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You need help -- whether you know it or not. Your investable assets are somewhere between $500,000 and $5 million (if you have much more, you enter the extremely customized world of private banking, which is beyond the scope of this article).
There's a lot at stake, and you should be getting help with taxes and estate planning, among other tricky subjects. You can arrange for those services piecemeal or get them through your broker or adviser.
Fortunately for you, yours is the business that every brokerage is slavering to have. You also can attract the attention of the best fee-only financial planners, which may be an option you want to explore. (Typically, fee-only planners charge 1% or so of your portfolio to manage your money and provide a complete, comprehensive financial plan. For more details, contact the National Association of Personal Financial Advisors.)
Here's what to keep in mind:
- Financial stability is essential. Your account exceeds the $500,000 maximum that's covered by the Securities Investor Protection Corp., so you'll want to make sure your broker is as sound as it pretends to be. Weiss Ratings keeps track of broker solvency.
- You deserve a real financial plan. You need more than just asset-allocation advice. Somebody with an actual credential (CFP, CPA-PFS, ChFC) should review your entire financial situation and make recommendations regarding estate planning, insurance, taxes, etc. Ask for a look at a sample plan so you can get an idea how customized the advice will be compared to the cost (if any).
- You should qualify for more customization. Separate accounts give you a portfolio of investments tailored to your individual needs that allow you to control tax costs and access some of the best money managers. Typically, you need $1 million or more to pass through this particular door, said Catherine McBreen, managing director for Spectrem Group, which specializes in research about the affluent. But some brokerages let you in for less.
- Alternative investments may be within your grasp. Plain vanilla -- stocks, bonds, mutual funds -- works best for most investors, but you might appreciate access to more exotic investments like limited partnerships or hedge funds that are typically closed to smaller investors.
What's not so important? Account minimums. You shouldn't face any maintenance or inactivity fees.
Editor's note: Follow the links in the blue box to the left to read about other investing types and to return to the main article.
Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.
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