Looking for a Financial Advisor? These Are the 10 Best Firms in America
Written by
John Schmoll
Edited by
Amber Barkley
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Identifying the right financial advisor takes time. It’s a challenging process requiring a high level of trust. While it may be scary to give control of your hard-earned assets over to another individual, it can be to your benefit.
Thankfully, a recent study from CNBC revealed the top financial advisor firms to consider if you’re in need of assistance.
The Top Ranked Financial Advisor Firms in America
For six years, CNBC has ranked financial advisors. The publication works with AccuPoint Solutions to identify the top choices on important topics like compliance record, assets under management (AUM) and the lifespan of the business.
The analysis began with roughly 41,000 registered investment advisory (RIA) firms in the SEC regulatory database. CNBC used its proprietary formula to narrow the number to 903 RIA firms, then weighed various factors to narrow the list to the top 100.
These are the top ten financial advisory firms in America, according to CNBC:
- Heritage Investment Group: based in Florida — $1.7B AUM
- Parsons Capital Management: based in Rhode Island — $1.8B AUM
- The Burney Company: based in Virginia — $3B AUM
- Dana Investment Advisors: based in Wisconsin — $8.2B AUM
- George McKelvey Company, based in New Jersey — $1B AUM
- Pittenger & Anderson: based in Nebraska — $2.7B AUM
- Sheaff Brock Investment Advisors: based in Indiana — $1.3B AUM
- Salem Investment Counselors: based in North Carolina — $4.5B AUM
- Traphagen Financial Group: based in New Jersey — $1.8B AUM
- Ferguson Wellman Capital Management: based in Oregon — $8.7B AUM
When Should You Hire a Financial Advisor?
If you’re just out of college or new to investing in the stock market, you likely don’t need a financial advisor. It will be more important to focus on other financial priorities, like growing an emergency fund and beginning to invest through a 401(k).
However, once you amass a certain level of assets, it’s worth considering hiring a financial advisor.
Most people should consider hiring an advisor once they achieve $500,000 in investable assets, according to Forbes Advisor. While that’s not a magic number, as some advisors focus on Americans with fewer resources or only high-net-worth individuals, the $500,000 threshold is a good number to keep in mind.
What To Look For in a Financial Advisor
Hiring a financial advisor is a major decision. It’s important to hire someone who can help focus your investments and money management on your specific goals and timeline. Furthermore, there are a lot of advisors to consider in your research. There were over 320,000 advisors in America as of 2023, according to the Bureau of Labor Statistics.
A financial advisor can analyze everything from cash management issues and tax strategies to investments and insurance. Some financial advisors may even have a specialized area where they can provide expertise. Trust and reputation are essential when selecting an advisor, as is finding someone who is a good fit for your personality.
Why Hiring a Fiduciary Is Important
Not all financial advisors are alike. Many work on commission, which can influence recommendations. Selecting a fiduciary is often the best course of action.
Fiduciaries are legally required to work in the best interests of their clients. Moreover, a fiduciary typically charges a flat fee or percentage of assets under management rather than commissions.
During interviews, ask the person if they’re a fiduciary. You can also consult the free FINRA BrokerCheck to learn about the advisor’s employment history, licensing information, complaints and more.
Thankfully, the U.S. Department of Labor has put regulations in place that require more financial advisors to act in the client’s best interest. Even with that in place, it’s best to consult the FINRA BrokerCheck and keep that in mind when interviewing potential candidates to ensure you hire a financial advisor who will meet your needs and put their interests to the side.
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