How to Select an Advisor

Providing You the Key Questions You Should Ask – and Our HB Wealth Answers

Download our E-book on Selecting an Advisor

Thinking about hiring HB or another firm as your financial advisor? We encourage you to review this list of questions and answers as you think about your choices.

Care

Will you manage my assets using the fiduciary standard?

HB Wealth operates under the fiduciary standard, meaning that we must put your interests first, period. HB Wealth was founded as a Fee-Only Fiduciary firm in 1989 and we have never changed our view – we believe in our approach, and our clients value the peace of mind that comes from knowing that our transparent client service model puts us on the same side of the table working together for their best interests.

Who will work with me? How big will my client service team be?

Will I feel comfortable with my team?

Client-Aligned

Are you “fee-only” or just “fee-based”? What about commissions or other payments?

HB Wealth is fee-only, not fee-based. We are only paid by our clients. Most clients pay a fee calculated as a percentage of the assets we manage. Some firms charge fees in a similar way…but then also collect commissions, mutual fund fees, incentive fees, or other side payments from other business services, leading them to call themselves “fee-based.” Some brokerage firms will try to tell you that their service “is not as expensive as those independent firms where you have to pay a fee” but they do not tell you that can often end up paying even more in commissions and mutual fund fees and hidden incentive payments – but you may not see that number anywhere on your monthly statements.

Does your firm sell products or services besides wealth management?

Do you use a third party custodian?

Do you provide a disclosure annually to the SEC?

Registered investment advisers (RIAs) like HB Wealth must file a Form ADV with the SEC each year. You can search for the ADV of an advisor at www.adviserinfo.sec.gov. Form ADV Part 1 online describes the firm’s services, how many financial assets they manage, their compensation, disciplinary history, and other operations details. Form ADV Part 2A is what the advisor is required to give you as a prospect (we include one in every set of brochure materials for a potential new client meeting). Part 2A provides more information about the services, investment strategies, fees, and potential conflicts for the firm.

Credentials

What credentials do your people have?

In our view the two most critical certifications are the CERTIFIED FINANCIAL PLANNER® certification and Chartered Financial Analyst® certification. CFP® certificants have completed university level financial planning courses and have passed a lengthy exam covering over 80 planning-related topics. You can learn more at www.cfp.net. CFA® charterholders must pass three separate full day exams focused on a wide range of investment related topics, each of which demands a minimum of 250 hours of study per the CFA Institute. Learn more at www.cfainstitute.org. We also have many Certified Public Accountants (CPA®) on our staff who bring the rigor and focus of their background to their client work.

Comprehensiveness

Does your firm offer investment management AND financial planning expertise?

What is your approach to investing?

This is a lengthy discussion, and we have a brochure solely focused on this topic. Key areas you should discuss with your potential advisor should include their thoughts on diversification, asset allocation, manager selection, active vs. passive strategies, manager monitoring, rebalancing, and risk management. Who is making the investment decisions and how often do they meet? How do they define investment success? How do they handle the ups and downs of financial markets? Do they focus on tax implications and estate implications when building your plan? This is a good topic to spend some time reviewing in detail with your potential advisor.

Does your firm have a dedicated investments staff?

Does your firm have a Director of Financial Planning?

Does your firm have a Wealth Strategist advising on estate planning strategies?

Families with estate planning needs can consult with one of our Wealth Strategists at no additional charge in order to be better prepared to seek updates with their estate attorney that align with their goals. Your client service team can engage with one of our Wealth Strategists (veteran estate planning attorneys) to spend time with you understanding your needs, evaluating your existing documents, and discussing potential new strategies.

Coordination

Does your firm act as the leader of my entire financial team?

Can you show me a consolidated performance report for all my investments?

Does your firm provide detailed tax information to my CPA for my financial activities?

Does your firm upload K-1s and 1099s to a confidential portal for my CPA to have easy access?

Continuity

How long has your firm existed? Are you going to be there for me and my family in the future?

HB Wealth has been helping clients for 35+ years and has a strong succession plan in place with a large staff that ensures continuity over time for your family. Some firms have only been around a few years, or have teams of people who have jumped around from firm to firm over time. We believe our long-term financial strength and growth through many ups and downs of the financial markets should give you comfort in our ability to work with your family for many years to come.

Who owns your firm?

Can your firm grow with me over time?

Does your firm have a young management team ready to lead the business for the next 30 years?

At HB Wealth, the majority of our management team and board members are second-generation leaders for our firm. HB Wealth has already successfully completed the transition from being a founder-led firm to being led by the next generation guided by our core values that have never changed. We believe that it is important for your advisor to avoid being forced to suddenly sell or make radical changes to deal with the lack of a succession plan.

Why Hire a Professional Financial Advisor?

At HB Wealth, our advisors integrate investment management with wealth advisory services designed to grow, protect, and manage your wealth. Our goal is to take the mental and emotional burden of managing complex financial decisions off our clients so they can focus on what matters most to them.

Learning More

We have included links in many of the Q&A items in this section but will repeat those and add a few more here that could be helpful resources for you as you search for a quality advisor.

NAPFA
Independent Advisor Learning Center
FPA
CFA Institute

Want to Learn More About HB Wealth?

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How to Select an Advisor

How to Select an Advisor

How to Select an Advisor

Care

Client-Aligned

Credentials

Comprehensiveness

Coordination

Continuity

Why Hire a Professional Financial Advisor?

Learning More

Want to Learn More About HB Wealth?

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