Top financial advisory firms: Navigating Economic Uncertainty with the Right Financial Adviser
Investing in the financial markets always carries inherent risks, and the current economic climate has been particularly volatile. The past few months have seen unprecedented market fluctuations in response to various factors, including tariffs, recession concerns, and overall economic uncertainty.
Market Volatility
The imposition and subsequent rollback of sweeping tariffs by President Donald Trump have led to historically unusual market reactions. Stocks have experienced significant rises and falls, leaving many investors uncertain about the best course of action. This volatility is not new, as markets have previously reacted to various economic factors such as the pandemic, inflation, and Federal Reserve interest rate changes.
The Importance of a Registered Investment Adviser
Many experts recommend that investors find a registered investment adviser (RIA) that suits their financial profile. RIAs are companies with a fiduciary duty to act in their clients’ best interests, charging fees rather than sales commissions. They employ investment adviser representatives (IARs) who are licensed to provide financial advice and often take a holistic approach to their clients’ financial lives.
Still on Top financial advisory firms
Key Differences between RIAs and Other Financial Firms
Unlike broker-dealers, RIAs are not motivated by commissions from selling specific financial products. Broker-dealers may earn commissions from selling stocks, bonds, or mutual funds and are only required to provide suitable advice. This means that they may recommend more expensive products that generate more revenue for them but may not necessarily align with a client’s long-term goals.
Ranking the Top RIAs
To help investors find a suitable RIA, USA TODAY has partnered with market research firm Statista to rank the top 500 RIAs. The ranking is based on the growth of the companies’ assets under management (AUM) over the short and long term, as well as the number of recommendations received from clients and peers.
Factors to Consider When Choosing an RIA
When selecting an RIA, investors may want to consider factors such as the firm’s size, location, and specialties. Smaller companies may offer more personalized service, while larger firms may be able to charge lower fees due to volume-based discounts or have more resources for specialized services.
Top-Ranked RIAs
The top-ranked company, Baltimore-based Facet Wealth, saw its assets grow 86% in a year and 91% over five years. Santa Monica-based Align Impact ranked fifth but was the only firm to crack the top five for the second year in a row.
Researching an RIA’s Background
Investors can learn more about a firm’s specialties and background on its website, as well as from the firm’s Form ADV, which it files with the SEC. Additionally, investors can verify a firm’s registration with the SEC’s Investment Adviser Public Disclosure tool and check the backgrounds and any disciplinary actions at the Financial Industry Regulatory Authority’s website.
Making an Informed Decision
By considering these factors and doing their research, investors can make an informed decision when choosing a registered investment adviser. With the right guidance, investors can navigate the complexities of the financial markets and work towards achieving their long-term goals.
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