financial planners

Choosing Between RIAs, Broker-Dealers, CFPs, CLUs, and More

By James Fletcher 25 April, 2023 2 mins read

When it comes to choosing a financial advisor, there are many types to choose from. Here are some examples of RIAs, Broker-dealers and CFPs. Each of these professionals offer a unique service and skill set to their clients. Find out what each profession has in common. Financial advisors can also be CFPs and CLUs, in addition to being experts within their respective fields.

Broker-dealers

Many companies have licensed brokers as financial advisors. You can manage conflicts of interests by understanding the different roles played by these professionals. Commissions are a common way for financial advisors to be compensated. Brokers, on the other hand make their money selling securities or other investments. Broker-dealers make money by advising investors in investing decisions. What is the difference? Let's examine each type.

RIAs

Financial advisors who specialize in asset allocation and retirement planning are called RIAs. Their fee can be anywhere from $1,000 to $3,000, depending on the level of asset management they provide. These firms' heads are there to help clients plan their wealth. They can help clients select the best 529 college savings plan or manage mandatory distributions from retirement funds. Some RIAs also have relationships with tax attorneys and accountants. These professionals can help clients to structure family trusts or reduce their income tax.

CFPs

CFPs are certified financial planners. These professionals are registered financial advisors and are subject to a fiduciary standard. This means they can only make financial advice that is appropriate for their client's particular situation. CFPs are not allowed to provide investment advice. To maintain their certification, they must meet basic requirements.

CLUs

One of the most well-known types of financial advisors are Chartered Life Underwriters. They work with people to help them buy life insurance. Because they have relationships with numerous companies, they can secure affordable rates for their clients. CLUs are able to offer financial security for their clients throughout retirement due to their extensive industry knowledge. Here are some of these benefits of working as a CLU.

Advisors that charge a fee

Advisors that charge only fees are paid by the clients. Referral fees and commissions are not accepted. These advisors must provide their clients with the best advice without conflict of interest. Some advisors may require a retainer to be paid annually, which could increase the cost of their services. Clients can also decide whether they would like their advisor to receive any commissions or compensation.

FAQ

What are some of the best strategies to create wealth?

It's important to create an environment where everyone can succeed. You don't want to have to go out and find the money for yourself. If you're not careful you'll end up spending all your time looking for money, instead of building wealth.

Also, you want to avoid falling into debt. It is tempting to borrow, but you must repay your debts as soon as possible.

You set yourself up for failure by not having enough money to cover your living costs. You will also lose any savings for retirement if you fail.

Before you begin saving money, ensure that you have enough money to support your family.

How does Wealth Management work

Wealth Management involves working with professionals who help you to set goals, allocate resources and track progress towards them.

Wealth managers not only help you achieve your goals but also help plan for the future to avoid being caught off guard by unexpected events.

They can also be a way to avoid costly mistakes.

What is estate plan?

Estate Planning is the process of preparing for death by creating an estate plan which includes documents such as wills, trusts, powers of attorney, health care directives, etc. These documents serve to ensure that you retain control of your assets after you pass away.

Do I need to make a payment for Retirement Planning?

No. These services don't require you to pay anything. We offer FREE consultations so we can show you what's possible, and then you can decide if you'd like to pursue our services.

Who can help with my retirement planning

Retirement planning can be a huge financial problem for many. It's not just about saving for yourself but also ensuring you have enough money to support yourself and your family throughout your life.

The key thing to remember when deciding how much to save is that there are different ways of calculating this amount depending on what stage of your life you're at.

If you are married, you will need to account for any joint savings and also provide for your personal spending needs. If you are single, you may need to decide how much time you want to spend on your own each month. This figure can then be used to calculate how much should you save.

If you're working and would like to start saving, you might consider setting up a regular contribution into a retirement plan. If you are looking for long-term growth, consider investing in shares or any other investments.

These options can be explored by speaking with a financial adviser or wealth manager.

Statistics

According to Indeed, the average salary for a wealth manager in the United States in 2022 was $79,395.6 (investopedia.com)
According to a 2017 study, the average rate of return for real estate over a roughly 150-year period was around eight percent. (fortunebuilders.com)
A recent survey of financial advisors finds the median advisory fee (up to $1 million AUM) is just around 1%.1 (investopedia.com)
As previously mentioned, according to a 2017 study, stocks were found to be a highly successful investment, with the rate of return averaging around seven percent. (fortunebuilders.com)