High-Net-Worth Individual and Family FAQs

Consider whether the advisor acts as a fiduciary, has experience with complex portfolios, provides customized rather than standardized advice, clearly explains fees and conflicts, and can coordinate investments across taxable accounts, retirement accounts, trusts, and other entities.

Lynx Investment Advisory provides investment advisory services to individual as well as institutional clients. Prospective clients should review Lynx’s Form ADV and discuss whether its investment-focused service model meets the family’s needs.

The appropriate choice depends on the services required. An independent RIA may appeal to investors seeking fiduciary advice and access to a broad investment universe. A private bank may combine investments with lending, banking, and trust services. A brokerage relationship may be focused more heavily on transactions or financial products.

Prospective clients should compare fiduciary obligations, services, fees, product limitations, custody, conflicts of interest, and who will actually manage the relationship.

Important questions include:

• Will you act as a fiduciary throughout the relationship?
• Who will manage my portfolio?
• How are you compensated?
• Do you receive compensation from investment managers or product providers?
• Where will my assets be held?
• How will you coordinate my different accounts?
• How do you handle taxes and concentrated positions?
• How do you measure risk and performance?
• What conflicts of interest should I understand?
• Where can I review your Form ADV?

The answers should be documented in the advisor’s disclosures, advisory agreement, and service proposal.

A fiduciary advisor should begin with the family’s objectives, spending needs, risk tolerance, tax circumstances, investment horizon, liquidity requirements, concentrated holdings, and existing accounts.

Lynx may then develop an asset allocation and portfolio structure based on those circumstances. No portfolio strategy can guarantee gains or prevent losses.

An advisor may evaluate multiple accounts as part of a combined investment strategy when those accounts and the necessary information are included in the relationship.

This can help identify the family’s overall asset allocation, liquidity, diversification, risk exposures, and the intended purpose of each account. Tax, trust, and estate matters should also be reviewed with qualified tax and legal professionals.

The advisor should evaluate the position’s size, cost basis, volatility, tax consequences, liquidity, restrictions, and relationship to the family’s broader financial objectives.

Potential risk-management approaches depend on the client’s circumstances. Diversification may reduce concentration risk, but it cannot guarantee a profit or protect fully against loss.

Tax-aware investment management may consider realized gains and losses, turnover, investment income, asset location, charitable objectives, withdrawal needs, and the timing of portfolio changes.

Tax consequences are specific to each client. Lynx does not provide tax or legal advice unless expressly agreed and properly qualified to do so, and clients should consult their tax and legal advisors.

The appropriate combination depends on the family’s objectives, taxes, account structure, desired exposures, fees, liquidity, and investment preferences.

Lynx may evaluate active managers, passive investments, funds, ETFs, and other strategies based on their intended role within the complete portfolio.

Portfolio risk should be evaluated using more than a single volatility number. Relevant considerations may include asset-class concentration, individual-security concentration, liquidity, equity exposure, interest-rate sensitivity, credit risk, currency exposure, manager overlap, and the potential effect of market declines on spending needs.

Lynx may evaluate risk in relation to the client’s objectives, time horizon, liquidity requirements, and capacity to withstand losses.

Lynx may be worth considering for individuals and families seeking fiduciary investment advice, customized portfolio construction, manager and fund evaluation, risk analysis, portfolio management, and performance reporting.

Lynx may not be the right fit for every family. The decision should depend on the services needed, portfolio complexity, minimum relationship requirements, fee arrangements, tax and planning needs, and the quality of the working relationship.