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Kathleen is a registered investment advisor, meaning she is held to high ethical standards by the Investment Advisers Act of 1940.
What exactly is a Registered Investment Advisor?
A Registered Investment Advisor, or RIA, is a type of financial advisor. This particular type of financial advisor works with what is called high-networth clients. They can advise on several different topics related to personal finances. These can include investment strategies, portfolio management, and market analysis. A qualified financial advisor will only give advice and recommend financial strategies that they truly believe are in the best interests of their clients. Whether you are looking to maximize your return regardless of the risk factors involved or experience steady growth through conservative investment strategies with minimal risk factors, a financial advisor can be your guide through the often murky and intimidating waters of financial management and investing.
What is the Investment Advisers Act of 1940, and how does it affect the relationship between financial advisors and their clients?
The Investment Advisers Act of 1940 is a federal law. The purpose of this law is to ensure that investment advisors follow specific ethical guidelines when working with clients. By regulating and monitoring the actions of financial advisors who provide advice and strategies on personal financial matters for a fee, the government reassures private citizens that a financial advisor cannot use their clients to manipulate the market, charge excessively high fees, or engage in other unethical practices. Adding this additional layer of regulation between you and the person who is advising you about financial matters is reassurance that you can trust your financial advisor.
Can a financial advisor be biased?
While a financial advisor can hold bias just like any other person, the ethical standards outlined in the Investment Advisers Act of 1940 prohibit a financial advisor from acting on any biases or to consider any biases while giving financial advice or guidance to clients. Working with an experienced, qualified financial advisor will give you the opportunity to receive expert guidance toward your financial goals, learning how to make the right decisions for you and knowing that your advisor only has your best interests in mind.
I have never worked with a financial advisor before; how can I be sure it is worth it?
Finding the right financial advisor to help you accomplish your goals can be life-changing. As a Registered Investment Advisor, Katheleen of Wilson & Browning has been helping her clients preserve and significantly grow their net worth for over three decades. Since you will never have to pay a commission, you can rest assured that the financial advice you receive is ethical, reliable, and trustworthy. Katheleen takes great pride in providing her clients with honest advice about their financial goals.
Why is it common for people to have anxieties around financial matters?
For many people, bringing up the topic of their financial situation creates instant anxiety. There are a lot of psychological factors that can contribute to this fear, and some of these factors may even stem back to your childhood. Anxiety around your finances can also be a completely warranted fear. If you have taken on a great deal of debt from a real estate or business investment, for example, if you do not have an adequate liquid emergency fund, or if you simply do not have as much money as you would like to for the lifestyle you want, then being anxious about money makes a lot more sense.
Can working with a financial advisor help ease my financial anxieties?
Working with a financial advisor can help take the mystery out of financial matters. An advisor will create a safe space for open dialogue where you can feel comfortable asking questions and learning more about how to reach your financial goals. A financial advisor can also help you take practical steps to reduce money anxieties. After performing a comprehensive analysis on your financial portfolio, an advisor will discuss with you how you feel about taking risks with your finances, what your financial goals are, how much capital you have to invest, and more. By learning all about your situation and what you hope to achieve, a financial advisor will be able to give you practical advice that includes concrete steps to take to help you reach your goals and feel less anxiety around financial matters.
Why do financial advisors charge a fee?
Financial advisors, just like any other type of professional, need to be compensated for their time and expertise. You might expect a financial advisor to work on commission. Generally speaking, the payment of a commission depends on outcomes, and in the financial industry, the outcome means selling investment products to clients. This means that a commission-based financial advisor only makes money if their clients invest in specific products, like annuities and mutual funds. A financial advisor that charges a flat fee, on the other hand, is not beholden to anyone but you, the client. You are simply paying a financial professional a fee in exchange for their expertise. The fee can be a set amount that does not change, or it can be a percentage based on assets. Either way, financial advisors who charge a fee, over earning money through commission, always adhere to the high ethical standards of their industry.
Can a financial advisor help me balance my portfolio?
Assisting clients with portfolio balancing is a key service provided by financial advisors. Your financial portfolio is the sum of all of your financial assets. In order to have a balanced portfolio, there needs to be a balance between conservative and high-risk investments, and this balance looks different for different clients. For example, you may feel at ease taking larger risks while building your financial portfolio, while the idea of taking even small risks might make someone else a nervous wreck. A financial advisor will work with you to determine how to balance your portfolio for your needs. In addition to considering your interest in taking on risk, your advisor will also discuss your investment strategy in terms of what types of products you would like to invest in, as well as what time of your life you intend on using the funds earned through your investment portfolio.
