With wealth comes more complexity, more risks, and more possibilities. Finding the right financial advisor to handle these complexities is a crucial choice for prosperous individuals and families. The right advisor can help you simplify, protect, and enhance your financial assets for generations to come.
There is no shortage of firms vying for the opportunity to manage your investments, gather your deposits, or sell you various types of insurance products. You could work with banks, brokerage firms, insurance companies, and independent wealth managers. So, how do you choose the right partner?
Over the past 28 years, I have advised clients across each business model, from leading an $18 billion private bank to building a registered investment advisory (RIA) practice for one of the largest middle market CPA firms in the country. In 2022, I stepped off the traditional corporate path to establish an independent, client-centric wealth management boutique.
Having spent time in both worlds, I have unique perspectives into the differences. Here is why independent, boutique firms are better positioned to meet the needs of their clients and provide superior service.
So, why should you consider an independent advisor over banks or brokerages? These are four key values to keep in mind when choosing a wealth manager:
Clients are the most important priority – Always
As an independent firm, we aren’t trying to meet company-wide quotas or growth numbers; it’s only about clients and adding value to their lives.
[This isn’t the case at big banks.] After nearly 20 years as a senior executive of a global private bank, I know firsthand the constant tension between satisfying corporate shareholders, gaining new clients, and keeping up with existing clients. This insatiable pursuit of the next client creates tremendous friction when attempting to cover existing clients. Advisors inevitably end up overwhelmed with too many relationships, resulting in higher employee turnover, and clients are often shuffled into cookie-cutter solutions, centralized call centers, and less experienced service teams.
Is your current advisor truly a fiduciary to you or not? The difference is substantial, and the answer isn’t as simple as it may seem. In some cases, your advisor may be held to a simple “suitability” standard, meaning that product solutions need only be suitable for the client. However, they are not required to act in the best interests of their clients unless specifically named in a fiduciary capacity (trustee, executor, etc.)
Registered investment advisors (RIA), such as Endeavor Advisors, are the fastest growing and purest business structure in the industry. These firms are driven by being fiduciaries and embrace the legal obligation to place clients’ best interests ahead of their own. It’s not complicated for us: Every client. All the time. No exceptions.
Investment banks and financial firms that manufacture products are creating an increasing number of their own investments. Firms that once presented themselves as objective now populate client portfolios with allocations heavily tilted to their own products. The inherent conflict of interest is clear, but the motivation to capture more fees, meet analyst expectations, and drive the stock price higher is strong. In addition, many firms restrict access to their own products and those with revenue sharing agreements.
Technology and innovation have made the most compelling investment solutions readily available across the independent channel. Access to best-in-class investments and nearly any product that exists opens a whole new world of choice to clients. Further, the independent boutique has no incentive to offer one product over another.
Relationships make wealth management rewarding and meaningful, working closely with clients to understand their unique situation, their goals, and their lives. This understanding fuels our recommendations and financial advice. The relationship isn’t an accident – it’s the linchpin of our service.
Legacy firms are quick to tout their long, distinguished histories. However, most are built upon decades old systems and homegrown infrastructures. Technologies that were once viewed as a strength are now out-of-date, antiquated, difficult to update, and ineffective for clients. As part of a larger organization, making a change to the latest tech is usually slow and late.
The movement toward independence continually accelerates every year. The strongest, most entrepreneurial advisors continue to pursue greater autonomy, a more personalized client experience, and the freedom to serve clients without any competing forces. The number of independent RIAs has grown by 35% over the past 14 years and has reached an all-time high in 20241.
We truly believe in the power of independence when it comes to better serving our clients. It’s exciting for us at Endeavor Advisors to be part of this movement, and we’re inviting you to learn more. If it has been a while since you’ve had a second opinion, or maybe you’ve experienced turnover or noticed larger than expected use of proprietary products in your portfolios, give us a call. I’d love to connect with you over a cup of coffee or a glass of wine – to tell you more about how Endeavor is different.
After nearly 30 years of experience in the wealth management space – in both small and large organizations – We are thrilled to be on the side of boutique, independent wealth management.
At Endeavor Advisors, we wake up every day and only think about our clients, not corporate mandates, outside influences, or proprietary products. Our independence allows us to go above and beyond, create stronger, more favorable portfolios, and cultivate deep, long-lasting client relationships with those we serve.
We’ve built Endeavor Advisors to be a deeply client-centric fiduciary, a place where high-net-worth individuals and families can come for personalized, experienced service that meets their unique needs. We invite you to get to know our firm better and set up a meeting today!
