20 Best Financial Advisors 2022

You may wonder what a financial advisor does. Financial advisor is a generic term with no exact industry definition.

And as a result, this sort of title can describe many various kinds of financial professionals like the Stockbrokers, insurance agents, tax preparers, investment managers, and even financial planners can all be financial advisors. Estate planners and bankers may also make it under the same canopy.

Yet, they can make a vital difference: which is, a financial advisor needs to make provisions for guidance and suggestion.

They can differentiate a financial advisor from an implementation stockbroker who just places trades for clients or a tax accountant who simply makes preparation for tax returns without having to provide suggestions on how to maximize tax advantages.

Furthermore, what may pass as a financial advisor sometimes may simply be a product salesperson, such as a stockbroker or a life insurance agent?

A real financial advisor ought to be a well-educated, credentialed, professional who works on behalf of his clients, as opposed to serving the interests of a financial institution by trying to maximize the sales of certain products or taking advantage of commissions from sales.

To better understand the concept of Financial Advisors, put the following questions into consideration: 

  1. What exactly does a financial advisor do?
  2. Is it worth it to hire a financial advisor?
  3. What should I expect from a financial advisor?
  4. What’s the reasonable percentage to pay a financial advisor?
  5.  What is the difference between a financial advisor and a financial planner?
  6.  How often should one meet with his financial advisor?
  7. Can I make it as a financial advisor?
  8. How long does it take to become a financial advisor?
  9. What are the best 20 financial advisors?

What You Need to Know About Financial Advisors

Generally, a financial advisor remains as an independent practitioner who operates in a fiduciary capacity in which a client’s interests come first before theirs.

However, only Registered Investment Advisors (RIAs), under the Investment Advisers Act of 1940, are held to a true fiduciary standard.

Meanwhile, the fiduciary standard allows that an RIA needs to always without conditions put the client’s best interests ahead of theirs, irrespective of every other circumstance.

There are some agents and brokers who vote to practice in this capacity, as a fiduciary, as a way of attracting clients. However, their compensation structure is such that the contracts of the organizations where they work bound them.

Since the enactment of the Investment Adviser Act of 1940, two kinds of relationships have existed between financial intermediaries and their clients.

These are the logical standard and the stricter fiduciary standard. These relationships attribute to the nature of the transactions between registered representatives and clients in the broker-dealer space.

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There is a fiduciary relationship that calls for advisors registered with the Securities and Exchange Commission (SEC) as Registered Investment Advisors to exercise duties of loyalty, care, and full disclosure in their interactions with clients.

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What Exactly Does A Financial Advisor Do?

Financial advisor is often responsible for extra executing trades in the market on behalf of their clients.

Advisors make use of what they already know and their expertise to create personalized financial plans that achieve the financial goals of clients.

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Is It Worth It To Hire A Financial Advisor?

Some experts say a good rule of thumb is to hire an advisor when you can save 20% of your annual income, others would suggest getting one when your financial circumstance becomes worse like when you get an inheritance from a parent or you want to enhance your retirement funds.

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What Should I Expect from a Financial Advisor?

Industry studies do estimation which professional financial advice can include between 1.5% and 4% to portfolio returns over the long term.

And this depends on the time and how they can calculate the returns. A one-on-one relationship with an advisor is not just about financial management.

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What’s The Reasonable Percentage To Pay A Financial Advisor?

Ideally stating, about 1% per year is a reasonable fee you can pay for financial guidance.

This ought to include financial advisor fees, including any fees on the investments you make use of.

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What Is The Difference Between Financial Advisor And Financial Planner?

Financial Advisors vs. Financial Planners

The Financial Planner is one particular kind of financial advisor who are specialists or experts in assisting firms and people generate a program so as for them to meet long-term financial goals.

A Financial Planner could have expertise in taxes, investments, retirement, and/or even estate planning.

Furthermore, the financial planner could decide to hold many licenses or designations, like Certified Financial Planner (CFP) designation.

Financial planners may also specialize in risk management, tax planning, asset allocation, retirement planning, and/or estate planning.

How Often Should One Meet With His Financial Advisor?

You ought to meet with your advisor at least once a year to reevaluate elements such as taxes, budget, and investment performance.

Now, this becomes a tremendous opportunity to discuss whether you feel you are in an excellent position, and if there is something you should or could do better to enhance your net worth in the coming year.

Can I Make It As A Financial Advisor?

Having to take on the role of a financial advisor offers you a range of opportunities not broadly available in many career fields.

As well as providing invaluable advice to clients, successful financial advisors have almost unlimited earning prospects, flexibility in work schedule, and control over their practice.

How Long Does It Take To Become A Financial Advisor?

Individuals who aspire to become Financial Advisors may spend a length of roughly 4 – 5 years to become Financial Advisors.

The basic educational requirement is a bachelor’s degree in finance or related fields like accounting, management, business, and economics.

20 Best Financial Advisor Firms

Wondering the best financial advisors firms in the world, here is a list of them all:

1. Dana Investment Advisors

They base in Waukesha, WI, and rank No. 1 according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared on last year’s FA 100 list; their Total AUM is $7.3B; they’ve been in business for 41 years; they manage about 1,163 accounts.

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2. Salem Investment Counselors

Based in Winston-Salem, NC, and ranked No. 2 according to the 2021 CNBC Financial Advisor 100 list.

The firm literally topped last year’s FA 100 list; their total AUM is  $2.6B; they’ve been in business for 42 years; they manage about 2,239 accounts.

3. New South Capital Management

Based in Memphis, TN, and ranked 3rd according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared on last year’s FA 100 list; their total AUM is $3.7B; they’ve been in business for 36 years; they handle about 190 accounts.

4. Check Capital Management

Based in Costa Mesa, CA, and ranked 4th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared No. 12 on last year’s FA 100 list. Their total AUM is $1.6B; they’ve been in business for 35 years; they manage about 1,684 accounts.

5. Richard C. Young &Co.

Based in Naples, FL, and ranked 5th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 10th on last year’s FA 100 list; their total AUM: $1.3B+; been in business for 32 years; they manage about 1,860 accounts.

6. Gofen & Glossberg

Based in Chicago, IL, and ranked 6th on the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 13th on last year’s FA 100 list; their total AUM is $6.3B+ ; they’ve been in business for 89 years; they manage about 3,500 accounts.

7. California Financial Advisors 

Based in San Ramon, CA, and ranked 7th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 9th on last year’s FA 100 list; their total AUM: $1.6B+; they’ve been in business for about 23 years; they manage about 2,901 accounts.

8. North Star Asset Management

Based in Neenah, WI, and ranked 8th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 14th on last year’s FA 100 list; their total AUM is $2.1B+ ; they’ve been in business for 25 years; they manage about 2,374 accounts.

9. Heritage Investors Management

Based in Bethesda, MD, and ranked 9th according to the 2021 CNBC Financial Advisor 100 list.

This is the firm’s first appearance on CNBC’s FA 100 list; their total AUM is $3.4B; they’ve been in business for 47 years; they manage about 1,300 accounts.

10. Tom Johnson Investment Management

Based in Oklahoma City, OK, and ranked 10th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 8th on last year’s FA 100 list; their total AUM is $1.6B; they’ve been in business for 38 years; they manage 4,998 accounts.

11. Beacon Capital Management

Based in Dayton, OH, and ranked 11th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 24th on last year’s FA 100 list; their total AUM is $4.2B+; they’ve been in business for 21 years; they manage about 15,427 accounts.

12. Bowen, Hanes & Co.

Based in Atlanta, GA, and ranked 12th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 28th on last year’s FA 100 list; their total AUM is $3.5B+; been in business for 40 years; they manage about 212 accounts.

13. Mason Investment Advisory Services

Based in Reston, VA, and ranked 13th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 100th on last year’s FA 100 list; their total AUM is $10.6B+; been in business for 39 years; they manage about 800 accounts.

14. D.F. Dent & Co.

Based in Baltimore, MD, and ranked 14th according to the 2021 CNBC Financial Advisor 100 list.

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The firm also appeared 18th on last year’s FA 100 list; their total AUM is $10.7B; been in business for 46 years; they manage about 1,155 accounts.

15. Gillespie, Robinson & Grimm

Based in Greenwich, CT, and ranked 15th on the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 26th on last year’s FA 100 list; their total AUM is $1.5B; been in business for 51 years; managed about 710 accounts.

16. Pzena Investment Management

Based in New York, NY, and ranked 16th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 27 on last year’s FA 100 list; their total AUM is $41.1B+; been in business for 25 years; managed about 222 accounts.

17. Woodley Farra Manion

Based in Indianapolis, IN, and ranked 17th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 19th on last year’s FA 100 list; their total AUM is $1.2B; been in business for 26 years; managed about 998 accounts.

18. RNC Genter Capital Management

Based in Los Angeles, CA, and ranked 18th on the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 30th on last year’s FA 100 list; their total AUM is $5.8B; been in business for 54 years; managed about 10,700 accounts.

19. Parsons Capital Management 

Based in Providence, RI, and ranked 19th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 16th on last year’s FA 100 list; their total AUM is $1.6B+; been in business for 27 years; they manage about 1,608 accounts.

20. ZWJ Investment Counsel 

Based in Atlanta, GA, and ranked 20th according to the 2021 CNBC Financial Advisor 100 list.

The firm also appeared 34th on last year’s FA 100 list; their total AUM is $3B; been in business for 39 years; managed about 900 accounts.

Frequently Asked Questions (FAQs)

Is it important to diversify my investments?

Absolutely. Yes. The reason for this is when you invest too much in a portfolio that belongs to you, to one particular investment, you simply expose yourself to the underlying risks which are associated with that investment.

Do Financial Advisors offer complimentary portfolio reviews?

Absolutely Yes. They offer a complimentary evaluation to people either wanting to learn more about their portfolio or just seeking a second alternative.

What is a fiduciary?

Is an individual who puts the client’s interests first. In addition, acts with prudence, care, skill, diligence, and good judgment of a professional.

Do Financial Advisors charge fees for initial meetings?

The fact is, most financial advisors do not charge fees for initial meetings. And even if they do, it’s just a minuscule amount.

What year-end tax reports are provided?

The asset custodians make provisions for the tax documents to you directly.

Conclusion

It is worthy to note that several people do not subscribe to signing up for Financial Advisors; but it’s advised to have alternative(s) to financial management to avoid the risks of being financially outdated.

Financial Advisors, asides from all that has been stated, are also there to help keep you on track, especially by talking you out of making emotional decisions about your money.

Sign up for one now!

References

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