budgeting – RateZip.com

These five financial advisor firms have ranked as our Top 5 in the United States for 2022:

Why These Firms

In RateZip’s review of top financial advisement firms in the US, we considered the following factors:

Whether a firm is a Fee-Only Firm (who only earn money through what their clients pay them) or a Fee-Based Firm (who can earn money through other fees, including commissions from insurance policies, executing trades, and more). Fee-Based Firms may have a conflict of interest when it comes to their clients as they can be trying to earn additional commissions.
The firm’s individual client count. Firms who serve a larger number of individuals are ranked higher than firms who service mostly institutions or corporations. This is because they often specialize in financial products that most often concern you as an individual, such as wealth management, retirement planning, tax help, and more!
The number of years that a firm has been in business. Well-established firms with many years of business often have more expertise.
The amount of clients-per-advisor that a firm has. If a firm has a lower clients-per-advisor ratio, then typically each advisor will have more time to focus on their clients.
The total amount of assets that the firm manages.

The above list may include firms that currently or in the past have had a business relationship with RateZip. RateZip did not earn compensation for including any of the above firms on this list. RateZip may earn compensation for matching you with one of our vetted financial advisor firm partners.

Working with an Advisor can Grow your Wealth!

Pandemics, inflation, recessions, rising interest rates – all of these things can dramatically affect your portfolio. What may have seemed like a cushy retirement amount could quickly get swallowed up, leaving you needing more funds than you have. Furthermore, selling stocks or other investments due to fear or confusion could lock in losses, cutting off the potential for future growth. Financial advisors help individuals navigate their finances in a way that minimizes loss and maximizes growth. In fact, according to a study published in the Journal of Retirement, those who work with a financial advisor often feel more confident about their finances and can earn approximately 15% more in retirement funds.¹

Let’s look at some numbers: A 2022 study from Vanguard found that if an advisor managed a theoretical $500,000 investment, on average, it would grow to more than $3.4 million over a 25-year span. The same theoretical investment would grow to an average of $1.69 million over 25 years if it was self-managed. That’s 50% less! This means that portfolios managed by a financial advisor see an average of 8% annualized growth over 25 years, versus only 5% annualized growth from self-managed portfolios. That 3% difference ends up turning into a huge amount of money!²

The majority of adults in the United States say they need to handle their finances better, yet only 29% work with a financial advisor!³ If you haven’t considered a financial advisor yet, or if you don’t know where to start, try our online quiz to get matched with a financial advisor today.

Working with a Vetted Advisor, Matched to Meet Your Needs!

It’s important to learn about the top financial advisement firms in the US, but more than that, it’s important to work with an advisor who is best for you. You need someone who specializes in your unique situation, whether that’s tax management, investing, retirement planning, or more!

That’s why RateZip has developed a free online quiz that asks basic information about your financial situation, what you need advisement on, and what your financial goals are. You’re then matched with up to three financial advisors who have been vetted to meet our standards. All of the advisors we work with have been thoroughly screened, and only those who pass our due diligence process are allowed to be matched. Once you have your matches, you can compare them based on advisement strategies, customer service, and personalities, and choose the one you like best!

The best part about RateZip’s matching quiz? It’s free, easy to use, and there is no obligation to work with any of your matches! These are simply suggestions that might work well for your situation based off of the information you provide – but if you decide they’re not for you, that’s no problem!

The best way to be in control of your finances is to be well-informed. That’s why we want to keep giving you information about financial advisors and help you find a financial advisor suited to your unique needs and goals.

References:

1. “The Use and Value of Financial Advice for Retirement Planning,” The Journal of Retirement (Winter 2020) https://jor.pm-research.com/content/7/3/46

2. “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha®,” Advisor’s Alpha Perspectives (July 2022) https://advisors.vanguard.com/iwe/pdf/IARCQAA.pdf

3. “Planning and Progress Study 2020” Northwestern Mutual (2020) https://news.northwesternmutual.com/planning-and-progress-2020

Hiring a financial advisor may not cost as much as you think – but is it worth it?

In today’s world, we rely on the knowledge of others to better our own lives. From avoiding products that have 1-star reviews to looking up cooking tutorials and recipes, we turn to expert knowledge and experience for guidance. Why, then, do so many people do their own finances with minimal research or outside help? Or worse – ignore their financial futures completely?

Many Americans wrongly assume that financial advisors are expensive and charge fees for services that people can just do themselves. However, most financial advisors are much more affordable than people think, and provide suggestions and resources that can be worth more than their actual fee.

One Fidelity Study estimated that advice from a financial advisor can add between 1.5% and 4% growth to a consumer’s account over a period of time. * On the costs side, most financial advisors will charge a percentage fee between 0.59% and 1.18% for the assets the manage (often called Assets Under Management, or AUM). ** That means that over time, the benefits of a financial advisor are likely to outweigh the costs, putting you in better control of your finances!

To give a concrete example, if you had a $50,000 account, the AUM fee for a financial advisor might be 1.18%, or $590. If the advice you receive helps grow your account between the expected 1.5% and 4%, you could end up with between $750 and $2,000 worth of growth over time! The financial advice literally pays for itself, and then some. That being said, not every financial advisor has the same fee schedule. Other common fee schedules can be seen below:

Fee Type	Fee Cost
AUM Percentage Fee	0.59% to 1.18% annually
Fixed Fee	$7,500 for portfolios less than $500,000
Hourly Fee	$120 to $300 per hour

Please note these examples are for illustrative purposes only and may be different than what financial advisors charge in your area. All costs and fees for your financial advisor should be carefully reviewed prior to services being performed.

With most financial advisors being affordable and eager to help, why do many Americans avoid partnering with one? Another common reason is that they don’t know how to find a financial advisor, which ones to trust, whether they’re priced competitively, or how proficient they are. After all, if you’re going to spend money on a financial advisor, you want to get the best – but determining which advisor is the “best” can seem impossible!

To help everyday consumers find financial advisors, we’ve vetted top advisors from all over the country and engineered a free quiz to match consumers with advisors based on pricing, specialties, and more! After answering some easy questions about your current financial situation, you’ll be matched with financial advisors that have been pre-screened to fulfill your needs. You’ll then have the ability to compare your matches and even contact them for a free evaluation, giving you the ability to choose the advisor that works best for you!

Don’t wait – compare financial advisors today and take better care of your finances!

Sources:
*“Why Work With a Financial Advisor?”, Fidelity (November 2021) https://www.fidelity.com/viewpoints/investing-ideas/financial-advisor-cost
** “What are the Average Financial Advisor Fees & Investment Fees Being Charged in 2021?”, AdvisoryHQ (July 2021). https://www.advisoryhq.com/articles/financial-advisor-fees-wealth-managers-planners-and-fee-only-advisors/