Choosing a wealth manager is about more than investment returns. The right advisor should understand your goals, help simplify complex financial decisions, and create a strategy that supports your long-term vision for wealth.

With so many firms and advisors offering similar services, it can be difficult to know what truly matters — or how to compare your options. Here are seven important things to look for when choosing a wealth manager.

What is a Wealth Manager?

A wealth manager is a financial professional or firm that helps individuals and families manage and coordinate different aspects of their financial lives. Depending on your needs, this may include investment management, retirement planning, tax strategies, estate planning, insurance planning, charitable giving, and more.

Unlike advisors who focus primarily on investments, wealth managers often take a more comprehensive approach designed to align your financial decisions with your long-term goals.

Who Needs a Wealth Manager?

You don’t necessarily need to be ultra-wealthy to benefit from professional wealth management. A wealth manager may be helpful if you:

• Are preparing for retirement
• Have significant investable assets
• Need help balancing taxes, investments, and long-term planning
• Own a business or have complex compensation
• Recently experienced a major life event, such as inheritance, divorce, or selling a business
• Want a coordinated financial strategy instead of piecemeal advice

If you decide professional wealth management may be right for you, the next step is understanding how to evaluate your options. Here are seven important things to look for when choosing a wealth manager.

1. Look for a Fiduciary Who Puts Your Interests First

When choosing a wealth manager, make sure they are legally obligated to act in your best interest. Advisors who operate under a fiduciary standard are required to prioritize your interests when making recommendations, helping reduce potential conflicts of interest.

It’s also helpful to understand the advisor’s role within the firm. Some professionals focus primarily on client relationships, while others are more directly involved in investment strategy and financial planning.

2. Verify Their Credentials and Experience

Credentials and experience can help you evaluate a wealth manager’s expertise and specialties. Designations such as CFP®, CFA®, CPA, or CIMA® may indicate advanced knowledge in financial planning, investments, or tax strategy.

You should also ask about the types of clients they typically work with. An advisor who regularly works with retirees, business owners, executives, or high-net-worth families may be better equipped to navigate more complex financial situations.

3. Understand Exactly How Fees Work

It’s important to understand exactly how a wealth manager is compensated. Some firms charge a flat fee or a percentage of assets under management (AUM), while others may receive commissions tied to certain products or services.

A trustworthy advisor should be transparent about all costs and willing to explain them clearly. You can also review a firm’s SEC Form ADV Part 2A, which outlines services, compensation structures, and potential conflicts of interest.

4. Choose Someone Who Can See the Bigger Financial Picture

True wealth management goes beyond managing investments alone. Your financial life is interconnected, and decisions related to taxes, retirement, estate planning, insurance, and cash flow can all influence your long-term financial outcomes.

A strong wealth manager should help coordinate these moving pieces into a broader strategy aligned with your goals, values, and priorities — not simply focus on portfolio performance in isolation.

5. Ask About Their Financial Planning Process

Every wealth management firm approaches planning differently, so it’s important to understand what the process actually looks like.

You may want to ask:

• Will I receive a written financial plan?
• How often will we meet?
• How are recommendations updated over time?
• Who will I work with directly?
• How do you adjust plans during market or life changes?

A clear, repeatable planning process can help ensure your strategy evolves alongside your goals and circumstances.

6. Understand Their Investment Philosophy

A wealth manager’s investment philosophy can influence everything from portfolio construction to risk management. Some advisors emphasize active management, while others focus on long-term diversified strategies or tax-efficient investing.

Understanding how your advisor approaches investing — especially during periods of market volatility — can help you determine whether their philosophy aligns with your goals, timeline, and comfort with risk.

7. Look for Transparency, Communication, and Personal Fit

Choosing a wealth manager is not only a financial decision — it’s a relationship decision. You should feel comfortable asking questions, discussing concerns, and having open conversations about your financial priorities over time.

Since these relationships are often long-term, communication style and personal fit matter just as much as technical expertise.

Questions to Ask a Wealth Manager Before Hiring One

Choosing a wealth manager is an important financial decision, and asking the right questions can help you better understand an advisor’s experience, approach, and services. Consider asking questions such as:

• Are you a fiduciary at all times?
• How are you compensated for your services?
• What services are included beyond investment management?
• What types of clients do you typically work with?
• Who will I work with directly on an ongoing basis?
• How often will we meet or review my financial plan?
• What is your investment philosophy?
• How do you approach tax planning and estate planning coordination?
• How do you communicate during periods of market volatility?
• What credentials or certifications do you hold?
   

FAQs About Choosing a Wealth Manager

Is a wealth manager the same as a financial advisor?

Not always. “Financial advisor” is a broad term that can include professionals focused primarily on investments, insurance, retirement planning, or other financial services. Wealth managers often provide a more comprehensive approach that integrates multiple aspects of a client’s financial life.

How much money do you need for a wealth manager?

Minimum asset requirements vary by firm. Some wealth managers specialize in high-net-worth clients, while others work with individuals and families at a variety of financial stages.

How does a wealth manager get paid?

Wealth managers may charge a flat fee, an hourly fee, or a percentage of assets under management (AUM). Some may also receive commissions tied to certain products or services, making fee transparency an important part of the selection process.

How do I know if a wealth manager is a fiduciary?

You can ask directly whether the advisor acts as a fiduciary at all times and review their SEC Form ADV, which outlines services, compensation, and potential conflicts of interest.

Is hiring a wealth manager worth it?

For some individuals, professional wealth management can help simplify complex financial decisions and create a more coordinated long-term strategy. The value often depends on your financial situation, goals, and desire for ongoing guidance.

A version of this article was originally published on November 21, 2013, on Forbes.com. You may view the article here.

Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group

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