In a recent research study conducted by Forbes, it was discovered that the best advisors are those who are focused on making a positive impact in their clients’ lives, aiming to add meaning and help improve their overall well-being. This research process involves evaluating each advisor to ensure they are of high quality and capable of making a difference in their clients’ lives. Factors such as local representation, industry expertise, and personal connections between clients and advisors were also highlighted as important aspects of the advisory relationship.
The Top Wealth Advisor rankings published annually by Forbes showcase advisors from various markets, with a concentration in larger cities like New York and San Francisco. However, there are exceptional advisors in smaller markets such as South Carolina and Oklahoma who provide valuable services to their clients. It is believed that clients are better served by advisors who have local knowledge and expertise that align with their specific needs and industries. Many clients view their advisors as an integral part of their families, emphasizing the importance of having a close relationship with their financial advisors.
The Forbes rankings of America’s Top Wealth Advisors and Best-In-State Wealth Advisors, developed by SHOOK Research, use a comprehensive algorithm that factors in qualitative criteria obtained through interviews and quantitative data such as revenue trends and assets under management. The algorithm also considers aspects like service models, compliance records, and industry experience to identify advisors who exhibit best practices in client interactions. All advisors must have a minimum of seven years of experience, and portfolio performance is not a key criterion due to varying client objectives and lack of audited data.
The research process involved receiving over 44,000 nominations, with 23,876 nominees invited to complete an online survey and over 20,000 telephone interviews conducted. In-person and virtual interviews were also conducted to gather comprehensive information about each advisor’s practices and approach to client relationships. SHOOK Research emphasizes the importance of both quantitative and qualitative factors in evaluating advisors, aiming to identify role models who offer the best practices and high-quality experiences for their clients.
Advisors are required to meet certain basic criteria, including seven years of advisory experience, a minimum of one year at their current firm, and a recommendation and nomination from their firm. Quantitative factors like revenue, production data, and assets under management are considered in the rankings, along with qualitative factors such as client impact, service models, fee structures, and community involvement. Compliance records are also taken into account, with a focus on ensuring advisors maintain high ethical standards in their practices.
The ranking algorithm used by SHOOK Research is designed to fairly compare the business practices of advisors based on a mix of quantitative and qualitative elements. Data are weighted to prioritize factors such as best practices, business models, recent activity, and other key dynamics. SHOOK Research maintains its independence and objectivity, not receiving compensation from advisors, firms, or other sources for placement on rankings. Investors are advised to carefully select an advisor that meets their unique needs and conduct their own due diligence when choosing a financial advisor.
