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© 2020 Brickley Wealth Management
The language of coordinated, personal wealth management has become standard marketing, often sitting on top of a firm built to grow by acquisition. The structure underneath determines whether that relationship survives the day the firm decides to sell.
Blog Post
by Steve Brickley, CPA

The Question Most People Forget to Ask When Comparing Advisors

Financial Planning
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Please see important disclosures at the end of this post.

A lot of firms in this industry now describe themselves the same way: one team, one point of contact, your tax, investing, and estate planning all coordinated under one roof. It sounds like what you’d want. It’s also, increasingly, marketing copy sitting on top of a very different structure underneath.

Here’s the pattern worth understanding before you sign on with a firm that uses this language. Many of the larger names in wealth management today grew not by building client relationships one at a time, but by acquiring independent advisory practices — dozens of them, sometimes more — and folding the clients into a single national platform. There’s often a dedicated team whose entire job is doing more of these deals: finding firms to buy, negotiating the acquisition, and managing the transition once your advisor’s practice becomes part of theirs. That’s not a hidden detail. Some firms are proud enough of it to put it on their own website.

What that means in practice is that the “personal” relationship you started with can end whenever the firm you’re a client of decides to sell. Your advisor doesn’t necessarily leave — but the firm behind them changes, the ownership changes, and you, the client, generally have no say in any of it. You find out after the fact, the same way you’d find out your bank got bought by a bigger bank.

The tax side often tells the same story. Some of these firms advertise in-house tax preparation as a selling point, but look closely and it’s frequently available only at certain service tiers, run by a national team serving clients across the entire country. That’s not a criticism of the people doing the work — it’s simply a different thing than a CPA who has known your family for twenty years. A national team can be competent. It cannot be the person who remembers why you set up your trust the way you did, because they weren’t there when you did it.

None of this is really about any one firm. It’s about a structural fact: a business built to grow by acquisition is optimized for acquisition, not for staying as it is for the client who’s been there since the beginning. Ours is optimized for the opposite. We’ve done the tax side since 1985 and the investment side since 1999. We have a real succession plan in place, built specifically so we don’t have to sell to anyone. Eight of us serve about 180 relationships, not a national book of business — which is also just math: it’s the only way anyone actually knows your whole picture, instead of reading it off a screen after being introduced to you for the first time.

“Personal” is easy to put in a headline. It’s a lot harder to structure a firm so that it’s actually true for as long as the client needs it to be. That’s the difference worth asking about before you decide who gets to know your whole financial life.

What happens to your relationship with a financial advisor if the firm is acquired?

When a wealth management firm is acquired, clients typically have no vote in the sale and often learn of it only after it closes. The advisor may stay, but ownership, incentives, and long-term continuity can change — which is why a firm’s structure and succession plan are worth understanding before you choose an advisor.

What should you ask when comparing wealth management firms?

Beyond fees and investment approach, consider asking how the firm is owned, how it has grown (organically or through acquisition), whether it has a succession plan that keeps it independent, and whether tax and investment work is handled by the same team that knows your history. These structural questions tend to determine whether a relationship lasts as long as you need it to.

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Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are offered only to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure.

The information provided is for informational purposes only and is not intended as investment, tax, or legal advice. The content is based on sources believed to be reliable, and reasonable due diligence is conducted; however, accuracy and completeness cannot be guaranteed and information is subject to change without notice. Past performance is no guarantee of future returns. Investing involves risk, including possible loss of principal.

Readers should carefully consider their own investment objectives, financial situation, and risk tolerance before making any investment decision, and should not rely solely on any communication, chart, or illustration as the basis for action. No investment or tax advice is provided unless a client service agreement is in place with Brickley Wealth Management or Brickley & Company.

Brickley Wealth Management does not provide legal advice. Please consult your investment, tax, or legal professional regarding your individual circumstances. For additional information about our firm, our services, and our advisers, please refer to our latest Form ADV, Part 2 Brochures, and Client Relationship Summary. Our Privacy Notice is also available for review.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

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Key Financial Terms 
Related to this Post:

This is some text inside of a div block.

Certified Public Accountant (CPA)

A licensed professional qualified to perform accounting, taxation.
This is some text inside of a div block.

Financial Advisor

A professional who helps clients manage finances, investments, and planning goals.
This is some text inside of a div block.

Certified Private Wealth Advisor®

A credential for advisors focused on high-net-worth strategies and advanced planning.
This is some text inside of a div block.

Registered Investment Advisor (RIA)

Registered Investment Advisor, a professional who provides financial advice and manages investments for clients, regulated by the SEC or state securities authorities.
This is some text inside of a div block.

Multi-Family Office

A firm that offers comprehensive financial and tax services to several high-net-worth families, often with shared infrastructure.
This is some text inside of a div block.

Estate Planning

Preparing for the transfer of assets, typically to heirs, in a tax-efficient and legally sound manner.

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Contact@brickleywealth.com
(650) 638-0111

Brickley Wealth Management is a Registered Investment Adviser*. Advisory services are offered only to clients or prospective clients where Brickley Wealth Management and its representatives are properly licensed or exempt from licensure.

The information provided is for informational purposes only and is not intended as investment, tax, or legal advice. The content is based on sources believed to be reliable, and reasonable due diligence is conducted; however, accuracy and completeness cannot be guaranteed and information is subject to change without notice. Past performance is no guarantee of future returns. Investing involves risk, including possible loss of principal.

Readers should carefully consider their own investment objectives, financial situation, and risk tolerance before making any investment decision, and should not rely solely on any communication, chart, or illustration as the basis for action. No investment or tax advice is provided unless a client service agreement is in place with Brickley Wealth Management or Brickley & Company.

Brickley Wealth Management does not provide legal advice. Please consult your investment, tax, or legal professional regarding your individual circumstances. For additional information about our firm, our services, and our advisers, please refer to our latest Form ADV, Part 2 Brochures, and Client Relationship Summary. Our Privacy Notice is also available for review.

*Please note that the term "registered investment adviser" and description of our firm and/or our associates as "registered" does not imply a certain level of skill or training.

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