First, let's ask, what is a Registered Investment Advisor?
And what makes this advisor different from a Registered Representative who works at my bank or a national brokerage firm? - A lot actually, keep reading.
A Registered Investment Advisor (RIA) is a professional independent advisory firm, that is held to the highest standard of care, the Fiduciary Standard - Registered Representatives at banks and brokerage firms are not. RIA's provide personalized financial advice to their clients, many of whom have complex financial needs. Because these advisors are independent, and are required to work in their client's best interest they are not tied to any particular family of funds or investment products, so they can use the investment that is best for the client.
On the other hand, If you've ever worked with a Registered Representative from one of the large firms (Wells Fargo, Morgan Stanley, Merrill Lynch, Edward Jones, etc.) you might have noticed that many of the investments (mutual fund or ETF) in your portfolio have the same names as where the advisor works. Coincidence? Nope. Morgan Stanley makes more money if a Morgan Stanley Registered Representative uses Morgan Stanley investments in their clients portfolios - to the detriment of their clients.
Most importantly, they don't have to work in your best interest. Huh, how is that you ask?
Well, it's the way the Wall Streets rules have been set up. They will work in their best interest, not yours and it's completely legal, and in my mind completely wrong. To make matters even more confusing, Registered Representatives at these large firms can have titles such as Advisor, Financial Advisor, Financial Planner...but in fact, legally they are just Registered Representatives of the firms they work for.
As a Independent RIA (Registered Investment Advisor) and working under the fiduciary standard, Rossi Financial Group is held to the highest standard of care—and we are required to act in the best interests of our clients at all times. Period.
So what are the benefits of working with an Independent Registered Investment Advisor?
These 5 distinct benefits can make a dramatic difference in your overall financial well being. While I have a strong opinion about what type of firm you should work with, it doesn’t change the facts. So read, research, and ask a lot of questions before you enter into any financial relationship. In fact, I would require anyone you work with to sign a Fiduciary Pledge that explicitly states they will always work in your best interest. We sign one for every client.
-Paul R. Rossi, CFA
3/15/2021 11:31:47 am
I like the idea of having an advisor who is not tied to anything and can completely customize your finances. That sounds like a great way to keep track of all my money. I want to save towards big goals but I always end up spending too much somewhere.
4/15/2021 06:54:12 am
I'm trying to invest in things, but I'm not sure how to do it. It makes sense that I would want to get a professional to help me out with this! That seems like a good way to ensure that I invest in the right places.
4/20/2021 01:58:02 pm
I loved how you mentioned that they have a simple fee structure. My cousin was telling me last night about how he is needing help with finances, and that he was wondering if he should hire a financial advisor to help him. I'll make sure to pass this information along to him so that he can look into finding a financial advisor that can help him.
Paul Rossi, CFA
4/20/2021 02:37:42 pm
5/14/2021 11:42:00 am
Thank you for suggesting to work with an investment advisor and that they will help you with your best interests. My husband and I want to get into investing this year to help with retirement. We will find a great investment consultant in our area.
8/11/2021 08:17:33 am
I want to make some investments so that I can make some money. It makes sense that working with an investment advisor would be a good idea! That seems like a great way to ensure that I invest things properly.
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