Forbes
What’s the most important factor in finding the right advisor?
When we meet with an advisor for a due diligence meeting, we are always thinking to ourselves, “Is this someone we would recommend to a friend or family member?” We take our research very seriously so we have to make sure every advisor is of highest quality.
The Forbes ranking of America’s Top Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria—mostly gained through telephone and in-person due diligence interviews—and quantitative data. Those advisors that are considered have a minimum of seven years’ experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices and approach to working with clients. Portfolio performance is not a criterion due to varying client objectives and lack of audited data. Neither Forbes nor SHOOK receive a fee in exchange for rankings.
(For the full list and more, visit www.forbes.com/top-wealth-advisors; advisors can complete a survey for upcoming rankings at www.SHOOKresearch.com.)
We don’t want 300,000 nominations so we set thresholds to minimize the quantity we receive:
SHOOK scours the financial services industry—banks, brokerages, custodians, insurance companies, clearing houses and others for nominations. SHOOK accepts advisors who meet pre-determined minimum thresholds and acceptable compliance records. As of this date, SHOOK has received nearly 36,110 nominations—advisors who meet SHOOK’s thresholds. 20,240 of these nominees have taken an online survey.
Unlike other advisor rankings, SHOOK is not a “robo-ranker”—numbers such as production and assets don’t tell the whole story, especially when much of the data is self-reported. SHOOK Research creates rankings of role models—advisors that are leading the way in offering best practices and providing a high-quality experience for clients. A focus on both quantitative and qualitative factors, including telephone and in-person meetings, is imperative.
SHOOK Research is the only ranking firm that interviews advisors via telephone and in person at an advisor’s location.
Quantitative Metrics
Qualitative Metrics
U4/Compliance Issues
The following conditions will be considered in order to lessen weightings infractions:
Once an advisor’s compliance rating falls into a tenable category, the following conditions must be met:
The algorithm is designed to fairly compare the business practices of a large group of advisors based on quantitative and qualitative elements. Data are weighted to ensure priorities are given to dynamics such as preferred “best practices,” business models, recent business activity, etc. Each variable is graded and represents a certain value for each measured component. These data are fed into an algorithm that measures thousands of advisors against each other.
SHOOK is completely independent and objective and does not receive compensation from the advisors, Firms, the media, or any other source in exchange for placement on a ranking. SHOOK is funded through conferences, publications and research partners. Since every investor has unique needs, investors must carefully choose the right advisor for their own situation and perform their own due diligence. SHOOK’s research and rankings provide opinions for how to choose the right financial advisor and not indicative of future performance or representative of any one client’s experience. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Remember, past performance is not an indication of future results.
For more information, please see www.SHOOKresearch.com.
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