Congratulations! If you are looking to invest one million or more in assets, you have many options to make your money work for you.
At this level, it is time to graduate beyond the pure play robo-advisors and either:
- Seek professional advice from a wealth manager / certified financial planner.
- Learn enough on your own to make your own asset allocation decisions
There are many factors that start coming into play when investing one million dollars or more:
- Tax Efficiency. The tax code deliberately created rules to incentivize different types of saving and investment methods, such a Keogh 401ks.
- Legacy. You may wish to make a meaningful gift at the end of your life to a charity.
- Estate Planning. How to transfer assets to your heirs.
- Capital Preservation. There are legal structures available to you to help protect your assets from legal and other types of risk.
- Liquidity Requirements. There are special considerations when looking at illiquid assets like small businesses, farms, and homes.
- Insurance. Various types of insurance may be appropriate at different times, including liability, life, and AD&D (accident, disability, and dismemberment).
- Career. Different careers path have unique challenges. For example, a doctor typically has a steady income but carries a high level of student loan debt.
We’re keeping our eye on this segment, but for now, FSRankings does not recommend any robo-advisor if you are looking to invest $1,000,000 or more. Instead, we recommend you seek out a professional wealth manager. J.D Power currently ranks Charles Schwab, Fidelity, and Edward Jones the highest investor satisfaction. FSRankings recommends calling all three to see which option is right for you.