The Benefits of Working with a Registered Investment Advisor
An RIA is legally bound to work in your best interest
Under the Investment Advisers Act of 1940, registered investment advisors are held to a fiduciary standard of care. By law, they must ensure that each investment recommendation they make is based on your best interest. In the event that a conflict of interest should arise, RIAs are required to let you know. Additionally, they are required to have a written code of ethics that governs their actions and fully discloses how they are compensated.
It's important to understand exactly how your advisor is compensated. Most independent RlAs charge a flat fee or a fee based on the assets they manage for you. This straightforward system is easy to understand, is fully disclosed to you in writing, and provides additional incentive for your advisor to grow your assets.
RIAs are required to maintain public business records.
RIAs must file a Form ADV with the Securities and Exchange Commission that describes exactly how they do business and how they are compensated. Form ADV consists of two parts. Part 1 contains information about the advisor's business regarding ownership and regulatory matters. Part 2. including two sections known as the ADV Brochure and Brochure Supplement, outlines the advisor's services. fees. background. and strategies in addition to information on the specific advisor providing financial advice. You can find a copy of an investment advisor's most recent Form ADV on the SEC's Investment Advisor Public Disclosure website at www.advisorinfo.sec.gov.
Many RIAs operate as independent business owners.
As entrepreneurs, most independent RIAs have a vested interest in building long-term relationships with satisfied clients. They generally have relationships with a wide network of professionals who have expertise in a variety of areas including accounting, estate planning, and insurance. These networks allow the RIA to design a comprehensive strategy to meet your individual goals and objectives.
Most independent RIAs work with a third-party custodian.
That means that your assets are held by an independent third-party
custodian, such as TD Ameritrade, Inc. and that you will receive
regular statements from that custodian detailing every transaction
in your account, in addition to any reports that your RIA may send.
First Choice Financial Planning is a
Registered Investment Advisor firm
licensed with the State of New Mexico.