wealth management

Is Wealth Management What You Think It Is?

February 17, 2015

Wealth Management can be defined by Forbes as: “The science of solving/enhancing his or her financial situation. Wealth management is the ability of an advisor or advisory team to deliver a full range of financial services and products to a client in a consultative way.” The world of financial services has traditionally been built around products and services offered by a variety of brokers, advisors and insurance specialists. The differences between a stockbroker at a wall street firm and an independent registered investment advisor is often discussed, but not always understood. An independent registered investment advisor (RIA) imposes a strong “fiduciary standard” on an advisor whereas the stockbroker model typically holds brokers to a less strict and less specific “suitability standard,” in which recommended investments must be merely suitable for a client.

“The fundamental difference between a fiduciary and a stockbroker is the basis of how he or she is compensated,” said Chris Rasberry, COO of HFG Wealth Management. “Typically a stockbroker, sometimes also referred to as ‘advisor’, is paid on the commissions sold to clients directly or within a ‘program’ of investments. On the other hand, a fiduciary wealth manager is usually paid a fee which allows him or her to spend time understanding what’s important to you and your family. Often this includes taking the relationship further by creating a comprehensive financial plan tailored to reach each of your various financial goals and objectives,” Rasberry said. (more…)