As you manage your wealth, you may realize the importance of investing it carefully. However, you may need guidance with difficult investment decisions like how to select tax-efficient investments, how to determine your risk tolerance, and how to manage your asset allocation. You may also need assistance in developing a comprehensive financial plan that can generate income for your retirement years.
A Registered Investment Advisor near Minneapolis MN can provide investment strategies and retirement planning advice. Together, you and your financial advisor can build a plan that reflects your goals.
Benefits of Registered Investment Advisors Near Minneapolis, MN
Anyone can call themself an advisor. Essentially, there are two types of advisors. One type is a broker-dealer that sells financial products. Another type of advisor includes RIAs—Registered Investment Advisors near Minneapolis, MN. The term RIA is reserved solely for advisors who are registered with the Securities and Exchange Commission (SEC). RIAs are bound by a fiduciary standard of duty. They do not sell products.
RIAs put the best interests of their client ahead of their own. Broker-dealers are not bound by the fiduciary standard. They are only bound by a suitability standard. RIAs must disclose any known conflicts of interests. Broker-dealers are not obligated to disclose their conflicts of interest. RIAs are paid solely by the client through fees or a percentage of assets under management. Broker-dealers can be paid through fees and additional commissions from the products they sell clients, and they don’t have to inform the client about this conflict of interest.
