In financial and investment organizations an investment advisory is a unit that links investment professionals working in central asset management department to managers of or important clients themselves that need help with asset management.
Investment advisors break down investment ideas put forward by experts and explain it to their clients both internal or external. They also propose adequate investment solutions. Investment advisors must also identify the clients or their organization’s relationship managers’ needs and wishes and take them to their company’s central asset management unit.
In the United States all investment advisors are required to be registered with the Securities and Exchange Commission. According to the Investment Advisors Act of 1940, an investment advisor is a person or group that charges a fee for investment recommendations or securities analysis whether it is done through direct management of a client’s assets or using written publications.
They are also called financial advisors. When an investment advisor has enough assets for Securities and Exchange Commission registration, they as the referred to as Registered Investment Advisors or RIAs. A group of investment advisors working together for an organization make up an investment advisory.
Investment advisors are often given some level of discretionary authority. This allows them to take action on behalf of their clients without obtaining formal permission before executing said action.
However, in order to do so the client must have formally provided discretionary authority as part of a generally arranged client on-boarding process. Mutual fund companies are usually defined as investment advisors because they receive fees from asset-based compensation. Stockbrokers are not investment advisors.
Investment advisors receive a flat fee for the services they provide or a percentage of assets being managed. Generally investment advisors only earn more money if their recommendations and securities selections increases the clients’ asset base.
According to Wealth Minder, Richard Blair Wealth Solutions, founder of the Austin, Texas-based investment advisory service Wealth Solutions, is a well-respected, highly successful investment advisor. A graduate of the University of Houston with a Bachelor’s degree in Finance, Blair has been registered with the SEC for 22 years.
His company has assets in excess of $55 million. Blair is Wealth Solutions, Inc.’s sole owner. His company provides advisor services as well as financial planning for high net worth individuals.
His company assists clients with the creation of comprehensive, all-inclusive financial plans designed to help them to attain their long-term and retirement goals by offering unbiased, objective, well-researched advice.