Why a Big Financial Advisor Isn’t Always Better

Feb 14 2024 | Back to Blog List

If you’re new to investing or wealth management, you’d be excused for thinking investors have always had as many choices as they do today when it comes to financial life planning—but that hasn’t necessarily been the case.

Just a generation ago, if you had a complex financial situation or substantial wealth, you worked with a large bank or insurance company to ensure access to the right kind of expertise and tools needed to manage your assets.

Working with these legacy companies offered a sense of stability and a feeling of prestige, but it also came with big fees and commissions for your broker, who might or might not be looking out for your best financial interests in the end.

Today, the calculus has changed (for the better, we believe). The big firms have gone all in on mass-produced model portfolios and roboadvice in a bid for efficiency, while boutique, fee-only firms like Cedar Point Capital Partners have stepped into the gap to offer the tailored portfolios and unbiased insights sophisticated investors expect.

In fact, for many people seeking wealth management help, working with an independent firm is actually a strategic advantage, rather than just a matter of preference. Here are a few reasons why.

1. Nimble, adaptable financial life advice

The best financial advisers adhere to an evidence-based, systematic approach that prioritizes your long-term goals, but that doesn’t mean your investments or strategy should be etched in stone forever. Your financial partners should be nimble and adaptable, so you can capitalize on life’s challenges and opportunities as they present themselves, whether it is a business for sale, a major health issue or an unexpected windfall.

If you can’t adjust positions or revise your personal goals to reflect your life’s changes, you have to wonder if your financial plan was ever really about you in the first place.

Boutique wealth management firms like Cedar Point Capital Partners excel at handling these kinds of pivots precisely because we lack what many of the big investment and insurance firms have—things like rigid portfolio models, bureaucratic processes, and layers of management.

We can move as quickly or as cautiously as the situation calls for, and incorporate new information into our investment strategies as it becomes available. If that means charting a totally new course midstream, we’re going to do that without reservation or pushback; if that means meeting or working outside of “banker’s hours,” we’ll gladly do that, too. We believe your future deserves that level of attention and responsiveness.

2. Deeper relationships that prioritize your human capital

All wealth managers will prioritize your financial capital, but boutique firms like ours are leading a industry paradigm shift that emphasizes the importance of your human capital, as well. (If you’re not familiar with human capital, read this great financial insight from our team.)

We believe that building a life well-lived demands a more holistic and human approach to planning—one that includes your family, your career, your networks, and your aspirations. After all, it’s not a beautiful life if you have a high net worth and low everything else (although many brokers and salespeople are happy to ignore that fact).

Thankfully, most of our current and prospective clients understand the difference, and that’s why we focus so heavily on building deep, long-term relationships that extend beyond your portfolio. It’s a world away from the impersonal, transactional, and increasingly automated experience you’ll find at larger institutions, and that’s a good thing.

Talk to us about your money, or anything else—we want to be that trusted adviser who sees you for the multifaceted person you are.

3. Technology that’s equal or better to the big guys

Many assume that only large institutions have access to cutting-edge portfolio management tools and financial apps, but the truth is that boutique firms are increasingly able to offer technology solutions that are equal to, if not better than, those offered by the big firms.

Our investment in a custom client portal and mobile app allows us to provide our clients with comprehensive portfolio analysis, dynamic performance tracking, and personalized financial planning tools that would have been unattainable just a decade ago.

Even better—because we built it out ourselves, we are able to consolidate and maintain portfolio information and performance data, no matter where your accounts are held. That gives you the freedom to switch financial providers or investment custodians without worrying you’ll lose account details, transaction history or balance information.

You don’t need a big bank or insurance company to give you convenient access to your finances—you just need the right firm with a tech-forward mindset.

4. A truly local perspective

Working with an independent wealth management firm like Cedar Point Capital Partners doesn’t just benefit you as a client, but also contributes to the growth and prosperity of your community. Unlike the big investment houses, which prioritize profits above all else, we’re focused on the well-being of our hometowns, like Cedar Rapids and Williamsburg.

A local perspective also helps when thinking about those tough human capital issues on behalf of clients. Maybe you need to connect with a specific person to advance your goals, or want to get involved with a group; we can draw on our own relationships and experiences to help you connect the dots faster. Being located right here in your backyard (OK, the New Bohemia District) gives us the ability to see local business and investment opportunities up close, and gives you a uniquely Iowan perspective on the best way forward.

Sure, your advisor might be located here in the Corridor, but what about their management? Their corporate leadership? When you think about the motivations of the different layers of management in a national banking or insurance company, you start to see where conflicts of interest can arise, and why it just makes more sense to stay independent.

So whether you’re a seasoned investor or just starting your journey with a financial adviser, consider the advantages of partnering with a boutique firm that puts your financial well-being first. We’re here and ready to help Give us a call or send us an email, and let’s grow together.

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