As a registered investment advisor, we are held to the fiduciary standard by the SEC. The fiduciary standard requires advisors to act in the best interests of the client at all times. This is differentiated from the suitability standard (brokers and dealers) that states advice must be suitable for the client.

Wealth management firms prioritize client privacy and confidentiality through stringent security measures, including encrypted communications, secure data storage, and compliance with privacy laws and regulations. Discretion is a fundamental part of their service, ensuring that your financial affairs are handled with the utmost confidentiality.

Pathstone clients typically have multigenerational complex balance sheets. Rather than it being a question of money, it’s a question of complexity. The minimum asset requirement for wealth management services can vary significantly from one firm to another.

Whether or not it’s worth paying for wealth management depends on several factors, including your financial situation, goals, and the complexity of your financial needs. Wealth management can offer significant value through personalized financial planning, investment management, tax optimization, and estate planning, especially for individuals with substantial assets or complex financial situations. A good wealth management service can help you grow and protect your assets over time, making it a worthwhile investment for many. However, it’s important to carefully consider the fees involved and ensure that the services provided align with your financial objectives and needs.

Wealth management firms offer a more comprehensive suite of services compared to traditional investment advisors. While investment advisors typically focus on portfolio management, wealth management firms provide holistic financial planning, including estate planning, tax strategies, philanthropic planning, and more, addressing the broader financial picture.

Wealth management firms have expertise in managing diversified portfolios that include unique assets such as art, real estate, and private equity. They offer specialized advice on acquisition, valuation, and sale of such assets, incorporating them into your overall financial strategy for growth and preservation.

For some with the right fact pattern, philanthropy can play a significant role in wealth management, allowing families to contribute to causes they care about while optimizing tax benefits. Wealth management firms can help structure charitable giving through foundations, donor-advised funds, or direct contributions, aligning philanthropic goals with overall financial planning. Philanthropy can also be a great way for stewarding family wealth and education the next generation.

The frequency of financial plan reviews can vary based on personal preference and any significant changes in your financial situation. Typically, wealth management firms recommend quarterly or semi-annual reviews, with the flexibility to adjust as needed to ensure your financial goals remain on track.

Wealth management fees can be structured in several ways, including a percentage of assets under management (AUM), fixed fees, or a combination of both. The fee structure should be transparent, aligning with the services provided and the value delivered.