxes. These ultra-high-net-worth strategies are designed to keep family wealth intact and transfer it efficiently.

Tax planning also becomes more complex at higher wealth levels. Multi-state residency issues, cross-border taxation and the treatment of private equity or hedge fund investments require specialized expertise. Therefore, advisors may need to coordinate with tax attorneys and accountants to manage exposure while taking advantage of available deductions and credits.

Philanthropy and legacy planning are another priority. Many ultra-high-net-worth clients create private foundations or use donor-advised funds to manage charitable giving. This not only fulfills personal values but can also offer tax benefits. Advisors can help you design these structures to align with both your financial and philanthropic goals.

Other key considerations include business succession and alternative investments. Many ultra-high-net-worth individuals own businesses that need liquidity or succession strategies. Advisors guide the sale or transfer of ownership while minimizing tax impact. At the same time, they often open access to private equity, hedge funds, direct real estate and private credit, which can provide growth beyond traditional markets.

These services, combined with risk management strategies, such as asset allocation, protection and tailored high-net-worth insurance solutions, create a comprehensive plan for preserving and growing substantial wealth.

Bottom Line

Services for ultra-high-net-worth clients include estate planning, tax strategy, family office support, and private investments.

For ultra-high-net-worth individuals, choosing the right financial advisor is essential for managing and preserving wealth. Evaluate their experience, specialization, certifications, and fee structure. Consider family offices or wealth management firms to find the best fit for your unique goals. The right advisor or institution is key to achieving your objectives and securing your financial legacy.

Tips for Managing Wealth

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
You can use SmartAsset’s free investment calculator to see how your money might grow over time inside your portfolio.