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Writer's pictureStephen H Akin

Ultimate Guide to Finding a Financial Advisor?

Updated: Sep 16

If you’re not sure which type of advisor suits you, take a look at the highlights.

Robo Advisors

These online services pick and maintain an investment portfolio for you using computers, which lowers their overhead. Some offer access to human advisors for when you have questions.Low cost, easy entry: Fees start as low as 0.25% of your balance and most charge 0.50% or less. Many have no or low account minimums, so you can start investing with a small amount of money. Good when: You want to get started working on financial goals like retirement but don’t want to pay a lot.

 

Human Financial Advisors

Many different types of specialists focus on helping you reach financial goals. Finding a fee-only financial planner gives you a good combination of specialized training and no conflicts of interest.


Higher cost, minimums: The median financial advisor fee is about 1% (Akin Investment is 0.89%) of the assets managed for you, although some charge by the hour or have a set rate per service. Some require a minimum balance, such as $250,000 (Akin Investments has NO Minimum) in assets to manage. Good when: You want specialized services like estate planning; you’re about to make a big life change, like retiring or getting married; your situation is complex.


There are two main categories of professionals who can help you: the Stockbroker and the Registered Investment Advisor.


They differ in two ways, A) their level of responsibility to you and B) how they get paid.

 

Stockbrokers

A stockbroker is an employee at a financial firm who is paid a commission based on what you invest. He/she is basically a sales person. The investment they sell you must be appropriate at the time of the recommendation but they have no further, on-going responsibility to you.


During the “know your client” conversations, the stockbroker learns many things about you and your financial needs, including:


  • How old are you?

  • What is your investment time horizon?

  • Is your investment intended for retirement, down payment on a home,

your child’s future college expenses or something else?

  • What is your profession?

  • What is your annual salary?

 

Registered Investment Advisors

Registered Investment Advisors, on the other hand, are fiduciaries, meaning your interests always come first. You will have a continuing relationship with your RIA. An RIA must register with the SEC or state securities regulator, depending upon the assets under management.


  • Financial Planners help individuals and corporations meet their short-and long- term financial goals. Services include asset allocation, estate planning, tax planning, retirement and more.

  • There are several methods by which you might pay an investment advisor, including a fixed fee, an hourly fee, or a percentage of the value of your assets they are managing.

 

BrokerCheck

Begin with a search of the firm and it's representatives with FINRA's BrokerCheck!


About BrokerCheck

BrokerCheck is a free tool from FINRA that can help you research the professional backgrounds of investment professionals, brokerage firms and investment adviser firms.


Firm Profile: Akin Investments, llc CRD# 281450

Individuale Profile: Stephen Herbert Akin CRD# 1104380

39 Years in the business

Where BrokerCheck Information Comes From

Both brokerage firms and individuals must be registered with FINRA to conduct securities transactions and business with the investing public. Individuals might also be required to meet state registration requirements. Additionally, firms must meet certain membership standards to attain registration. The information about brokerage firms and associated registered investment professionals that you find in BrokerCheck comes from the Central Registration Depository (CRD®), which is the securities industry online registration and licensing database. Information in CRD is obtained through forms that investment professionals, brokerage firms and regulators complete as part of the securities industry registration process.


The information about investment adviser firms and representatives comes from the Securities and Exchange Commission's Investment Adviser Registration Depository (IARD) database.

 

Take the next step, schedule a free consultation and learn how we can help you. Asset and Cash Management Solutions





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