Get expert advice on every topic you need as a small business owner, from the ideation stage to your eventual exit. Our articles, quick tips, infographics and how-to guides can offer entrepreneurs the most up-to-date information they need to flourish.

Subscribe to our blog

The Rise of RIAs: Why You Need A Wealth Manager Now More Than Ever?

Posted by Arya Chatterjee

April 8, 2024

Meet your financial guardian angels and set sail towards financial success today!

Imagine you’re amidst a financial storm, surrounded by market volatility and economic uncertainty. You are on the verge of sinking into this tumultuous sea of numbers and balance sheets. Enter a wealth manager, your financial lighthouse in the stormy waters of investment.

Schedule a call today

Post-pandemic, Google Trends searches for ‘wealth management’ have increased, underlining a growing recognition of the need for expert financial guidance. But what comes under the umbrella of wealth management, and do you need it? We’re here to unravel this mystery and explore the rising trend of Registered Investment Advisors (RIAs) in the United States.

Understanding the holistic approach

Wealth management isn’t just about picking stocks or allocating assets. It’s a comprehensive process encompassing a spectrum of financial disciplines, from investment and financial operations management to tax strategies and retirement planning. It’s about having your eye on the bigger picture, not just focusing on the next step.

Talk to us about how Escalon’s essential business services can help your startup scale faster.

This is where the wealth manager makes his grand entrance—the seasoned captain who directs your financials to safe harbors. Unlike nominal financial planners who solely focus on one aspect of your financial life, wealth managers embrace a more holistic approach. They take a magnifying glass to your financial landscape, honing in on your goals, risk tolerance, and unique circumstances to craft a personalized course for your financial voyage. Need help navigating the complex world of the taxman? Or thinking about buying a house or starting a business? A wealth manager will help you crunch the numbers and make sure you’re making the most intelligent investment for yourself.

Let’s not forget about everyone’s concern: money. A wealth manager can help you make the most of your money by optimizing your investment portfolio, minimizing tax liabilities, and ensuring your finances are on track to meet your goals. However, the most significant benefit this holistic approach offers is the peace of mind that comes with knowing that your financial future is in good hands.

Deciphering the RIA phenomenon

Registered Investment Advisors (RIAs) are financial professionals or firms registered with the Securities and Exchange Commission (SEC) or state securities regulators. While traditional brokers and financial advisors operate under different regulatory frameworks, RIAs are held to a fiduciary standard. This means they are legally obligated to act in the best interests of their clients – a crucial distinction that sets them apart in an industry plagued by conflicts of interest.

Let’s pause for a moment to understand the significance of this fiduciary standard. When entrusting someone with the stewardship of your hard-earned assets, would you want them to prioritize their interests or yours? While the answer is obvious, investors often find themselves trapped in a web of hidden fees, biased recommendations, and opaque practices.

Here’s where the fiduciary advantage of RIAs comes in. By adhering to a higher standard of care, RIAs are duty-bound to keep their clients’ best interests in mind, free from conflicts of interest that plague shadowy corners of the financial industry. This commitment to transparency, integrity, and accountability forms the bedrock of the RIA ethos, fostering a relationship of trust and confidence between advisor and client.

RIAs also have a razor-sharp focus on Key Performance Indicators (KPIs) for finance managers. These metrics help them, and you gauge the effectiveness of their strategies and ensure they’re delivering value to you.

Why do individuals need a wealth manager?

You might be wondering if I need to hire an RIA now. Can’t I manage my finances myself? While the DIY approach has worked for many and still does, modern finance has pitfalls and perils that can derail even the most well-planned strategies. When trying to build wealth, you must consider the following:

  1. Expertise: Just as you wouldn’t perform surgery on yourself or represent yourself in court, managing your finances without expert guidance can quickly get you into a soup. RIAs bring a wealth of knowledge, experience, and expertise, leveraging their insights and skills to ensure you get the ultimate payoff for your investment.  
  2. Objectivity: Emotions can bring even the savviest of investors down. Fear, greed, and cognitive biases can cloud judgment and end with irrational decisions. RIAs are the voice of reason, offering objective advice and guidance based on solid data and analysis.  
  3. Time: Managing your money can be time-consuming, not to mention overwhelming. From researching investment avenues, looking for budget management outsourcing services, monitoring market trends, and rebalancing your portfolio, the demands can quickly go from 0 to 60. RIAs free you from this stress, allowing you to focus on what matters most.  
  4. Peace of Mind: In a world that runs a mile per minute, there’s always something new coming up. Not to mention how uncertain and volatile these changes can be. Knowing you have a trusted ally who always has your financial back gives you the peace of mind needed to sail through turbulent times.

The future of wealth management

As we navigate the ever-changing currents of the global economy, the need for expert guidance and strategic planning is omnipresent. Whether you’re saving for retirement, planning to send your child to an Ivy League school, or building a solid portfolio, a wealth manager can take it from good to great.

Schedule a call today

So, if you’re serious about achieving your financial goals and securing your future, partnering with a wealth manager is not just a wise choice — but a strategic imperative. Whether seeking financial operations management or budget management outsourcing services, having a trusted wealth manager can help you craft your financial destiny. 

Want more? In addition to HR, benefits, recruiting, and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping, and accounting) and Risk (business insurance). Talk to an expert today.


Arya Chatterjee
Arya Chatterjee

Arya Chatterjee is a freelance writer and consultant from Mumbai. With a background in journalism and over five years of creative writing experience working with legacy media like Architectural Digest and Femina India and brands like The Label Life, and Macy's, she crafts unique and compelling stories that engage the readers. She enjoys writing about health, beauty, fashion, and lifestyle and exploring the symbiotic relationship between thriving businesses and happy employees through her writing. She is always looking to explore new avenues to expand her creative energy.

We provide you with essential business services so you can focus on growth.