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If a growing portfolio, time constraints or limited investing experience is leading you to seek professional guidance, consider engaging the services of an independent, fee-based investment advisor.
Need help rethinking your financial goals? Clarifying, organizing and consolidating multiple investments to create a unified “big picture”? Of the various investment management alternatives available, many can help, including independent, fee-based investment advisors. Determining your specific needs and objectives, understanding an advisor's investment philosophy and asking an advisor what to expect from him or her will help you select the type of professional best suited to your goals.
Advantages of independent, fee-based investment advisors
Independent, fee-based investment advisors can generally provide ongoing investment management, meaning they can develop and implement an asset allocation strategy that is typically tailor-made to accommodate your individual situation, investment objectives and risk tolerance. Some may also provide financial planning to help you save for retirement and college, provide for your heirs or prepare for major purchases, and may suggest strategies for minimizing taxes. |
Specifically, advisors offer:
 Independence
Many advisors are indepenedent and fee-based, meaning that they are not owned or operated by a broker/dealer and their compensation is based on a percentage of assets they manage for you. They may have access to a broader range of products from various providers than those available to broker/dealer representatives working on a sales commission basis* or limited to mostly proprietarty products, enabling them to offer more options to meet your unique interests.
Discretionary portfolio management
In providing ongoing investment management services, including asset allocation and securities selection, many advisors manage their clients' accounts on a discretionary basis. If you choose to grant your advisor investment discrection, the advisor will be able to place trades in your account under a Limited Power of Attorney. That means the advisor will not have to ask you to approve each trade in advance. While you retain access and ultimate control over your account, authorizing discretionary management can save you time, simplify your investing and enable your advisor to quickly capitalize on potential market opportunites.
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A personal relationship
Many advisors focus on developing long-term client relationships, ongoing communication, trust and rapport—a few of the essential components in creating continuity in service and planning that help them anticipate your needs.
Strategic planning and advice
While advisors have different philosophies and investment strategies, many use a strategic, long-term approach rather than trying to “time the market” or invest in short-term trends. Focusing on where you are today and where you want to go, they can help you navigate the larger economic and market environment to keep your financial goals on course.
Professional knowledge
The specialized expertise many advisors have gained through years of education and experience in finance and investments can enable them to offer you sophisticated solutions to address your growing or complex portfolio.
* In some cases, however, personnel affiliated with these independent, fee-based advisors may be associated with a broker/dealer and may receive sales commissions for recommending certain products such as insurance policies or annuities.
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