The image of grey suits with colossal Big Banks is diminishing with the rise of a new generation of money: a generation that is progressively demanding transparency, independence, and access to new ideas and exciting opportunities.

Wealth management is a gigantic business. It is estimated there were $103 trillion of global assets under management (AUM) (Published by Statista Research Department, May 23, 2022). As long as that amount continues to grow, private wealth management and financial advisory services will grow right along with it. Individual investor demand for advice also surged, driving RIA growth. In 2020, the number of clients served by SEC-registered investment advisor firms increased by 17.2%, reaching a record high of 60.8 million. The number of individual investors in total grew by 38% over the past two years, and that trend is continuing.

Why? Big Banks and outdated Wire-house firms have managed client assets for generations, but modern-day individuals and families of wealth are often seeking three things that the Big Banks and Wire-houses gradually can’t provide: transparency, impartiality, and independence.

But what exactly is it about independent fiduciary advisors that’s driving this share shift away from Big Banks and Wire-houses? We’ve identified six factors to consider:

1. Governmental Constraints: After the Great Recession of 2008, the federal government and various regulatory agencies imposed an array of rules and regulations designed to prevent Systemically Important Financial Institutions (SIFIs) from contributing to a future financial collapse. These organizations complied and turned their focus inward at their own processes and procedures. In doing so, many turned their focus away from client intimacy and service. As a result, these organizations talk about clients, not to a client, which means they view clients as a collective, not a collection of individuals.

2. Fiduciary Duty Principles: Advisors that are tied to broker-deals typically have various agendas being served which results in their compensation being tied to both a fee structure as well as commission incentives. Fiduciaries, on the other hand, choose to be held to the highest legally recognized standard. We are dedicated to helping investors like you reach their long-term financial goals and live comfortably in retirement. As a fiduciary, we are obligated to put our clients’ interests first. We strongly believe in complete transparency when it comes to being a fiduciary. These are unambiguous issues, where clear best practices should be obvious and universal. That is why Advanced Wealth Management is committed to our Fiduciary Duty Principles™, which are 10 criteria we hold to in order to ensure your best interests always come first. They are:

• We will always put our clients’ best interests first, acting with undivided loyalty and utmost good faith at all times
• We will act with prudence; that is, with the skill, care, diligence, and good judgment of a professional.
• We will not mislead clients and will provide full and fair disclosure of all material facts.
• We will avoid any conflicts of interest and will fully disclose any potential conflicts of interest that may arise.
• We will provide comprehensive wealth planning and strive for continuous improvement.
• We do not receive any commissions or kickbacks for the investment securities recommendations that we make.
• We provide full transparency on portfolios and investments.
• We remain independent from any banks, broker-dealers, investment companies, custodians, or insurance companies.
• We do not create proprietary securities or products to sell to the public.
• We do not physically custody, hold or possess any securities, monies, or client assets.

Our Fiduciary Duty Principles™ exist to help ensure you receive transparent advice focused on comprehensive planning, asset protection, growth, and helping you achieve the legacy you desire.

3. More Personalized Service: Independent advisors are not “one size fits all.” As much as you have to decide if an advisor is right for you, independent advisors need to decide if their clients are good for them as well. This is not a bad thing! A smaller advisor-to-client ratio lends itself to a better, more personalized service for the client. When you work with Advanced Wealth Management, we create a personalized portfolio tailored to your unique situation: your financial goals, wants, needs, health, family, and lifestyle. On an ongoing basis, we work with you to understand changes in your life or financial situation that may impact your investment plan and update your plan accordingly.

4. A Meaningful Relationship with Your Advisor: Talented advisors want to create meaningful relationships with those they serve. They want the ability to curate a manageable roster of families who can receive their best thinking, best advice, and best solutions; unburdened by the requirement to produce quarterly growth numbers. Instead of being lost in the shuffle of the wealth segmentation that Big Banks adhere to, you can receive more personalized service and build a lasting relationship with someone that has your best interests in mind. Advanced Wealth Management is here to serve you, not sell to you. We want to be well versed in your financial goals and help you stay on track with your investment plan. We meet regularly with you to make sure you understand what we’re doing in your portfolio and why. Our financial planning, educational resources, and live client events also help you understand challenging and often unpredictable markets.

5. Access to the Family Office Experience: Because RIAs can more freely determine how they will work with clients, they can provide multi-family office services to clients who historically have not had access to those services, including family governance and education, philanthropy, and impact investing, family financial officer engagement, and concierge services. It is more difficult for Big Banks and Wire-houses to provide access to these types of services to all clients, resulting in only a select few receiving these benefits.

Advanced Wealth Management’s Boutique Family Office™ mindset and model deliver a new paradigm for wealth management to the mass affluent, the millionaire next-door business owners, professionals, and retirees. A firm that offers individuals and families access to a suite of family office services traditionally only afforded to the ultra-wealthy, focusing relentlessly on personalized wealth management services, providing access to individually tailored investment solutions and institutional-quality private investment opportunities in an affordable manner. We only employ and partner with other professionals that share the same level of commitment to excellence, integrity, independence, and results.

6. A Larger World of Investments: In addition, financial regulations prevent Big Banks and brokerage institutions from “selling away,” which means they are not permitted to offer clients investment solutions or securities not offered by the executing firm. That restricts access to an ecosystem of other ideas and opportunities. Given the current environment, Big Banks and brokerage firms are often inclined to take the most narrow and conservative view of selling away, and therefore limit services and ideas available to their clients. Alternatively, an independent, fiduciary advisor can better understand and adapt to an individual client’s needs, goals, and risk tolerance. That advisor can seek appropriate solutions from any reasonable resource.

Advanced Wealth Management provides customized investment portfolios, blending both public and private market solutions. Our criteria focuses on public investments providing tax efficiency, at reasonable costs, with diversified holdings to reduce expected risks, and disciplined complimentary managers. We provide our clients with a diverse platform of private investments for long-term orientation, reducing risk correlation to public markets, with inherent tax efficiencies, taking advantage of illiquidity premiums and market inefficiencies.

As you can see, there are a multitude of reasons clients and advisors alike are making the move to independent wealth managers like Advanced Wealth Management. The personalized service, the un-conflicted guidance, and the peace of mind that the clients’ best interests are top of mind. This is the way investing should be.

Looking for an Independent Fiduciary Advisor to assist you with your financial journey? Schedule an appointment or give us a call for a complimentary consultation.

Knowledge is Power!

Being informed and proactive in financial planning, especially regarding Social Security benefits, empowers individuals to make the most of their retirement years. Remember, in the realm of finance and retirement planning, knowledge truly is power!

Disclaimer-This content is intended for educational purposes and is not a substitute for professional financial advice. While every effort is made to ensure the accuracy and reliability of the information, its completeness and precision are not guaranteed. Always consult a qualified expert for personalized advice tailored to your specific circumstances.