We value the relationships with our clients. We value our clients' privacy. We strive to do what we say we are going to do, when we say we are going to do it. That is how clients build trust with Guidance.
When interviewing potential advisors, ask them: “How are you compensated?”
You want someone who is completely objective and not hampered by conflicts of interest.
In the financial world there are “Agents” (typically insurance products), “Brokers” (Registered Representatives), and “Investment Adviser Representatives” (Advisors or Adviser Representatives). Each is paid differently, and their compensation often determines their behavior. Agents are paid by the company they represent, and typically work for insurance companies selling annuity products for sales commissions. Brokers can represent different types of investments, but they are typically paid with the sales commissions from the investments they select. Therefore, investments which don’t provide any commission may not be offered or even discussed. In both cases, a sales transaction needs to occur in order for an agent or broker to be paid, which can present an immediate opportunity for conflict of interest.
A Registered Investment Adviser (RIA) firm, by law, must act in the best interest of the client at all times, and at the highest level of fiduciary integrity known in our industry. As such, Guidance is willing to act as a fiduciary with our clients as part of our contract. In contrast with the commission sales arrangement, an RIA firm typically works for a scheduled fee structure which is based primarily on the level of assets under management. Guidance operates in this way, which enables us to select virtually any type of investment for our clients, including no-load investments usually not offered by agents or brokers, and without the conflict of interest found in a traditional broker-client arrangement. This type of arrangement allows the adviser to operate with complete objectivity, and provides additional incentive to help the client grow and protect assets.
Does the advisor have to check with "Corporate" before making investment recommendations for your portfolio?
Guidance makes all investment decisions in house, independent of outside influence. We may utilize outside resources for research and analysis, but investment recommendations are made in our office. It is our responsibility to select investments for our clients that meet their stated investment objectives.