Why use a Registered Investment Advisor (RIAs)?

Registered Investment Advisors (RIAs) in the United States, such as Freeman Capital Management LLC, are governed by US  Securities laws  and are held to a higher standard known as a fiduciary.


What is a fiduciary?

RIA’s are held to a higher standard than stockbrokers or unregulated advisors when it comes to putting investors interest first and doing the right thing for their clients’ investments. Independent RIAs have a fiduciary duty to their clients, which means they must:

  • Act in the best interest of their client. This means the advisor must hold the client’s interest above its own in all matters.
  • Disclose all information relating to the relationship between an advisor and a client.
  • Have policies regarding affiliated broker-dealers and maintenance of brokerage accounts
  • Disclose all conflicts of interest
  • Abide by a code of ethics


What to avoid as an expatriate

  • Avoid investment advice from advisors such as stock brokers, insurance agents who are paid commissions though the products they are selling.
  • Avoid insurance types of contracts that lock your assets in for many years. Often products have large (5-9%) redemption fees if you want to move your money elsewhere before the contract is over. Avoid this at all costs.
  • Avoid products where the salesman gets an immediate front load or commission.
  • If an advisor is not required by law to disclose the above important considerations they often skip over the fine details.


Why use a fee-only investment advisor?

Fee-only advisors are paid exclusively by their clients. By not taking commissions or kickbacks from fund or insurance companies, conflicts of interest are eliminated.