What Is a Registered Investment Advisor (RIA)?

Fort Pitt Capital Group in Wealth Management 17 February, 2021

What Is a Registered Investment Advisor (RIA)?

When choosing a financial advisor, you want a professional working with your best interests in mind. By partnering with a fiduciary, you’ll have the support of a financial advisor who is legally bound to act in your best interest.

RIAs are fiduciaries registered with the Securities and Exchange Commission (SEC) and can provide you with diversified portfolios and holistic financial insights.

What Are the Benefits of Choosing an RIA?

Every RIA has a fiduciary obligation to make decisions that are in your best financial interest. With an RIA, you can feel confident your financial advisor will recommend the best options at the lowest possible price points to fit your financial goals.

Unlike other types of advisors and planners, RIAs won’t recommend products just to earn a commission. This is because they don’t sell products at all. RIAs are paid an advisory fee based on a small percentage of the assets that they manage on your behalf. As your asset base increases, so too does the adviser’s income, meaning that an RIA’s motivation is to increase your wealth.

RIAs can also provide advice about your total financial picture and help you understand how your goals work together.

Who Should Work With an RIA?

RIAs typically manage assets for clients who have built wealth over time by creating diverse portfolios with bonds, mutual funds, and individual stocks.

At Fort Pitt Capital Group, you don’t necessarily have to be “wealthy” to invest for your future. Investment accounts start at $250,000 per client, for those in their growth phase. This is around the time that the services of an RIA become advantageous.

Staying on top of your investments becomes difficult as your total assets under management (AUM) grow and increased diversification becomes necessary. RIAs can provide guidance to help high-net-worth individuals (and those on their way to becoming high-net-worth) realize greater returns on their money.

As you can see, RIAs aren’t just for ultra-wealthy individuals and can provide even beginning investors with dedicated and personalized fiduciary services. You can read more about Fort Pitt Capital Group’s client profiles here.

How Much Should I Expect to Pay?

Like other fiduciaries, RIAs usually charge a fee based on a percentage of your total AUM. On average, most RIAs charge a little over 1% to manage all your assets. As your AUM’s total amount increases, you typically pay smaller percentages for financial management from an RIA.

RIAs may also receive payments based on time-based fees and retainers. You can see Fort Pitt Capital Group’s fee structure here.

Choose Fort Pitt Capital Group

Fort Pitt Capital Group has over 25 years of experience in advising clients, and we fully honor our fiduciary responsibility to you. View our services for individuals to learn more about our RIA services and schedule a personal meeting today.

Talk With an Advisor

Join Our Newsletter

Receive updates from our blog, retirement plan industry events & news, media appearances, and the latest on Fort Pitt events.