How we chose the top financial advisors for high-net-worth clients

Buy Side analyzed some of the largest and best-known independent registered investment adviser (RIA) firms and scored those firms based on their fees, advisor credentials, customer support, available services, portfolio construction and account minimum. These factors were weighted based on WSJ reader surveys regarding what they considered most important when choosing an advisor.

From there, we took our highest-scoring firms and prioritized those that have a client base of 40% or more HNWIs according to their most recent Form ADV filing. As defined by the SEC for the purposes of Form ADV, a HNWI is someone who has at least $1.4 million in AUM or a net worth that exceeds $2.7 million. To be considered a top financial advisor for high-net-worth individuals, a firm has to offer comprehensive wealth management services beyond standard portfolio management and financial planning, such as tax planning with in-house CPAs, risk management and estate planning. We also reviewed each firm’s disclosed conflicts of interest and processes for addressing them to surface the conflicts clients might encounter.

We rated firms on a scale of 1 to 5 stars using a weighted scoring model out of 100 possible points. To ensure fair comparison, we used a relative grading scale and the top-performing firm served as the benchmark. All other scores were indexed against this leader. A 5-star rating represents top performance relative to the field, rather than a requirement to achieve a theoretical perfect score of 100.

FAQWhat qualifies as high net worth for financial advisors?

HNWIs are typically defined as having at least $1 million in liquid assets. However, the SEC has different qualifications for a client to be considered high net worth on the firm’s Form ADV. For these official purposes, the client must have $1.4 million in assets under management or a net worth of more than $2.7 million.  Regardless, when it comes to finding an advisor that caters to your needs, you should pay more attention to a firm’s minimum account requirements. This will tell you whether you meet the criteria to work with a given firm, since some firms require minimums above $1 million. 

Do high-net-worth advisors require minimum assets?

Some advisors set account minimums, but not all do. You can look at a firm’s website or its regulatory filings, including its Form ADV Part 2 brochure, to see if it requires an asset minimum.

Are high-net-worth advisors fiduciaries?

Just because someone is a financial advisor doesn’t mean they’re a fiduciary, and that includes high-net-worth advisors. Fiduciary financial advisors have a legal duty to act in the best interests of their clients. RIAs are fiduciaries, while other financial professionals such as broker-dealers are held to different legal standards. If working with a fiduciary is important to you, look for advisors that work as representatives of RIA firms. 

What’s the difference between a wealth manager and a family office?

A family office is a private company that manages the wealth of an ultrahigh-net-worth family (or multiple families, in the case of multifamily offices), while a wealth manager typically provides portfolio management and financial planning services to many unrelated clients. Family offices are expensive to set up and run, so you might need a net worth of $300 million or more for a family office to make sense. Wealth managers, on the other hand, can work with clients of all levels of wealth. Additionally, some of the best wealth management firms offer family office-style services, so you can get the comprehensive services of a family office without the cost.