How to Choose a Wealth Manager If You Don’t Have One

Choosing a wealth manager can feel daunting, especially if you’ve never worked with one before.

Having been on both sides of the equation—as a private wealth manager at Goldman Sachs, working with billionaires and ultra-high-net-worth clients, collaborating with top institutional investors during my time at PIMCO, teaching investment strategies at leading universities, and consulting with nearly 1,000 financial firms and teams—I’ve seen firsthand what separates the great wealth managers from the rest.

Here’s how I would approach finding the right wealth manager if I were starting fresh.

Step 1: Understand the Types of Wealth Managers

The first step is understanding the differences between the two primary types of wealth managers you’ll encounter:

1. Big Banks and Large Institutions

Firms like Goldman Sachs, Morgan Stanley, and Citibank bring immense resources and a comprehensive array of services under one roof. They offer:

• Lending and Trust Services: From private trust accounts to custom lending solutions.

• Institutional Power: Access to in-house investment banking, equity research, and structured strategies.

2. Independent Registered Investment Advisors (RIAs)

Many advisors leave large institutions to start their own RIAs. These are boutique firms that:

• Offer Greater Freedom: RIAs operate independently, allowing them to choose strategies and funds without restrictions from a parent firm.

• Focus on Personalization: RIAs often provide a more boutique, local feeling and experience to the client.

Both options have their advantages, and there are many nuances to each. If you’d like to dive deeper into these differences, feel free to reach out.

Step 2: Assess What You Need

Start by evaluating your personal financial goals and needs. Consider:

• Complexity: Do you need help with estate planning, tax strategies, or business financial planning?

• Investment Approach: Are you comfortable with a passive investment strategy, or do you want active stock selection?

• Communication Style: Do you prefer regular check-ins or only as-needed updates?

Knowing what you need will help you identify the right type of advisor for your situation.

Step 3: Meet with Advisors from Both Sides

Before deciding, meet with wealth managers from both large institutions and independent RIAs. Focus on:

• The Individual: Do they understand your goals? Are they experienced and trustworthy?

• The Firm’s Capabilities: Does the firm offer the services and resources you need to meet your financial objectives?

Step 4: Evaluate Their Investment Philosophy

Ask each advisor about their approach to investments:

• Active vs. Passive: Do they focus on individual stock selection, or do they believe in passive index-based strategies?

• Flexibility: Do they have access to external managers like PIMCO and Vanguard, or are they confined to in-house strategies?

• Adaptability: How do they respond to market changes?

A strong wealth manager should be able to explain their philosophy in clear, straightforward terms.

Step 5: Look Beyond Investment Management

Great wealth managers do more than manage your portfolio. Ask about:

1. Financial Planning

Will they guide you on retirement savings, estate planning, or tax strategies?

2. Holistic Support

Do they coordinate with other professionals, like attorneys or CPAs, to align your financial plan with your broader life goals?

3. Fee Transparency

What’s included in their fee, and what additional costs should you expect (e.g., estate planning or tax preparation)?

Step 6: Ask the Tough Questions

Don’t hesitate to ask direct questions to determine if the advisor is the right fit:

• “What services are included in your fee?”

• “Can you share your average client performance for a moderate-risk portfolio?”

• “How often will we meet, and how do you communicate updates?”

• “What services related to my finances do you not provide that I might need to outsource?”

Their answers will give you clarity on what to expect and help you uncover potential gaps in their offerings.

Step 7: Make Your Decision Based on Fit and Trust

At the end of the day, the decision should come down to:

1. Who you trust most to handle your wealth.

2. The firm’s ability to meet your specific needs.

Your wealth manager should feel like a partner who works with you to achieve your financial goals, not just someone managing a portfolio.

Final Thoughts

Choosing a wealth manager is about more than picking an investment strategy. It’s about finding someone who understands your goals, communicates effectively, and offers the services you need to build and protect your wealth.

With my experience at Goldman Sachs, PIMCO, and nearly a decade working with 1,000+ financial firms and teams, I’ve seen what works—and what doesn’t.

If you need help navigating this complex space, feel free to contact me—I’d be happy to guide you in finding the right wealth manager for your needs.

This is a great article if you find yourself searching:

General Questions About Wealth Managers

1. What does a wealth manager do?

2. Do I need a financial advisor or a wealth manager?

3. What’s the difference between a financial advisor and a wealth manager?

4. How much money do I need to hire a wealth manager?

5. How do wealth managers get paid?

6. Are wealth managers worth the cost?

7. How do I find a good wealth manager near me?

8. Do wealth managers help with taxes?

9. Can a wealth manager help me plan for retirement?

10. What’s the difference between a wealth manager and a financial planner?

Questions About Choosing a Wealth Manager

1. What should I look for in a wealth manager?

2. What questions should I ask a wealth manager before hiring them?

3. How do I know if a wealth manager is good?

4. Should I choose a big bank or an independent wealth manager?

5. Is it better to work with a local wealth manager?

6. What’s the difference between a registered investment advisor (RIA) and a broker?

7. How do I check a wealth manager’s credentials?

8. Can I switch wealth managers if I don’t like mine?

9. What does “fiduciary” mean in wealth management?

10. What’s the best way to compare wealth managers?

Questions About Services and Fees

1. What services do wealth managers provide?

2. Do wealth managers pick stocks for you?

3. Do wealth managers help with estate planning?

4. What’s included in a wealth manager’s fees?

5. Are wealth management fees tax-deductible?

6. What’s the difference between fee-only and commission-based advisors?

7. How much does a typical wealth manager charge?

8. Do wealth managers work with small investors?

9. Can a wealth manager help me start investing?

10. Is it better to manage my money myself or hire a wealth manager?