What do financial planners mean when they talk about clients with high net worth?

[Anonymous]

Do financial planners just look at assets when determining a clients net worth? Our assets (home equity, retirement, other investments) are roughly $1.5 million but we have a mortgage of $500,000. This matters to me since it looks like some companies have better services and rates for higher net worth clients.

[Anonymous]

$1,000,000 or more in investable assets.

[Anonymous]

Anonymous wrote:$1,000,000 or more in investable assets.

Agreed. This is how our planner defined it for us, though large financial advisory firms with private client business may define it differently.

[Anonymous]

avoid those types-you need to find one who will work with you for your goals not their goals.

our person has many clients who are probalby worth a ton and many like us, who just wnat to live comfy and not stress.

so far it has worked great.

[Anonymous]

Investable assets

[Anonymous]

Planners should work for you no matter what your assets. If someone only takes on high net worth clients, it's because they want to manage your assets, or have you invest your money with them. They usually charge 1 percent of assets under management - so $10,000 a year on $1 million. It's not worth it for them to take on clients for less.

If you are really looking for a PLAN and not for someone to manage your assets, you can find someone who will charge a flat fee. I've heard fees range from $1200-$5000 for a comprehensive plan. An advisor/manager will often provide a plan for "free" - it's included in their one percent fee.

[Anonymous]

Anonymous wrote:Planners should work for you no matter what your assets. If someone only takes on high net worth clients, it's because they want to manage your assets, or have you invest your money with them. They usually charge 1 percent of assets under management - so $10,000 a year on $1 million. It's not worth it for them to take on clients for less.

If you are really looking for a PLAN and not for someone to manage your assets, you can find someone who will charge a flat fee. I've heard fees range from $1200-$5000 for a comprehensive plan. An advisor/manager will often provide a plan for "free" - it's included in their one percent fee.

And it will be packed with investments that carry up-front commissions of 5%. Avoid them like the plague.

OP, move your money to Vanguard and let their free advisors allocate your investments across a diversified mix of low-expense index funds.

[Anonymous]

Vanguard's good and I have quite a bit of it but index funds, good as they can be, can also be a trap in certain down markets.

You can do better with certain actively managed funds and newletters like the independent advisor for Vanguard online (I have no connection other than as a paid subscriber) can help identify those.

http://adviseronline.investorplace.com/



Indexing is good but not at all foolproof.

[Anonymous]

Anonymous wrote:Vanguard's good and I have quite a bit of it but index funds, good as they can be, can also be a trap in certain down markets.

You can do better with certain actively managed funds and newletters like the independent advisor for Vanguard online (I have no connection other than as a paid subscriber) can help identify those.

http://adviseronline.investorplace.com/



Indexing is good but not at all foolproof.

Wow, that advisory website is total garbage -- no surprise. I certainly hope nobody takes your suggestion seriously.