Ive had many of my clients ask me what the little line in our logo that reads A Registered Investment Advisory Firm  really means, so I thought Id take the time to explain it for those out there that may be wondering the same thing.

Whether it’s your retirement planning, tax situation, estate planning, or assets at multiple places, it’s fundamentally important that your advisor truly understand you, your goals and your situation. An independent Registered Investment Advisor (RIA) is in a position to do that and pride themselves on strong personal interaction with their clients and dedication to their needs. They believe that their independence is key to offering investment advice based on what’s best for their clients.

The goal of an RIA is to help find solutions that are closely aligned with client needs and objectives, and many independent RIAs enjoy a deep, personal relationship with their clients. This often takes regular, ongoing interactions. And because many independent RIAs are entrepreneurial business owners, the buck stops with them, so to speak, and they have a strong sense of personal accountability to their clients.

RIA firms have a  fiduciary duty to act in the   best interest  of their clients. The 5 Principals set forth by the Committee for the Fiduciary Standard are as follows:

1. Put the clients best interests first.
2. Never mislead clients.

3. Act with prudence.
4. Avoid conflicts of interest.
5. Disclose and manage unavoidable conflicts in the clients favor.

You may think that all financial advisors must act under the Fiduciary Standard. but truth be told, it is very different than the Suitability Standard in which many financial advisors and insurance agents abide by.  To learn more about the differences in these standards, visit our page What Sets Us Apart .

Here are some other aspects of an RIA that are important to note:

• Many independent RIAs work with complex portfolios requiring highly customized investment management, strategy, and consultation.
• Many independent RIAs are owned by the individual advisors who run them.
• Many independent RIAs provide advice and services for a fee based on a percentage of their clients assets.

To summarize, here are the 5 Key Benefits of working with a Registered Investment Advisory Firm :

1. Tailored advice based on your goals.  Many RIAs believe that their independence is key to offering advice thats based on what’s best for you.
2. You know what youre paying for.  Typically, fees are based on a percentage of assets managed.
3. Advice for your complex needs.  A rich diversity of specialization among RIAs means you can likely find the type of advice you need.
4. A different kind of relationship.  RIAs typically form close relationships with their clients and have a strong sense of accountability.
5. You know where your moneys held.  RIAs typically use independent custodians—we use both Fidelity and Charles Schwab—to hold clients assets and provide related services.

To learn more about what a Registered Investment Advisory Firm is, visit RIAstandsforyou.com