Is it Time to Reassess Your Registered Investment Advisor?

For ultra-high-net-worth individuals and families, the relationship with a Registered Investment Advisor (RIA) is foundational to achieving long-term financial objectives. However, as life circumstances evolve and financial landscapes shift, it’s always prudent to evaluate whether your current RIA still aligns with your goals and expectations, and is ultimately getting you where you want to be. 

At Avidian Wealth Solutions (AWS), we understand the complexities of wealth management and the importance of a tailored approach. Our boutique family office experience is designed to address the unique needs of affluent clients, offering a comprehensive suite of interconnected services that extend beyond traditional investment management.​

If you’re contemplating whether your current advisory relationship is delivering optimal value, schedule a consultation to see how Avidian can support your financial journey.

What is a Registered Investment Advisor?

A Registered Investment Advisor (RIA) is a firm or individual that offers investment advice and manages client portfolios. RIAs are registered with the Securities and Exchange Commission (SEC) or state securities authorities, depending on the assets under management. They are bound by a fiduciary duty, obligating them to act in the best interests of their clients.​

What is the difference between an RIA and a financial advisor?

While all RIAs are financial advisors, not all financial advisors are RIAs. The key distinction lies in the fiduciary standard. RIAs are legally required to prioritize their clients’ interests, whereas other financial advisors, such as broker-dealers, may operate under a suitability standard, recommending products that are appropriate but not necessarily optimal for the client.​

This fiduciary obligation means that RIAs offer unbiased advice, free from conflicts of interest, and are transparent about fees and compensation structures — and that they’re legally required to do so. 

What to look for in an RIA

Selecting the right RIA involves aligning some key factors with your financial objectives and values:

Credentials and experience

What should you look for in a financial advisor’s credentials? While credentials like Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) can indicate a certain level of experience, they should not be the sole criteria. It’s essential to assess the advisor’s experience, particularly with clients who have similar financial profiles and goals.​

When choosing a financial advisor, particularly a Registered Investment Advisor, inquire about their approach to investment management, tax planning, estate planning, and risk management. Understanding their methodology and how it aligns with your expectations is crucial.​

Red flags to watch for

What is a red flag for a financial advisor? Be cautious of advisors who:

• Lack transparency about fees and compensation
• Push proprietary products that may not be in your best interest
• Have a history of regulatory infractions or client complaints
• Fail to provide comprehensive financial planning services
• Do not communicate regularly or fail to update you on portfolio performance and changes​

These warning signs may indicate that the advisor is not fully aligned with your financial well-being.

What financial advisors don’t tell you

The financial advisory landscape is vast, and not all advisors offer the same level of service or transparency. Some may focus primarily on investment management, neglecting other critical aspects like tax planning, estate planning, or risk management.​

According to a study by J.D. Power, overall investor satisfaction with full-service investment firms varies; factors like trust, value for fees, and the ability to manage wealth how and when clients want were significant contributors to overall satisfaction levels. ​

It’s also worth noting that some advisors equate risk management solely with insurance products, rather than adopting a comprehensive approach or umbrella policy that considers various risk factors and mitigation strategies.

The Avidian difference

At Avidian Wealth Solutions, we offer a multidisciplinary approach to wealth management, offering a suite of services that extend beyond traditional investment advice. Our offerings can include:​

• Investment management: Tailored strategies that consider your unique financial goals, risk tolerance, and time horizon.​
• Tax planning: Proactive strategies to minimize tax liabilities and enhance after-tax returns.​
• Estate planning: Comprehensive planning to protect your legacy and distribute your wealth according to your wishes.​
• Risk management: A holistic approach that goes beyond insurance, considering various financial and non-financial risks.​
• Alternative investing strategies: Access to private offerings and alternative investments for qualified clients, providing diversification and potential for enhanced returns.​

Our boutique family office experience is designed to cater to the complex needs of ultra-high-net-worth individuals and families. We prioritize transparency, alignment of interests, and a commitment to acting in your best interest.​

Unlike some advisors who may push proprietary products, we focus on providing unbiased advice and solutions that aim to truly serve your financial objectives. Our team of financial professionals collaborate with your existing team of attorneys and advisors to deliver integrated strategies that encompass different facets of your financial life.

Questions to ask your current RIA

1. How do you tailor investment strategies to align with my specific financial goals and risk tolerance? Understanding the customization of your portfolio is essential to helping it reflect your unique objectives.​

2. What is your approach to tax planning, and how do you integrate it into my overall financial plan? Effective tax planning can significantly impact your net returns and should be an integral part of your strategy.​

3. How do you address estate planning so that my legacy is preserved according to my wishes? Comprehensive estate planning is vital for wealth transfer and minimizing potential disputes or tax implications.​

4. What is your strategy for risk management beyond insurance products? A holistic risk management approach considers various financial and non-financial risks, not just insurance solutions.​

5. Do you offer access to alternative investments, and how do they fit into my portfolio? Alternative investments can offer diversification and potential for enhanced returns, depending on your financial profile.​

6. How are you compensated, and are there any potential conflicts of interest I should be aware of? Transparency about fees and compensation structures helps align advisor-client interests.​

7. How frequently do you communicate with clients, and what is your process for portfolio reviews? Regular communication and reviews are essential for staying aligned with your financial goals.​

8. What is your process for selecting investment products, and do you use proprietary funds? Understanding the selection process and any potential biases is crucial for evaluating the objectivity of advice.​

9. How do you stay informed about changes in tax laws, market conditions, and financial planning strategies? Continuous education and awareness are vital for providing up-to-date and effective advice.​

10. Can you provide references or testimonials from clients with similar financial profiles? Hearing from clients with comparable situations can offer insights into the advisor’s effectiveness and approach.

Considering a change in your RIA? Let’s talk.

If you’re evaluating whether your current Registered Investment Advisor aligns with your evolving financial needs, Avidian Wealth Solutions is here to help. Our comprehensive, multidisciplinary approach is designed to address the complexities of substantial wealth, offering tailored strategies that can encompass investment management, tax planning, estate planning, and risk management.​

We invite you to schedule a conversation with our team at one of our offices in Houston, Austin, Sugar Land, or The Woodlands. We’ll discuss how we can support your financial journey and help you work to achieve your long-term objectives.

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• What is the Role of an Outsourced Chief Investment Officer in a Family Office?
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