Choosing the Right Wealth Advisor, Part 2: Understanding Their Investment Philosophy

Trust in a wealth advisor deepens when investors understand not just the recommendations being made, but the philosophy behind them. The CFA Institute’s research shows that education plays a meaningful role in building that trust.1 Two advisors may look similar on paper, yet behave very differently when it matters most. 

This is the second article in a three-part series designed to educate investors on how to choose a wealth advisor. Here are seven key elements that can help you understand an advisor’s investment philosophy and connect that to decision-making, risk management, and potential long-term outcomes:  

Goal setting

Your wealth advisor should use your personal goals and a clear financial plan as the starting point and guiding force behind any recommendation. That means you should have a detailed conversation about the purpose of your wealth and the financial goals that matter most to you.   

Market timing

Trying to time the market with quick trades is rarely successful on an ongoing basis and may result in higher costs, higher taxes, and potentially lower long-term investment returns.  When searching for the right advisor, we suggest being very skeptical of those who include market timing as part of their investment strategy.    

Asset allocation

There’s no one-size-fits-all formula for allocating your portfolio among stocks, bonds, and other assets. A trustworthy advisor should make recommendations based on your specific financial objectives, liquidity needs, investment time horizon and risk tolerance.  

Rebalancing 

Find out how frequently your portfolio is monitored and how often rebalancing occurs to reset the desired asset allocation. Your wealth advisor should be poised to help you avoid emotional trades and instead focus on making rational decisions based on a disciplined investment strategy. 

Trading fees  

Your wealth advisor should address ways to minimize portfolio costs. Ask about trading fees and expense ratios for recommended investments. In our view, a good advisor looks at the total cost of trading decisions in order to protect and grow your portfolio effectively over time. 

Taxes 

Paying taxes can significantly impact how much your portfolio earns. Be sure your advisor touches on strategies like tax-loss harvesting and asset location. Each account you have is unique and the investments within those accounts should be tax-optimized to support your overall goals.   

Private markets

For high net worth investors, access to private market investments can play a critical role. They have the potential to enhance returns and increase diversification. Private markets require unique expertise and access that you should discuss with a potential advisor. 

One final thought: if an advisor struggles to articulate their investment philosophy, be careful. Costly investment errors often occur when there is a lack of clear principles to guide you. A sound investment philosophy helps advisors stay disciplined through all market environments. How your advisor thinks about risk, diversification, and decision-making matters more than short-term results. 

ABOUT THE AUTHOR

CONTENT DISCLOSURE

Corient refers to the separate but affiliated entities under common control of Corient Holdings Inc. These entities include but are not limited to Corient Private Wealth LLC, Corient IA LLC, Corient Family Office LLC, Corient Tax LLC, Corient Trust Company LLC and Corient Aviation LLC. Each service may be provided under separate agreements and separate fees may be charged for family office services, wealth management services or any other service provided by a Corient affiliate and/or third party. Additional fees and charges may be applied for other services or products Corient, its affiliates or unaffiliated third-parties provide to clients. Additional fees, such as custodial fees, fund expenses and third-party investment manager fees, may also be applied to client accounts. 

This information is for educational purposes and is not intended to provide, and should not be relied upon for, accounting, legal, tax, insurance, or investment advice. This does not constitute an offer to provide any services, nor a solicitation to purchase securities. The contents are not intended to be advice tailored to any particular person or situation. We believe the information provided is accurate and reliable, but do not warrant it as to completeness or accuracy. This information may include opinions or forecasts, including investment strategies and economic and market conditions; however, there is no guarantee that such opinions or forecasts will prove to be correct, and they also may change without notice. We encourage you to speak with a qualified professional regarding your scenario and the then-current applicable laws and rules. 

Different types of investments involve degrees of risk. The future performance of any investment or wealth management strategy, including those recommended by us, may not be profitable or suitable or prove successful. Past performance is not indicative of future results. One cannot invest directly in an index or benchmark, and those do not reflect the deduction of various fees that would diminish results. Any index or benchmark performance figures are for comparison purposes only, and client account holdings will not directly correspond to any such data. 

Advisory services are offered through Corient Private Wealth LLC, a registered investment adviser (“RIA”) regulated by the U.S. Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “registered” does not imply any particular level of skill or training and does not imply any approval by the SEC. For a complete discussion of the scope of advisory services offered, fees, and other disclosures, please review the RIA’s Disclosure Brochure (Form ADV Part 2A) and Form CRS, available upon request from the RIA and online at https://adviserinfo.sec.gov/. We also encourage you to review the RIA’s Privacy Policy and Code of Ethics, which are available upon request. 

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5221431 – February 2026