Independent Salt Lake City Financial Advisor Communicates Difference Between Broker/Dealer and RIA

PRLog (Press Release) - Aug 27, 2009 -
Survey results indicate 76% of Americans do not know the difference between a broker/dealer and a Registered Investment Advisor. People in the financial business currently have the freedom to call themselves whatever they like: “financial advisor,” “financial planner,” or “financial consultant” are all popular. Unfortunately, none of these terms express exactly what the individual is paid to do.

A “broker/dealer representative” is a salesman of stocks, bonds and mutual funds. Many times they are also involved with the sale of insurance and annuity products (all for commissions). “Insurance agents” represent the interests of one or more insurance companies and only get paid when they sell a policy.

Fee-only Registered Investment Advisors do not sell products. They work for their clients and are only compensated by their clients in exchange for professional advice. Thus, a fee-only planner’s compensation encourages objective advice and behavior that is always in the client’s best interest. These individuals are true “financial advisors.” Fee-only Registered Investment Advisors do not collect commissions, so they must continually ensure their clients satisfaction in order to make a profit. These advisors must constantly provide superior service to maintain their client’s business.

To view the entire article visit http://utahfinancialadvisor.blogspot.com/2009/08/what-ar ...

About Mr. Jefferies

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the NY Times and Investment News.

Contact Info

View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://www.networthadvice.com. Lon can be emailed at lon@networthadvice.com, or phoned at (801) 566-0740.