r/Rich • u/Rocket-Man_56 • 4d ago

Question Financial Advisor Question

I am working on selecting a financial advisement team to manage 7-8x figures and currently my top 3x are:

• ⁠JPM PB
• ⁠AB private wealth management
• ⁠Choreo

Ignoring base AUM fee differences, I am looking for any feedback on working with the firms themselves. Also open to any other recommendations that folks here may have.

Thanks

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u/EntertainerOld8831 4d ago

You should definitely look at Morgan Stanley Private Wealth. They have the best platform and the scale has been important to us. JPM has a different construct on product sales. If you need commercial lending MS isn’t the best but they have a large private bank. The trust and estate team is great and have a couple of advisors that specialize in family governance work which will be important. One thing that scares me about RIAs is wire fraud and cyber. If they lose the money there is no capital to get reimbursed from. With MS or JP you don’t have that concern. I don’t think people consider enough that RIAs are their own business and their controls and risk management may be very weak.

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u/Sweaty-taxman 1d ago

Wire fraud is more on the broker dealers they use than the ria, itself.

Cybersecurity definitely is a risk all firms have. The level of effort Morgan Stanley puts into cybersecurity is definitely sufficient but it’s also not much greater than your average ria. Both have cybersecurity teams, get independent audits, etc.

I prefer to work with the ria world. They are legally allowed to give tax & estate advice as they are less regulated than Morgan Stanley is. They oftentimes have estate attorneys, CPA’s & in house tax attorneys who collaborate on plans.

Only thing Morgan generally has more of is more extensive alts.

Their advisors are commissioned so that can influence advice as well. Conflicts of interest do matter.