The right advisor is worth 3% or more. You will pay much less than that.
Investors who are used to self-service brokerages or working with unrelated financial, estate, and tax advisors may question the cost and value of a holistic wealth management firm. Yet independent studies* have confirmed the best financial advisors can add 3% or more to the value of your portfolio. See how it adds up.
Percentage vs. per transaction
Wealth managers who charge a percentage of your portfolio’s value have an incentive to increase the value of your assets. Investment managers who charge by the transaction have an incentive to trade frequently, which can lead to unnecessary activity and costs. Forté recommends a long-term investment strategy as lower-turnover portfolios have historically outperformed those driven by frequent trading.
The Value of Advice.
Independent studies* show the benefits of working with a financial advisor.
Fiduciary vs. financial advisor
Fiduciaries are required by law to act in your best interest. Non-fiduciary financial advisors are not. High-net-worth investors with complex financial needs and portfolios may be better off with a fiduciary because you will know their recommendations are not based on their own financial interests.
* Source: Vanguard, Putting a Value on Your Value: Quantifying Vanguard Advisor’s Alpha, 2019. This estimate is hypothetical and not guaranteed.
Holistic wealth manager vs. investment manager
A multidisciplinary approach to high-net-worth wealth management takes all your assets, needs, liability exposures, and goals into account. Financial advisors who focus solely on market returns will often overlook fees and taxes that can significantly reduce the value of your after-tax returns. We recommend the holistic approach because that is how to achieve life-changing results.
-
How can behavioral coaching from your staff of financial experts add up to a 1.5% bump to the value of your portfolio? Very simply, as it happens. Money is an emotional topic, and it can be difficult to keep a disciplined long-term view when the news is bad, and everyone is selling. Or when a new, hot stock creates the desire to get in on it. No matter what the market is doing, a trusted advisor can help you stay calm and stick to the plan. That matters because reacting with emotion undermines your strategy and can offset years of growth.
-
When you are spending money from investments rather than a salary, your approach can have a significant impact on earnings. The correct balance of withdrawals from taxable, tax-deferred, and tax-free accounts can reduce the total you pay in taxes over the rest of your life, maintain higher balances for longer, and increase your legacy. In fact, this one area alone can more than offset the expense of your advisor.
-
For high-tax-bracket investors, tax-aware wealth management has the potential to provide a strong boost to your portfolio. By anticipating changes in tax laws, increases in income, capital gains, and other sources of increased tax liability, you can boost your net worth by adapting your strategy and investments to minimize upcoming taxes.
-
Asset allocation and investment selection make the portfolio. This should not be rushed. As part of our approach, your team will collaborate with you to create a plan that takes your objectives, needs, values, time horizon, risk profile, and more into account. Your portfolio will include investments that make sense for you to buy and hold.
-
Tax timing is just as critical as tax reduction. Your financial team may be able to add to your assets by determining when and whether it makes sense to transfer regular IRAs to Roth IRAs.
-
Balancing taxable and tax-deferred accounts unlocks compounding through yield spreads.
-
It can be hard to predict how the market and interest rates will act years in the future. Experts who can guide you through changes before, as, and after they occur can add value by developing strategies that balance your goals with new conditions.
