Investing in the Right Decision:
An important difference to know when searching for the right financial adviser
The first step to making any decision in life is to fully understand the options involved. Whether the decision being made is “what type of car should I buy?” or “which larger home best fits our growing family needs?” thought and research is required to find the best solution. As some decisions are naturally deemed more important than others, your decision in whom you choose to help guide you to financial prosperity and stability may be one of the most important decisions. This is because the decision will not only affect you now, but will have major impact on your future.
Uncover the facts – it’s important to understand if the financial partner you are working with or are considering working with is a Registered Investment Adviser (RIA) or a financial sales person. There is a BIG difference that could ultimately affect how your life journey evolves. According to the website, RIA Stands For You, an RIA “is a professional advisery firm that offers personalized financial advice to clients who require a high level of investment management strategy and consultation”. There are numerous differentiators that highlight an RIA firm, but here are 5 distinctions. 1
- Tailored advice based on your goals. Many Registered Investment Advisers (RIAs) believe that their independence is key to offering advice that’s best for you.
- You know what you’re paying for. Typically, fees are based on a percentage of assets managed, so the RIA has a vested interest in your success. This fee structure is simple, transparent, and easy to understand, and it gives your adviser an incentive to grow your assets.
- Fiduciary Responsibility: While many financial advisers may represent that they put their clients’ interest first, RIAs are legally required to do so. You could say that we “talk the talk AND walk the walk”. 2
- Advice for your complex needs. A rich diversity of specialization among RIAs. Many independent RIAs provide services that address a variety of complex investment needs that often arise when you accumulate significant wealth, such as assisting you with the sale of a business, complicated tax situations, trusts, and intergenerational issues.
- A different kind of relationship. RIAs typically form close relationships with clients and have a strong sense of accountability. 3
As you move through the process of interviewing advisers and researching firms for the partner you’ll count on, keep these five points top of mind and recognize what a RIA firm can bring to you and your family. Perhaps, you are not actually dissatisfied with your current adviser, but feel that you may not be getting the right amount or kind of attention you need. You now have the power of knowledge to understand what a RIA firm offers and the difference it can make for you.
For more information visit www.paynewealthpartners.com. On our website you should be able to find answers to most questions you might have, and we are always happy to meet and discuss anyone’s situation.
Author: Ann Pendley CFP(r) (Bio)
Direct Phone: 812-602-6304