Incidents of millionaires
becoming bankrupt in an instant are often heard. These people must have worked
day and night to accumulate such huge amount of money. But the biggest mistake
they might have made is not hiring the services of a registered investment for
their investment needs. Though many people will not agree to such fact, but unfortunately
this is the truth. Therefore, if you are planning to invest in the near future,
you should definitely make yourself aware of who a registered investment advisor
is and the contribution he can make to ensure the success of your investment plan.
Benefits of working with a Registered Investment Advisor
A
Registered Investment Advisor provides a host of benefits to its clients and
makes the process of investment easy. The major benefits of working with a
reputed RIA are as follows
Providing advice on complex financial needs
People having a significant
amount of idle cash need to invest them prudently to ensure it generates high
returns. Independent RIAs specialize in providing complex financial advice to
maximize the wealth creation of the investor. They are also known to be experts
in intergenerational and trusts planning. Others emphasize on sophisticated
investment strategies for high net-worth individuals. There are some who even
expertise in devising sustainable succession plans and managing family
businesses. Choose an Arizona RegisteredInvestment Advisor based on your needs.
Working in collaboration with a third-party custodian
This is a huge benefit for large-scale
investors. The investor will receive statements on a regular basis from the
custodian providing details of every transaction taking place with respect to
the account in addition to any report sent by the RIA. Registered Investment
Advisors who are maintaining custody of client assets need to get an annual
audit done by any third-party accounting firm for verification of the assets
and records of the client.
Selecting the right Registered Investment Advisor
A Registered Investment Advisor
plays a crucial role in determining the outcome of your investment plans. Each
one is specialized in their own field of expertise. Therefore, it is necessary
to hire an advisor who best suits your investment needs. Below are a few tips
that can help you in your search for the appropriate RIA –
*You might want an advisor who works on a fee-only basis. This will help to reduce conflict of interest and also their choice of investment proposals for their client will be unbiased. They need not to push any investment just because they are being paid for better returns.
*You can also choose an RIA which is an asset management company so that there are no double fees to be paid to any intermediary for receiving such services, except in a few rare cases.
* A reputed Arizona Registered Investment Advisor charges reasonable fees for the services rendered to its clients. The fees can reach at most 1.50% of the assets under management per annum except under certain circumstances. However, for private index accounts that are passively managed, the fees should be relatively lower at 0.25%.
A Final Word of Advice
Whatever be your preference, make
sure you do proper research before hiring the services of the next best
alternative. Clear all terms of engagement from appointment to payment so that
there is no ambiguity between you and your registered investment advisor.
