In the complex world of investment, it can be difficult to keep up with the constantly shifting markets. Whether you’re planning for retirement, building a college fund, or trying to grow your finances—investment is a crucial part of reaching your financial goals.
If you’re managing large assets, consulting a registered investment advisor (RIA) can help guide you toward a more effective investment strategy and a successful financial future.
Here’s what you need to know about RIAs and how they can help their clients.
What Is a Registered Investment Advisor (RIA)?
An RIA is a person or firm dedicated to managing the investments of individual investors, particularly those with high-value assets or high net worth. Many RIAs work with complex portfolios and create customized strategies for their clients.
RIAs must register with the Securities and Exchange Commission (SEC) and state regulatory agencies. They have a fiduciary duty to their clients—meaning they are obligated to act in the best interests of their clients. Much like portfolio managers, RIAs earn their revenue through a percentage of assets, typically around 1% per year.
The demand for RIAs has been increasing significantly over the years. From 2008 to 2012, assets managed by RIAs increased by 8.8% each year. By 2014, RIAs managed a total of $1.5 trillion invested assets.
Why Should You Depend on an RIA?
For individuals with large assets or a complex investment portfolio, RIAs can help you manage your money and improve your existing portfolio. Below are some other reasons you should choose an RIA to refine your investment strategy.
Get Personalized Advice
From retirement plans to assets, your financial advisor should be familiar with your situation, your goals, and you as an individual investor. An RIA makes use of their expertise and a wide range of services to tailor their solutions to your individualized needs as a client.
Only Pay for What You Get
RIAs typically only charge a fee based on the percentage of total assets managed. This payment structure can be advantageous for both the advisor and the client. It provides an incentive for the RIA to manage your portfolio successfully and grow your assets—when you succeed, they succeed.
Have Support For Your Complex Needs
RIAs can provide services that address the complex needs of individuals with significant wealth. This can include taxes, estate planning, money management, selling a business, trusts, and investment strategies. There is a wide range of specializations within the industry, making it easy to find an RIA with the expertise to address your financial needs.
How Registered Investment Advisors Can Help You
With their expertise, RIAs can offer personalized solutions and targeted strategies to help you reach your goals. No matter what major life changes or market volatility you might encounter, an RIA can offer an objective and trustworthy support system.
Our investment advisors offer a large array of investment and financial planning solutions for individuals, families, corporations, and more. Take a look at our wealth management services or schedule a free one-hour consultation today.