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Our Criteria
To be considered, companies needed to meet Annuity.org’s set criteria:
Services must be available nationally
Assets under management (AUM) must be $1 billion or more
Services must be held to fiduciary duty
Understanding Our Methodology
Annuity.org’s independent editorial team developed a strict and industry-specific methodology to help ensure that only the most effective portfolio management and retirement planning companies were considered.
To ensure access to all consumers, services were only considered if they were available nationally and easily accessible to general consumers.
Each company also needed to have assets under management of $1 billion or more to help ensure that all companies that were evaluated had a wide reach, were financially secure and have a proven track record of serving consumers. The wealth management and investment advisory services offered by the company also must abide by fiduciary duty.
When comparing companies, Annuity.org took numerous other differentiating factors into consideration as well. This included the variety and depth of the financial advising services offered by the company, the costs, commissions and minimum amounts associated with those services, the user-friendliness of the company’s website and services, along with transparency of offerings. Whether companies placed — and how well they fared — in several J.D. Power studies, including the Investor Satisfaction Study and Digital Experience Study was also considered.
Learn more about our broader Editorial Guidelines.
In today’s world of financial advisors, the use of digital financial advisors is growing rapidly. They offer low fees and low account minimums. Contact a financial professional to see whether investing with a digital financial advisor would make sense for your financial situation.
Timothy Li, MBABusiness Finance ManagerTimothy Li, MBA, has dedicated his career to increasing profitability for his clients, including Fortune 500 companies. Timothy currently serves as a business finance manager where he researches ways to increase profitability within the supply chain, logistics and sales departments.
Editor’s Choice: Best Overall
Company Details
With its upfront transparency of its fiduciary duty and its generally low advisory fees, Vanguard’s advisory services are a strong choice for those looking to work with a fiduciary and see their accounts grow.
Pros & Cons
Pros
- Generally low advisory fees
- Strong diversity of services offered
- Highly ranked option for investors seeking guidance
Cons
- Slightly below average in investor satisfaction
- Ranks poorly in digital experience
Our Take
Not all companies and advisors are direct and upfront about their duties to clients or how they collect their fees, but that is not the case with Vanguard. With both its Personal Advisor and Personal Advisor Select services, the company openly advertises its fiduciary duty and the fact that its advisors are not paid in commissions.
Vanguard also stands out due to the affordable and transparent fees that it offers on its products. The Personal Advisor service, which includes a mix of advice from traditional advisors and robo-management, includes advisory fees that range from 0.35% to 0.40%.
Personal Advisor Select, which is aimed at clients with larger investments ($500,000 minimum), includes just a 0.30% advisory fee.
While the company does rank slightly below industry average in the J.D. Power Investor Satisfaction Study, its transparency about its fiduciary duties along with its low fees can make it a compelling option for investors.
Best for Low Account Minimums
Company Details
While financial advisory services can be beneficial to many different types of clients, account minimums sometimes serve as a barrier between prospective investors and those services. Fidelity, which is a fiduciary when acting as an investment advisor, offers several options with accessible account minimums.
Pros & Cons
Pros
- Low account minimums
- Strong variety of investment advisory services
- Ranked highly in investor satisfaction
Cons
- Advisory fees are higher than some competitors
- Ranked slightly below industry average in digital experience
Our Take
One important factor to remember with Fidelity is that the company specifies that it acts as a fiduciary when serving as an investment advisor but not when acting in a brokerage capacity. However, Fidelity offers a bevy of investment advisory services, many of which include lower account minimums than some competitors.
Fidelity’s digital investment option includes a minimum of just $10, compared to the $3,000 minimum on Vanguard’s Digital Advisor. Fidelity Wealth Management’s eligibility generally requires an account value of $250,000, while Vanguard’s Personal Advisor Select requires double that amount.
The lower account thresholds may be attractive to clients who are looking for more accessible options, and they are still matched with robust services that stack up well against competitors. But one tradeoff is the possibility of higher advisory fees. Fidelity Wealth Management’s fees range from 0.50% to 1.50%, which are notably higher than Vanguard.
Best for Digital Experience
Company Details
More and more investors are getting involved in managing and growing their wealth through apps and online services. One fiduciary option that stands out in the online sphere is J.P. Morgan, which ranked No. 1 in the J.D. Power Digital Experience Study.
Pros & Cons
Pros
- Ranked No. 1 for digital experience
- Beneficial offers for new clients
Cons
- Ranked below industry average in investor satisfaction
Our Take
Financial advisors’ digital capabilities and online offerings are a key factor to many clients, and it’s one area where J.P. Morgan stands out. In addition to leading the pack in J.D. Power’s Digital Experience Study, the company’s mobile app holds a 4.8 out of 5 rating with over 6,000 reviews on the Apple App Store.
J.P. Morgan fields enticing benefits for new clients as well, including an offer of no advisory fee for the first six months of using their service. Pricing varies depending on not just what service you opt for, but the value of your account as well.
The company’s Personal Advisors option includes fees scaled by assets managed, ranging from 0.60% on smaller accounts to 0.40% on larger investments.
Private Client Advisors, a more high-end version of the company’s service that includes a dedicated advisor who can help you customize a plan versus working with a team of advisors, can range in fees from 0.70% to 1.45%.
While J.P. Morgan did score highly in digital experience, it also ranked below industry average in the J.D. Power Investor Satisfaction Study.
Best Robo-Advisor
Company Details
For investors interested in fiduciary options, there is a lot to like about robo-advisors. These services automatically invest and grow your wealth within the parameters you set, removing the human element. Thanks to its track record of success, Wealthfront stands out.
Pros & Cons
Pros
- History of strong returns
- Low advisory fee compared to traditional options
Cons
- Not as robust or personalized as working with a dedicated advisor
Our Take
Robo-advisors are a growing sect of the financial advisor space, with many traditional companies offering automated options, along with standalone providers. Founded almost 15 years ago, Wealthfront is one of the older players in the industry, with a strong history of success.
According to the company’s website, portfolios with the most selected risk score have grown by 6.69% since 2011. Wealthfront allows users to customize their portfolio and investment strategies based on the types of investments they are interested in and the level of risk they are comfortable with.
It can be more affordable than opting for a traditional advisor as well, with an advisory fee of 0.25%. One natural drawback of opting for a robo-advisor is the loss of personal touch and real-time advice, which can come from working closely with a traditional advisor.
Others We Considered
- Charles Schwab
- Annuity.org could not verify whether certain Charles Scwhab services and offerings act in a fiduciary capacity.
- Morgan Stanley
- The company was considered but was not included due to its below-industry-average ratings in the J.D. Power Investor Satisfaction Study and Digital Experience Study.
What Is a Fiduciary Financial Advisor?
When you work with a fiduciary financial advisor, you can be certain that your interests and goals will always be placed first. According to the Consumer Financial Protection Bureau, a fiduciary is required by law to manage a client’s money for the client’s benefit and only act in their best interest.
Fiduciary financial advisors can be appealing to consumers because it helps to guarantee that you are receiving sound and honest financial advice.
An investment or brokerage firm that is not bound by fiduciary duty could, for example, push you towards certain investments or manage your money in a way that helps the firm’s bottom line even if it isn’t the best financial decision for you.
The disingenuine motives can be a major concern for clients. But that worry is removed when dealing with a fiduciary, since there is a legal requirement for them to always act in your best interest and make decisions only if they benefit you or are at your direction.
Selecting the Right Fiduciary Financial Advisor for You
There are several factors that go into selecting the right financial advisor for you. There are also numerous fiduciary options. Many companies’ investment advisory services are bound by fiduciary duty.
But it is important to be sure that you are working with a fiduciary if that is something that is important to you. Not all companies are fully transparent about where fiduciary duty applies or how the advisors you work with are compensated.
When selecting the right financial advisor, it can be helpful to directly ask the company you are considering working with whether they are bound by fiduciary duty and how advisors working on your account are compensated.
Part of selecting the right advisor is determining what type of service you are looking for, as well. It’s important to ask the right questions to ensure that they’re the right match for your needs. Investment advisory firms can manage and grow your money in many ways.
If you want to get into investing without paying a significant amount or dealing with working with an advisor, then a robo-advisor service can make sense for you. These services automatically invest your money within the parameters you select and typically have a lower advisory fee than a traditional financial advisor.
As far as traditional options, companies typically offer scaled services. You can opt for a service that gives you access to an advisor and some management, or a more robust service that may come with a dedicated advisor and even more hands-on attention and advice.
Prices vary by company, but the advisory fee tends to be a smaller percentage the larger your investment is.
Frequently Asked Questions About Fiduciary Financial Advisors
All financial advisors are not automatically fiduciaries. Whether a company and its advisors are bound by fiduciary duty may vary depending on the type of service you receive from them.
There isn’t one way that fiduciary financial advisors are paid, and that payment varies from company to company. They may be compensated on a set scale, or they may receive a percentage of the assets they manage.
The easiest way to find out is to directly ask the financial advisor. If they are, they should be able to clearly answer you that they are a fiduciary and bound by fiduciary duty.
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