What’s Your Investment Style?
Is a Registered Investment Adviser right for you?
By: Ethel J. Davis

When it comes to making investment decisions for retirement and/or other goals, you might decide to do it yourself or to hire a professional. The first question to ask to evaluate what type of professional is best for you is “What kind of investor am I?” Once you have determined your personal investment style, then you can choose the type of professional that best suits your needs. The choices are:

1. Independent or Self-Directed - This person is comfortable in making their own investment decisions.
2. Validate - You want ongoing guidance from a financial professional but also to remain in control of the implementation and execution of the advice.
3. Delegate - You prefer to entrust the decision-making process to an adviser.

A Registered Investment Adviser works well for a “Delegator” style of investor. Registered Investment Advisers are professionals specializing in the management of financial securities portfolios. Some are institution-oriented with a primary focus on mutual funds, pension plans and institutional clients. Others are in private practice and provide personalized investment services to individuals, trusts and small business clients. Typically, “Delegates” have reached a point in their life where they want the adviser to manage their assets based on their lifestyle and financial goals. Often, a Delegate has attempted to manage their portfolio and realize how time-consuming and emotionally involved the process can be. Or, a Delegate might experience a life-changing event such as an inheritance or windfall, retirement, or they are simply too busy with career and family commitments. Sometimes, even “Self-Directed” and “Validates” might become a Delegate after a change in market conditions or loss of interest in the investment process.

A Registered Investment Adviser offers an investor the following benefits:
1. Full-time asset management which includes the selection, purchase, sale, monitoring, review and performance tracing of securities.
2. Experienced and objective financial advice.
3. Focus on high-quality securities.
4. Frequent communication regarding account and market information.
5. Regular performance reports that measure asset progress against market indices.
6. Coordination of managed assets in taxable, retirement, trust and business accounts for diversification without redundancy.
7. Design, construction and implementation of a strategy to meet your goals.

Fee-only investment advisers do not accept commissions and are not associated with products or investment banking relationships. The firm’s compensation is based solely on the fair market value of the portfolio managed and not on the number of transactions or type of investment utilized. This type of system ensures that the firm’s interests are aligned with its clients.

To find out more about investment advisers and whether they are properly registered, read their registration forms called Form ADV. You can read an adviser’s most recent Form ADV by visiting www.adviserinfo.sec.gov

Registered Investment Advisory firms are highly regulated by the U.S. Securities and Exchange Commission [“SEC”]. Advisers who “continuously and regularly manages” assets of $25 million or more are mandated by the Federal and State government to register.

Regardless of whether you choose to manage your own investments or entrust that management to a financial company, it’s imperative that you have a consistent method for building your nest egg and that you do your due diligence and research on all financial institutions, products and the professionals involved.

In contrast to larger institutions, Paragon Capital Management seeks to provide a high level of personalized service. Call Ethel Davis or Elizabeth McLeod at 913.451.4226.

Article Source: http://www.flourishmagazine.com

Return to Previous Page

Return to Home Page