What are some clear benefits of working with an RIA?
A registered investment advisor (RIA) is a financial advisor or firm that is registered with the Securities and Exchange Commission (SEC) or a state securities regulator and is subject to regulation by those agencies. An RIA provides investment advice and other financial services to clients in exchange for a fee.
There are several potential benefits to working with an RIA, compared to other investment professionals:
- Fiduciary duty: An RIA is required by law to act in the best interests of their clients, which means they must put their clients’ interests ahead of their own. This can provide added assurance that the advisor is acting in your best interests.
- Expertise: An RIA is typically a professional with advanced education and training in financial planning and investing. Working with an RIA can provide access to expertise that you may not have on your own.
- Objectivity: An RIA is paid a fee for their services, rather than receiving commissions based on the financial products they sell. This can help ensure that the RIA is objective and focused on your best interests, rather than being motivated to sell you particular products.
- Ongoing relationship: Working with an RIA often involves an ongoing relationship, rather than a one-time transaction. This can be beneficial if you want someone to provide ongoing guidance and support as your financial situation and goals evolve over time.
- Comprehensive advice: An RIA can provide a wide range of strategic benefit from an investing perspective, as they are generally well-versed in many different investment options and the broad scope of products and services available on the market. They are also generally curating relationships to improve offerings to clients over the long-term.
