For individuals and families with substantial wealth, partnering with the right investment advisor can be the difference between simply preserving wealth and strategically growing it. But as your financial picture evolves—whether due to life changes, business transitions, or shifting economic conditions—it’s wise to periodically reassess whether your advisor is still the best fit.
The advisor you once chose may have helped you build a strong foundation, but staying with the same firm or individual out of habit can limit your opportunities. If your current advisor isn’t adapting with you or lacks the resources to support your evolving goals, it might be time to explore your options.
Understanding the Role of a Registered Investment Advisor
A Registered Investment Advisor (RIA) is a professional or firm that manages investment portfolios and offers financial advice while adhering to fiduciary standards. These advisors are registered with the Securities and Exchange Commission (SEC) or relevant state authorities, depending on how much they manage.
What sets an RIA apart is their legal and ethical obligation to prioritize the client’s best interest. This is more than just good practice—it’s a regulated standard that distinguishes them from advisors who are only required to meet a “suitability” threshold when recommending products.
How RIAs Differ From Other Financial Advisors
While the term “financial advisor” is broad, not all advisors are held to the same fiduciary standards. Many work under brokerage models that allow for conflicts of interest, such as earning commissions from product sales. RIAs, on the other hand, must operate with full transparency and disclose how they’re compensated, ensuring recommendations are free from outside influence.
Choosing the Right RIA for Your Needs
Not every advisor will be the right fit, particularly if your financial circumstances are complex. When evaluating an RIA, here are key areas to consider:
- Professional Background: Look beyond titles and designations. While certifications like CFP® or CFA® can signal a certain level of training, real-world experience with clients like you often matters more. Has the advisor worked with similar levels of wealth? Do they understand business ownership, real estate, or multi-generational planning?
- Services Offered: A robust advisor relationship should go beyond investments. Look for one that integrates tax strategy, estate structuring, charitable giving, and risk assessment into a single, comprehensive plan.
- Philosophy and Process: Ask how investment decisions are made. Are they guided by a disciplined strategy or reactionary moves based on market news? Consistency and clarity in their approach is key to long-term success.
Signals That It May Be Time for a Change
There are certain warning signs that shouldn’t be ignored. If you notice any of the following, it could indicate that your advisor relationship is no longer aligned with your objectives:
- Lack of clarity around fees or hidden costs
- Frequent promotion of proprietary products that benefit the advisor more than you
- Minimal communication or vague updates about performance
- Absence of a personalized financial plan that includes estate, tax, and legacy considerations
- A record of past disciplinary issues or unresolved client complaints
Advisors should work as your financial partner, not just a product provider. If conversations are one-sided or lack depth, it might reflect a service model not designed for your level of wealth.
What You Might Not Be Hearing From Your Advisor
Some advisors position themselves as wealth managers but focus mostly on portfolio performance. Others may talk about managing risk but limit solutions to insurance sales. A well-rounded advisor should bring a strategic, coordinated perspective that includes long-term planning, not just investment recommendations.
A growing number of investors are seeking advisors who take a holistic approach—looking at the entire financial picture rather than isolated elements. Transparency, flexibility, and personalized planning are increasingly viewed as non-negotiable qualities.
In Closing
Your financial advisor should be evolving alongside your wealth and life circumstances. If you haven’t evaluated that relationship recently, consider taking a fresh look. Whether you’re planning for succession, philanthropy, or long-term growth, the right advisor can make all the difference—not just in financial outcomes, but in peace of mind.
