Raymond Moatz- The Value of a Financial Advisor's Team

Raymond Moatz-I has been at home in the financial world for many years. During my career, I have learned and watched how to invest money and how to make it yourself. I have observed that people have the greatest problems in understanding economics and money.

 Questions to Ask

The 1st good question to ask a potential broker would be "How are you compensated? Every time they make a recommendation for you they get paid. Some of them are being paid a percentage of assets under management.

You can determine what you are looking for based on what kind of investor you are. you're a purchase -and-hold investor, maybe a commission model makes sense for you because maybe you're only doing two or

three trades a year. you're trading a lot and so you're having a very active relationship with your financial advisor may be the assets under management model makes more sense. In any case, pose the inquiry as a matter of first importance with the goal that you know and it's not questionable.

The subsequent inquiry to pose is "does the money related counsel have a guardian obligation to you."Ask them the exact question because a brokerage industry will take the position that they don't. That's a much lower bar because sometimes an investment could be suitable for you but not necessarily in your perfect interests. So just ask your financial management advisor,

A ton of money related guides out there are kind of autonomous and they have a "working together as" business, wherever their offices are, but they are registered to sell securities through a larger brokerage firm. Find out who that is. Do some research to make sure that you're getting involved with a brokerage firm that has the types of supervision and compliance that you would expect.

There are two types of brokerage firms. There is the Morgan Stanley model where they have a hub of brokers in a major city. Maybe 30-40 brokers in one office. There is a compliance person, there are supervisors, there are operation persons - all in the same localized office. In my experience, you see fewer problems in that type of situation because all the supervisory people are right there.

The Raymond Moatz there is the independent model - it's an advisor in an office someplace and their compliance is in USA City. The supervisor comes to the office once a year and audits the books and reviews the activities of the advisor for the prior year. These visits are usually announced well in advance. Clearly, the supervision in that setting is totally different. What's more, that is the sort of firm where we see more issues.