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“It’s a good idea to work with a firm where your wealth level doesn’t make you an outlier, says Black. If you’re far wealthier than your firm’s typical client, your advisor probably doesn’t have much experience in serving your needs, and might not have access to high-end investments like private equity and hedge funds. If you’re smaller, you’re likely to get less attention—unless, that is, you have a clear path to wealth, such as employee stock options.”

“…Black reveals what the most desirable and discerning clients want in a firm. Investment performance is just one part of it. After all, a firm might owe its good track record to luck, Black says, adding that firms wanting to serve SpringReef’s clients should be ready to fill out the mother of all questionnaires. But in the end, says Black, advisors often get the nod due to a factor that can’t be quantified.”

“…Black provided Penta with a benchmark list of what a $10 million family should be paying in total…, both for their advisor and underlying investments…

Of course, selecting an advisor isn’t only about fees but also about the right fit… here’s a simple rule that will help: If your total portfolio is underperforming its benchmark by less than 1%, you should question your advisor, but if it’s regularly over 100 bps, you’ve got a real problem you need to address.”