Personal Finance
How Much Should I Have Invested Before Working With a Wealth Manager?
Plus, take a free quiz to match with vetted fiduciary wealth managers who may be able to help.
If you’ve built significant wealth, managing it effectively may be challenging.
From tax-efficient investing to estate planning and risk management, a wealth manager could help develop specialized strategies tailored to high-net-worth individuals.
But at what point should you consider working with one?
This answer may vary for many investors, but the benefits are clear: Consulting a fiduciary wealth manager can be a great first step to helping ensure you’re effectively managing your complex assets and leaving a legacy for your heirs.
In fact, SmartAsset’s latest proprietary model reveals that working with a wealth manager could potentially add from 36% to 212% more dollar value to investors’ portfolios over a lifetime, depending on multiple unique, individual factors.¹
Interested in finding a wealth manager? SmartAsset's no-cost tool can help you find and compare vetted fiduciary wealth managers in just a few minutes. How does the free tool work? It's easy:
- Short questionnaire takes just a few minutes
- Match with vetted fiduciary financial advisors
- Compare your matches and choose the one you feel is best for you
The fiduciary wealth managers you match with serve your area and are legally bound to work in your best interest. You may even be able to instantly connect with a wealth manager for a free introductory call. Wealth managers are vetted through our proprietary due diligence process.
What is a Wealth Manager?
Wealth managers may go beyond traditional financial advisors by offering holistic financial planning for affluent clients, typically those with $1 million or more in investable assets.
Their expertise commonly spans investment management, tax optimization, estate planning, and even generational wealth transfer.
How Much Money Should You Have Before Hiring a Wealth Manager?
Many wealth management firms may set minimum asset thresholds for new clients, which often start at $1 million but can be as high as $5 million or more.
Unlike traditional financial advisors, who may work with clients of varying wealth levels, wealth managers may cater exclusively to high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.
Here’s what that means:
- $1 Million+ in Investable Assets (HNW) – Many wealth management firms require at least $1 million to qualify for their services, ensuring they can provide customized strategies suited to complex portfolios.
- $5 Million+ for Exclusive Services (UHNW) – Some firms, especially private wealth divisions of major financial institutions, may reserve their most advanced services—such as direct private investments and bespoke tax planning—for clients with at least $5 million.
- Family Office Services at $10 Million+ – If your assets exceed $10 million, you may qualify for a multi-family office or even a dedicated single-family office, providing concierge-level financial management and intergenerational wealth strategies.
This free quiz matches you with vetted fiduciary wealth managers who serve your area in just a few minutes.
What Do Wealth Managers Charge?
For many, the excuse for not working with a wealth manager could be the assumption that they’ll overpay for services, or that a wealth manager’s services may not be worth the cost.
In actuality, the fees wealth managers charge could be less than most people think, and the insights they add may surpass the cost.
Wealth managers often charge a percentage fee for Assets Under Management (AUM). A 2023 AdvisoryHQ study found that the average AUM fee for a $1 million account was about 1.02% or $10,200 and declined at escalating asset levels.²
Common Fee Types & Costs²
- Percentage of Assets Under Management: 0.59% - 1.02% per year
- Fixed Fees: $12,500 for $1M portfolios, increasing for elevated asset levels
The figures above are examples only and used to illustrate what typical fees for wealth managers and their structure looks like. Please carefully review fee structures with your wealth manager and review your advisor’s form ADV and CRS.
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Why Net Worth Can Matter When Choosing a Wealth Manager
While you don’t necessarily need a specific net worth to benefit from professional financial guidance, wealth managers tailor their strategies to those with significant investable assets. Some key reasons affluent investors may seek out wealth managers include:
- Tax-Efficient Investing: Advanced tax strategies, including tax-loss harvesting, charitable giving plans, and estate tax minimization, may help preserve and grow your wealth.
- Estate & Legacy Planning: High-net-worth investors may need sophisticated estate planning to ensure wealth transitions smoothly to heirs and philanthropic causes, while minimizing estate taxes.
- Alternative Investments: Many wealth managers may provide access to exclusive investment opportunities like private equity, hedge funds, and real estate syndications.
- Risk Management & Asset Protection: Customized insurance, asset protection trusts, and legal structuring may help shield your wealth from unnecessary liabilities.
How to Find a Wealth Manager
If your investable assets exceed $1 million—and especially if they surpass $5 million—it may be time to consider working with a wealth manager.
A fiduciary wealth manager may be able to help optimize your investments, reduce tax liabilities, and ensure your wealth serves you and future generations.
However, with so many financial professionals in the market, it may feel overwhelming to find the right fit.
Using a matching service can help match you with vetted wealth managers who specialize in high-net-worth strategies.
SmartAsset’s free matching quiz can match you with fiduciary wealth managers who serve your area. From there, you can compare and decide which advisor to work with. All wealth managers on the matching platform have been vetted through our proprietary due diligence process.
The quiz takes just a few minutes, and in many cases, you can be connected instantly with an advisor to have an introductory call.
This is a hypothetical example and is not representative of any specific security. Actual results when working with a financial advisor will vary.
This scenario is for illustrative purposes only and does not represent an actual client. Results may vary.
This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). Past performance is not a guarantee of future results. There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.
SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.
SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments.
We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.
Sources:
1. “The Value of a Financial Advisor: What’s It Really Worth?” SmartAsset (Nov. 2024)
2."Average Financial Advisor Fees in 2023 | Everything You Need to Know", AdvisoryHQ (July 2021). The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in the AdvisoryHQ study.
