Financial Advisor for High‑Net‑Worth Individuals: 8 Questions to Ask First

Kimberly Green | 2025-05-09

71 % of high‑net‑worth households changed advisors after a liquidity event (Capgemini World Wealth Report 2024). Ready to upgrade? Browse HNW advisors on Sam’s List Why HNW Needs Differ From Mass‑Affluent Seven‑figure portfolios add private equity K‑1s, vacation‑home depreciation, and multi‑state tax exposure. One‑size robo solutions break quickly. The 8 Questions Do you coordinate with my estate‑planning attorney and CPA quarterly? How do you manage concentrated positions—donor‑advised funds, 10b5‑1, collars? What’s your alternative‑investment due‑diligence process? How do you secure data (multi‑factor auth, encrypted vaults)? Are you fee‑only, fee‑based, or commission‑based? How do you optimize state‑specific and cross‑border taxes? What is your plan for legacy and philanthropic goals? Who is the custodian holding my assets? (Schwab, Fidelity, Pershing, etc.) Mini‑Case: Selling a $12 M Logistics Company Advisor split proceeds into QSBS rollover , DAF gift bunching, and granular direct indexing, saving $1.1 M in cap‑gains and state taxes. Red‑Flag Answers • “We do alternatives, but exact selection is proprietary.” • “Sure, we can custody your assets at our own BD.” • “Estate planning isn’t our lane.” HNW Readiness Checklist ☐ Net‑worth statement updated quarterly ☐ Estate plan signed within five years ☐ Alternative‑investment allocation capped by IPS ☐ Written cybersecurity protocol from advisor FAQ What qualifies as high‑net‑worth? Many advisors set the bar at $5 M investable assets; UHNW starts around $25 M. How do HNW advisors charge? Flat retainer ($15 K–$50 K) or tiered AUM (0.5 % on first $10 M, down thereafter). Are fees tax‑deductible? Miscellaneous deductions were suspended federally through 2025; some states allow it. What is a UHNW wealth manager? Typically multi‑family‑office service with bill pay, private‑deal sourcing, and concierge reporting. You Might Also Like Financial Advisor for Small Business Understanding Financial Advisor Fees vetted Accounting Firms for Small Business Author: Kimi, Co-founder of Sam's List Kimi writes about what she's learning while building Sam's List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner. Financial Advisors on Sam's List Anthony Syracuse, Dynamic Financial Planning Rodriquez Wealth Management Ascend Investment Partners