A recent research study conducted by Forbes and SHOOK Research has identified that the best financial advisors are defined by their dedication to making a positive impact on their clients’ lives. These advisors prioritize adding meaning to their clients’ financial well-being and strive to help them live better lives. When evaluating potential advisors, researchers consider whether the advisor can offer meaningful impact and if they would recommend them to a friend or family member.
The annual Forbes ranking of America’s Top Wealth Advisors and Best-In-State Wealth Advisors is based on a thorough algorithm that considers both qualitative and quantitative criteria. This algorithm includes factors such as revenue trends, assets under management, service models, compliance records, and industry experience. The rankings aim to identify advisors who adhere to best practices in their approach to working with clients. All advisors considered for the rankings must have a minimum of seven years of experience, and portfolio performance is not a criterion due to varying client objectives and lack of audited data.
While the Top Wealth Advisor rankings are published annually, the study revealed that many top advisors are concentrated in larger markets such as New York and San Francisco. However, the research also uncovered exceptional advisors in smaller markets like South Carolina and Oklahoma. The researchers advocate for clients to seek out local advisors with specific expertise related to their industries or backgrounds. Clients often view their advisors as an extension of their families and appreciate having them close by for personalized guidance and support.
The research process undertaken by SHOOK involves various stages, including scouring the financial services industry for nominations, conducting online surveys, and completing telephone, in-person, and virtual interviews with advisors. Advisors must meet certain minimum requirements, such as having seven years of experience, a minimum of one year at their current firm, and an acceptable compliance record. The rankings focus on advisors who exhibit best practices in their businesses and demonstrate a commitment to providing a high-quality experience for their clients.
Qualitative factors play a significant role in determining the rankings, with a focus on advisors who offer a full client experience, have strong compliance records, and engage in community involvement. Advisors must provide a comprehensive service model, an effective investing process, and demonstrate a commitment to teamwork and client impact. Compliance issues are also carefully considered, with infractions being weighted based on various conditions such as denials, settlements, and administrative errors. Advisors with high compliance ratings and positive recommendations from their firms are ranked more favorably.
Overall, the research study conducted by Forbes and SHOOK aims to recognize and promote financial advisors who prioritize making a positive impact on their clients’ lives. These advisors are selected based on a combination of quantitative data, such as revenue trends and assets under management, and qualitative factors like best practices, compliance records, and client impact. The rankings are designed to guide clients in choosing the right advisor for their specific needs and highlight the importance of personalized, local representation in the financial advisory industry.
