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.
If you are considering investing in the global markets, let’s talk.
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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.