Choosing the right wealth management firm is one of the most important financial decisions you can make—especially if you’re a high-net-worth individual navigating the complexities of estate planning, investments, capital gains, and personal finance. The right private wealth manager will do more than manage your investment portfolio—they’ll serve as a trusted partner in crafting an investment plan tailored to your financial situation and goals.
At Towerpoint Wealth, we understand that wealth planning is deeply personal. That’s why we’re committed to helping clients make informed, confident choices when selecting a potential advisor. Whether you're approaching retirement, managing a business exit, or transitioning generational assets to family members, here’s everything you need to know about how to choose the right wealth management firm.
What is a Wealth Manager and What Do They Do?
Key Roles and Responsibilities
A wealth manager—often a registered investment advisor—provides holistic financial planning, encompassing far more than just investment advice. Their services typically include:
- Investment management built around your long term investing goals
- Tax optimization to manage capital gains and reduce liabilities
- Estate planning to protect your wealth and support the next generation
- Charitable giving strategies that align with your values
- Retirement income planning and guidance for significant life events
Wealth Manager vs. Financial Advisor: What’s the Difference?
While many use the term “financial advisor” generically, a wealth manager typically serves high-net-worth individuals with complex financial needs. Most financial advisors may focus on singular issues like mutual funds or retirement accounts, while a wealth manager integrates your entire financial picture—legal, tax, estate, and investment strategies. Explore our comprehensive wealth management services.
Step 1 – Prioritize a Fiduciary Standard
A key distinction in the financial industry is fiduciary duty. A fiduciary wealth manager is legally obligated to act in your best interest—unlike many financial advisors who operate under a less stringent suitability standard.
Choosing a fiduciary firm means minimizing potential conflicts and ensuring that your advisor’s investment products or recommendations are based solely on your financial goals. At Towerpoint Wealth, we operate as an independent fiduciary wealth management firm, free from sales quotas and proprietary incentives.
Step 2 – Understand Fee Structures and Compensation
Common Payment Structures
A transparent payment structure is crucial when evaluating a potential advisor. Common models include:
- Fee-only: A flat fee, hourly rate, or percentage of assets under management (AUM). This model reduces potential conflicts of interest.
- Commission-based: Advisors earn compensation through sales of investment products like mutual funds or insurance.
- Fee-based: A hybrid of the above, potentially introducing biases.
How to Spot Hidden Costs
Understanding how your advisor is compensated helps protect your assets and manage costs. Ask about:
- Fund expense ratios
- Fees tied to third party investment managers
- Custodial or platform costs
- Commission structures on mutual funds or annuities
Discussing fees upfront supports transparency and ensures your investment plan aligns with your long-term strategy.
Step 3 – Evaluate Credentials and Experience
Recognized Certifications and Background
When selecting a private wealth manager, look for designations such as:
- CFP® (Certified Financial Planner): Strong focus on financial planning and personal finance.
- CFA® (Chartered Financial Analyst): Specialized in investment management and analytics.
- CPA: Valuable for complex tax and estate planning.
Key Questions to Ask About Experience
- How long have you been practicing in the financial industry?
- What is your investment approach, and how has it performed?
- Who are your other clients, and do you specialize in serving people like me?
Meet our credentialed advisory team and learn more about our deep expertise in investment and wealth planning.
Step 4 – Look for a Comprehensive, Holistic Approach
Wealth management is most effective when coordinated across multiple key areas. A quality firm will offer integrated financial planning that includes tax strategy, legal coordination, investment advisor oversight, and estate guidance.
At Towerpoint Wealth, our client service model is centered around personalized strategies that reflect your entire financial situation—especially for clients experiencing liquidity events, retirement transitions, or large asset transfers.
Step 5 – Examine Their Investment Philosophy
A core component of wealth planning is your advisor’s investment philosophy.
Key Areas to Explore
- Active vs. passive strategies: How are investments selected and managed?
- Use of third party investment managers or proprietary products
- Views on diversification, rebalancing, and managing capital gains
- Whether they rely on robo advisors or customized portfolio construction
Your investment advisor’s strategy should reflect your values, risk tolerance, and financial goals—not just market performance or future results.
Step 6 – Consider Firm Structure and Resources
Independent Firm vs. Large Institution
An independent wealth management firm, like Towerpoint Wealth, typically avoids the conflicts often seen in larger broker-dealers or institutions such as Goldman Sachs. Independence allows us to focus entirely on your best interests.
In-House Resources vs. Outsourcing
Ask whether the firm offers in-house specialists or relies on third-party referrals. Deep expertise in tax, estate, and investment management under one roof often leads to a more seamless experience.
Step 7 – Gauge Communication Style and Compatibility
Choosing a wealth manager is more than a financial transaction—it’s an ongoing relationship built on communication and trust.
Questions to Consider
- Will we hold regular meetings to review progress and adjust strategies?
- How do you handle urgent questions or market events?
- Will I be working with one advisor or a team?
Client service should be proactive, responsive, and personal. Advisors who know your family members, future goals, and past experiences can make more meaningful recommendations.
Red Flags to Watch Out For
Watch for the following warning signs when interviewing a potential advisor:
- Lack of fee transparency or vague explanations of the payment structure
- Aggressive promotion of in-house investment products or proprietary funds
- Promises of future results without context or disclosures
- Limited or boilerplate investment strategies
Advisors regulated by the SEC or Financial Industry Regulatory Authority (FINRA) should clearly outline their credentials, compliance record, and business practices.
Final Checklist for Choosing the Right Wealth Management Firm
Before committing, consider this checklist:
- Do they follow a fiduciary duty?
- Is the payment structure transparent
- Do they hold respected financial certifications?
- Are services customized to your financial situation?
- Is their investment approach clear and aligned with your goals?
- Are regular meetings part of the client service process?
- Have you reviewed their experience with other clients like you?
Download our “Choosing a Wealth Manager” checklist as a helpful reference when evaluating firms.
Why Work with Towerpoint Wealth?
At Towerpoint Wealth, we combine deep expertise, fiduciary duty, and a personalized approach to help you navigate the full spectrum of wealth planning. As a registered investment advisor, we believe your financial success requires more than just an investment plan—it requires a coordinated strategy across taxes, estate planning, risk, and long-term investing.
We serve high-net-worth individuals and families with integrity, independence, and care—providing thoughtful solutions for today’s challenges and tomorrow’s legacy.
Ready to take the next step in your financial journey? Schedule a no-obligation consultation with our team and discover what the right wealth management firm can do for you.
Frequently Asked How to Choose a Wealth Manager Questions
What is the best way to find a fiduciary financial advisor?
Look for registered investment advisors who clearly state their fiduciary duty. Use directories like the CFP Board or ask trusted professionals like your CPA or attorney.
How do I know if a wealth manager is right for my financial goals?
Evaluate their investment approach, communication style, and client service track record. Ask key questions about how they’ve supported other clients with similar needs.
What’s the typical minimum investment for a wealth management firm?
Minimums vary widely. Towerpoint Wealth typically works with clients who have $1 million or more in investable assets.
How often should I meet with my financial advisor?
Quarterly reviews and annual strategy updates are common. More frequent meetings may be appropriate during major financial events.
Can I switch investment advisors if I’m unhappy?
Yes. Most accounts can transfer without tax consequences. Review your current agreement and work with your new firm to coordinate the transition.
