Working with an Investment Advisor

First Republic Investment Management

April 14, 2014


If you're looking for solutions that are closely aligned with your needs, perhaps you should consider working with an Investment Advisor...

WHAT IS A REGISTERED INVESTMENT ADVISOR?

A registered investment advisor is a professional advisory firm that is registered with the SEC and as such, is subject to the Investment Advisers Act of 1940 and has a fiduciary duty to act in the best interest of its clients. RIAs generally provide advice and services for a fee based percentage of client assets.   


WHY WOULD A CLIENT WANT TO WORK WITH AN INVESTMENT ADVISOR?

The goal of an RIA is to help find solutions that are closely aligned with client needs and objectives. Because independent advisors are just that – independent – they are able to provide an objective and unbiased perspective to clients without an obligation to invest in specific products.

WHAT TYPES OF SERVICES DO INVESTMENT ADVISORS PROVIDE?

Investment advisory practices vary widely in the services they provide. In general, they fall into one or a combination of the following:

  • Money Manager – Money Managers manage portfolios and handle investments. They design investment portfolios and most frequently manage portfolios on a discretionary basis, meaning that you authorize the advisor to trade on your behalf.
  • Financial Planner – Financial Planners review your total financial situation and help with big-picture planning. They often do not handle investing and portfolio management services.
  • Wealth Manager – Wealth Managers are advisors who can handle both investment and planning needs. They provide highly personalized, comprehensive planning as well as investment and portfolio management for high net worth clients. They also are able to coordinate with your other professional advisors such as attorneys, and accountants to serve more complex financial needs, which may include tax minimization, trust management, and wealth transfers.

HOW DO I KNOW IF I NEED AN INVESTMENT ADVISOR?

Identifying your specific objectives will help you determine if working with an advisor is right for you. Taking the time to consider your investment goals, risk tolerance, time horizon, income needs, tax situation, and other needs, can all help you determine if an advisor can be beneficial to your specific situation.

WHAT SHOULD I LOOK FOR WHEN CHOOSING AN ADVISOR?

Selecting an investment advisor can be based on a variety of elements. Most importantly, good communication between you and your advisor is essential. Choosing someone you feel comfortable working with is likely the most important factor that will determine the success of your relationship. Other important questions that can help you determine whether a specific advisor is right for you can include:

  • confirming who you will be working directly with (the advisor or members of their team),
  • how often you expect to be in communication with your advisor,
  • the frequency of account statements and reporting,
  • and information about the advisor’s firm such as assets under management, number of employees and average portfolio size.

Above all, an advisor should work closely with you to develop a customized solution to meet your specific needs.

First Republic Private Wealth Management encompasses First Republic Investment Management (“FRIM”), First Republic Trust Company (“FRTC”), First Republic Trust Company of Delaware LLC, and First Republic Securities Company, LLC (“FRSC”), Member FINRA/SIPC. FRIM is a SEC Registered Investment Advisor. This document is for information purposes only and is not intended as an offer or solicitation, or as the basis for any contract to purchase or sell any security, or other instrument, or to enter into or arrange any type of transaction as a consequence of any information contained herein. Investors should seek financial advice regarding the appropriateness of investing in any securities, other investment or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and it should not be relied upon as such. This document may not be reproduced or circulated without our written authority. Products and/or services offered by First Republic Securities Company, LLC, and First Republic Investment Management are not deposits or obligations of, or insured, guaranteed or endorsed by any bank, Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency, entity or person. The purchase of securities involves investment risks including the possible loss of principal.