Financial Advisor And Investment Advisor


Do Financial Advisors Have Conflict Of Interest

What is a Financial Advisor?

Some financial advisors act in their best interests, instead of yours. This could result in selecting sub par products due to pressure by their firm or someone else.

It could also result in not making suggestions to build wealth with assets outside of their wealth management expertise or capability.

Getting a financial advisor to work as a fiduciary will help resolve the conflict of interest problem. Fiduciaries are required by law to act in the interests of their clients first and foremost.

This topic leads to the question: can there really not be a conflict of interest in any occupation? I dont think there can be. The real estate agent sells houses. The surgeon promotes surgery because this is how they have learned to fix problems. Its what professionals do.

And most professionals truly believe their way is the only or best way.

Likewise, a financial advisor promotes investing in stocks and bonds, perhaps with a sprinkling of commodities, because this is what they do. Its what they were taught was best. There is no evil here. Again, I have found most financial advisors I speak with want nothing but the best for their clients.

Many opportunities, however, exist outside mainstream investing, such as real estate investments, small business lending, selling covered calls on already owned stocks, or even buying or partnering in a small business. These more alternative wealth building strategies can completely change your situation, as it did ours.

Are Rias Only For Rich People

People of all financial backgrounds may benefit from RIAs. Registered investment advisors are equipped to help people at various life stages, including beginner investors who may not have amassed much yet.

While traditionally RIAs have focused on the wealthy, there is a new movement that is focused on providing guidance even if the client has not accumulated assets, says Grant. To address this development, some RIAs are using the pricing models outlined above, beyond asset-based percentages, offering more adhoc relationships. These help people who are just starting out on their financial journeys but who still need financial advice.

Some financial planning associations, like XY Planning Network, specialize in providing access to advisors using low-cost subscription models. Those looking for lower-cost financial advice might also consider robo-advisors, which offer investment advice for much lower fees than conventional RIAs that employ investment advisor representatives.

Challenge In Finding A Financial Advisor

Finding the right financial advisor can be a challenge. Of course, youll want to find one with your best interests in mind. This means they, by law, must act as a fiduciary.

The biggest problem I see in finding a good financial advisor is that investors often dont truly understand the return data behind the glossy pie charts, financial lingo, and mathematical equations that are presented to them when interviewing financial advisors. Its darn confusing for anyone outside of the financial services industry!

When hiring a financial advisor, this fuels the fear that you could never learn what you need to know, so delegating the responsibility seems smarter.

In order to make the best decision to secure your future, however, youll want to know enough to hire and monitor any financial advisor you are hiring or using. Quite simply, this means being able to understand their investing method and compare performance to the relevant benchmarks after fees.

All of this lessens the challenge of finding a financial advisor since most financial advisors dont beat the benchmarks after fees, unfortunately.

Wealth Tip Find out what any financial advisor would buy for you, and understand and discuss the potential future and also the past performance of those investments annually during both up and down markets, not just the years in which the investments performed well.

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Signs You May Need An Advisor

Anyone can work with a financial advisor at any age and at any stage of life. You dont have to have a high net worth you just have to find an advisor suited to your situation.

The decision to enlist professional help with your money is a highly personal one, but any time youre feeling overwhelmed, confused, stressed out, or scared by your financial situation may be a good time to look for a financial advisor. If you cannot afford such help, the Financial Planning Association may be able to help with pro bono volunteer assistance.

Its also fine to approach a financial advisor when youre feeling financially secure but you want someone to ensure that youre on the right track. An advisor can suggest possible improvements to your plan that might help you achieve your goals more effectively. Finally, if you dont have the time or interest to manage your finances, thats another good reason to hire a financial advisor.

Those are some general reasons you might need an advisors professional help. Here are some more specific ones.

Why Should I Pay For Vanguard Advice

Financial Advisor Job Description

Vanguard is one of the largest investment companies in the world with decades of experience and global recognition. Our highly respected investment managers, researchers, strategists, and economists have developed a deep expertise in all areas of investing. You’ll get access to the best thinking of these Vanguard experts along with a customized plan based on your personal goals that applies our methodologies to your situation. On top of that, our financial advisors are ready to help when you need it, by phone, email, or videochat.

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Financial Advisors And Fiduciary Duty

If you hire a financial advisor, how do you know this professional will make recommendations that are a match for your financial goals? After all, they could just advise you to make investments and buy services that bring them the highest commissions and fees. This is where fiduciary duty comes into play.

Financial advisors fall into one of two classifications: fiduciary and non-fiduciary. Itâs important to know which your prospective financial advisor adheres to before engaging in a relationship:

  • A fiduciary financial advisor has an obligation to put your best interests above their own. Theyâre not allowed to collect commissions from the sale of any investment and typically operate on a fee-based system, one where clients pay a flat fee for their services. Any fees charged are paid separately and not taken out of your investment balances or trade proceeds.
  • A non-fiduciary financial advisor often works for institutions that incentivize them for selling particular investment products. Theyâre only held to the standard that investments be âsuitableâ for your needs and not necessarily the lowest cost or best match. This isnât a red flag, but it does mean that you need to ask how fees and commissions could impact your portfolio earnings over time.

When considering advisors, always be sure to ask how the advisor is compensated and whether they practice in a fiduciary or non-fiduciary capacity.

Cascade Financial Group Inc

OPERATING HOURS Monday Friday: 9:00 AM 4:30 PM

Cascade Financial Group can handle long-term and immediate financial planning and management for both individual and group clients. Most especially, it specializes in securing continuity with insurance planning.

Ralph Irwin, an FPSC financial planner, leads a team of four financial advisors. The team then starts its process by informing its clients of the financial strategies essential for their long-term goals.

Aside from insurance planning, Cascade also does investment and financial planning.

Its investment planning is also a continuous process as its financial advisors constantly monitor opportunities to rebalance and reallocate your funds.

Additionally, Cascade Financial Group specializes in funding for key-person and business transitions so businesses can stay stable despite the loss of essential people. It can also help its commercial clients obtain group benefits efficiently.


  • No tax planning services for commercial clients

Customer Reviews

Here are some testimonials from customers who view Cascade as the best financial advisor in Winnipeg:

Hans was fantastic in assisting me in getting Critical Illness insurance for my kids and in helping me set up RRSP investments. He made the process for both smooth and was happy to have discussions with me regarding the investment options available through Cascade Financial and tailoring one to my own liking.Sean Restall

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Rias Offer More Tailored Advice & Services

Its kind of like going into the local big box store to discuss your remodeling plans, says Brenda Knox, a CFP and founder of Financial Elements in Rolling Meadows, Ill. There will be some level of assistance, but its probably not very specific to your overall housing situation. They probably wont take the time to ask you about your long-term goals for the space, or how you use it today, or how it all fits together.

If you work with a fee-only IAR, theyll get to know you and help you put all the pieces of your financial life together. This generally comes with a higher fee, but many feel its worth the money to get that level of service.

A robo-advisor is a great solution for somebody who has a lot of confidence in their own decisions and theyre looking for a solution to just take care of the transactions and keep things in balance for them, Zohlen says. For an individual who wants more support, somebody who is going to be available to talk over ideas or talk you off the ledge if theres something really dramatic going on in the market, a robo-advisor is not in a position in many cases to do that.

What Is An Investment Advisor Representative

How I Invest (I’m a financial adviser)

An investment advisor representative is a financial professional who works under the umbrella of an RIA. While many investors think of RIAs as people, RIAs are the businesses that IARs work for. An RIA, then, can employ one IAR or hundreds of IARs.

To become an IAR, you must either pass the Series 65 exam or pass both the Series 7 and Series 66 exams. In some states, you may be able to use a professional designation, such as certified financial planner or chartered financial analyst , instead of passing the Series 65.

That said, not all CFPs and CFAs are IARsand not all IARs are CFPs or CFAs. If you want comprehensive financial planning in addition to investment advice, look for an IAR who is also a CFP. If I was telling my mom or sister what to be looking for, I would want both, Zohlen says.

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Investing On Your Own Vs With A Financial Advisor

Investing is something you can do on your own with the right information. The information is definitely out there but finding an unbiased independent resource not selling financial advisory services is imperative.

If you choose to invest on your own, youll want to learn about investing from an unbiased source.

Investing is not rocket science, however. It can be done much easier than you may think.

If, on the other hand, youd rather have your teeth pulled out than manage your own investments, learn what youll want to know so you can confidently interview, hire and monitor a well chosen financial advisor.

As you can see, there are definite pros and cons of using a financial advsior. There is no right or wrong answer for everyone, as is usually the case here at Retire Certain.

There is only the fastest and easiest highway to financial independence while enjoying the ride.

Thanks for reading my posts. To help others embrace and create financial independence, please share it online at your favorite social media site.

If youre interested in creating income streams to fund your desired lifestyle in retirement or investing strategies besides long term passive stock and bond portfolios , youre in the right place this site is about our journey to financial independence following our midlife epiphany that we needed to make some shifts if we wanted to maintain our nice lifestyle, for life.

Credentials To Look Out For

So, how do you know if a financial advisor or planner is “real?” One that has credentials might hold several licenses and designations, and the most common is Certified Financial Planner . “Many people see CFP as the gold standard,” says Schweiss. “A lot of advisors say it gives them more credibility with clients.”

Other licenses to look out for include Chartered Financial Analyst , Chartered Financial Consultant® and Certified Investment Management Analyst® . Stephanie Mackara, principal wealth advisor at Charleston Investment Advisors, would add a registered investment advisor to this list as well, as they are obligated to provide advice to investors that is “uniquely aligned with the investor’s financial goals and needs,” Mackara says.

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How Investment Advisors And Financial Planners Differ

The fees for both an investment advisor and a financial planner vary based on the specific advisor and the financial guidance you want in return. An investment advisor will normally earn money in one of three ways. He may charge you an hourly fee, a flat rate or a percentage of the investments he manages for you, he may sell you financial products from which hell earn a commission or some combination of those two. Investment advisors who charge a percentage of investments typically charge anywhere between 0.20% and 2.00%.

The average price most financial planners charge typically ranges between $1,000 and $3,000 for a full financial plan. However, prices vary for fee-only, fee-based or commission-based planners. Therefore, the amount of money will also largely depend on the type of advisor you choose. Both fee-only and fee-based planners earn money from the financial plans they create for clients. Commission-based planners, however, only make money from the financial products they sell to clients.

In addition, investment advisors managing over $100 million in client assets are called registered investment advisors . With this title, they must operate under a fiduciary standard. This means they must legally put clients financial interests first. Additionally, these advisors are registered with the U.S. Securities and Exchange Commission .

Banks Credit Unions And Caisses Populaires

Whoâs your Most Trusted Financial Advisor?

These institutions have staff who can help you understand and buy certain types of investments, such as term deposits, guaranteed investment certificates and mutual funds.

They can also help you start or contribute to a registered savings plan, such as a registered retirement savings plan , registered education savings plan , registered disability savings plan or Tax-Free Savings Account .

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Investment Advisor Vs Financial Advisor: Whats The Difference

Daryl Seaton
ininvestment advisor
26 Nov 2019
They may sound similar and are often used interchangeably, but there are key differences between an investment advisor and financial advisor. Learn them here.

When youre planning your financial future, youre going to want some help from seasoned experts.

Both an investment advisor and a financial planner can help you map out the best way to meet certain financial goals, but their services differ in some key ways.

Are you torn on whether or not to hire an investment advisor or financial advisor? Do you need help choosing the one that would be best for your situation?

Read on if you want to learn about the key differences between the two, and who you should hire for your unique financial needs.

Read Your Contract’s Fine Print

When you initially signed on with your current advisor, you probably signed a management contract. These contracts generally include a clause about how to formally terminate the advisor-investor relationship.

In most cases, you simply have to send a signed letter to your advisor to terminate the contract. In some instances, you may have to pay a termination fee. Before you ditch your current advisor, read through all those dirty details.

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How Much Does A Financial Advisor Cost

The biggest reason people sway away from using a financial advisor is the potential cost. When shopping around, however, you may find that many financial advisors offer reasonable fees given the competitiveness that has risen in this field both online and offline.

The cost of using a financial advisor, however, is still considerably above the cost of a low cost index investment strategy.

Again, the question goes back to this: Will I reach my financial goals sooner with or without an advisor, after fees are paid? For many, the answer is yes and for many, the answer is no. Only you know what is best for you, and what you need based on your own situation.

I made the chart below to show common percentages paid for financial advisors. With my wealth coaching clients, we look at both the dollar amount and the percent that is paid. $10,000 feels a lot bigger than 1%, right?

Are Financial Advisor Fees Negotiable?

Financial advisor fees are definitely negotiable. There are a few ways to lower financial advisor fees:

  • Increase the amount invested with the financial advisor
  • If other family members use the same financial advisor, link investment accounts for a higher aggregate amount under management
  • Educate yourself and become a low maintenance client so the advisor doesnt have to spend a lot of time educating you
  • Show the financial advisor other alternatives you are considering
  • The Financial Health Questionnaire

    What is a Registered Investment Advisor? | Financial Symmetry

    A financial advisor will work with you to get a complete picture of your assets, liabilities, income, and expenses. On the questionnaire, you will also indicate future pensions and income sources, project retirement needs, and describe any long-term financial obligations. In short, youll list all current and expected investments, pensions, gifts, and sources of income.

    The investing component of the questionnaire touches upon more subjective topics, such as your risk tolerance and risk capacity. Having an understanding of your risk assists the advisor when its time to determine your investment asset allocation. At this point, you’ll also let the advisor know your investment preferences as well.

    The initial assessment may also include an examination of other financial management topics, such as insurance issues and your tax situation. The advisor needs to be aware of your current estate plan, as well as other professionals on your planning team, such as accountants and lawyers. Once you and the advisor understand your present financial position and future projections, youre ready to work together on a plan to meet your life and financial goals.

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