Benefits of Working With a Registered Investment Advisor (RIA)

Bill Engel in Wealth Management 19 April, 2021

Written by: Bill Engel, CFP® | Senior Vice President

Working with a Registered Investment Advisor (RIA) can help you develop your investment strategy and manage your assets. They have a fiduciary duty to further your interests, and through their expertise, you can grow and diversify your portfolio without worrying over the finer points of planning. What exactly is an RIA, and how can they help?

What Is a Registered Investment Advisor?

When you see the words “Registered Investment Advisor,” you may likely think of a solitary person. However, an RIA can be a person or a collection of people who comprise a firm. They have often designations like Personal Finance Specialist (PFS), Chartered Financial Analyst (CFA) and Certified Financial Planner® (CFP®), and they all share a similar goal. They provide services to you that are focused on your best interests and that simplify your financial planning and wealth management, so you can make the most of your investments.

An RIA is extremely helpful. You’ll often find the benefits of working with an RIA to be worth the cost.

5 Benefits of Working With a Registered Investment Advisor

It takes time and energy to monitor a growing portfolio. An RIA can assist you in multiple ways, including the following:

1. An RIA Is Legally Bound to Work for Your Benefit

According to the U.S. Securities and Exchange Commission (SEC), your investment advisor has a “fundamental obligation” to act in your best interests. They make their recommendations solely based on your needs, and you can openly communicate with them if you need clarification.

2. Most RIAs Earn Asset-Based Compensation

RIAs typically structure their fees as a percentage of their client’s assets under management (AUM.) A payment structure based on successful investing is advantageous for the client as it directly aligns their financial interests with those of the advisor. As a result, the RIA’s income will increase proportionately to the wealth they help grow for the client.

3. RIAs Must Maintain Public Business Records

You don’t want to take unnecessary risks when choosing an advisor, and with an RIA, you don’t have to. Through Form ADV, you’ll enjoy complete transparency on how the RIA operates, from its ownership to its employees, and even learn about any disciplinary filings against the firm or its personnel.

4. RIAs Focus on the Client

RIAs aren’t beholden to a specific product or company, allowing them to offer unbiased advice without another entity’s influence. They may work with third-party custodians, but these larger broker-dealers or banks can assist with additional reporting, account management and customer service.

5. RIAs Usually Have a Helpful Professional Network

Developing a diverse professional network can take a significant amount of time. Fortunately, RIAs typically have experience with a broad network of estate planners, insurance agents and other relevant professionals who can be consulted to provide insight and help you protect your wealth.

Work With a Registered Investment Advisor at Fort Pitt Capital Group

Achieving your financial goals may be a priority, but you likely have other responsibilities that monopolize your attention. If you need assistance with planning your investment strategy, preserving your assets or something similar, a Registered Investment Advisor can be an excellent partner.

Interested in speaking with an advisor? Feel free to contact us today.

About the Author:

Bill Engel, CFP®
Senior Vice President
Fort Pitt Capital Group, LLC
680 Andersen Drive, Pittsburgh, PA 15220
(412) 921-1822 |

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