The Difference Between A Financial Advisor And A Registered Investment Advisor

Financial Advisor

Despite what many would have you believe the economy is not in a good state. The experts in the White House are saying that the economy is back on the rise and the number of jobs is increasing.

Well, the studies are showing the exact opposite. From 98 to 2013 the number of companies that offered pensions to their employees fell from 60% to 24%.

This means that people who once has solid retirement plans in place lost it all. It is these kinds of changes along with the lack of jobs that are leading to the financial ruin of many.

In today’s time, it can be hard for companies and many families with full-time jobs to make it week to week. This is why many individuals are turning to financial advisors and investment advisors, but which ones do you need? Which could help you the most and get your finances headed in the right direction?

What Is A Registered Investment Advisor (RIA)?

It is crucial to not confuse registered investment advisors (RIAs) with financial advisors. The two professions are unique in their own ways. For example, the RIA is an expert in a specific field, such as an estate attorney.

This is why many investors choose to utilize these services of an RIA and financial advisor sequentially.

RIAs are oftentimes called in to address specific concerns or conditions. One of those is Astra Wealth Advisors Wealth Management Company. They will know exactly how to approach the situation and resolve the issues without further ado.

What Is A Financial Advisor?

If you are looking to enhance your overall wealth then you simply cannot go wrong with a financial advisor.

It is these professionals that provide clients with advice regarding retirement planning, estate planning, investment planning, or even insurance planning.

Most financial advisors will have a certified financial certification while others will hold the chartered financial consultant certification. If these are areas of concern for you then you certainly can’t go wrong with a financial advisor.

A Look At The Rates Charged

Whether you are seeking a financial advisor or an investment advisor, you are going to incur some kind of fee. Of course, these fees are going to be specifically based on the advisor and the financial guidance that you need. This fee might seem costly and unwarranted at first, but these professionals really could provide the advice and guidance that you need to get your finances headed in the right direction.

That being said an investment advisor usually collects money in one of three ways.

First, they might charge you an hourly rate for their services.

Secondly, they can sell your financial products in which they would act as a middleman and earn a commission.

Lastly, these types of advisors might charge you a percentage on the investments that you make. Sometimes this can range anywhere from .20 to 2.00 percent

Most financial advisors will charge based on the service that they are performing. Prices can, however, vary for fee-only, fee-based, or commission-based planners.

Simply put, the price you pay is going to greatly depend on the type of advisor that you decide to go with.