For investors, working with a wealth advisor who operates through an independent registered investment advisor — for short, RIA — confers eight key advantages.
1 – Fiduciary duty provides added assurance for investors
Independent RIAs are held to the fiduciary standard, which means they must put their clients’ interests before their own — or anyone else’s.
2 – Transparency lets clients see exactly what they’re paying for
Even beyond the fiduciary standard of trust, independent RIAs are required to disclose any potential conflicts of interest and to provide regular reports on their investment strategies and performance for clear insight on how their money is managed.
3 – Customized investment advice aligns with the client’s goals and risk tolerance
Independent RIAs are not restricted to any specific product or investment platform. As a result, they provide unbiased, customized recommendations.
4 – Access to institutional investments provides a robust array of investment choices
Many independent RIAs have access to institutional investments and other investment opportunities that may not be available to retail investors.
5 – Fee-based compensation aligns the interests of the advisor and the client
Independent RIAs typically charge a fee based on the amount of assets under management on the client’s behalf — in contrast to charging commissions on the sale of products, tying the advisor’s income to the client’s success: advisors only do better when clients do better.
6 – Newer technology enhances advisor-client engagement and communications
Many independent RIAs are able to outsource to newer technologies because they don’t have large legacy systems to contend with — as large brokerage firms invariably do.
7 – More choice means better product execution
By separating financial advice from products, independent RIAs are free to recommend their clients a wider range of loans, trade execution, and other financial products and services. This contrasts with brokerages, which typically compel their advisors to opt for in-house offerings.
8 – Qualification standards and regulatory oversight ensure the advisor has the experience and knowledge to provide sound financial advice
Independent RIAs tend to have more qualifications and certifications and any exam requirements needed are challenging, plus larger independent RIAs are governed by the Securities and Exchange Commission.
Let Dynasty Financial Partners through Dynasty Wealth Management help connect you with independent RIAs who are ready to help take your financial plans to the next level.
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