Here is a breakdown of the differences of an Registered Investment Advisor, our firm, and a Traditional Retail Firm.
Registered Investment Advisor:
- Has a Fiduciary duty to client, by law we have to act in the best interest of our client
- No products to sell
- Can use any investment available, including low cost passive investments
- Typically small business owner
- Access to multiple custodians, where your money is held
Financial Advisor, Traditional Retail Firm:
- No Fudiciary duty to client, just to find Suitability
- Has sales contests and quotas to meet
- Has firm products to sell
- Typically work for large firms, Merrill Lynch, Smith Barney, Raymond James, Edward Jones
- Have a revenue sharing agreement with products they sell
