What is a registered investment advisor?
A registered investment advisor (RIA) is an individual, registered with the state or the Securities and Exchange Commission (SEC), who gives investment advice and manages investments for others. Typically, registered investment advisors who manage more than 25 million US dollars (USD) in investments are required to register with the SEC. Those managing less than that amount may be registered at the state level instead. In the United States, there are specific rules and regulations for registered investment advisors. Registration is mandatory under the Investment Advisers Act of 1940. The SEC doesn’t charge fees for registering as an investment advisor. However, fees may be charged at the state level. A registered investment advisor gives investment advice for a fee. An individual or firm in this position may also collect fees for managing investment portfolios and assisting in financial planning that includes investments. Sometimes, a client grants a registered investment advisor discr
The financial services industry is a rapidly changing professional environment. As the needs and desires of consumers change, firms engaged in managing money are also evolving. A registered investment advisor (RIA) manages the assets of high net-worth individuals and institutional investors, and sits on the buy side of the investment field. He or she must register with the Securities and Exchange Commission (SEC) and any states in which he or she operates. Most RIAs are partnerships or corporations but individuals can also register as RIAs. If you’re interested in a career with an RIA firm, read on to learn more about this part of the financial services industry. State of the Industry The old model of a broker calling his wealthy clients with stock ideas is dying. In fact, there has been a mass exodus of client assets leaving this model. There are several reasons for this change including very high commission fees (the big profit vehicle of the wire house firms at the time), and often
A Registered Investment Advisor (RIA) is a person or firm registered with the Securities and Exchange Commission (SEC) and/or a state licensing authority as a provider of professional financial management services. What are the benefits of a Registered Investment Advisor? Many experts predict that you will need 70-100% of your annual pre-retirement income each year to meet your expenses in retirement. Registered Investment Advisor can provide the help you’ll need to ensure that you are appropriately managing your workplace savings account and achieving your retirement goals. An RIA can help you: • Set achievable financial and personal goals • Provide objective financial advice on your investments • Assess your current financial situation by taking a comprehensive look at your assets, liabilities, income, insurance, taxes and investment and estate planning. • Develop a realistic and comprehensive plan to help you reach your retirement and other financial goals • Provide on-going monitor
