| What Is an
Investment Advisor?
See
below:
What is an Investment Advisor?
An Investment Advisor is an individual
or firm that assists in the development and implementation of a
financial or investment plan.
Why Use an Investment
Advisor?
There are many reasons for utilizing a professional firm to assist
you in managing your investments or retirement funds. Over the years
we have found that the reasons our clients have utilized our
services include:
-
Potential
Personal Risk. Experience and skill should be
foundation for managing the funds an individual will rely on for
their future security. Our clients look to us for assistance
rather than risk their future on their own endeavors alone.
-
Lack of
Personal Time. Properly managing an investment
program takes time and experience that most people do not have
or do not wish to commit.
-
Lack of
Information. Although the Internet and Financial
programs like CNBC have made information about companies much
more available, the real information upon which investment
decisions should be based must still be obtained through direct
contact with companies, extensive research, and skilled
analysis. Once news about a company has reached CNBC or the
Internet it is usually old news among experienced investment
analysts.
-
Proven
Track Record. We find that many or our clients select
our services because of our performance record over time.
Although past history is no guarantee of future returns, joining
an established, proven investment program adds a degree of
confidence going forward.
-
Personal
Financial Services. Since we maintain a close,
personal relationship with our clients, we are often asked for
advice on a broad range of financial matters. We can help a
client in the overall coordination of their retirement and
investment planning and management.
-
Leveraging Upon Expertise. Our organization and our
research department, includes extensive experience and expertise
built upon a variety of business backgrounds and disciplines. In
effect, our clients are leveraging their investing efforts on
our overall skill and experience by entrusting us with the
management of their investments.
Our Investment Process
Step 1:
Determine Your Risk Profile. Through personal
consultations with a client, we will develop a personal profile
of their individual investment needs and objectives, time
horizon, and attitude toward investing. If needed, we will also
conduct a full financial plan, including retirement analysis,
tax planning, estate planning, and much more.
Step 2:
Develop Your Asset Allocation Policy. We will develop
a personalized asset allocation policy based on the needs and
objectives identified in their personal profile. This policy
will be designed to maximize their investment returns, relative
to your risk tolerance, through careful, diversified allocation
of their investments.
Step 3:
Implement Your Policy. A client’s asset allocation
policy will be implemented by investing in a well-diversified
portfolio that spans multiple asset classes and investment
styles. Assets within their portfolio will be managed by some of
the country's preeminent money management firms, many of which
are not accessible to individual investors.
Step 4:
Monitor and Rebalance Your Portfolio. A client’s
investment portfolio will be carefully monitored on an ongoing
basis to ensure that it remains consistent with the agreed-upon
asset allocation policy. If the relative value of investments in
their portfolio changes enough to become inconsistent with this
policy, we will reallocate funds within the client’s portfolio
as needed.
Step 5:
Report the Results. We will communicate with our
client on a regular basis and provide a comprehensive reporting
package, such as account level performance reports and
statements providing details of your account - including total
asset value and a record of all transactions that occurred
during the reporting period.
What Is a
Registered Investment Advisor?
Under the Investment Advisers Act of
1940, as amended, an Investment Advisor is "any person who, for
compensation, engages in the business of advising others, either
directly or through publications or writings, as to the value of
securities or as to the advisability of investing in, purchasing, or
selling securities, or who, for compensation and as part of a
regular business, issues or promulgates analysis or reports
concerning securities..."
A typical
Investment Advisor:
-
Registers either
with their state or the SEC by filing Form ADV and meeting other
requirements.
-
Evaluates client's
needs and risk tolerance, and advises on appropriate
investments.
-
Monitors client's
portfolio. Regular performance reports may be provided.
-
May provide other
wealth management services, such as retirement, trust, tax,
charitable giving, estate and financial planning services.
-
Uses a
broker/dealer and/or bank to custody assets and to settle and/or
to execute trades.
This
registration does not mean that the person is recommended by
the SEC, it simply means that they are regulated by the SEC.
In
general, an RIA with more than $25 million under management must
register with the SEC, and those managing less than $25 million are
registered at the state level. |
