THE BENEFITS OF WORKING WITH AN RIA
- 1. THE BENEFITS OF WORKING WITH A REGISTERED INVESTMENT ADVISOR (RIA)
- 2. AGENDA What Our Clients Want……………………………………………………..…....3 What We as RIAs Deliver……………………………………………………...….5 The Profile of an RIA………………………………………………………….….…7 The Profile of a Registered Representative……………………..….…...8 How We Differ From Registered Representatives……………....…...9 Which Option is Right for you?..................................................10 Wrap-Up………………………………………………………………………….…….11 2
- 3. WHAT OUR CLIENTS WANT AN INDEPENDENT RELATIONSHIP FOR THE LONG TERM Our clients want a relationship with a financial professional where they know they are both working towards the same goal MAKE INVESTMENT DECISIONS WITH YOUR BEST INTEREST IN MIND We are a fee-based Registered Investment Advisory (RIA) firm and our objective is: TO HELP YOU ACHIEVE YOUR GOALS 3
- 4. WHAT OUR CLIENTS WANT PERSONALIZED, FOCUSED FINANCIAL ADVICE • Our clients have chosen to work with us for a number of very important reasons • They want a financial advisor who: − Puts their interests first − Understands their specific financial situation − Offers straight forward advice that reflects their long-term goals − Recommends investment solutions that best fit their unique needs − Uses a fee-based structure that encourages unbiased advice 4
- 5. WHAT WE AS RIAs DELIVER AN INDEPENDENT RELATIONSHIP FOR THE LONG TERM • Whether we are helping you plan for retirement or save for your children’s education, YOUR objectives are OUR objectives: − As an RIA, it is our fiduciary duty to act in your best interest- we are legally bound to put our clients’ interest first − We will take the time to understand you and your specific financial situation − We will strive to ensure your needs are being met through a personal relationship and committed pursuit of your investment goals − We will make portfolio recommendations consistent with your objectives 5
- 6. WHAT WE AS RIAs DELIVER PERSONALIZED, FOCUSED FINANCIAL ADVICE • And, our compensation for asset management is aligned with your goals − We charge for our services based on a percentage of your assets managed, so it’s important to us that your investments continue to grow − We are required to disclose how we are compensated, so you can give consent on financial products where a commission may be involved 6
- 7. THE PROFILE OF AN RIA INDEPENDENT BUSINESS OWNERS • 48% of individuals interviewed with household income of $75k or more feel an independent financial advisor is most likely to provide them with the best advice.* Registered Investment Advisor Primary Function Advice Compensation Typically charge a flat fee for advice or a percentage of assets under management Responsibility to Client Fiduciary- RIAs are legally bound to serve the interests of their clients Regulatory RIAs are overseen by the Securities and Exchange Commission (SEC) * Opinion Research Corporation. “Most Would Turn to Independent Advisors During Difficult Time”, survey conducted September 11-14, 2008 7
- 8. THE PROFILE OF A REGISTERED REPRESENTATIVE TYPICALLY AN EMPLOYEE/CONTRACTOR OF A BROKER-DEALER FIRM • Broker-dealers are primarily in the business of buying and selling securities for their clients Registered Representative Primary Function Facilitate securities purchase and sale transactions for their clients Compensation Usually commission based Responsibility to Client Ensure investment recommendations are suitable for the client and provide best execution on client orders Regulatory FINRA ( Financial Industry Regulatory Authority), along with the SEC and state regulatory agencies • Only 8% of individuals interviewed with household income of $75k or more feel a broker-dealer is most likely to provide them with the best advice.* * Opinion Research Corporation. “Most Would Turn to Independent Advisors During Difficult Time”, survey conducted September 11-14, 2008 8
- 9. HOW WE DIFFER FROM REGISTERED REPRESENTATIVES RIA’s AND REGISTERED REPRESENTATIVES ARE VERY DIFFERENT REGISTERED INVESTMENT ADVISOR REGISTERED REPRESENTATIVE Primary Function Advice Facilitate securities purchase and sale transactions for their clients Compensation Typically charge a flat fee for advice or a Usually commission based percentage of assets under management Responsibility to Client Fiduciary- RIAs are legally bound to serve the Ensure investment recommendations are suitable interests of their clients for the client and provide best execution on client orders Regulatory RIAs are overseen by the Securities and Exchange FINRA ( Financial Industry Regulatory Authority), Commission (SEC) along with the SEC and state regulatory agencies 9
- 10. WHICH OPTION IS RIGHT FOR YOU? QUESTIONS YOU SHOULD ASK YOURSELF • What am I looking for- Assistance with buying/selling individual securities, investment advice, or both? • How do I want to pay my financial professional? Fees? Commissions? • Do I want to take a longer-term, holistic approach to the management of my investments or make it more transaction oriented? • How important is it that my professional have a fiduciary responsibility to put my interests first? − 60% of individuals surveyed said they are more comfortable receiving financial advice from someone who is paid a flat fee or percentage of assets versus 23% for a person who is paid on a commission for products they sell.* * Opinion Research Corporation. “Most Would Turn to Independent Advisors During Difficult Time”, survey conducted September 11-14, 2008 10
- 11. WRAP-UP ALTERNATIVES CAN BE CONFUSING • Know what you want and need • Understand the different advice options • Choose the one that best suites your objectives FOR MORE INFORMATION ABOUT RIAs, VISIT: • www.sec.gov/divisions/investment/advoverview.htm • www.sec.gov/divisions/investment.shtml 11