Ask the Expert 1

8 Reasons to Hire a Wealth Management Firm

Achieving your financial goals requires expert insight, so engaging a wealth management firm to provide guidance is a great step in the right direction. Solana Beach wealth management firm Hall Private Wealth Advisors’ (HPWA) Founder and Managing Director Russell Hall shares his thoughts on the matter and what sets his firm apart.

Hall has worked for more than 27 years in the financial services industry with well-known firms such as PaineWebber/UBS and Morgan Stanley. Having held titles such as Senior Vice President, Senior Portfolio Manager and Corporate Client Group Director, Hall developed relationships with some of San Diego’s wealthiest families and business owners, who mainly sought a balanced or preservation approach. The firm’s clients today include senior executives, company founders, families with generational wealth and some of San Diego’s fastest-growing companies for whom HPWA manages corporate retirement plans.

Hall recognized early on that many conflicts abound in the wealth management industry, so he built a firm that focuses on delivering a truly aligned experience to clients. Some of HPWA’s differentiating factors include:

1. The firm’s advisory asset management program eliminates commissions for transactions, and within their advisory platform there is no incentive to offer financial products with excessive fees. HPWA charges a very reasonable and completely transparent asset management fee, which financially aligns their clients’ interest with the firm’s. This incentivizes HPWA to perform, while serving as motivation to preserve client assets when markets go down.

2. The process at HPWA eliminates conflicts of interest and results in a much more aligned, synergistic and healthier relationship with clients. Hall states, “Our fees tend to be one-third what big banks charge their clients; we pass these savings along to our clients, which results in improved performance apples-to-apples.”

3. Charles Schwab serves as custodian for client assets, so the firm can keep fees low while holding assets with one of the most financially stable and recognizable custodian firms in the world.

4. While not married to any one discipline, the firm’s current money management bias is toward what Hall describes as ‘deep-value investing’, similar to the approach that Warren Buffet takes. “The challenge is to find value among asset classes, sectors and regions that may be temporarily out of favor, but offer limited downside, a dividend stream and opportunity for future gains,” says Hall.

5. HPWA’s investment approach applies to the bond markets and stock markets. Hall and his team generally seek to identify high profile and liquid investments that may be out of favor but offer a stable income stream – providing a cushion while patiently waiting for a snapback, activism or M&A opportunities to present themselves.

6. Proprietary client statements are simplified, and clients are educated on what metrics they should be paying attention to in their portfolios. Holdings are kept ultra-liquid to maintain tactical opportunity, as well as to avoid heavy fee products that often lead to underperformance.

7. Research and portfolio management functions are kept in-house, without farming it out to other managers – a common practice within the industry. This helps keep fees low and improves control and liquidity. It also gives HPWA the flexibility to react to market developments.

8. Clients are counseled to avoid herd mentality, which can often lead to buying high and selling low, typically seen at mutual fund companies. And Hall’s team has the right background, with more than 100 years of combined experience in asset management to advise on best plans of action.

What better time than now to re-evaluate your results? Schedule a meeting or complimentary analysis to learn more.