Investment & Account Options

Fee Based Strategy:

An Informative Discussion on the Revolutionary Developments in Investing.

1. Technology has made true objective advice available.

With the computer age maturing and DSL lines as well as other high-speed communications providing financial advisors tools to transfer massive amounts of information as well as analysis of different types of investments and portfolios truly objective investment advice is available.

It is extraordinary what information has become available to a fee based financial advisor. This information when used to provide structured portfolios for the client’s specific objective and risk tolerance can be extremely beneficial and was not available just a few years ago.

2. Gain access to the services that the affluent rich have used for decades.

For decades the service of a structured professionally developed portfolio was available only to a small segment of investors who generally has vast sums of resources and monies to invest. Today that has changed and people with much smaller sums can invest using these same strategies available a few years ago only to the affluent rich.

3. Make a knowledgeable choice: Transaction or Fee Based Investment.

Many people are not even aware of the choice between transaction- based guidance and services and the fee-based benefits to clients.

A sufficient change has started and continuing to grow momentum in the investment advisory field with the fee-based benefits to clients.

The bottom line to the choice is knowledge, the ability to compare to make an educated choice.

4. objective Guidance.

Fee- based wealth management allows you and your financial advisor to sit on the same side of the table. You share a common goal to grow the value of your wealth. Instead of commissions, financial advisors receive a low annual fee, a percentage based on the value of your account. (Nominal transaction costs occur.)

5. Investment Options.

Your portfolio may include mutual funds, stocks or bonds investment goals that can be tailored your specific financial goals. Also, you have the ability to include investments that you already own to take advantage of consolidated reporting.

6. Simplicity.

The simplicity of one account with one fee and one financial advisor to help guide you according to your specific needs and risk tolerance is a huge benefit to many fee-based investors.

7. Liquidity.

With the fee- based strategy the monies are available for liquidation and to be sent to you for your needs, unless the account is a retirement account such as an IRA, Qualified Plan, or other tax-deferred account.

8. Broker Check List

Below are several questions, which will as you read them, give you an idea of how your current broker is doing and help you compare your current situation to a possible fee-based arrangement.

  • Does your broker call to re-allocate or offer a different investment or strategy?
  • Does your broker call to discuss the new investments and their potential impact on your portfolio?
  • Does your broker schedule review appointments or phone appointments?
  • Do great periods of time go by before hearing form your financial advisor?
  • Would you like to understand your investments better and do you still feel this way after an appointment?

Fee based investing is a strategy which many people are taking advantage of and learning of the benefits.

Arm yourself with the knowledge of how fee- base accounts work as well as how it would affect you with your particular set of circumstance.

Securities and fee-based accounts offered through LPL Financial, a registered Investment  Advisor. Member FINRA/SIPC


Overview of Investment Account Options Available When Working With Stan

Many different types of accounts for an individual are available.  Below I describe three main types that I offer and that satisfy the vast majority of investors needs.  The three types of account are LPL Financial Brokerage Account, Direct Investment Account and a Fee Base Account.

The LPL Financial Brokerage Account has a great deal of flexibility, with the ability to have checks to write against the account, a debit card as well, which provides for cash management.  The types of assets in a brokerage account that can be held is almost unlimited.  Traditionally stocks are held in a brokerage account.  CDs can be purchased as well and be held in a brokerage account with LPL Financial. This is just a very broad overview of a brokerage account but a brokerage account does incur commissions when stocks and other assets held in it are bought or sold.  The overall advantage of a brokerage account is the flexibility and many options available to an investor.

A direct investment account through LPL Financial is with one individual family of products.  You would then get statements from the investment sponsor and not LPL Financial.  You would have only the choices of that particular family of products, it offers less flexibility with check writing and cash management but all of the investments are consolidated.  This serves the purpose of many different types of accounts, primarily long-term investment holidays and long-term investment strategy.

The LPL Financial fee based account is very similar to a brokerage account but there are no commissions paid for the buying and selling of different investments and individual stocks and bonds.   The advantage with this account is that a fee for service is paid to the financial advisor instead of commissions.

The advantage of the fee based account is that many different types of investments can be purchased from different families of products and an advisory relationship is established for the management of the accounts.

All of these accounts can be registered as a individual retirement account, Roth individual retirement account, joint account, individual account with transfer of death provision, and many other types of registrations.  Each account has a unique registration requirement that the client and I determine to be appropriate for their particular needs.

It is important to always differentiate between the investment account and the registration to make sure that the needs and requirements are met for the investing client.